Chapter 8 (retailing)


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  • Note to Instructors Discussion Question Are there retailers (coffee shops, restaurants) where you tend to hang out with their friends or to sit for a long time? How does the retailer creates this environment? Is it good for the retailer?
  • Chapter 8 (retailing)

    1. 1. Fundamental Of Marketing MKT243 Chapter 8 RetailingDHD 2009 MKT243 Fundamental Of Marketing 1
    2. 2. Slide Outline• Classification of retails operations• Major types of retail operations• Non-store retailing• Franchising• Retail marketing strategy• Trends in retailingDHD 2009 2 MKT243 Fundamental Of Marketing
    3. 3. RetailingRetailing-All activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use.Retailers are businesses whose sales come primarily from retailing DHD 2009 3 MKT243 Fundamental Of Marketing
    4. 4. Classification of Retail OperationsA retail establishment can be classified according to:1. Ownership• Independent retailers-Retailers owned by a single person or partnership, not large retail institution.• Chain stores- Stores owned and operated as a group by a single organization• Franchise-Stores owned and operated by individuals but are licensed by a larger supporting organization2. Level of servicei. Full service operation of an outletii. Self-service operationDHD 2009 4 MKT243 Fundamental Of Marketing
    5. 5. Classification of Retail Operations3. Product Assortment Number of product lines and product items offered by the retailer.4. Price Depends on the gross margin which is the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted.DHD 2009 5 MKT243 Fundamental Of Marketing
    6. 6. Major Store Retailer TypesDHD 2009 6 MKT243 Fundamental Of Marketing
    7. 7. Cont…• Drugstore A retail store that stocks pharmacy-related products and services as its main draw• Restaurant Sell food and drink and also provide valuable service for consumers in the form of preparation of the food and service.DHD 2009 7 MKT243 Fundamental Of Marketing
    8. 8. Non-store Retailing• Def: Shopping without visiting a store Type of Non- Characteristics Examples store Retailing 1. Automatic •The use of machine to •Top-up Vending offer goods for sale e.g. machine soft drinks, candy, snack •Soft drink •Usually found in college machine cafeteria, office building •More convenience and coin-operated machineDHD 2009 8 MKT243 Fundamental Of Marketing
    9. 9. Non-store Retailing Type of Non- Characteristics Examples store Retailing 2. Direct •Sell product door to door, •Electrolux Retailing office to office, or at home •Water filter sales parties •Avon •Selling product through representative 3. Direct •a.k.a direct-response •Nutrilife Marketing marketing •Techniques used to get consumers to make a purchase from their home, office, or other non-retail setting •E.g: direct mail, catalog and mail order, telemarketing.DHD 2009 9 MKT243 Fundamental Of Marketing
    10. 10. Non-store Retailing Type of Non- Characteristics Examples store Retailing 4. Electronic •It includes 24 hour, •Smart shop Retailing shop-at-home TV networks, on-line retailing •Shop-at-home TV network •Online Retailing- •E-bay, shopping available to consumers with access to the internet.DHD 2009 10 MKT243 Fundamental Of Marketing
    11. 11. Franchising• Franchise-is a continuing relationship in which a franchiser grants to a franchisee the business rights to operate or to sell the product• Franchiser-The originator of a trade mark, product, methods of operation and so on, that grants operating rights to another party to sell its productDHD 2009 11 MKT243 Fundamental Of Marketing
    12. 12. Franchising• Franchisee-An individual or business that is granted the right to sell another party’s productExample:McD, Starbuck, Coffeebean,…DHD 2009 12 MKT243 Fundamental Of Marketing
    13. 13. Basic Forms of Franchising Product and Trade Name Product and Trade Name Franchising Franchising Business Format Business Format Franchising FranchisingDHD 2009 13 MKT243 Fundamental Of Marketing
    14. 14. Retail Marketing StrategyThe key task:1. Defining the target market Who is the target market?2. Choosing the Retailing MixDHD 2009 14 MKT243 Fundamental Of Marketing
    15. 15. Retailing MixDHD 2009 15 MKT243 Fundamental Of Marketing
    16. 16. 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 factors6 DHD 2009 16 MKT243 Fundamental Of Marketing
    17. 17. Trends in Retailing1. Entertainment2. Convenience and Efficiency3. Customer Management4. M-commenceDHD 2009 17 MKT243 Fundamental Of Marketing
    18. 18. Retailing The Future of RetailingRetailers have to consider: – Non-store retailing – Retail convergence – Megaretailers – Retail technology – Global expansion – Retail stores as communitiesDHD 2009 18 MKT243 Fundamental Of Marketing
    19. 19. WholesalingWholesaling includes all activities involved in selling goods and services to those buying for resale or business use DHD 2009 19 MKT243 Fundamental Of Marketing