Transcript Chapter 13
Marketing 13
Retailing
RETAILING -- 13
Types
Classification
Non-store retailing
Franchising
Retail Strategy
Global considerations
13.1
RETAILING
DEFINITION (p. 436) To ultimate consumer
Classification based on:
Ownership
Independent; Chain; Franchise
Level of Service
Full/High None
Product Assortment
Specialty vs. Full Line
Price
Retail Discount & Off-Price
13.2
Major Types of Retail
Operations
Department Stores
Organization
National Chain
Federated, Mays, Nordstrom
Declining Growth
& Changing merchandise
13.3
Major Types of Retail
Operations
Specialty stores
Size
Convenience
& Selection
Growth
13.4
Major Types of Retail
Operations
Supermarkets
Spending
60% of food $
One stop shopping
Loyalty programs
Diversify
Scrambled (Wide Variety of Products)
Gas
Ethnic
13.5
Major Types of Retail
Operations
Drugstores
OTC &
+
Convenience store products
Convenience stores
Neighborhood
Convenience items
Restaurants
Chain
Ethnic
Specialty
13.6
Major Types of Retail Operations
Discount stores
Full line discounters
Ltd service; assortment “hard goods” (housewares, toys, auto, hardware,
sports, garden, clothing, bedding…) Wal-Mart
Super centers
Grocery + general merchandise + Services (Rx, dry cleaning, portrait,
photo, hair, optical, restaurant…) Wal-Mart Super Center
Specialty Discount Stores
Nearly complete, single line (sports, electronic, auto, office suppliers).
Category killers
Warehouse/membership clubs
Costco, BJ’s, Sam’s
Off price retailers
TJ Maxx, Ross, Marshall’s, Tuesday Morning
13.7
Non-store Retailing
Automatic Vending
Soft drinks & Snack foods
= 85% of $40 Billion/yr.
Direct Retailing
BA Vending Machines
Avon, Mary Kay, Cutco
Direct Marketing
direct mail, catalogs
Electronic Retailing
QVC, online
13.8
FRANCHISING
Important part of retailing
Product and trade name
Business format
Cost
Risk/Reward
13.9
Retail Marketing Strategy
Marketing
Research
& Analysis
Environmental
Scanning
& Analysis
Service,
Operations &
Channel
Partnerships
Targeting, &
Positioning
Product
Customers
Integrated
Marketing
13.10
Communication
Price
Location
Six P’s of Retailing
Product
Place
Promotion
Price
Presentation
Personnel
RETAIL MIX
Product Offering
Product assortment or Merchandise Mix
Width and depth
Efficient Consumer Response
Need to manage inventory
Electronic Data Interchange
Cut price on slow movers
Private Brands
Kenmore, Craftsman, Die Hard
13.11
RETAIL MIX
Location
Free Standing: Destination Stores
Shopping Center
Neighborhood: AKA Strip Centers
Community: One or two anchors
Regional Malls: ‘nuff said.
Lifestyle Centers: Open air, Yuppified
13.12
RETAIL MIX
Pricing
Key in positioning
Everyday low pricing
13.13
RETAIL MIX
Presentation – Atmosphere
Employees
Merchandise
Fixtures
Sound
Odors
Visuals
13.14
New Developments in Retailing
Interactivity
Increase customer involvement
Entertainment
Guests
Fishing at LL Bean, climbing at REI
M-commerce
Cell phones, PDA
Buy a Coke by phone
EXERCISE
Select a discount retailer and a specialty
retailer. For each describe their retail mix.
Refer to the previous five slides.
13.15