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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. PrintempsWhat is the global economic impact of retailing? Slide 17-10

  11. Concept Check 1. When Polo makes shirts cut to a customer’s exact preferences, what utility is provided? A: form utility Slide 17-11

  12. Concept Check 2. Two measures of the impact of retailing in the global economy are ________ and _________________. total sales number of employees Slide 17-12

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

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

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

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

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

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

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

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

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

  22. Concept Check 1. Centralized decision making and purchasing are an advantage of ____ ownership. chain Slide 17-22

  23. Concept Check 2. What are some examples of new forms of self-service retailers? A: Delta Airline’s and the Hilton’sself-service kiosk for customer check-in as well as others. Slide 17-23

  24. Concept Check 3. Would a shop for big men’s clothes carrying pants in sizes 40 to 60 have a broad or deep product line? A: deep product line Slide 17-24

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

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

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

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

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

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

  31. WEB LINK Dress (Your Virtual Model) for Success! Slide 17-31

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

  33. Concept Check 1. Successful catalog retailers often send _______ catalogs to _____ markets identified in their databases. specialty niche Slide 17-33

  34. Concept Check 2. How are retailers increasing consumer interest and involvement in online retailing? A: Retailers have improved the online retailing experience by adding experiential or interactive activities to their websites through virtual models or the ability to customize a purchase. Slide 17-34

  35. Concept Check 3. Where are direct selling retail sales growing? Why? A: Direct-selling retailers are expanding into other global markets due to a lack of effective distribution channels and consumer knowledge about products and brands. Slide 17-35

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

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

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

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

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

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

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

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

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

  45. 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

  46. Mall of AmericaWhat kind of store location or setting? Slide 17-46

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

  48. Concept Check 1. What are the two dimensions of the retail positioning matrix? A: breadth of product line and value added Slide 17-48

  49. Concept Check 2. How does original markup differ from maintained markup? A: The original markup is the difference between retailer cost and initial selling price whereas maintained markup is the difference between the final selling price and retailer cost. Slide 17-49

  50. Concept Check 3. A huge shopping strip with multiple anchor stores is a _____ center. power Slide 17-50