Transcript RETAILING AND WHOLESALING C HAPTER
C HAPTER
RETAILING AND WHOLESALING
THE VALUE OF RETAILING Retailing Retailing
includes all activities involved in Selling and providing goods and services to ultimate consumers for personal, or household use.
CLASSIFYING RETAIL OUTLETS Ownership-place Classification of Retail Establishments Level of Service-promotion Product Assortment-product Price Retailers manipulate their 4 P’s to get the best position in the marketplace– in other words, to create a competitive advantage
CLASSIFICATION BY OWNERSHIP Independent Retailers-one store ownership Chain Stores-many stores but only one owner Franchises-many owners of many stores
BASIC FORMS OF FRANCHISING Product and Trade Name Franchising Dealer agrees to sell certain products provided by a manufacturer, but can use any sales tactics he chooses. Ex-Michelin Tires, Avon Business Format Franchising Dealer must sell the franchiser’s product in the exact way the franchiser prescribes.
Ex – McDonalds, Wendy's
CLASSIFICATION BY LEVEL OF SERVICE Self Service Full Service Factory outlets Warehouse clubs Discount stores Exclusive stores
CLASSIFICATION BY PRODUCT OFFERING The mix of products offered to the consumer by the retailer; also called the product assortment
Deep & narrow-like Starbucks Or Shallow & broad like Walmart
CLASSIFICATION BY PRODUCT OFFERING
Depth of Product Line
•
Specialty Outlets
•
Category Killers
Breadth of Product Line
•
General Merchandise Stores
Why do this?
Breadth versus depth of merchandise lines
MAJOR TYPES OF RETAILERS BY PRODUCT OFFERING Department Stores Specialty Stores Supermarkets Drugstores Convenience Stores Discount Stores Restaurants
NON-STORE RETAILING Automatic Vending Direct Marketing Major Forms of Nonstore Retailing Electronic Retailing
DIRECT MARKETING Direct Marketing needs no personal interaction Direct Mail Catalogs & Mail Order Telemarketing
CHOOSING THE
Choosing the Retailing Mix Product Price Place Personnel Promotion Presentation
CHOOSING THE RETAIL MIX Product Personnel Promotion Target Market Presentation Place Price
PRESENTATION (COMMUNICATION) OF THE RETAIL STORE Employee Type & Density Merchandise Type & Density Fixture Type & Density Factors in Creating Store’s Atmosphere Sound Odors Visual Factors
PERSONNEL OF THE RETAIL STORE How many How knowledgeable Factors in Personnel decisions How helpful / invasive Fit the image of the product Good personal sellers
RETAILING STRATEGY-PRICING
How much mark-up?
Allow for Shrinkage and discounting OR
Use Everyday Low Pricing
Benchmark or Signpost Items – items used by consumers as an index of overall price level of the store I.e. – “How much do they sell T shirts for?”
RETAILING STRATEGY - LOCATION
Central Business District
Regional Shopping Centers
•
Strip Location
•
•
Freestanding Store Shopping Center Tenant Mall Tenant
FIGURE 14-5
Scrambled Merchandising
Scrambled merchandising
involves offering several unrelated product lines in a single store.
Retailing Mix
The
retailing mix
includes the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise.
Shrinkage
Shrinkage
is the breakage and theft of merchandise by customers and employees.
Multichannel Retailers
Multichannel retailers
utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television, and online retailing.
Retail Life Cycle
The
retail life cycle
is the process of growth and decline that retail outlets, like products, experience, which consists of the early growth, accelerated development, maturity, and decline stages.
Parasites
Parasite stores do not create their own traffic. They make money based on their proximity to things that will draw foot traffic. (bigger stores, train stations, airports, office buildings, etc.)
Destination Stores
Stores that generate customers from larger trading areas than their neighbors or competitors.
i.e.-Dunkin’ Donuts: “It’s worth the trip!”
Power Centers
Huge shopping strips with multiple anchors and often a supermarket
Anchor Stores
A large store, such as a department store or supermarket, that is prominently located in a shopping mall to attract customers who are then expected to patronize the other shops in the mall.