4. The Value of Retailing
• Retailing – includes all activities involved in
selling, renting, and providing goods and service
to ultimate customers for personal, family, or
household use
–Shopping vs buying
–Shopping is not only a way to acquire necessities but
also a social activity and often an adventure
6. The Value of Retailing
• Retailing – includes all activities involved in
selling, renting, and providing goods and service
to ultimate customers for personal, family, or
household use
–Shopping vs buying
–Shopping is not only a way to acquire necessities but
also a social activity and often an adventure
12. “Shopping is looking
around, spending time in
search of choosing how to
spend money. Shopping is
buying something you've
never purchased before.”
Shopping Seth Godin,
December 15 2015
19. Consumer Utilities Offered by Retailing
• These utilities are offered by
most retailers in varying degrees
9
20. Forms of Ownership
• Form of ownership – distinguishes retail
outlets on the basis of whether individuals,
corporate chains, or contractual systems own or
control the outlet
–Independent Retailer
–Corporate Chain
–Contractual System
0
25. “There’s a demographic
profile of a Costco
member that is more
affluent, more college-
educated, higher in
home ownership, with
generally more kids
living at home.”
27. “I should start by saying we’ve
always had a very broad audience.
We’ve pursued that intentionally
because we feel we have a home
furnishing product for virtually
every life stage, income and
demographic….
Bill Agee, Marketing
Director, IKEA U.S.
28. …However, we know that certain
segments will come to us more
easily than others. Certainly, we
recognize the importance of young
families. That is a key customer
group for us. Another big group is
young people who are living away
from home for the first time.”
Bill Agee, Marketing
Director, IKEA U.S.
30. It tries to meet
the clothing needs
of infants, kids,
teenagers, and
baby boomers.
31. ‘The Gap has served up a steady
diet of simple, unobjectionable
casual clothing designed to
appeal to everyone.’
Is this statement correct? Explain.
32. Target Market Selection and Positioning
• Selecting a Target Market
• Retail Positioning
• Shopper Marketing
2
39. ‘The Gap has served up a steady
diet of simple, unobjectionable
casual clothing designed to
appeal to everyone.’
Is this statement correct? Explain.
40. Target Market Selection and Positioning
• Shopper Marketing
–Discipline designed to understand how consumers
behave as shoppers in different channels and formats
–Multichannel practice that makes use of traditional
media, new media, direct marketing, loyalty, trade
promotion, and innumerable other marketing
techniques
0
49. Products and Services
• Self-Service
• Limited Service
• Full Service
9
• Depth of Line
• Breadth of Line
• Scrambled
merchandising
• Planogram
Level of Service Merchandise Mix
Store Atmosphere
50. Retail Pricing
• Must decide on a mark-up
• Markdown – discounting a product
– Timing is important
– Everyday low pricing – eliminates most markdowns
– Off-price retailing – brand-name merchandise (excess
inventory) at lower than regular price; unpredictable
– Shrinkage – breakage and theft of merchandise by
customers and employees
0
55. It’s a hot summer day, and you
want to sell lemonade at the
beach. Unfortunately, the beach
is only 100 metres long, and a
competitor surrounded by
customers is already set up at
the 50-metre line.
57. Lemonade Stand
• Most frequent answer is ‘at the 25M line’
• Confident customers will come, even
from the opposite end of the beach
because your marketing will be better
• Assumed you need a space of your own –
away from competitors
59. ‘Correct’ Answer
•At the 50-metre line, right
next to the competitor’s stand
•That’s where the customers
are, and you can always
compete on price or the taste
of your lemonade
60. A good
location may
let a retailer
succeed even
if its strategy
is mediocre. Is
this true? Give
examples.
61. For the
following types
of products,
how far would
you travel to
reach a store:
• Eggs and milk
• Socks
• Running shoes
• Home theatre
system
89. Online Retailing
• Allows consumers to search for, evaluate, and order
through the Internet
–24-hour access, comparison shopping, and in-home
privacy
–“bricks and clicks”
–Facebook and Twitter influences online buying
• Mobile banking and a cashless future
9
96. Describing the Online Consumer
• 94% of Canadians say they use the
Internet to compare prices
• 60% of Canadians go online to read or
write reviews
6
– Social media recommendations influence
decisions
– Twitter and Facebook followers have greater
impact on buying
– Globally 70% trust online opinions
98. Retailer Usage of the Mobile Channel
• The key is to provide methods to
retain customer interest and loyalty
via a consistent shopping and
branding experience across
channels
8
100. Wholesaling
Merchant
Wholesalers
Full Service
• General
merchandise
• Specialty
merchandise
Limited-
service
• Rack jobbers
• Cash and
carry
• Drop
shippers
• Truck jobbers
Agents and
Brokers
Manufacturer
s’ Agents
Selling Agents
Brokers
Manufacturer’s
Branches and
Offices
Branch Office
Sales office
00
101. What We Have Covered
•Place
•Marketing Channels & Supply Chain
•Retailing
