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Retailing
Objectives:
•
•
•
•
•

Explain the dimensions by which retailers can be classified.
Describe the major types of ...
Theories of Retailing
1.Wheel of Retailing
2.The Retail Accordion
3.Melting Pot Theory
4. Polarization Theory

Chap. 13 Ma...
1 Retailing

All the activities directly
related to the sale of goods
and services to the ultimate
consumer for personal, ...
1 The Role of Retailing

• Retailing is one of the largest
employers
• Industry dominated by a
few giant organizations.

C...
1 Ten Largest U.S. Retailers

Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
2 Classification of Retail Operations
Ownership

Level of Service

Classificatio
n
of
Retail
Establishme
nts
Chap. 13 Mark...
2 Classification of Ownership
Independent
Retailers
Chain Stores

Franchises

Chap. 13 Marketing 7e Lamb Hair McDaniel
©20...
2 Level of Service

Self Service

Factory outlets
Warehouse clubs

Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-We...
Types of Stores and
2
Their Characteristics
Service
Level

Type of Retailer

Assortment

Price

Gross
Margin

Department S...
3 Major Types of Retail Operations
Department Stores
Blockbuster

Specialty Stores
Supermarkets
Drugstores
Convenience Sto...
3 Categories of Discount Stores
Full-Line
Discounters

Categories
of Discount
Stores

Discount Specialty
Stores
Warehouse
...
3 Mass Merchandising
Retailing strategy using
moderate to low prices on
large quantities of
merchandise and lower
service ...
3 Hypermarket and Supercenter

Hypermarket

A large retail store combining
a supermarket and
a full-line discount store.

...
4 Nonstore Retailing
Automatic Vending

Direct Retailing

Major Forms
of
Nonstore
Retailing
Chap. 13 Marketing 7e Lamb Hai...
4 Direct Retailing

NFL.COM

Direct Retailers
sell products:
Home Sales
Parties

Door-to-Door
Office-toOffice

Chap. 13 Ma...
4 Direct Marketing
Direct Mail

Types
of
Direct
Marketing

Catalogs & Mail Order
Telemarketing

Electronic Retailing

Chap...
4 Electronic Retailing

Types
of
Electronic
Retailing

Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western Colleg...
5 Basic Forms of Franchising

Basic Forms
of
Franchising

Product and Trade Name
Franchising

Business Format
Franchising
...
5 Largest U.S. Franchisers

Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
6 Retail Marketing Strategy

Key Tasks
in
Strategic
Retailing

Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Wester...
6 Defining a Target Market
Demographics
STEP 1:
Segment the Market

Geographics
Psychographics

Chap. 13 Marketing 7e Lamb...
6 Choosing the Retailing Mix

Product

Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing

Pr...
6 The Retailing Mix
Product
Personnel

Promotion

Target
Market

Presentation

Place

Price
Chap. 13 Marketing 7e Lamb Hai...
6 Product Offering
The mix of products offered
to the consumer by the
retailer; also called the
product assortment or
merc...
6 Retail Promotion Strategy
Advertising

Public Relations

Retail
Promotion
Strategy
Chap. 13 Marketing 7e Lamb Hair McDan...
Factors to Consider in Site
6
Selection
Economic growth
potential
Area competition

Geography

Chap. 13 Marketing 7e Lamb ...
6 Location Decisions
Freestanding Store
Shopping Center
Tenant
Mall Tenant

Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004...
Shopping Center and Mall
6
Locations
Advantages

• Design attracts
shoppers
• Activities and anchor
stores draw
customers
...
6 Price

Low Price
Good Value

Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing

High Price...
6 Presentation of the Retail Store
Employee Type & Density
Merchandise Type &
Density
Fixture Type & Density

Factors
in
C...
6 Personnel and Customer Service

Trading Up

Two Common
Selling
Techniques
Suggestive Selling

Chap. 13 Marketing 7e Lamb...
7 The Top Ten Global Retailers

Chap. 13 Marketing 7e Lamb Hair McDaniel
©2004 South-Western College Publishing
7 Global Retailing

Reasons for
Global Expansion

Spread of
communication
and mass media

Growth potential in
underserved
...
Factors Used to Analyze
7
Global Retail Markets
Market Size & Economics
Infrastructure & Distribution
Competition
Operatio...
7 Global Retailing
Secure
Domesti
c
Position
LongTerm
Perspect
ive
Consiste
nt
Global
and
Corporat
e
Strategie
Chap. 13 Ma...
8 Trends in Retailing

Entertainment

Trends in
Retailing

Convenience
and Efficiency
Customer Management

Chap. 13 Market...
8 Customer Management Strategies

Customer Relationship
Marketing
Loyalty
Programs

Clienteling

Chap. 13 Marketing 7e Lam...
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Retail 2

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  • 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.
  • Transcript of "Retail 2"

    1. 1. Retailing Objectives: • • • • • 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. 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. 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. 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. 5. 1 Ten Largest U.S. Retailers Chap. 13 Marketing 7e Lamb Hair McDaniel ©2004 South-Western College Publishing
    6. 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. 7. 2 Classification of Ownership Independent Retailers Chain Stores Franchises Chap. 13 Marketing 7e Lamb Hair McDaniel ©2004 South-Western College Publishing
    8. 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. 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. 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. 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. 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. 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. 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. 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. 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
    17. 17. 4 Electronic Retailing Types of Electronic Retailing Chap. 13 Marketing 7e Lamb Hair McDaniel ©2004 South-Western College Publishing Shop-at-Home Networks On-Line Retailing On Line http://www.gap.com http://www.jcrew.com
    18. 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. 19. 5 Largest U.S. Franchisers Chap. 13 Marketing 7e Lamb Hair McDaniel ©2004 South-Western College Publishing
    20. 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. 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. 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. 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. 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. 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. 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. 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. 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. 29. 6 Price Low Price Good Value Chap. 13 Marketing 7e Lamb Hair McDaniel ©2004 South-Western College Publishing High Price Quality Image
    30. 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. 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. 32. 7 The Top Ten Global Retailers Chap. 13 Marketing 7e Lamb Hair McDaniel ©2004 South-Western College Publishing
    33. 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. 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
    35. 35. 7 Global Retailing Secure Domesti c Position LongTerm Perspect ive Consiste nt Global and Corporat e Strategie Chap. 13 Marketing 7e Lamb Hair McDaniel ©2004 South-Western College Publishing s Prerequisites for Going Global On Line http://www.walmartstores.com
    36. 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. 37. 8 Customer Management Strategies Customer Relationship Marketing Loyalty Programs Clienteling Chap. 13 Marketing 7e Lamb Hair McDaniel ©2004 South-Western College Publishing
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