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Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
Types of retailing done
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Types of retailing done

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  • Notes:
    A retail establishment can be classified according to its ownership, level of service, product assortment, and price.
    Retailers use the latter three variables to position themselves in the competitive marketplace. These variables can be combined in several ways to create distinctly different retail operations.
  • Notes:
    Independent retailers are retailers owned by a single person or partnership. Around the world, most retailers are independent.
    Chain stores are owned and operated as a group by a single organization.
    Franchises are owned and operated by individuals, but are licensed by a larger supporting organization.
  • Notes:
    The level of service that retailers provide can be classified along a continuum, from full-service to self-service.
  • 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?
    Notes:
    With the experimentation with alternative formats of retail stores, classification has become more difficult.
    Department stores: carries a wide variety of shopping and specialty goods. Purchases are made within each department.
    Specialty stores: merchandise is tailored to specific target markets. Price is a secondary consideration to consumers.
    Supermarkets: U.S. consumers spend about a tenth of income in supermarkets. Trends: the growth of prepared foods and time-saving products, and the need for convenience.
    Drugstores: stock pharmacy-related products and services.
    Convenience stores: defined as a miniature supermarket, carrying only a limited line of convenience goods.
    Discount stores: a retailer that competes on the basis of low prices, high turnover, and high volume.
    Restaurants: straddle the line between retailing establishments and service establishments.
  • Notes:
    Nonstore retailing is shopping without visiting a store. The major forms are shown here.
  • 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?
  • Notes:
    The retailing mix consists of six P’s:the four P’s of the marketing mix (product, price, promotion, and place), plus presentation and personnel.
  • Notes:
    Exhibit 11.4 shows the retailing mix.
  • Notes:
    The presentation of a retail store helps determine the store’s image and positioning in consumers’ minds. For example, positioning as an upscale store would use a lavish or sophisticated presentation.
    The main element of presentation is atmosphere, with the most influential factors shown on this slide.
    Employee type and density: an employee’s general characteristics such as friendly and knowledgeable, and the number of employees in the selling space.
    Merchandise type and density: the type of merchandise carried and how it is displayed.
    Fixture type and density: elegant, trendy, uncluttered. Technology may be added as a fixture.
    Sound: music at a restaurant or store.
    Odors: smells of pastries in bakeries, fragrances as a key design element.
    Visual factors: colors can create a mood or focus attention.
    4. Retailers are now adding an element of entertainment to their store atmosphere.
  • Transcript

    • 1. RETAILING AND WHOLESALING
    • 2. THE VALUE OF RETAILING Retailing Retailing includes all activities involved in Selling and providing goods and services to ultimate consumers for personal, or household use.
    • 3. CLASSIFYING RETAIL OUTLETS Ownership-place Ownership-place Level of Service-promotion Level of Service-promotion Classification Classification of of Retail Retail Establishments Establishments Product Assortment-product Product Assortment-product Price Price Retailers manipulate their 4 P’s to get the best position in the marketplace– in other words, to create a competitive advantage
    • 4. CLASSIFICATION BY OWNERSHIP Independent Independent Retailers-one store Retailers-one store ownership ownership Chain Stores-many Chain Stores-many stores but only one stores but only one owner owner Franchises-many Franchises-many owners of many owners of many stores stores
    • 5. BASIC FORMS OF FRANCHISING Product and Product and Trade Name Trade Name Franchising Franchising Dealer agrees to sell certain Dealer agrees to sell certain products provided by a products provided by a manufacturer, but can use any sales manufacturer, but can use any sales tactics he chooses. tactics he chooses. Ex-Michelin Tires, Avon Ex-Michelin Tires, Avon Business Business Format Format Franchising Franchising Dealer must sell the franchiser’s Dealer must sell the franchiser’s product in the exact way the product in the exact way the franchiser prescribes. franchiser prescribes. Ex – McDonalds, Wendy's Ex – McDonalds, Wendy's
    • 6. CLASSIFICATION BY LEVEL OF SERVICE Self Service Factory outlets Warehouse clubs Full Service Discount stores Exclusive stores
    • 7. CLASSIFICATION BY PRODUCT OFFERING The mix of products offered to the consumer by the retailer; also called the product assortment Deep & narrow-like Starbucks Or Shallow & broad like Walmart
    • 8. CLASSIFICATION BY PRODUCT OFFERING  Depth of Product Line • Specialty Outlets • Category Killers  Breadth of Product Line • General Merchandise Stores • Scrambled Merchandising Why do this?
    • 9. Breadth versus depth of merchandise lines
    • 10. MAJOR TYPES OF RETAILERS BY PRODUCT OFFERING Department Stores Department Stores Specialty Stores Specialty Stores Supermarkets Supermarkets Drugstores Drugstores Convenience Stores Convenience Stores Discount Stores Discount Stores Restaurants Restaurants
    • 11. NON-STORE RETAILING Automatic Vending Automatic Vending Direct Marketing Direct Marketing Major Forms Major Forms of of Nonstore Nonstore Retailing Retailing Electronic Retailing Electronic Retailing
    • 12. DIRECT MARKETING Direct Direct Marketing needs Marketing needs no personal no personal interaction interaction Direct Mail Direct Mail Catalogs & Mail Order Catalogs & Mail Order Telemarketing Telemarketing
    • 13. CHOOSING THE RETAIL MIX Product Product Choosing the Choosing the Retailing Mix Retailing Mix Place Place Price Price Personnel Personnel Promotion Promotion Presentation Presentation
    • 14. CHOOSING THE RETAIL MIX Product Product Personnel Personnel Promotion Promotion Target Market Presentation Presentation Place Place Price Price
    • 15. PRESENTATION (COMMUNICATION) OF THE RETAIL STORE Employee Type & Density Employee Type & Density Merchandise Type & Density Merchandise Type & Density Fixture Type & Density Fixture Type & Density Factors Factors in in Creating Creating Store’s Store’s Atmosphere Atmosphere Sound Sound Odors Odors Visual Factors Visual Factors
    • 16. PERSONNEL OF THE RETAIL STORE How many How many How knowledgeable How knowledgeable How helpful // invasive How helpful invasive Factors Factors in in Personnel Personnel decisions decisions Fit the image of the product Fit the image of the product Good personal sellers Good personal sellers
    • 17. RETAILING STRATEGY-PRICING  How much mark-up?  Allow for Shrinkage and discounting OR  Use Everyday Low Pricing  Benchmark or Signpost Items – items used by consumers as an index of overall price level of the store I.e. – “How much do they sell T shirts for?”
    • 18. RETAILING STRATEGY - LOCATION  Central Business District • Parasites  Regional Shopping Centers • Anchor Stores  Strip Location Freestanding Freestanding Store Store Shopping Shopping Center Tenant Center Tenant • Destination stores • Power centers  Multichannel Retailers Mall Tenant Mall Tenant
    • 19. FIGURE 14-5 The retail life cycle
    • 20. Scrambled Merchandising Scrambled merchandising involves Scrambled merchandising involves offering several unrelated product lines in offering several unrelated product lines in a single store. a single store.
    • 21. Retailing Mix The retailing mix includes the activities The retailing mix includes the activities related to managing the store and the related to managing the store and the merchandise in the store, which includes merchandise in the store, which includes retail pricing, store location, retail retail pricing, store location, retail communication, and merchandise. communication, and merchandise.
    • 22. Shrinkage Shrinkage is the breakage and theft of Shrinkage is the breakage and theft of merchandise by customers and merchandise by customers and employees. employees.
    • 23. Multichannel Retailers Multichannel retailers utilize and Multichannel retailers utilize and integrate a combination of traditional integrate a combination of traditional store formats and nonstore formats such store formats and nonstore formats such as catalogs, television, and online as catalogs, television, and online retailing. retailing.
    • 24. Retail Life Cycle The retail life cycle is the process of The retail life cycle is the process of growth and decline that retail outlets, like growth and decline that retail outlets, like products, experience, which consists of products, experience, which consists of the early growth, accelerated the early growth, accelerated development, maturity, and decline development, maturity, and decline stages. stages.
    • 25. Parasites Parasite stores do not create their own Parasite stores do not create their own traffic. They make money based on traffic. They make money based on their proximity to things that will draw their proximity to things that will draw foot traffic. (bigger stores, train foot traffic. (bigger stores, train stations, airports, office buildings, etc.) stations, airports, office buildings, etc.)
    • 26. Destination Stores Stores that generate customers from larger Stores that generate customers from larger trading areas than their neighbors or trading areas than their neighbors or competitors. competitors. i.e.-Dunkin’ Donuts: “It’s worth the trip!” i.e.-Dunkin’ Donuts: “It’s worth the trip!”
    • 27. Power Centers Huge shopping strips with multiple Huge shopping strips with multiple anchors and often a supermarket anchors and often a supermarket
    • 28. Anchor Stores A large store, such as a department store A large store, such as a department store or supermarket, that is prominently or supermarket, that is prominently located in a shopping mall to attract located in a shopping mall to attract customers who are then expected to customers who are then expected to patronize the other shops in the mall. patronize the other shops in the mall.

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