Retailing by dffhrtcv3

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									          Retailing




  12
chapter




                                    Prepared by
                                  Deborah Baker
                      Texas Christian University
                                      Revised by
                                      Dr. R. Baur
                  Agricultural Technical Institute
          Chapter 11 Review
           1. Explain mkting channel & why it is needed.
           2. Types of channel intermediaries and
                describe their functions and activities.
           3. Channel structures for consumer & B2B
    11     4. Supply chain mgt & its benefits.
           5. Issues influencing channel strategy.
           6. Channel leadership, conflict, and partnering
chapter




           7. Components of the supply chain.
           8. Discuss balancing logistics service & cost.
           9. New tech & trends in supply chain mgt.
           11. Distribution in service organizations
          Chapter 12 Learning Objectives
          1. Discuss the importance of retailing in the U.S.
             economy.

          2. Explain how retailers can be classified.

          3. Describe the major types of retail operations.
  12
          4. Discuss nonstore retailing techniques.
          5. Define franchising & describe its 2 basic forms.
chapter




          6. List the major tasks involved in developing a
             retail marketing strategy.

          7. Describe future trends in retailing.
360   Learning           Discuss The Importance
      Objective   12-1 Of Retailing In U.S. Economy.




                              Retailing

                           All the activities directly
                         related to the sale of goods
                         and services to the ultimate
                           consumer for personal,
                              non-business use.
360   Learning             Discuss The Importance
      Objective   12-1   Of Retailing In U.S. Economy.
 The Role of Retailing
I million retailers employ 15 million people
 (12% of work force)
Retailers ring up 40 % of the U.S. GDP
Industry is dominated by a few
 giant organizations, such as Wal-Mart
90% Employ < 20 People
95% Operate 1 Store
361 Learning          Explain Dimensions By Which
    Objective 12-2     Retailers Can Be Classified

                     A. Classification
                      of Ownership


 1. Independent
     Retailers                           3. Franchises

 Local Florists       2. Chain Stores
    “Old”               BUELHERS
   Hardware
361 Learning         Explain Dimensions By Which
    Objective 12-2    Retailers Can Be Classified

               B. Level of Service
    Self Service                         Full Service
                     Discount stores
                  DOLLAR GENERAL
Factory outlets                          Exclusive stores
Warehouse clubs
                                            SAKS
                     Department Stores
                         Kohls
361 Learning            Explain Dimensions By Which
    Objective 12-2       Retailers Can Be Classified


C. Product Assortment
    Type of Retailer        Service       Assort-
                             Level         ment
 Department Store         Mod Hi-High    Broad
 Specialty Store           High          Narrow
 Supermarket               Low           Broad
 Convenience Store         Low           Med-Narrow
 Drugstore                 Low-Mod       Medium
 Full-line Discounter      Mod-Low       Med-Broad
 Specialty Discounter      Mod-Low       Med-Broad
 Warehouse Clubs           Low           Broad
 Off-price Retailer        Low           Med-Narrow
 Restaurant                Low-High      Med-Narrow
361 Learning                                     Explain Dimensions By Which
    Objective 12-2
D. Price & Gross Margin                           Retailers Can Be Classified


                             Type of Retailer                           Gross
                                                            Price
                                                                        Margin

                          Department Store                Mod-High     Mod High
                          Specialty Store                              High
                                                          Mod-High
                          Supermarket                     Moderate     Low
                          Convenience Store               Mod High     Mod High
                          Drugstore                       Moderate     Low
                          Full-line Discounter            Mod Low      Mod Low
                          Specialty Discounter                         Mod Low
                                                          Mod Lo-low
                          Warehouse Clubs                              Low
                                                          Low-lower
                          Off-price Retailer              Low          Low
                          Restaurant                      Low-High     Low-High
362 Learning            Describe The Major Types
    Objective   12-3
                          Of Retail Operations.
  Major Types Of Retail Operations
                           Sears
         A. Department Stores       Penneys
     Purchases Made Within Dept Headed By Buyer

         B. Specialty Stores      Walden Books

      Narrower Merchandise Lines, But Deeper
        C. Supermarkets        Giant Eagle   Kroger
      Large Self Service Retailer Specializing In Food
364 Learning           Describe The Major Types
    Objective   12-3
                         Of Retail Operations.
          D. Drugstores     CVS       Rite-aid
       Pharmacy & Over The Counter Medications
      E. Convenience Stores Dairy Mart      7-11
Limited Line Of High Turnover Items @ A Higher Price
          F. Restaurants

   Chains       Bob Evans    Locals
 Most Entrepreneurial & Competitive Of Businesses
365 Learning           Describe The Major Types
    Objective   12-3
                         Of Retail Operations.
  G. Discount Stores         1. Full-line Discounters
                          Wal-mart          Meyer’s
                          2. Discount Specialty Stores

                         Toys-R-us       Best-Buy
 Categories
                         Staples         Lowes
     Of
  Discount                   3. Warehouse Clubs

   Stores                Sam’s Club        Costco
                         4. Off-price Discount Retailers

                        Odd Lots         Big Lots
364 Learning           Describe The Major Types
    Objective   12-3
                         Of Retail Operations.
  Scrambled                      Mass
 Merchandising               Merchandising
   A Wide Variety Of        Retailing Strategy Using
 Nontraditional Gds &       Moderate To Low Prices
 Services Under 1 One       On Large Quantities Of
         Roof.              Merchandise And Lower
                           Service To Stimulate High
  Retail Store Combining     Turnover Of Products.
  Groceries & General       Photo Finishing
  Merchandise Goods           Vision Care
  With A Wide Range Of        Hair Salon
         Services.           Florist Shop
                               Pharmacy
                               Gasoline
369 Learning             Discuss Non-store
   Objective
             12-4
                             Retailing
   A. Automatic Vending
      6 MIL MACHINES




               SELLING 40 BILLION
370   Learning              Discuss Non-store
      Objective
                12-4
                                Retailing
                 B. Direct Retailers
                   sell products:

                                          3. Home Sales
  1. Door-to-Door
                                              Parties
                    2. Office-to Office
370 Learning                Discuss Non-store
   Objective
             12-4
                                Retailing
  G. Discount Stores
                                   1. Direct Mail
                                   JUNK MAIL
   C. Types                 2. Catalogs & Mail Order
       of                    LANDS END L.L. BEAN
    Direct
                              3. Telemarketing
   Marketing
                           OUTBOUND INBOUND
                              4. Electronic Retailing
                       1. Shop-at-Home Networks     QVC
                       2. On-Line Retailing   Egghead
374 Learning         Define Franchising &
   Objective
             12-5   Describe Its Basic Forms

                       A. Product and Trade Name
                               Franchising


   Basic Forms        Dealer agrees to sell certain
       of               products provided by a
   Franchising        manufacturer or wholesaler.

                          B. Business Format
                              Franchising

                          An ongoing business
                         relationship between a
                       franchiser & a franchisee.
376 Learning
   Objective
             12-6 A Retail Marketing Strategy


                            A. Demographics

           STEP 1:
      Define & Select        B. Geographics
      a Target Market
                           C. Psychographics



                                 Target
                                 Market
377 Learning 12-6 A Retail Marketing Strategy
   Objective


                          A. Product

           F. Personnel                B. Promotion


  STEP 2:
Choose the                 Target
                           Market
Retailing Mix

                                         C. Place
    E. Presentation
                           D. Price
377 Learning
   Objective
             12-6 A Retail Marketing Strategy

                     A. Product Offering
                    The mix of products offered
                      to the consumer by the
                      retailer; also called the
                       product assortment or
                         merchandise mix.
                  A. Product Width     How Many Lines

                  B. Product Depth   How Many Products in
                                          Each Line
378 Learning
   Objective
             12-6 A Retail Marketing Strategy

  B. Retail Promotion Strategy
 Goal:   Position the Store in the Consumer’s Mind   Image


           1. Advertising


                    2. Public Relations

                                   3. Publicity
     Retail
   Promotion
    Strategy                           4. Sales Promotion
379 Learning 12-6 A Retail Marketing Strategy
   Objective

  C. The Proper Place
         Location   Location   Location



    Large, long-term commitment of
     resources
    Location will affect future growth
     and profitability
    Local environment may change
     over time
379 Learning 12-6 A Retail Marketing Strategy
   Objective
                 Location Decisions
                    The Community

                     Specific Site

  Freestanding
                     Shopping              Mall
      Store
                      Center          Group Of Stores,
     Tractor
   Dealership      Group Of Stores,    Anchor Stores,
                    Anchor Stores        Enclosed
380 Learning 12-6 A Retail Marketing Strategy
   Objective
     Shopping Center & Mall Locations
  Advantages
   Design attracts
    shoppers
   Anchor stores draw
    customers
   Ample parking        Disadvantages
   Unified image        Expensive leases
                         Failure of common
                             promotion efforts
                         Lease restrictions
                         Anchor store domination
                         Direct competitors
381 Learning 12-6 A Retail Marketing Strategy
   Objective

   D. Price
                                High Price
     Low Price




   Good Value                   Quality Image
  Dollar General               Cadillac

     Higher                      Every Day
  Prices With                    Low Prices
     Sales
381 Learning 12-6 A Retail Marketing Strategy
   Objective
E. Presentation Of Retail Store: Atmosphere
       Employee Type
                          Number & Attitude
         & Density
        Merchandise Type       Isle Width & Ht
            & Density          Sears @ Christmas
           Fixture Type
                              Chrome Vs Wood
             & Density

 Factors         Sound         Paging       Pace
 In
 Creation          Odors       Candle Store
 Of A Store’s
 Atmosphere               Visual Factors   Color
383 Learning 12-6 A Retail Marketing Strategy
   Objective
   F. Personnel And Customer Service
                             Trading Up

                       Buy More Features
                         “Bait & Switch”

    Two Common
       Selling            Suggestive Selling
     Techniques
                          “With Cheese?
                         “Make A Biggie?
                       “Would you like a card?
384 Learning               New Developments
   Objective     12-7
                              In Retailing
        A. Entertainment
            Couches @ Barnes Noble

               B. Convenience & Efficiency
 Trends        Child Care @ Buehlers
   In          “We Will Pick You Up”
Retailing
               C. Interactivity
               Self Check Out

        C. M-commerce
        Buying With Mobile Devices
          Chapter 12 Summary
          1. Importance of retailing in the U.S. economy.
          2. Classification of retailers can be classified.
          3. Major types of retail operations.
  12      4. Non-store retailing techniques.
          5. Franchising and its basic forms.
chapter




          6. Major tasks in a retail marketing strategy.
          7. New Developments Future trends in retailing.
 Next Topic
   Part Four
   Chapter 12

Integrated Market
  Communications

								
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