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Ch.14
 

Ch.14

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    Ch.14 Ch.14 Presentation Transcript

    • Retailers, Wholesalers, & Direct MarketingIntro to MarketingChapter 14
    • Evolution of Retailing
      Trading Posts
      General Stores
      Super Markets- 1930’s
      Discount Stores- 1950’s
      Convenience Food Stores- 1960’s
      Off Price Retailers- 1980’s to 1990’s
      Internet Retailing
    • Wheel of Retailing
      A new type of retailer gains a competitive foothold by offering customers lower prices than current outlets charge, maintaining profits by eliminating services.
      Once established this retailer adds more services and it’s prices rise. Another new retailer comes in with lower prices.
    • Retailing Strategy
      A retailer bases it’s decisions on:
      1)Selecting a target market
      2)Developing a marketing
      strategy which specifies:
      Merchandising Strategy
      Customer Service Strategy
      Pricing Strategy
      Location/Distribution Strategy
      Promotion Strategy
      Store Atmospherics
      Targeting Women Shoppers
    • Selecting a Target Market
      Influenced by:
      Size of Market
      Profit Potential
      Demographics or Other Segmentation
    • Merchandising Strategy
      Guides the decision on which items to offer
      Category Management
      Shelf Space
    • Customer Service Strategy
      To attract & retain customers
      Gift wrapping, alterations, returns, bridal registries, delivery, installation, electronic shopping, childcare, lounges, coffee, etc.
    • Pricing Strategy
      Markup
      Amount that a retailer adds to a products cost to set the final selling price
      Higher markup if more services are offered
      Inventory turnover rate
      Markdown
    • Location-Distribution Strategy
      Location decision depends on:
      • Type of merchandise
      • Financial resource
      • Characteristics of the target market
      • Site availability
    • Location-Distribution Strategy
      Planned shopping center: A group of retail stores planned, coordinated, and marketed as a single unit
      Five types:
      Neighborhood
      Community
      Regional
      Power Center
      Lifestyle Center
      © PhotoDisc
    • Promotional Strategy
      Location
      In-store merchandising
      Point of purchase displays
      Customer traffic patterns
      • Sales clerks
      • Suggestion selling
      • Uniforms, product knowledge
    • Combining Shopping with Entertainment
    • The Disney StoreThe Disney Store Expands from Shopping Centers to Airport Locations
      Copyright © 2001 by Harcourt, Inc. All rights reserved.
    • Store Atmospherics
      Physical characteristics & amenities that contribute to the store’s image.
      Exterior appearance
      Window display, signs, architecture
      Interior Layout
      Lighting, color, scents, sounds,
      Cleanliness, merchandise presentation
    • Retailers Classified by Form of Ownership
      Chain Stores
      Volume purchasing allows lower prices than independent stores
      Name recognition
      Independent Retailers
      Personalized service
    • Classification by Shopping Effort
      Convenience
      Accessible location, close parking
      Long rows
      Rapid checkout
      Shopping
      Consumers compare prices, assortment
      Specialty
      Defined product lines
      Consumers expend considerable effort
    • Classification by Services Provided
      Self service
      -Target
      Self Selection
      - Kroger grocery stores
      Full- Service
      - Saks Fifth Avenue
    • Classification by Product Line
      Specialty Stores
      One product line with considerable
      Limited Line Retailers
      Few related product lines
      Category killers
      Huge selection & low prices in single product lines
      General Merchandise Retailers
      Variety Stores
      Department stores
      Mass merchandisers
      Discount Houses
      Off Price Retailers
      Hyper Markets & Super Centers
    • Scrambled Merchandising
      • A retailer combines dissimilar product lines in an attempt to boost sales volume
    • Wholesaling Intermediaries
      Creating Utility
      Providing Services
      Buying, selling, storing, transporting, providing marketing information, financing, risk taking
    • Figure 14.1: Transaction Economies through Wholesaling Intermediaries
    • Types of Wholesaling Intermediaries
      Manufacturer Owned
      Sales branches, sales offices, trade fairs, & merchandise marts
      Independent
      Retailer Owned
      eBay Has Expanded the Idea of the Traditional Auction House
    • Direct Marketing
      Direct mail
      Sales letters, brochures, video cassettes, catalogs, CD ROM catalogs.
      Rely on database technology.
      Narrow target market, personalization possible
      Telemarketing
      Direct Selling
      Direct Response
      Catalogs, internet, home shopping channels
      Can orderly mail, phone, computer
      Automatic Merchandising
      Vending machines
      Internet Retailing