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Prepared byPrepared by
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Learning Objectives
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1 DiDi th ith i tt ff t ilit ili i thi th 1.
1. Discuss the importance of retailing in the Discuss the importance of retailing in the U.S. economy.
U.S. economy.
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2. Explain the dimensions by which retailers 2. Explain the dimensions by which retailers can be classified.can be classified.
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3. Describe the major types of retail 3. Describe the major types of retail operationsoperations
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operations.operations.2
Learning Objectives (continued)
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4 Di t t ili t h i
4 Di t t ili t h i
4. Discuss nonstore retailing techniques. 4. Discuss nonstore retailing techniques.
5 Define franchising and describe its two 5 Define franchising and describe its two
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5. Define franchising and describe its two 5. Define franchising and describe its two
basic forms. basic forms.
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6. List the major tasks involved in developing 6. List the major tasks involved in developing
a retail marketing strategy. a retail marketing strategy.
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Learning Objectives (continued)
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7 Di th h ll f di
7 Di th h ll f di
7. Discuss the challenges of expanding 7. Discuss the challenges of expanding
retailing operations into global markets. retailing operations into global markets.
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8.8. Describe future trends in retailing.Describe future trends in retailing.p
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Learning Objective
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Discuss the importance
Discuss the importance
Retailing
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All t he act ivit ies direct ly relat ed t o t he sale of
goods and services t o t he ult im at e consum er for personal, non- business
use.
The Role of Retailing
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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
Learning Objective
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Explain the dimensions by
Explain the dimensions by
which retailers can be classified.
which retailers can be classified.
Classification of Retail Operations
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O hi
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Ownership
Level of Service
Classification Classification
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Product Assortment
of of Retail Retail
Establishments Establishments
Price
Ownership
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Cl ifi ti Cl ifi ti
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Classification Classification
of of
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O hi
I d d t
Ownership Ownership
Independent
Retailers Franchises
Chain Stores
Level of Service
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2
Full Service Full Service Self Service
Self Service
Discount stores
Discount stores Exclusive storesExclusive stores Factory outlets
Factory outlets Discount storesDiscount stores Exclusive storesExclusive stores Factory outlets
Classification Summary
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Type of Retailer
Type of Retailer Service Service L l L l
Assort
Assort--tt PricePrice
Gross Gross M i M i Type of Retailer
Type of Retailer
Department Store Specialty Store Level Level Mod Hi-High High ment
ment PricePrice MarginMargin
Broad Narrow Mod-High Mod-High Mod High High Supermarket Convenience Store D t g Low Low
L M d
Broad Med-Narrow M di g Moderate Mod High M d t
g Low Mod High L Drugstore Full-line Discounter Specialty Discounter Low-Mod Mod-Low Mod-Low Medium Med-Broad Med-Broad Moderate Mod Low Mod Lo-low Low Mod Low Mod Low p y Warehouse Clubs Off-price Retailer R t t
Gross Margin
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The am ount of m oney t he ret ailer m akes as a
percent age of sales aft er t he cost of goods sold is
Learning Objective
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Describe the major types
Describe the major types
of retail operations.
of retail operations.
Major Types of Retail Operations
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Department Stores
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Specialty Stores
Supermarkets
Drugstores Drugstores
Convenience Stores
Discount Stores
Categories of Discount Stores
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Full Line
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Full-Line Discounters
Categories Categories of Discount of Discount
Discount Specialty Stores
of Discount of Discount
Stores Stores
Warehouse Clubs
Off-Price
Mass Merchandising
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Ret ailing st rat egy using m oderat e t o low prices on
large quant it ies of
m erchandise and lower service t o st im ulat e high
t urnover of product s. t u o e o p oduct s
Hypermarket and Supercenter
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Hypermarket
A large retail store combining a supermarket and
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a full-line discount store.
Retail store combining groceries
Supercenter
Retail store combining groceries and general merchandise goods
Learning Objective
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Discuss nonstore retailing techniques.
Discuss nonstore retailing techniques.
Nonstore Retailing
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Automatic Vending
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Automatic Vending
Direct Retailing
Major Forms Major Forms
of of
Direct Marketing
of of
Nonstore Nonstore Retailing
Direct Retailing
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Direct Retailers Direct Retailers
sell products: sell products:
D t D Home Sales
Door-to-Door
Offi t Offi
Home Sales Parties
Office-to-Office
Direct Marketing
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Di t M il Direct Mail
Types Types Types Types
Catalogs & Mail Order
Electronic Retailing
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Shop-at-Home Networks
Types
Types p
Types Types
of of
Electronic Electronic
On-Line Retailing
Retailing Retailing
Learning Objective
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Define franchising and
Define franchising and
Basic Forms of Franchising
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Product and Trade Name Franchising
B i F
B i F Franchising
Basic Forms Basic Forms
of of
Franchising Franchising
Business Format Franchising
Franchising Franchising
Basic Forms of Franchising
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Product and Trade Name
Dealer agrees to sell certain
products provided by a manufacturer
Franchising
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or wholesaler.
Business An ongoing business relationship
Business Format Franchising
An ongoing business relationship between a franchiser
Learning Objective
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List the major tasks involved
List the major tasks involved
in developing a retail marketing strategy.
in developing a retail marketing strategy.
in developing a retail marketing strategy.
in developing a retail marketing strategy.
Retail Marketing Strategy
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Define & Select a Target Market
Key Tasks Key Tasks
iiin in
Strategic Strategic Retailing Retailing
Develop the “Six P’s”
Defining a Target Market
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Demographics
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STEP 1:
Demographics
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STEP 1:
Segment the Market Geographics
Psychographics
Choosing the Retailing Mix
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STEP 2:
Product Place
STEP 2: Choose the Retailing Mix
Price Personnel
The Retailing Mix
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Product
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Product
Promotion Personnel
Target Target Target Target Market Market
Place Presentation
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Product Offering
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The m ix of product s offered t o t he consum er by t he ret ailer; also called t he product assort m ent p or
Retail Promotion Strategy
gy
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Advertising Advertising
Public Relations
Retail Retail Promotion Promotion
Publicity
Promotion Promotion
Strategy
Strategy Sales Promotion
The Proper Location
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•
Large long t erm com m it m ent of
•
Large, long- t erm com m it m ent of
resources
•
Locat ion will affect fut ure growt h
•
Local environm ent m ay change over
•
Local environm ent m ay change over
Location
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LocationLocation DecisionsDecisions
Ft
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F
rees
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Store
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Mall
Sh
opp
ing
Center
Shopping Center and Mall
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Locations
Advant ages Advant ages6
Advant ages Advant ages• Design at t ract s
Disadvant ages Disadvant ages
• Design at t ract s shoppers
• Anchor st ores draw
• Expensive leases
• Failure of com m on
t i ff t
cust om ers
• Am ple parking U ifi d i
prom ot ion effort s
• Lease rest rict ions
• Anchor st ore
• Unified im age • Anchor st ore
dom inat ion
Price
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High Price High Price Low Price
Low Price
Quality Quality Good Value
Good Value Quality
Image Quality
Image Good Value
Good Value
Presentation of the Retail Store
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Employee Type & Density
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Employee Type & Density
Merchandise Type & Density Merchandise Type & Density
Fixture Type & Density
Sound
Od
Factors Factors
in in
Creation
Creation Odors
Visual Factors
Personnel and Customer Service
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Trading Upg p
Two Common Two Common
Selling Selling Techniques Techniques
Suggestive Selling
Techniques Techniques
Learning Objective
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Discuss the challenges of
Discuss the challenges of
Discuss the challenges of
Discuss the challenges of
expanding retailing operations
expanding retailing operations
Global Retailing
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Reasons for Reasons for Gl b l E i Gl b l E i
Global Expansion Global Expansion
Spread of communication
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Growth potential in underserved
k t and mass media
Lowering of trade barriers and tariffs
markets
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Global Retailing
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Market Size & Economics
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Market Size & Economics
Infrastructure & Distribution
Competition
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Financial & Tax Reporting
Factors Used Factors Used Factors Used Factors Used
to Analyze to Analyze
Merchandise Acceptability
Partnering Capability
to Analyze to Analyze Global Retail Global Retail
Global Retailing
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Secure
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Secure Domestic
Position
Prerequisites for Prerequisites for
Going Global Going Global
Long-Term Perspective Perspective
Consistent Global and Global and Corporate Strategies
Learning Objective
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Trends in Retailing
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Entertainment
Trends in Trends in Retailing Retailing
Convenience and Efficiency
Customer Management
Customer Management
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Customer Customer Management Management
Strategies Strategies
Customer
Strategies Strategies
Customer Relationship
Marketing
Clienteling
