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Slide 17-1

Slide 17-1. C HAPTER. RETAILING. Slide 17-2. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:. Identify retailers in terms of the utilities they provide. Explain the alternative ways to classify retail outlets. Describe the many methods of nonstore retailing. Slide 17-3.

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Slide 17-1

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  1. Slide 17-1

  2. CHAPTER RETAILING Slide 17-2

  3. AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO: • Identify retailers in terms of the utilities they provide. • Explain the alternative ways to classify retail outlets. • Describe the many methods of nonstore retailing. Slide 17-3

  4. AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO: • Classify retailers in terms of the retail positioning matrix. • Develop retailing mix strategies over the life cycle of a retail store. Slide 17-4

  5. TRADING UP…AT TARGET! Slide 17-5

  6. THE VALUE OF RETAILING • Retailing • Consumer Utilities Offered by Retailing • The Global Impact of Retailing Slide 17-6

  7. FIGURE 17-1 Which company best represents which utilities? Slide 17-7

  8. FIGURE 17-2 Retail sales ($billions), by type of business Slide 17-8

  9. PoloWhat consumer utility is offered? Slide 17-9

  10. CLASSIFYING RETAIL OUTLETS • Form of Ownership • Independent Retailer • Corporate Chain • Contractual Systems • Business-Format Franchises • Product-Distribution Franchises Slide 17-13

  11. MARKETING NEWSNET Say Good-Bye to Bar Codes! Slide 17-14

  12. Radio ShackWhat form of retail ownership? Slide 17-15

  13. FIGURE 17-3 The top five franchises in the United States Slide 17-16

  14. CLASSIFYING RETAIL OUTLETS • Level of Service • Self-Service • Limited Service • Full-Service Slide 17-17

  15. CLASSIFYING RETAIL OUTLETS • Type of Merchandise Line • Depth of Product Line • Specialty Outlets • Category Killers Slide 17-18

  16. FIGURE 17-4 Breadth versus depth of merchandise lines Slide 17-19

  17. CLASSIFYING RETAIL OUTLETS • Merchandise Line • Breadth of Product Line • General Merchandise Stores • Scrambled Merchandising • Hypermarket • Supercenter • Intertype Competition Slide 17-20

  18. FIGURE 17-5 Differences between hypermarkets and supercenters Slide 17-21

  19. NONSTORE RETAILING • Automatic Vending • Direct Mail and Catalogs • Television Home Shopping • Online Retailing • Telemarketing • Do-Not-Call Registry • Direct Selling Slide 17-25

  20. FIGURE 17-6 Forms of nonstore retailing Slide 17-26

  21. Coke Vending MachineWhat are the strengths and weaknessesof this form of nonstore retailing? Slide 17-27

  22. Specialty CatalogsWhat are the strengths and weaknessesof this form of nonstore retailing? Sears L.L. Bean Lilly’s Kids Slide 17-28

  23. QVC Television Home ShoppingWhat are the strengths and weaknessesof this form of nonstore retailing? Slide 17-29

  24. Online RetailingWhat are the strengths and weaknessesof this form of nonstore retailing? Slide 17-30

  25. Internet CafésWhat are the strengths and weaknessesof this form of nonstore retailing? Slide 17-32

  26. RETAILING STRATEGY • Positioning a Retail Store • Retail Positioning Matrix • Breadth of Product Line • Value Added • Keys to Positioning Slide 17-36

  27. FIGURE 17-7 Elements of a retailing strategy Slide 17-37

  28. FIGURE 17-8 Retail positioning matrix Slide 17-38

  29. FIGURE 17-A Implications of the retailing positioning matrix Slide 17-39

  30. ADVERTISEMENT 17-ATiffany: A retailer in the high-value added/narrow line quadrant of the retail positioning matrix Slide 17-40

  31. RETAILING STRATEGY • Retailing Mix • Retail Pricing • Markup • Original Markup • Markup on Selling Price • Markup on Cost • Maintained Markup • Gross Margin • Markdown Slide 17-41

  32. RETAILING STRATEGY • Retailing Mix • Retail Pricing • Everyday Low Pricing • Everyday Fair Pricing • Prices as Benchmarks or Signposts Slide 17-42

  33. RETAILING STRATEGY • Retailing Mix • Retail Pricing • Shrinkage • Off-Price Retailing • Warehouse Club • Outlet Store • Single-Price or Extreme Value Retailers Slide 17-43

  34. ETHICS AND SOCIAL RESPONSIBILITY ALERT Who Takes the Five-Finger Discount? You’ll Be Surprised! Slide 17-44

  35. RETAILING STRATEGY • Retailing Mix • Store Location • Central Business District • Regional Shopping Center • Anchor Stores • Community Shopping Center • Strip Location • Power Center • Carts, Kiosks, and Wall Units Slide 17-45

  36. RETAILING STRATEGY • Retailing Mix • Retail Communication • Image • Atmosphere or Ambiance • Merchandise • Category Management • Consumer Marketing at Retail (CMAR) Slide 17-47

  37. THE CHANGING NATUREOF RETAILING • The Wheel of Retailing • The Retail Life Cycle Slide 17-51

  38. FIGURE 17-9 The wheel of retailing Slide 17-52

  39. FIGURE 17-10 The retail life cycle Slide 17-54

  40. FUTURE CHANGES IN RETAILING • Multichannel Retailing • Multichannel Retailers • The Impact of Technology • Changing Shopping Behavior • Vertical Malls • Co-Branding Slide 17-55

  41. VIDEO CASE 17 Mall of America Slide 17-66

  42. VIDEO CASE 17 Mall of America • 1.Why has Mall of America been such a marketing success so far? Slide 17-67

  43. VIDEO CASE 17 Mall of America • 2.What (a) retail and (b) consumer trends have occurred since Mall of America was opened in 1992 that it should consider when making future plans? Slide 17-68

  44. VIDEO CASE 17 Mall of America • 3.(a) What criteria should Mall of America use in adding new facilities to its complex? (b) Evaluate(i) retail stores, (ii) entertainment offerings, and (iii) hotels on these criteria. Slide 17-69

  45. VIDEO CASE 17 Mall of America • 4.What specific marketing actions would you propose that Mall of America managers take to ensureits continuing success in attracting visitors (a) from the local metropolitan area and (b) from outside of it? Slide 17-70

  46. Retailing Retailing includes all activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use. Slide 17-75

  47. Form of Ownership Form of ownership distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems own the outlet. Slide 17-76

  48. Level of Service Level of service is the degree of service provided to the customer and includeself-, limited-, and full-service retailers. Slide 17-77

  49. Merchandise Line A merchandise line describes how many different types of products a store carries and in what assortment. Slide 17-78

  50. Depth of Product Line Depth of product line means that the store carries a large assortment of each item. Slide 17-79

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