13

Retailing

11/06/13

babasabpatilfreepptmba.com

1
Learning Objectives
1. Discuss the importance of retailing in the
economy
2. Explain the dimensions by which retailers
can...
Learning Objectives (continued)
4. Discuss nonstore retailing techniques
5. Define franchising and describe its
two basic ...
Learning Objective

1
1

1

11/06/13

Discuss the importance of retailing
in the economy

babasabpatilfreepptmba.com

4
Retailing
Retailing
All the activities directly related to
the sale of goods and services to
the ultimate consumer for
per...
The Role of Retailing
 Retailers account for 11.7 percent of U.S.
employment
 Retailing accounts for 13 percent of U.S.
...
Ten Largest Retailers
2004 rank Company

# of stores

1

Wal-Mart

$258.6 billion

4906

2

Home Depot

$64.8 billion

170...
Learning Objective

2
2

2

11/06/13

Explain the dimensions
by which retailers
can be classified

babasabpatilfreepptmba....
Classification of Retail Operations
Ownership
Ownership
Level of Service
Level of Service
Product Assortment
Product Assor...
Classification of Ownership
Independent
Independent
Retailers
Retailers
Chain Stores
Chain Stores

Franchises
Franchises

...
Level of Service

Self Service

Full Service

Factory outlets
Discount stores
Warehouse clubs

2

11/06/13

babasabpatilfr...
Types of Stores and Their
Characteristics
Type of Retailer
Type of Retailer

Service
Service
Level
Level

AssortAssortment...
Gross Margin
Gross Margin
The amount of money the retailer
makes as a percentage of sales
after the cost of goods sold is
...
Learning Objective

3
3

3

11/06/13

Describe the major types
of retail operations

babasabpatilfreepptmba.com

14
Major Types of Retail Operations
Department Stores
Department Stores
Specialty Stores
Specialty Stores
Supermarkets
Superm...
Categories of Discount Stores
Full-Line
Discounters
Specialty Discount
Stores
Warehouse
Clubs
Off-Price
Discount Retailers...
Mass Merchandising
Mass Merchandising
Retailing strategy using moderate
to low prices on large quantities of
merchandise a...
Supercenters and Extreme Value
Retailing
Supercenter
Supercenter

Retail store combining groceries
Retail store combining ...
Learning Objective

4
4

4

11/06/13

Discuss nonstore
retailing techniques

babasabpatilfreepptmba.com

19
Nonstore Retailing
Automatic Vending
Automatic Vending
Direct Retailing
Direct Retailing
Direct Marketing
Direct Marketing...
Direct Retailing
Door-to-Door
Door-to-Door
Direct Retailers
Direct Retailers
sell products:
sell products:

Office-to-Offi...
Types of Direct Marketing
Direct Mail
Direct Mail
Catalogs & Mail Order
Catalogs & Mail Order
Telemarketing
Telemarketing
...
Types of Electronic Retailing
Shop-at-Home Networks
Shop-at-Home Networks

On-Line Retailing
On-Line Retailing

4

11/06/1...
Learning Objective

5
5

5

11/06/13

Define franchising and
describe its two basic forms

babasabpatilfreepptmba.com

24
Basic Forms of Franchising
Product and Trade Name
Product and Trade Name
Franchising
Franchising

Business Format
Business...
Largest U.S. Franchisers
1 McDonald’s
2 Southland (7-Eleven)

7 Tandy (Radio Shack)

3 Subway

8 Jani-King

4 Burger King
...
Basic Forms of Franchising
Product and
Product and
Trade Name
Trade Name
Franchising
Franchising
Business
Business
Format
...
Learning Objective

6
6

6

11/06/13

List the major tasks involved
in developing a retail
marketing strategy

babasabpati...
Retail Marketing Strategy

Define & Select
a Target Market

Develop the
“Six Ps”

6

11/06/13

babasabpatilfreepptmba.com
...
Defining a Target Market
Demographics
Demographics
STEP 1:
STEP 1:
Segment the Market
Segment the Market

Geographics
Geog...
Choosing the Retailing Mix
Product
Product

6

11/06/13

Price
Price

Personnel
Personnel

Promotion
Promotion

STEP 2:
ST...
The Retailing Mix
Product
Product
Personnel
Personnel

Promotion
Promotion

Target
Market

Presentation
Presentation

Plac...
Product Offering
Product Offering
The mix of products offered to the
consumer by the retailer; also
called the product ass...
Retail Promotion Strategy
Advertising
Advertising
Public Relations
Public Relations
Publicity
Publicity
Sales Promotion
Sa...
Factors to Consider in Site Selection
Economic growth
Economic growth
potential
potential
Area competition
Area competitio...
Location Decisions
Freestanding Store
Freestanding Store
Shopping Center Tenant
Shopping Center Tenant
Mall Tenant
Mall Te...
Shopping Center and Mall Locations
Advantages

Disadvantages

• Design attracts shoppers
• Activities and anchor stores
dr...
Price

Low Price

High Price
Quality
Image

Good Value

6

11/06/13

babasabpatilfreepptmba.com

38
Presentation of the Retail Store
Employee type and density
Employee type and density
Merchandise type and density
Merchand...
Personnel and Customer Service
Trading Up
Trading Up
Two Common
Two Common
Selling
Selling
Techniques
Techniques
Suggestio...
Customer Service for On-Line Retailers
Easy-to-use Web site
Easy-to-use Web site
Product availability
Product availability...
Learning Objective

7
7

7

11/06/13

Describe new developments
in retailing

babasabpatilfreepptmba.com

42
New Developments in Retailing
Interactivity
Interactivity

m-Commerce
m-Commerce

7

11/06/13

babasabpatilfreepptmba.com
...
Thank you
6

11/06/13

babasabpatilfreepptmba.com

44
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Retailing of U S A MARKET BY BABASAB PATIL

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Retailing of U S A MARKET BY BABASAB PATIL

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  • Retailing of U S A MARKET BY BABASAB PATIL

    1. 1. 13 Retailing 11/06/13 babasabpatilfreepptmba.com 1
    2. 2. Learning Objectives 1. Discuss the importance of retailing in the economy 2. Explain the dimensions by which retailers can be classified 3. Describe the major types of retail operations 11/06/13 babasabpatilfreepptmba.com 2
    3. 3. Learning Objectives (continued) 4. Discuss nonstore retailing techniques 5. Define franchising and describe its two basic forms 6. List the major tasks involved in developing a retail marketing strategy 7. Describe new developments in retailing 11/06/13 babasabpatilfreepptmba.com 3
    4. 4. Learning Objective 1 1 1 11/06/13 Discuss the importance of retailing in the economy babasabpatilfreepptmba.com 4
    5. 5. Retailing Retailing All the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. 1 11/06/13 babasabpatilfreepptmba.com 5
    6. 6. The Role of Retailing  Retailers account for 11.7 percent of U.S. employment  Retailing accounts for 13 percent of U.S. businesses  Retailers ring nearly 40 percent of the U.S. GDP  Industry is dominated by a few giant organizations, such as Wal-Mart 1 11/06/13 babasabpatilfreepptmba.com 6
    7. 7. Ten Largest Retailers 2004 rank Company # of stores 1 Wal-Mart $258.6 billion 4906 2 Home Depot $64.8 billion 1707 3 Kroger $53.7 billion 3774 4 Target $48.1 billion 1553 5 Costco $42.5 billion 420 6 Sears $41.4 billion 1970 7 Safeway $35.6 billion 1817 8 Albertson’s $35.4 billion 2305 9 Walgreen $32.5 billion 4227 10 1 Revenue Lowe’s $30.8 billion 952 babasabpatilfreepptmba.com 7
    8. 8. Learning Objective 2 2 2 11/06/13 Explain the dimensions by which retailers can be classified babasabpatilfreepptmba.com 8
    9. 9. Classification of Retail Operations Ownership Ownership Level of Service Level of Service Product Assortment Product Assortment Price Price 2 11/06/13 babasabpatilfreepptmba.com 9
    10. 10. Classification of Ownership Independent Independent Retailers Retailers Chain Stores Chain Stores Franchises Franchises 2 11/06/13 babasabpatilfreepptmba.com 10
    11. 11. Level of Service Self Service Full Service Factory outlets Discount stores Warehouse clubs 2 11/06/13 babasabpatilfreepptmba.com Exclusive stores 11
    12. 12. Types of Stores and Their Characteristics Type of Retailer Type of Retailer Service Service Level Level AssortAssortment ment Price Price Gross Gross Margin Margin Department Store Department Store Specialty Store Specialty Store Broad Broad Narrow Narrow Mod-High Mod-High Mod-High Mod-High Mod High Mod High High High Supermarket Supermarket Low Low Broad Broad Moderate Moderate Low Low Convenience Store Convenience Store Low Low Med-Narrow Mod High Med-Narrow High Mod Mod High Mod High Drugstore Drugstore Low-Mod Low-Mod Medium Medium Low Low Full-line Discounter Full-line Discounter Mod-Low Mod-Low Med-Broad Mod Low Med-Broad Mod Low Specialty Discounter Specialty Discounter Mod-Low Mod-Low Med-Broad Mod Lo-low Mod Low Med-Broad Mod Lo-low Mod Low Warehouse Clubs Warehouse Clubs Low Low Broad Broad Off-price Retailer Off-price Retailer Low Low Med-Narrow Low Med-Narrow Low Low Low Restaurant Restaurant 2 Mod Hi-High Mod Hi-High High High Low-High Low-High Med-Narrow Low-High Med-Narrow Low-High Low-High Low-High 11/06/13 babasabpatilfreepptmba.com Moderate Moderate Low-lower Low-lower Mod Low Mod Low Low Low 12
    13. 13. Gross Margin Gross Margin The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted. 2 11/06/13 babasabpatilfreepptmba.com 13
    14. 14. Learning Objective 3 3 3 11/06/13 Describe the major types of retail operations babasabpatilfreepptmba.com 14
    15. 15. Major Types of Retail Operations Department Stores Department Stores Specialty Stores Specialty Stores Supermarkets Supermarkets Drugstores Drugstores Convenience Stores Convenience Stores Discount Stores Discount Stores Restaurants Restaurants 3 11/06/13 babasabpatilfreepptmba.com 15
    16. 16. Categories of Discount Stores Full-Line Discounters Specialty Discount Stores Warehouse Clubs Off-Price Discount Retailers 3 11/06/13 babasabpatilfreepptmba.com 16
    17. 17. Mass Merchandising Mass Merchandising Retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products. 3 11/06/13 babasabpatilfreepptmba.com 17
    18. 18. Supercenters and Extreme Value Retailing Supercenter Supercenter Retail store combining groceries Retail store combining groceries and general merchandise goods and general merchandise goods with a wide range of services. with a wide range of services. Extreme-value Smaller stores with a narrower Extreme-value Smaller stores with a narrower product selection emphasizing daily product selection emphasizing daily necessities at rock bottom prices. necessities at rock bottom prices. 3 11/06/13 babasabpatilfreepptmba.com 18
    19. 19. Learning Objective 4 4 4 11/06/13 Discuss nonstore retailing techniques babasabpatilfreepptmba.com 19
    20. 20. Nonstore Retailing Automatic Vending Automatic Vending Direct Retailing Direct Retailing Direct Marketing Direct Marketing Electronic Retailing Electronic Retailing 4 11/06/13 babasabpatilfreepptmba.com 20
    21. 21. Direct Retailing Door-to-Door Door-to-Door Direct Retailers Direct Retailers sell products: sell products: Office-to-Office Office-to-Office Home Sales Home Sales Parties Parties 4 11/06/13 babasabpatilfreepptmba.com 21
    22. 22. Types of Direct Marketing Direct Mail Direct Mail Catalogs & Mail Order Catalogs & Mail Order Telemarketing Telemarketing Electronic Retailing Electronic Retailing 4 11/06/13 babasabpatilfreepptmba.com 22
    23. 23. Types of Electronic Retailing Shop-at-Home Networks Shop-at-Home Networks On-Line Retailing On-Line Retailing 4 11/06/13 babasabpatilfreepptmba.com 23
    24. 24. Learning Objective 5 5 5 11/06/13 Define franchising and describe its two basic forms babasabpatilfreepptmba.com 24
    25. 25. Basic Forms of Franchising Product and Trade Name Product and Trade Name Franchising Franchising Business Format Business Format Franchising Franchising 5 11/06/13 babasabpatilfreepptmba.com 25
    26. 26. Largest U.S. Franchisers 1 McDonald’s 2 Southland (7-Eleven) 7 Tandy (Radio Shack) 3 Subway 8 Jani-King 4 Burger King 9 Taco Bell 5 KFC 5 6 Pizza Hut 10 Dairy Queen babasabpatilfreepptmba.com 26
    27. 27. Basic Forms of Franchising Product and Product and Trade Name Trade Name Franchising Franchising Business Business Format Format Franchising Franchising 5 11/06/13 Dealer agrees to sell certain Dealer agrees to sell certain products provided by a products provided by a manufacturer or wholesaler. manufacturer or wholesaler. An ongoing business relationship An ongoing business relationship between a franchiser between a franchiser and a franchisee. and a franchisee. babasabpatilfreepptmba.com 27
    28. 28. Learning Objective 6 6 6 11/06/13 List the major tasks involved in developing a retail marketing strategy babasabpatilfreepptmba.com 28
    29. 29. Retail Marketing Strategy Define & Select a Target Market Develop the “Six Ps” 6 11/06/13 babasabpatilfreepptmba.com 29
    30. 30. Defining a Target Market Demographics Demographics STEP 1: STEP 1: Segment the Market Segment the Market Geographics Geographics Psychographics Psychographics 6 11/06/13 babasabpatilfreepptmba.com 30
    31. 31. Choosing the Retailing Mix Product Product 6 11/06/13 Price Price Personnel Personnel Promotion Promotion STEP 2: STEP 2: Choose the Choose the Retailing Mix Retailing Mix Place Place Presentation Presentation babasabpatilfreepptmba.com 31
    32. 32. The Retailing Mix Product Product Personnel Personnel Promotion Promotion Target Market Presentation Presentation Place Place Price Price 6 11/06/13 babasabpatilfreepptmba.com 32
    33. 33. Product Offering Product Offering The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix. 6 11/06/13 babasabpatilfreepptmba.com 33
    34. 34. Retail Promotion Strategy Advertising Advertising Public Relations Public Relations Publicity Publicity Sales Promotion Sales Promotion 6 11/06/13 babasabpatilfreepptmba.com 34
    35. 35. Factors to Consider in Site Selection Economic growth Economic growth potential potential Area competition Area competition Geography Geography 6 11/06/13 babasabpatilfreepptmba.com 35
    36. 36. Location Decisions Freestanding Store Freestanding Store Shopping Center Tenant Shopping Center Tenant Mall Tenant Mall Tenant 6 11/06/13 babasabpatilfreepptmba.com 36
    37. 37. Shopping Center and Mall Locations Advantages Disadvantages • Design attracts shoppers • Activities and anchor stores draw customers • Ample parking • Unified image 6 11/06/13 • • • • • babasabpatilfreepptmba.com Expensive leases Failure of common promotion efforts Lease restrictions Anchor store domination Direct competitors 37
    38. 38. Price Low Price High Price Quality Image Good Value 6 11/06/13 babasabpatilfreepptmba.com 38
    39. 39. Presentation of the Retail Store Employee type and density Employee type and density Merchandise type and density Merchandise type and density Fixture type and density Fixture type and density Sound Sound Odors Odors Visual factors Visual factors 6 11/06/13 babasabpatilfreepptmba.com 39
    40. 40. Personnel and Customer Service Trading Up Trading Up Two Common Two Common Selling Selling Techniques Techniques Suggestion Selling Suggestion Selling 6 11/06/13 babasabpatilfreepptmba.com 40
    41. 41. Customer Service for On-Line Retailers Easy-to-use Web site Easy-to-use Web site Product availability Product availability Simple returns Simple returns 6 11/06/13 babasabpatilfreepptmba.com 41
    42. 42. Learning Objective 7 7 7 11/06/13 Describe new developments in retailing babasabpatilfreepptmba.com 42
    43. 43. New Developments in Retailing Interactivity Interactivity m-Commerce m-Commerce 7 11/06/13 babasabpatilfreepptmba.com 43
    44. 44. Thank you 6 11/06/13 babasabpatilfreepptmba.com 44

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