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14. chapter. RETAILING. Prepared by Angela Zigras, Seneca College Deborah Baker, Texas Christian University. You Will Learn To. 1. Discuss the importance of retailing in the Canadian economy. 2. Explain the dimensions by which retailers can be classified.

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  1. 14 chapter RETAILING Prepared by Angela Zigras, Seneca College Deborah Baker, Texas Christian University Chapter 14

  2. You Will Learn To ... 1. Discuss the importance of retailing in the Canadian economy. 2. Explain the dimensions by which retailers can be classified. 3. Describe the major types of retail operations. 4. Discuss nonstore retailing techniques. Chapter 14

  3. You Will Learn To ... 5. Define e-tailing and outline the issues surrounding its use 6. List the major tasks involved in developing a retail marketing strategy. 7. Discuss the challenges of expanding retailing operations into global markets. 8. Describe future trends in retailing. Chapter 14

  4. Retailing All the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. Chapter 14

  5. The Role of Retailing • Retailing is one of the largest employers in Canada. • Retailing represents approximately $250 billion annually to the Canadian economy. • Independent retailers/franchises, account for 75% of Canada’s retail business. Chapter 14

  6. Retail Marketing Strategy Key Tasks in StrategicRetailing Define & Select a Target Market Develop the retailing mix - “Six Ps” Chapter 14

  7. Demographics STEP 1: Segment the Market Geographics Psychographics Defining a Target Market Chapter 14

  8. Retailing Mix The traditional four “Ps” of the marketing mix (product, price, position, place) and, in addition, personnel and presentation. Chapter 14

  9. Product Place Price Personnel Position Presentation Choosing the Retailing Mix STEP 2: Choose the Retailing Mix Chapter 14

  10. Product Offering The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix. Chapter 14

  11. Product Personnel Promotion TargetMarket Presentation Place Price The Retailing Mix Chapter 14

  12. Product Strategy • Retailer must find the right product to satisfy the customer • Retail Buyer negotiates purchase contracts. • Goods must be moved to the seller to retail • Inventory management - hot or slow sellers • Evaluate the process Chapter 14

  13. Managing Inventory Streamlining how products are moved from supplier to distributor to retailer is called Efficient Consumer Response (ECR) At the heart of ECT is Electronic Data Interchange (EDI) EDI is the computer-to-computer exchange of information Chapter 14

  14. Managing Inventory Efficient Consumer Response (ECR) • Products are scanned when purchased at the retail store. • The store’s inventory list is updated. • Headquarter then polls the store to retrieve data required to reorder goods. Chapter 14

  15. Managing Inventory • Vendor confirms the order, shipping date, and delivery time and then ships the order and transmits the invoice electronically. • The item is received at the warehouse, scanned into inventory, and sent to the store. • Invoices are received and data is reconciled • Payment is made electronically and the process is complete. Chapter 14

  16. Enterprise Resource Planning (ERP) Many large companies use ERP solutions • Software programs that integrate • Business operations • Inventory management • Cost-effective and efficient tracking mechanisms. • Improves responsiveness of retailer Chapter 14

  17. Private Label Brands Brands that are designed and developed using the retailer’s name. Chapter 14

  18. Retail Promotion Strategy Advertising Public Relations Publicity Sales Promotion Retail Promotion Strategy Chapter 14

  19. Ownership Classification of Ownership Independent Retailers Franchises Chain Stores Chapter 14

  20. Type of Retailer Service Level Assort- ment Price GrossMargin Mod Hi-High Broad Mod-High Mod High Department Store Specialty Store High Narrow Mod-High High Supermarket Low Broad Moderate Low Convenience Store Low Med-Narrow Mod High Mod High Drugstore Low-Mod Medium Moderate Low Full-line Discounter Mod-Low Med-Broad Mod Low Mod Low Specialty Discounter Mod-Low Med-Broad Mod Lo-low Mod Low Warehouse Clubs Low Broad Low-lower Low Off-price Retailer Low Med-Narrow Low Low Restaurant Low-High Med-Narrow Low-High Low-High Classification Summary Chapter 14

  21. Level of Service Self Service Full Service Factory outlets Warehouse clubs Discount stores Exclusive stores Chapter 14

  22. Gross Margin The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted. Chapter 14

  23. Department Stores Specialty Stores Supermarkets Drugstores Convenience Stores Discount Stores Restaurants Major Types of Retail Operations Chapter 14

  24. Scrambled Merchandising The tendency to offer a wide variety of nontraditional goods and services under one roof. Chapter 14

  25. Categories of Discount Stores Full-LineDiscounters Categories of Discount Stores Discount Specialty Stores WarehouseClubs Off-PriceDiscount Retailers Chapter 14

  26. Mass Merchandising Retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products. Chapter 14

  27. Hypermarket and Supercenter Hypermarket A large retail store combining a supermarket and a full-line discount store. Supercentre Retail store combining groceriesand general merchandise goods with a wide range of services. Chapter 14

  28. Major Forms ofNonstore Retailing Automatic Vending Direct Retailing Direct Marketing Electronic Retailing Nonstore Retailing Chapter 14

  29. Direct Retailing Direct Retailers sell products: Door-to-Door Home Sales Parties Office-to-Office Chapter 14

  30. Direct Mail Types of DirectMarketing Catalogues & Mail Order Telemarketing Electronic Retailing Direct Marketing Chapter 14

  31. On-line Retailing On-Line Retailing On-line Retailing Portal Fulfillment Chapter 14

  32. The Proper Location • Large, long-term commitment of resources • Location will affect future growth • Local environment may change over time Chapter 14

  33. Location Location Decisions Freestanding Store Mall Shopping Centre Chapter 14

  34. Advantages Design attracts shoppers Anchor stores draw customers Ample parking Unified image Disadvantages Expensive leases Failure of common promotion efforts Lease restrictions Anchor store domination Direct competitors Shopping Centre and MallLocations Chapter 14

  35. Factors in Creation of a Store’s Atmosphere Employee Type & Density Merchandise Type & Density Fixture Type & Density Sound Odours Visual Factors Presentation of the Retail Store Chapter 14

  36. Personnel and Customer Service Two Common SellingTechniques Trading Up Suggestive Selling Chapter 14

  37. Global Retailing Market Size & Economics Factors Used to Analyze Global Retail Markets Infrastructure & Distribution Competition Operations Financial & Tax Reporting Merchandise Acceptability Partnering Capability Chapter 14

  38. Trends in Retailing Trends in Retailing Entertainment Convenience and Efficiency Customer Management Chapter 14

  39. Customer Management Customer Management Strategies Customer Relationship Marketing Clienteling Loyalty Programs Chapter 14

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