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Retailing

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Retailing

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  1. Retailing 11 chapter Prepared by Deborah Baker Texas Christian University Chapter 11 Version 3e

  2. Learning Objectives 1. Discuss the importance of retailing in the U.S. economy. 2. Explain the dimensions by which retailers can be classified. 3. Describe the major types of retail operations. 11 chapter Chapter 11 Version 3e

  3. Learning Objectives (continued) 4. Discuss nonstore retailing techniques. 5. Define franchising and describe its two basic forms. 6. List the major tasks involved in developing a retail marketing strategy. 11 chapter Chapter 11 Version 3e

  4. Learning Objectives (continued) 7. Discuss the challenges of expanding retailing operations into global markets. 8. Describe future trends in retailing. 11 chapter Chapter 11 Version 3e

  5. 1 Learning Objective Discuss the importance of retailing in the U.S. economy. Chapter 11 Version 3e

  6. 1 Retailing All the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. Chapter 11 Version 3e

  7. 1 The Role of Retailing • Retailing is one of the largest employers • Retailers ring up almost a third of the U.S. GDP • Industry is dominated by a few giant organizations, such as Wal-Mart Chapter 11 Version 3e

  8. 2 Learning Objective Explain the dimensions by which retailers can be classified. Chapter 11 Version 3e

  9. Classificationof Retail Establishments Ownership Level of Service Product Assortment Price 2 Classification of Retail Operations Chapter 11 Version 3e

  10. Classification of Ownership Independent Retailers Franchises Chain Stores 2 Ownership Chapter 11 Version 3e

  11. Self Service Full Service Factory outlets Warehouse clubs Discount stores Exclusive stores 2 Level of Service Chapter 11 Version 3e

  12. 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 2 Classification Summary Chapter 11 Version 3e

  13. 2 Gross Margin The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted. Chapter 11 Version 3e

  14. 3 Learning Objective Describe the major types of retail operations. Chapter 11 Version 3e

  15. Department Stores Specialty Stores Supermarkets Drugstores Convenience Stores Discount Stores Restaurants 3 Major Types of Retail Operations Chapter 11 Version 3e

  16. 3 Scrambled Merchandising The tendency to offer a wide variety of nontraditional goods and services under one roof. Chapter 11 Version 3e

  17. Full-LineDiscounters Categories of Discount Stores Discount Specialty Stores WarehouseClubs Off-PriceDiscount Retailers 3 Categories of Discount Stores Chapter 11 Version 3e

  18. 3 Mass Merchandising Retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products. Chapter 11 Version 3e

  19. Hypermarket A large retail store combining a supermarket and a full-line discount store. Supercenter Retail store combining groceriesand general merchandise goods with a wide range of services. 3 Hypermarket and Supercenter Chapter 11 Version 3e

  20. 4 Learning Objective Discuss nonstore retailing techniques. Chapter 11 Version 3e

  21. Major Forms ofNonstore Retailing Automatic Vending Direct Retailing Direct Marketing Electronic Retailing 4 Nonstore Retailing Chapter 11 Version 3e

  22. Direct Retailers sell products: Door-to-Door Home Sales Parties Office-to-Office 4 Direct Retailing Chapter 11 Version 3e

  23. Direct Mail Types of DirectMarketing Catalogs & Mail Order Telemarketing Electronic Retailing 4 Direct Marketing Chapter 11 Version 3e

  24. 4 Electronic Retailing Types of Electronic Retailing Shop-at-Home Networks On-Line Retailing Chapter 11 Version 3e

  25. 5 Learning Objective Define franchising and describe its two basic forms. Chapter 11 Version 3e

  26. Basic Formsof Franchising Product and Trade Name Franchising Business FormatFranchising 5 Basic Forms of Franchising Chapter 11 Version 3e

  27. Product and Trade Name Franchising Dealer agrees to sell certain products provided by a manufacturer or wholesaler. Business Format Franchising An ongoing business relationship between a franchiser and a franchisee. 5 Basic Forms of Franchising Chapter 11 Version 3e

  28. 6 Learning Objective List the major tasks involved in developing a retail marketing strategy. Chapter 11 Version 3e

  29. 6 Retail Marketing Strategy Key Tasks in StrategicRetailing Define & Select a Target Market Develop the “Six P’s” Chapter 11 Version 3e

  30. Demographics STEP 1: Segment the Market Geographics Psychographics 6 Defining a Target Market Chapter 11 Version 3e

  31. Product Place Price Personnel Promotion Presentation 6 Choosing the Retailing Mix STEP 2: Choose the Retailing Mix Chapter 11 Version 3e

  32. Product Personnel Promotion TargetMarket Presentation Place Price 6 The Retailing Mix Chapter 11 Version 3e

  33. 6 Product Offering The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix. Chapter 11 Version 3e

  34. Retail Promotion Strategy Advertising Public Relations Publicity Sales Promotion 6 Retail Promotion Strategy Chapter 11 Version 3e

  35. 6 The Proper Location • Large, long-term commitment of resources • Location will affect future growth • Local environment may change over time Chapter 11 Version 3e

  36. Location Decisions Freestanding Store Mall Shopping Center 6 Location Chapter 11 Version 3e

  37. 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 6 Shopping Center and MallLocations Chapter 11 Version 3e

  38. Low Price High Price Good Value 6 Price Quality Image Chapter 11 Version 3e

  39. Factors in Creation of a Store’s Atmosphere Employee Type & Density Merchandise Type & Density Fixture Type & Density Sound Odors Visual Factors 6 Presentation of the Retail Store Chapter 11 Version 3e

  40. 6 Personnel and Customer Service Two Common SellingTechniques Trading Up Suggestive Selling Chapter 11 Version 3e

  41. 7 Learning Objective Discuss the challenges of expanding retailing operations into global markets. Chapter 11 Version 3e

  42. Reasons for Global Expansion Spread of communication and mass media Growth potential in underserved markets Lowering of trade barriers and tariffs 7 Global Retailing Chapter 11 Version 3e

  43. 7 Global Retailing Market Size & Economics Factors Used to Analyze Global Retail Markets Infrastructure & Distribution Competition Operations Financial & Tax Reporting Merchandise Acceptability Partnering Capability Chapter 11 Version 3e

  44. Secure DomesticPosition Long-TermPerspective Prerequisites forGoing Global Consistent Global andCorporateStrategies 7 Global Retailing Chapter 11 Version 3e

  45. 8 Learning Objective Describe future trends in retailing. Chapter 11 Version 3e

  46. Entertainment Convenience and Efficiency Trends in Retailing Customer Management 8 Trends in Retailing Chapter 11 Version 3e

  47. Customer Management Strategies Customer Relationship Marketing Clienteling Loyalty Programs 8 Customer Management Chapter 11 Version 3e