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  • General Merchandise retailer: Variety of product lines with considerable depth. Dept stores: mid 1800s Wide lines -- at least 25 people. Product lines organized into separate departments. Service-oriented
  • Discount stores: Self-service. Brands and store brands at low prices.
  • Less wide; but deep.
  • Transcript

    • 1. Chapter 13 Retailing
    • 2. Introduction
      • An intermediary involved in selling goods and services to ultimate consumers (examples?)
      Wholesaler Retailer
      • An intermediary that takes title to the goods it handles and redistributes them to retailers, other distributors, and sometimes end consumers
      • Employs 15 million people in the U.S.
      • Accounts for $4.5 trillion to the U.S. economy
      • A retailer develops a marketing strategy based on the firm’s goals and strategic plans
      • Two fundamental steps:
        • Picking a target market: size and profit potential. POSITION.
        • Developing a retailing mix to satisfy the chosen target market
          • 4Ps + Personnel & Presentation used to create a retail image
    • 4. The Retailing Mix Target Market Product Price Place Promotion Personnel Presentation
    • 5. Choosing the Merchandising Mix The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix .
    • 6. Merchandising (Product) Strategy
      • Category management: Retailing strategy which views each product category as an individual profit center.
      • Slotting Allowances: lump-sum payments by manufacturers for stocking new products.
      • Scrambled Merchandising : Combining dissimilar product lines to boost sales volume.
      • Growth of Store brands – Battle for shelf space
    • 7. Presentation of the Retail Store - Atmosphere The overall impression conveyed by a store’s physical layout, décor, and surroundings. Five Senses.
    • 8. Personnel and Customer Service Suggestion Selling Trading Up Two Common Selling Techniques
    • 9. Price Price and payment options : how important? The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted.
    • 10. Classification of Retail by
      • Ownership (independent, franchise chain)
      • Service level (Nordstrom vs. Wal-mart)
      • Assortment (CVS vs. Smith’s)
      • Price (Tiffany vs. jewelry kiosk)
    • 11. Department Stores (1) Assort- ment Price Gross Margin Broad High High Service Level High
    • 12. Specialty Stores (2) Specialty Stores Assort- ment Price Gross Margin Narrow High High Type of Retailer Specialty Store Service Level High
    • 13. Specialty Discount Stores (3) OR Category Killers Specialty Discount Stores Deep Assortment Assort- ment Price Gross Margin Narrow Low Low Type of Retailer Specialty Discount Store Service Level Low
    • 14. Discount Stores (4) Broad Assortment Low price Low margin Discount Low Service Shallow Assortment
    • 15. Off-Price Retailer (5) Narrow Line Prices Low prices Low margins Off-price Retailer Low service
    • 16. Supercenters (6) Broad Moderate prices Low margins Supermarket Low service
    • 17. Supermarkets
        • Large, self-service retailer with grocery specialty
        • Self-scanning trend: what is your take?
        • Competition: fierce, 1% profit on many items
    • 18. Warehouse Clubs
      • Warehouse club / wholesale club (Sam’s, Costco)
        • No frills, members only (why?)
        • Bulk purchases: price competition, homogeneous shopping goods
    • 19. Convenience Stores
      • Convenience products
      • Often with gas stations
        • Convenience stores: fill-in your “regular” shopping
          • Competition (fast food also)
          • 24/7 is more important
          • We pay for the convenience
    • 20. Non-Store Retailing
          • Vending: hi costs; hi prices (flat sales)
          • Vending is a $40 billion U.S. market
          • Cashless vending=wave of future
          • Direct Marketing (Mail, Catalog, Telemarketing)
          • E-tailing (TV shopping, online)
          • M-commerce: buy from mobile devices
          • (e.g., cell phones)
    • 21. Comparison between Discount, Specialty and Specialty Discount Attribute Specialty Specialty Discount Discount Example TCBY Yogurt Toys R us Wal-Mart Service High Low Low Price High Low Low Assortment Narrow Narrow Broad
    • 22. Comparison between Discount, Specialty and Specialty Discount Attribute Specialty Specialty Discount Discount Margin High Low Low
    • 23. Wheel of Retailing
      • Newer, low-price types of retailing arise to challenge older established “bigger” retailers.
    • 24. Wheel of Retailing No Frills Motel Motel + Free Breakfast Motel + Free Breakfast + HBO Motel + Free Breakfast + HBO + Happy Hour New Entrant 1 2 3 4 a theory to explain the institutional changes
    • 25. eTailing and DTC
      • eTail= electronic retail
      • DTC= Direct to consumer
      • Shrinking use of wholesalers? (bypassing wholesalers more and more)
      • eBay: hybrid etailer/online auction site
      • Even sells services online
      • (examples of services
      • on ebay?)
    • 26. eTail
      • More innovative e-tail sites
      • Printing online
      • Nike ID
      • Zappos
    • 27. Future of re[E]tailing