1. Fundamental Of
Marketing
MKT243
Chapter 8
Retailing
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2. Slide Outline
• Classification of retails operations
• Major types of retail operations
• Non-store retailing
• Franchising
• Retail marketing strategy
• Trends in retailing
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3. Retailing
Retailing-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
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4. Classification of Retail
Operations
A 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 organization
2. Level of service
i. Full service operation of an outlet
ii. Self-service operation
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5. Classification of Retail
Operations
3. 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.
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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.
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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 machine
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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.
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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 yahoo.shop
consumers with access
to the internet.
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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
product
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12. Franchising
• Franchisee-An individual or business
that is granted the right to sell
another party’s product
Example:
McD, Starbuck, Coffeebean,…
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13. Basic Forms of Franchising
Product and Trade Name
Product and Trade Name
Franchising
Franchising
Business Format
Business Format
Franchising
Franchising
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14. Retail Marketing Strategy
The key task:
1. Defining the target market
Who is the target market?
2. Choosing the Retailing Mix
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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 factors
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17. Trends in Retailing
1. Entertainment
2. Convenience and Efficiency
3. Customer Management
4. M-commence
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18. Retailing
The Future of Retailing
Retailers have to consider:
– Non-store retailing
– Retail convergence
– Megaretailers
– Retail technology
– Global expansion
– Retail stores as communities
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19. Wholesaling
Wholesaling includes all activities involved in selling
goods and services to those buying for resale or
business use
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Editor's Notes
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?
