More Related Content More from Amit Fogla (20) 1. Retailing
Objectives:
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Explain the dimensions by which retailers can be classified.
Describe the major types of retail operations.
Discuss nonstore retailing techniques.
Define franchising and describe its two basic forms.
List the major tasks involved in developing a retail marketing
strategy.
• Discuss the challenges of expanding retailing operations into
global markets.
• Describe future trends in retailing.
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
2. Theories of Retailing
1.Wheel of Retailing
2.The Retail Accordion
3.Melting Pot Theory
4. Polarization Theory
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
3. 1 Retailing
All the activities directly
related to the sale of goods
and services to the ultimate
consumer for personal, nonbusiness use.
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
4. 1 The Role of Retailing
• Retailing is one of the largest
employers
• Industry dominated by a
few giant organizations.
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
5. 1 Ten Largest U.S. Retailers
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
6. 2 Classification of Retail Operations
Ownership
Level of Service
Classificatio
n
of
Retail
Establishme
nts
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
Product Assortment
Price
7. 2 Classification of Ownership
Independent
Retailers
Chain Stores
Franchises
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
8. 2 Level of Service
Self Service
Factory outlets
Warehouse clubs
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
Full Service
Discount stores
Exclusive stores
9. Types of Stores and
2
Their Characteristics
Service
Level
Type of Retailer
Assortment
Price
Gross
Margin
Department Store
Mod Hi-High
Broad
Mod-High
Mod High
Specialty Store
High
Narrow
Mod-High
High
Supermarket
Low
Broad
Moderate
Low
Convenience Store
Low
Med-Narrow Mod High
Mod High
Drugstore
Low-Mod
Medium
Moderate
Low
Full-line Discounter
Mod-Low
Med-Broad
Mod Low
Mod Low
Specialty Discounter
Mod-Low
Med-Broad
Mod Lo-low Mod Low
Warehouse Clubs
Low
Broad
Low-lower
Off-price Retailer
Low
Med-Narrow Low
Low
Restaurant
Low-High
Med-Narrow Low-High
Low-High
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
Low
10. 3 Major Types of Retail Operations
Department Stores
Blockbuster
Specialty Stores
Supermarkets
Drugstores
Convenience Stores
Discount Stores
Restaurants
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
On Line
http://www.walgreens.com
11. 3 Categories of Discount Stores
Full-Line
Discounters
Categories
of Discount
Stores
Discount Specialty
Stores
Warehouse
Clubs
Off-Price
Discount Retailers
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
12. 3 Mass Merchandising
Retailing strategy using
moderate to low prices on
large quantities of
merchandise and lower
service to stimulate high
turnover of products.
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
13. 3 Hypermarket and Supercenter
Hypermarket
A large retail store combining
a supermarket and
a full-line discount store.
Supercenter
Retail store combining groceries
and general merchandise goods
with a wide range of services.
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
14. 4 Nonstore Retailing
Automatic Vending
Direct Retailing
Major Forms
of
Nonstore
Retailing
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
Direct Marketing
Electronic Retailing
15. 4 Direct Retailing
NFL.COM
Direct Retailers
sell products:
Home Sales
Parties
Door-to-Door
Office-toOffice
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
16. 4 Direct Marketing
Direct Mail
Types
of
Direct
Marketing
Catalogs & Mail Order
Telemarketing
Electronic Retailing
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
On Line
http://www.avon.com
18. 5 Basic Forms of Franchising
Basic Forms
of
Franchising
Product and Trade Name
Franchising
Business Format
Franchising
On Line
http://www.sylvanlearning.com
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
19. 5 Largest U.S. Franchisers
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
20. 6 Retail Marketing Strategy
Key Tasks
in
Strategic
Retailing
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
Define & Select
a Target Market
Develop the “Six Ps”
21. 6 Defining a Target Market
Demographics
STEP 1:
Segment the Market
Geographics
Psychographics
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
22. 6 Choosing the Retailing Mix
Product
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
Price
Personnel
Promotion
STEP 2:
Choose the
Retailing Mix
Place
Presentation
23. 6 The Retailing Mix
Product
Personnel
Promotion
Target
Market
Presentation
Place
Price
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
24. 6 Product Offering
The mix of products offered
to the consumer by the
retailer; also called the
product assortment or
merchandise mix.
On Line
http://www.kroger.com
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
25. 6 Retail Promotion Strategy
Advertising
Public Relations
Retail
Promotion
Strategy
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
Publicity
Sales Promotion
26. Factors to Consider in Site
6
Selection
Economic growth
potential
Area competition
Geography
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
27. 6 Location Decisions
Freestanding Store
Shopping Center
Tenant
Mall Tenant
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
On Line
http://www.mallofamerica.com
28. Shopping Center and Mall
6
Locations
Advantages
• Design attracts
shoppers
• Activities and anchor
stores draw
customers
• Ample parking
• Unified image
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
Disadvantages
• Expensive leases
• Failure of common
promotion efforts
• Lease restrictions
• Anchor store
domination
• Direct competitors
29. 6 Price
Low Price
Good Value
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
High Price
Quality
Image
30. 6 Presentation of the Retail Store
Employee Type & Density
Merchandise Type &
Density
Fixture Type & Density
Factors
in
Creating
Store’s
Atmosphere
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
Sound
Odors
Visual Factors
31. 6 Personnel and Customer Service
Trading Up
Two Common
Selling
Techniques
Suggestive Selling
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
32. 7 The Top Ten Global Retailers
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
33. 7 Global Retailing
Reasons for
Global Expansion
Spread of
communication
and mass media
Growth potential in
underserved
markets
Lowering of trade
barriers and tariffs
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
34. Factors Used to Analyze
7
Global Retail Markets
Market Size & Economics
Infrastructure & Distribution
Competition
Operations
Financial & Tax Reporting
Merchandise Acceptability
Partnering Capability
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
36. 8 Trends in Retailing
Entertainment
Trends in
Retailing
Convenience
and Efficiency
Customer Management
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
37. 8 Customer Management Strategies
Customer Relationship
Marketing
Loyalty
Programs
Clienteling
Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
Editor's Notes Notes:
Exhibit 13.1 lists the ten largest U.S. retailers.
Notes:
Exhibit 13.2 lists the major types of retail stores and classifies them by level of service, product assortment, price, and gross margin.
On Line: Walgreen’s
Do you think drugstore Web sites add value for the consumer? What services on Walgreens’ site would you be most likely to use? Would Internet selling be a factor in your choice of a pharmacy?
On Line
Avon
What advantages to you think the Avon site has over a visit from an Avon representative? Can you get the same amount of product information from each? Does Avon offer any products that you would prefer to order from a representative?
On Line: The Gap, J. Crew
Do you think that making the transition to successful e-tailing is harder for a retailer that sells primarily through its catalog (like J.Crew) or one that sells primarily through its retail outlets (like The Gap)? Check out the two Web sites and compare how they present their products, their site functionality, and the integration of all their retail venues.
On Line: Sylvan Learning
What do you need to do to become a Sylvan Learning franchiser? Visit the Web page to find out. Does anything surprise you?
Notes:
Exhibit 13.3 shows the largest U.S. franchisers and the initial investment expense.
Notes:
Exhibit 13.4 shows the retailing mix.
On Line
Kroger Company
How extensive are Kroger’s private-label brands? Visit its Web site to find out.
http://www.kroger.com/operations_manufacturing_about.htm
On Line
Mall of America
Does it make sense for a shopping mall to have an Internet site? What would you expect to find there? Go to the Mall of America site and evaluate the on-line shopping opportunities. Search the Web to see if a mall near you has a Web site. If so, where would you shop?
Notes:
Exhibit 13.6 shows the prerequisites required to analyze global markets.
On Line
Wal-Mart
Read Wal-Mart’s 2001 Annual Report. What is “Retailtainment,” and what is its intended goal? Follow the Investor Relations links to the Annual Reports.
