Ret. Mgt. Week 3 - A Welcome!  #newsworthy JC Penney Thanksgiving Day Closures Barnes&Nable Mattress Form (Disruption) Cool new juicing biz! #gratitude “Cultivate the habit of being grateful for every good thing that comes to you, and to give thanks continuously. And because all things have contributed to your advancement, you should include all things in your gratitude.” ― Ralph Waldo Emerson Strategy Mix (p. 111) A “firm may be characterized by its strategy mix, the firm’s particular combination of store location, operating procedures, goods/services offered, pricing tactics, store atmosphere and customer services, and promotional methods.” Note: It might be nice seeing some of these highlighted in your Final Project/Presentation. Just a friendly heads-up.  Distination Retailing (p. 111) Are folks going out of their way to hit up your retail firm? Do they view you are both distinctive, worthwhile, and as such would they be willing to, say, go the extra mile? Ways of Being a Destination Retailer: (p. 111) Be price-oriented (not Whole Foods of 2015) Be upscale #qualitymatters Be convenient #access #access #access Offer variety for the sake of comparison - Warning: #paradoxofchoice Offer superior customer service Be innovative (show Ashland Co-op Instagram) WHEEL OF RETAILING (p. 111-112) “According to the Wheel of Retailing theory, retail innovations often first appear as low-price operators with low costs and low profit margin requirements. Over time, the innovators upgrade the products they carry to improve their facilities and customer service (by adding better-quality items, locating in higher-rent sites, providing credit and delivery, and so on), and prices rise.” (Ex: See: Figure 5-1 on pg. 112) #GETLOW SCRAMBLED MERCHANIDIZING (p. 113) “Scrambled merchandizing occurs when a retailer adds goods and services that may be unrelated to each other and to the firm’s original business.” Increasing a variety of inventory is the name of the game here. “Scrambled merchandizing is popular for many reasons: Retailers want to increase overall revenues; fast selling, highly profitable goods and services are usually the ones added; consumers make more impulse purchases; people like one-stop shopping; different target markets may be reached; and the impact of seasonality and competition is reduced.” It is also “contagious. Drugstores, bookstores, florists, kitchenware stores and gift shops are all affected by supermarkets’ scrambled merchandizing.” [Think: Safeway, Albertsons, and now... Target] RETAIL LIFE CYCLE (p. 114) It “states that retail institutions—like the goods and services they sell pass through identifiable life stages: introduction (early growth), growth (accelerated development), maturity, and decline.” (See: Figure 5-4, p. 115) Flash Sales (p. 114) “One retail format in the innovation stage is the online flash-sale retail Web site. Many flash-sale Web sites specialize in selling few items i.

1. Ret. Mgt.
Week 3 - A
#newsworthy
JC Penney
Thanksgiving Day Closures
Barnes&Nable
Mattress Form (Disruption)
Cool new juicing biz!
#gratitude
“Cultivate the habit of being grateful for every good thing that
comes to you, and to give thanks continuously. And because all
things have contributed to your advancement, you should
include all things in your gratitude.”
― Ralph Waldo Emerson
Strategy Mix (p. 111)
A “firm may be characterized by its strategy mix, the firm’s
particular combination of store location, operating procedures,
goods/services offered, pricing tactics, store atmosphere and
customer services, and promotional methods.”
Note: It might be nice seeing some of these highlighted in your
Final Project/Presentation. Just a friendly heads-

2. Distination Retailing (p. 111)
Are folks going out of their way to hit up your retail firm?
Do they view you are both distinctive, worthwhile, and as such
would they be willing to, say, go the extra mile?
Ways of Being a Destination Retailer: (p.
111)
Be price-oriented (not Whole Foods of 2015)
Be upscale #qualitymatters
Be convenient #access #access #access
Offer variety for the sake of comparison
- Warning: #paradoxofchoice
Offer superior customer service
Be innovative (show Ashland Co-op Instagram)
WHEEL OF RETAILING (p. 111-112)
“According to the Wheel of Retailing theory, retail innovations
often first appear as low-price operators with low costs and low
profit margin requirements. Over time, the innovators upgrade
the products they carry to improve their facilities and customer
service (by adding better-quality items, locating in higher-rent
sites, providing credit and delivery, and so on), and prices rise.”
(Ex: See: Figure 5-1 on pg. 112)
#GETLOW

3. SCRAMBLED MERCHANIDIZING (p. 113)
“Scrambled merchandizing occurs when a retailer adds goods
and services that may be unrelated to each other and to the
firm’s original business.”
Increasing a variety of inventory is the name of the game here.
“Scrambled merchandizing is popular for many reasons:
Retailers want to increase overall revenues; fast selling, highly
profitable goods and services are usually the ones added;
consumers make more impulse purchases; people like one-stop
shopping; different target markets may be reached; and the
impact of seasonality and competition is reduced.”
It is also “contagious. Drugstores, bookstores, florists,
kitchenware stores and gift shops are all affected by
supermarkets’ scrambled merchandizing.” [Think: Safeway,
Albertsons, and now... Target]
RETAIL LIFE CYCLE (p. 114)
It “states that retail institutions—like the goods and services
they sell pass through identifiable life stages: introduction
(early growth), growth (accelerated development), maturity, and
decline.” (See: Figure 5-4, p. 115)
Flash Sales (p. 114)
“One retail format in the innovation stage is the online flash-
sale retail Web site. Many flash-sale Web sites specialize in
selling few items in limited sizes and colors of high-end brand
apparel
Ex: gearbust.com
Ex: lightinthebox.com

4. Cp. Amazon Prime Day
Mergers, Diversification, and Downsizing (p. 116-117)
“Mergers involve the combination of separately owned retail
firms. Some mergers take place between retailers of different
types (cp. Michael Kors & Gianni Versace (2018); American
Online & Time Warner (2000); AT&T & Bell South (2006); and
Exxon & Mobile (1999))
See also: https://www.cbinsights.com/research/consumer-tech-
acquisition-merger-deals/
Food Oriented Retailers (p. 119)
“A convenience store is typically a well-located, food oriented
retailer that is open long hours and carries a moderate number
of items. The store facility is small (only a fraction of the size
of a conventional supermarket) and has average to above-
average prices and average atmosphere and customer services.”
154k @U.S.
Annual Sales = $233 billion
See: https://www.convenience.org/Media/Press-
Releases/2017/PR040517#.W7oYfRNKjSA
Conenience cont... (p. 119)
“The convenience store industry does have problems: Some
areas a saturated with stores; some stores have become too big,
making shopping less convenient; supermarkets now offer
longer hours and more nonfood items; a decrease in tobacco

5. purchasing, which is a big sales category; and some chains have
had financial woes.”
Conventional Supermarkets (p. 120)
“A conventional supermarket is a departmentalized food store
with a wide range of food and related products; sales of general
merchandise are rather limited.”
“This institution started more than 86 years ago when it was
recognized that large-scale operations would let a retailer
combine volume sales, self service, and low prices.”
“Doe several decades, overall supermarket sales have been
about 70 to 75 percent of the U.S. market.”
#toptwentylist
<group>
Combination Stores (p. 121)
“A combination store unites supermarket and general
merchandise in one facility, with general merchandise
accounting for 25 to 40 percent of sales.” #fredmeyer #meijer
Began in the “1960s and early 1970s...” in response to a
growing demand for one-stop shopping and “integrating
operations under one management” (p. 121).
Supercenters)
and Idiocracy
Image Link:
http://uncyclopedia.wikia.com/wiki/File:Idiocracy_costco.jpg

6. Box [Limited Line] Stores (p. 121)
“The box (limited-line) store is a food based discounter that
focuses on a small selection of items, moderate hours of
operation (compared with other supermarkets), few services,
and limited manufacturer brands.” #aldi
Warehouse Stores
“A warehouse store is a food-based discounter that offers a
moderate number of food items in a no-frills setting. It appeals
to one-stop food shoppers, concentrates on special purchases of
popular brands, uses cut-case displays, offers little service,
posts prices on shelves and locates in secondary sites.”
#groceryoutlet
Origins: 1970s
Annual Sales = Over $70 billion
Traditional Dept. Store
“A department store is a large retail unit with an extensive
assortment (width and depth) of goods and services that is
organized into separate departments for purposes of buying,
promotion, customer service, and control.”
#Saks5thAvenus
#Macy’s
#Sears
#JCPenney

7. Variety Store
“A Variety store handles an assortment of inexpensive and
popularly priced goods and services, such as apparel and
accessories, costume jewelry, motions and small wares, candy,
toys, and other items in the price range.”
Marked by “open displays and few sales people.”
“The stores do not carry full product lines, may not be
departmentalized, and do not deliver products.”
#daollarstores #familydollar
Off-Price Chain Stores & Factory Outlet Stores
Off-price Chain Stores (features brand names):
- T.J. Maxx
- Marshals
Factory Outlet Stores (manufacturer owned):
- Coach
- Nike
- Ann Taylor
- Nautica
Source:
https://www.premiumoutlets.com/outlet/philadelphia/about
Membership Clubs (p. 127)
“A membership club (warehouse) straddles the line between
wholesaling and retailing. It appeals to price-conscious
consumers, who must be members to shop there. Some members
are small business owners and employees who pay a
membership to buy merchandise at wholesale prices.”
Source: https://www.costcotravel.com/Info/About-Costco-

8. Travel
Flea (and Antique) Markets
Flea Markets
Fremont Sunday Market in Seattle
Portland Saturday Market (like a flea market, but more)
Source: http://www.city-data.com/articles/Portland-Saturday-
Market-Portland-Oregon.html
Fin.
Retail Management
Week 9- A
News
SEARS
Walmart’s Fun’troller
Champion
Thanksgiving Weekend (deals?)
X’mas Shopping

9. Final Project Presentation Sing-Up
#thanksgiving
Promotion a go-go...
Promotion shapes us. #MLB
Advertising Schmad’vertising... who needs it? VID
Clever Ads @ Play: VID
Retail Promotion
“...for retailers, the main elements of their promotion strategy
our advertising, publicly relations, personal selling, and sales
promotion.”
“Retail promotion includes any communication by a retailer that
informs, persuades, and/or reminds the target market about any
aspect of that firm.”
<GROUP?>
Any adverts resonate? Jingles? Images? Etc.
Advertising
“Advertising is paid, nonpersonal communication transmitted
through out-of-store mass media by an identified sponsor.”
Company Spending on Advertising; Business Insider
Use of Media (p. 467 – see)
TV ads > Daily papers > Weekly papers/shopper papers > Web

10. > Phone directories(?) > Direct mail > Radio > Transit >
Outdoor > Local magazines > Flyers/circulars, Social Media >
Mobile in-app advertising...
ANYTHING ELSE? <group>
Public Relations (p. 470)
“Public relations entails any communication that fosters a
favorable image for the retailer among its public (consumers,
investors, government, Channel members, employees, and the
general public).”
“It may be nonpersonal or personal, paid or nonpaid, in sponsor
controlled or not controlled. Publicity is any nonpersonal form
of public relations whereby messages are transmitted through
mass media, the time or space provided by the media is not pay
for, and there is no identified commercial sponsor.”
Advantages & Disadvantages (p. 471)
cont...
OBJECTIVES: Public relations seeks to accomplish one or more
of these goals:
To increase awareness of the retailer and its strategy mix
To maintain or improve the company image
To show the retailer as a contributor to the community’s quality
of life
To demonstrate innovativeness
To present a favorable message in a highly believable manner
To minimize total promotion costs

11. Personal Selling
“Personal selling involves oral communication with one or more
prospective customers for the purpose of making a sale.
VID: Futurama
Death of a Salesman
<GROUP>
ADVANTAGES & DISADVANTAGES (p. 472)
Selling Functions (addl.)
Sales Promotion
“Sales promotion encompasses the paid communication
activities other than advertising, public relations, and personal
selling that stimulate consumer purchases and dealer
effectiveness.”
“The purpose of a promotional campaign is to build sales in the
short-term—or sometimes as a long-term strategy of constant
promotional pushes to reach sales goals.” #localmatressCo
<GROUP>
Cont... (sales promo goals)
To increase short-term sales volume
To maintain customer loyalty
To emphasize novelty
To compliment other promotion tools
ADVANTAGES & DISADVANTAGES (p. 475)

12. Ethics at Play – Using Promotional Goods (p. 475)
Some retailers purchase goods especially for promotions during
key periods such as pre-Christmas sales, Black Friday, and
cyber Monday. Many shoppers differ purchasing items at other
times, preferring to buy during the special sales—anticipating
that retailers will offer especially attractive prices at this times.
Some retailers feature promotional goods that are especially
produced for these times. For example, although a promotional
good could be produced buy a well respected television
manufacture, it may have a lower resolution monitor and less
powerful speakers. There are advantages to selling promotional
goods for retailers. The goods in naval retailers to achieve High
levels of stored traffic, to generate high inventory turnover on
these goods, and to maintain traditional profit margins. These
goods also provide retailers with an opportunity to trade up
consumers to more costly items.
QUESTION: Discuss the pros and cons the promotional goods
from a consumer perspective? <GROUP>
Planning a Retail Promotional Strategy (p. 479)
Determining Promotional Objectives:
A retailers broad promotional goals are typically drawn from
this list in developing a promotional strategy, the firm must
determine which of these are most important:
Increase sales
Stimulate impulse and reminder buying

13. Raise customer traffic
Get leads for sales personnel
Present and reinforce the retailer image
Inform customers about goods and services
Popularized new stores and websites
Capitalize on manufacture support
Establishing a Promotional Budget (p. 480)
All-you-can-afford method
Incremental method
Competitive parity method
Percentage-of-sales method
Objective-and-task method
Selecting a Promotional Mix
After a budget is set, the promotional mix is determined: the
retailers combination of advertising, public relations, personal
selling, and sales promotion. Hey firm with A limited budget
may rely on Store displays, website traffic, flyers, targeted
direct mail, and publicity to generate customer traffic.
The promotional mix is affected by the type of retailer involved.
In supermarkets, sampling, frequent shopper promotions, theme
sales, and bonus coupons are among the techniques used most.
Implementing a Promotional Mix
The implementation of the promotional mix involves choosing
which specific media to use (such as newspaper A and
newspaper B), timing, message content, the markup of the sales
force, specific sales promotion tools, and the responsibility for
coordination.

14. Reviewing & Revising a Promotional Plan
And analysis of the success of a promotional plan depends on
its objectives. Revisions should be made if preset goals are not
achieved.
See: Ways to “test the effectiveness of [a] promotional effort,”
on pg. 485...
An Integrated Promotional Approach (p. 482)
In today’s vast multimedia communication environment, two
things are quite clear for retailers. First the message, look,
image, in other communication factors must be consistent and
integrated across all the media platforms that a given retailer
chooses. There cannot be a disconnect; otherwise, Shoppers will
become confused. Second, the effects of different media need to
be carefully monitored. In particular, a retailer cannot ignore
social media; it needs to embrace them and regularly post there.
Word of Mouth

15. Ret. Mgt.
Week 3 - B
Go Raiders!
News:
Buzzfeed Store?
Orange Thoery
Robots are Taking Over
#gratitude

16. 3
Web, Nonstore-Based, and Other Forms of Nontraditional
Retailing
Today’s Agenda: Today we’re going to compare and contrast...
1. Single Channel Retailing
2. Multichannel Retailing
3. Omnichannel Retailing
Single-channel Retailing
Multi-channel Retailing is...
Omnichannel Retailing is...
Ex: Ceasarstone
Direct Marketing

17. Direct sales via a “nonpersonal medium... (direct mail, TV,
radio, magazine, newspaper, computer, tablet, or mobile
device)... By way of “mail, phone, or fax” ordering.
#kinda.old.school
“In the [U.S.], direct-marketing customers are more apt to be
middle class. Mail shoppers are more likely to live in areas
away from malls.” #flyoverstates
Also, located in metro areas folks would prefer not to drive
and/or save time.(cp. QVC, Neiman Marcus, and L.L. Bean)
Advantages and disadvantages (p. 135)
Direct Selling (p. 141-143)
“Direct selling includes both personal contact with consumers
in their homes (and other non-store locations such as offices)
and phone solicitations initiated by a retailer” (p. 141).
#vacumms
#knives
#timeshares
Sales note: Generates $35 billion annually in the U.S. ($185
billion worldwide)
Vending Machines (p. 143-144)
“A vending machine is a cash- or card-operated retailing format
that dispenses goods (such as beverages) and services (such as
electronic arcade games)... [eliminating] the use of sales
personnel and allows 24 hour sales” (p. 143).

18. Japanese Vending Machine Culture
Via: interestingengineering.com
$1.50 hasn’t done so hot. Too much coinage.
Electronic Retailing and the World Wide Web (p. 144-153)
“The Internet [as we know] is a global electronic superhighway
of computer networks that use a common protocol and that are
linked by telecommunications lines and satellites” (p. 144).
Distinctly, the “World Wide Web... is one way to access
information on the internet, whereby people work with easy-to-
use Web addresses (sites) and pages. Users see words, charts,
pictures, and video, and hear audio—which turn their
computers, smartphones, and tablets into interactive multimedia
centers” (Ibid).
Scope of Web Retailing (p. 145)
“The potential for online retailing is enormous...” <GROUP
CAMP HERE>
By the Numbers as of 2016 (Users):
North America = 314 Million
Europe = 604 Million
Asia = 1.6 Billion
Latin American/Caribbean = 344 Million
Africa = 330 Million
Middle East = 123 Million
Note: 90% of U.S. Web users have made at least one online
purchase...”

19. Cont. (p. 145)
“A decade ago, U.S. shoppers generated 75 percent of
worldwide online sales; the amount is now one quarter and
falling—as online sales; the amount is now one-quarter and
falling—as online shopping has grown around the globe.”
“Forrester, a leading research firm, projects that U.S. shoppers
will spend $530.1 billion online by 2020. This represents a 57
percent growth from online sales in 2015.”
Cont. (ibid)
“Despite economic challenges worldwide, global online
revenues have increased steadily to $2.05 trillion in 2015 and
are expected to reach $3.6 trillion in 2019.”
SEE: U.S. DEBT CLOCK
Review Table 6.3 (use projector)
What’s going on on this graph?
What stands out?
Why?
Characteristics of Web Users
(p. 147 and Figure 6.8)
Gender
Age
Community

20. Income
Education
To be continued...