Chapter 15 - Retailing(page 284-290)

Goals of Retailing:

• ____________ cost of selling; make profit

• Offer ______________

• Respond to _______________

How do retailers achieve these goals?

Applications

Type of Retailer (Table 15.1):Specialty store: narrow product line; deep assortment within

that line

Department Store: several product lines (departments) - clothing, home furnishings, household goods;

Convenience Store: located near residential areas; 24/7; limited line of high turnover convenience items at higher prices

Off-price retailer: sold at less than retail; often leftover goods, irregulars; obtained at reduced prices and charged to customers at lower prices

Retailer Marketing Decisions

Target Market: well-defined

Product Assortment and Procurement: product assortment matches target market’s shopping expectations – differentiate from _____________, carry merchandise that no other competitor carries

Target Stores: “upscale discount segment” – female, age 40, college-educated, 50K household income

Retailer Marketing Decisions

Services and Store Atmosphere

Services mix: telephone and mail orders; fitting rooms; gift wrapping

Atmosphere: physical layout; look

Retailer Marketing Decisions

Price Decision

Markup (profit); markdown (slow moving items)

EDLP

Pricing decision must reflect target market, product assortment and procurement, and competition

Retailer Marketing Decisions

Price Decision

Most retailers seek:

1. High mark-up and low volume:

2. Low mark-up and high volume:

Trends in Retailing

1. New retail forms and combinations continually emerge

Traditional malls power centers and on-line shopping

Factory outlet malls upscale, smaller discounts, but more brands

Trends in Retailing

2. Intertype competition: ___________ types of retailers compete for ____ customers by offering same merchandise

EX: CD purchase

Trends in Retailing

3. Growth of giant retailers: Wal-Mart

4. Technology as a competitive tool: produce better forecasts; order electronically from suppliers

5. Global expansion of major retailers: unique formats; strong brand positioning (McDonald’s)

Trends in Retailing

6. Selling an experience: offer fun and community, invite people to congregate

Trends in Retailing

7. Competition between store-based and non-store-based retailing