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    CH14 Rev

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    Retailing involves selling goods and services to ultimate consumers. There are various ways to classify retailers based on ownership, level of service, product assortment, and price. Retailers must choose their retail mix of product, price, promotion, place, personnel, and presentation to target specific customer markets. They must also consider factors like store atmosphere, personnel decisions, pricing strategies, and location to attract customers and maximize sales. Effective retailers integrate both traditional and non-store formats as part of a multichannel retail strategy.

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    CH14 Rev

    Uploaded by

    ronit.ogra
    12 views28 pages
    Retailing involves selling goods and services to ultimate consumers. There are various ways to classify retailers based on ownership, level of service, product assortment, and price. Retailers must choose their retail mix of product, price, promotion, place, personnel, and presentation to target specific customer markets. They must also consider factors like store atmosphere, personnel decisions, pricing strategies, and location to attract customers and maximize sales. Effective retailers integrate both traditional and non-store formats as part of a multichannel retail strategy.

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    CH14 rev (1)

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    Retailing involves selling goods and services to ultimate consumers. There are various ways to classify retailers based on ownership, level of service, product assortment, and price. Retailers must choose their retail mix of product, price, promotion, place, personnel, and presentation to target specific customer markets. They must also consider factors like store atmosphere, personnel decisions, pricing strategies, and location to attract customers and maximize sales. Effective retailers integrate both traditional and non-store formats as part of a multichannel retail strategy.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    12 views28 pages

    CH14 Rev

    Uploaded by

    ronit.ogra
    Retailing involves selling goods and services to ultimate consumers. There are various ways to classify retailers based on ownership, level of service, product assortment, and price. Retailers must choose their retail mix of product, price, promotion, place, personnel, and presentation to target specific customer markets. They must also consider factors like store atmosphere, personnel decisions, pricing strategies, and location to attract customers and maximize sales. Effective retailers integrate both traditional and non-store formats as part of a multichannel retail strategy.

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    RETAILING AND

    WHOLESALING
    CHAPTER
    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.



    Classification
    of
    Retail
    Establishments


    Ownership-place
    Level of Service-promotion
    Product Assortment-product
    Price
    Retailers manipulate their 4 Ps to get the best position in the
    marketplace in other words, to create a competitive advantage
    CLASSIFYING RETAIL OUTLETS
    Independent
    Retailers-one store
    ownership
    Chain Stores-many
    stores but only one
    owner
    Franchises-many
    owners of many
    stores
    CLASSIFICATION BY OWNERSHIP
    Product and
    Trade Name
    Franchising
    Business
    Format
    Franchising
    Dealer agrees to sell certain
    products provided by a
    manufacturer, but can use any sales
    tactics he chooses.
    Ex-Michelin Tires, Avon

    Dealer must sell the franchisers
    product in the exact way the
    franchiser prescribes.
    Ex McDonalds, Wendy's

    BASIC FORMS OF FRANCHISING
    Full Service
    Self Service
    Discount stores
    Exclusive stores
    Factory outlets
    Warehouse clubs
    CLASSIFICATION BY LEVEL OF
    SERVICE
    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

    CLASSIFICATION BY PRODUCT
    OFFERING

    Depth of Product Line
    Specialty Outlets
    Category Killers
    Breadth of Product Line
    General Merchandise Stores
    Scrambled Merchandising
    Why do this?
    Breadth versus depth of merchandise lines
    Department Stores
    Specialty Stores
    Supermarkets
    Drugstores
    Convenience Stores
    Discount Stores
    Restaurants
    MAJOR TYPES OF RETAILERS BY
    PRODUCT OFFERING



    Major Forms
    of
    Nonstore
    Retailing


    Automatic Vending
    Direct Marketing
    Electronic Retailing
    NON-STORE RETAILING
    Telemarketing
    Catalogs & Mail Order
    Direct Mail
    Direct
    Marketing needs
    no personal
    interaction

    DIRECT MARKETING
    Choosing the
    Retailing Mix
    Product
    Price
    Promotion
    Place
    Personnel
    Presentation
    CHOOSING THE RETAIL MIX
    Target
    Market
    Product
    Price
    Promotion
    Place
    Personnel

    Presentation

    CHOOSING THE RETAIL MIX
    Employee Type & Density
    Merchandise Type & Density
    Fixture Type & Density
    Sound
    Odors
    Visual Factors

    Factors
    in
    Creating
    Stores
    Atmosphere

    PRESENTATION (COMMUNICATION) OF
    THE RETAIL STORE
    How many
    How knowledgeable
    How helpful / invasive
    Fit the image of the product
    Good personal sellers

    Factors
    in
    Personnel
    decisions

    PERSONNEL OF THE RETAIL STORE
    RETAILING STRATEGY-PRICING
    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?
    Allow for Shrinkage and discounting
    OR
    How much mark-up?
    RETAILING STRATEGY - LOCATION
    Central Business District
    Regional Shopping Centers
    Strip Location
    Multichannel Retailers
    Anchor Stores
    Freestanding
    Store
    Shopping
    Center Tenant
    Mall Tenant
    Parasites
    Destination stores
    Power centers
    FIGURE 14-5 The retail life cycle
    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: Its 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.

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