copyright cengage learning 2013 all rights reserved 1 chapter 15: retailing designed & prepared...

Copyright Cengage Learning 2013

All Rights Reserved

1

Chapter 15: Retailing

Designed & Prepared by Laura RushB-books, Ltd.

Introduction to


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Learning Outcomes

Discuss the importance of retailing in the U.S. economy

Explain the dimensions by which retailers can be classified

Describe the major types of retail operations

Discuss nonstore retailing techniques

LO1

LO2

LO3

LO4


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Learning Outcomes

Define franchising and describe its two basic forms

List the major tasks involved in developing a retail marketing strategy

Describe new developments in retailing

LO5

LO6

LO7

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The Role of Retailing

All the activities directly related to the sale of goods and services

to the ultimate consumer for personal, non-business use.


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Classification of Retail Operations

OwnershipOwnership

Level of ServiceLevel of Service

Product AssortmentProduct Assortment

PricePrice


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Classification of Ownership

IndependentRetailers

IndependentRetailers

Chain StoresChain Stores

FranchisesFranchises

Owned by a single person or partnership and not part of a larger retail institution

Owned by a single person or partnership and not part of a larger retail institution

Owned and operated as a group by a single organization

Owned and operated as a group by a single organization

The right to operate a business or sell a productThe right to operate a business or sell a product


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Price

Gross Margin - The amount of money the

retailer makes as a percentage of sales

after the cost of goods sold is subtracted.


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Major Types of Retail Operations

Online

http://www.walgreens.com

Department StoresDepartment Stores

Specialty StoresSpecialty Stores

SupermarketsSupermarkets

DrugstoresDrugstores

Convenience StoresConvenience Stores

Discount StoresDiscount Stores

RestaurantsRestaurants


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http://www.walgreens.com/

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Nonstore Retailing

Automatic VendingAutomatic Vending

Direct RetailingDirect Retailing

Direct MarketingDirect Marketing

M-commerceM-commerce


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Direct Retailing

Online

http://www.avon.com

Door-to-DoorDoor-to-Door

Office-to-OfficeOffice-to-Office

Home SalesParties

Home SalesParties


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http://www.avon.com/

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Types of Direct Marketing

TelemarketingTelemarketing

Catalogs & Mail OrderCatalogs & Mail Order

Direct MailDirect Mail

M-CommerceM-Commerce Shop-at-home networksHandheld devices


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Basic Forms of Franchising

Business FormatFranchising

Business FormatFranchising

Product and Trade Name Franchising

Product and Trade Name Franchising


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Franchising

Product and Trade Name Franchising-dealer agrees to sell in products

provided by a manufacturer orwholesaler.

Business Format Franchising- Anongoing business relationship between

a franchiser and a franchise.


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Retail Marketing Strategy

Develop the “Six Ps”

Define & Select a Target Market


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Defining a Target Market

STEP 1:Define the

Target Market

STEP 1:Define the

Target Market

DemographicsDemographics

GeographicsGeographics

PsychographicsPsychographics


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Choosing the Retailing Mix

STEP 2:Choose the Retailing Mix

STEP 2:Choose the Retailing Mix

ProductProduct

PricePrice

PromotionPromotion

PlacePlace

PersonnelPersonnel

PresentationPresentation

Onlinehttp://www.publix.com


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http://www.publix.com/

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The Proper Location

Economic growth potential

Economic growth potential

CompetitionCompetition

GeographyGeography

Choosing a Community Choosing a Site

Freestanding StoreFreestanding Store

Shopping CenterShopping Center

MallMall


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Important Factors for Site Choice

Neighborhood socioeconomics

Traffic flows

Land costs

Zoning regulations

Public transportation

Site’s visibility, parking, entrances and exits, accessibility, and safety

Fit with other stores


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Shopping Center and Mall Locations

• Design attracts shoppers

• Activities and anchor stores draw customers

• Ample parking

• Can target different demographic groups

• Sharing of common area expenses

Expensive leases

Failure of common promotion efforts

Lease restrictions

Hours of operation

Anchor store domination

Direct competitors

Advantages Disadvantages


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New Developments in Retailing

Interactivity - Consumers areinvolved in the retail experience.

Pop-up Shops - Temporary retailestablishments that provideflexible locations without a

long-term commitment.


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copyright cengage learning 2013 all rights reserved 1 chapter 15: retailing designed & prepared...

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