Retailing includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use. Four of the 30 largest businesses in the United States are retailers (walmat, costco, home depot, and target) Retailing creates value for consumers through time, place, form, and possession utilities.
Retailing includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use. Four of the 30 largest businesses in the United States are retailers (walmat, costco, home depot, and target) Retailing creates value for consumers through time, place, form, and possession utilities.
Retailing includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use. Four of the 30 largest businesses in the United States are retailers (walmat, costco, home depot, and target) Retailing creates value for consumers through time, place, form, and possession utilities.
Retailing includes all activities involved in selling, renting, and providing
products and services to ultimate consumers for personal, family, or household use Consumer Utilities Offered by Retailing Utilities provided by retailers create value for consumers Time, place, form, and possession utilities are offered by most retailers in varying degrees, but one utility is often emphasized more than others Ex. Of place utility- Wells fargo puts the bank products and services close to the consumer because they provide mini banks in supermarkets Ex. Of form utility- (an alteration of a product)-Ralph Lauren uses a Create your Own program online Ex. Of time utility-Sports Authority allows consumers to find the right sporting equipment during the off-season Ex. Of possession utility-Saturn makes the purchase easier by providing financial or leasing and by taking used cars or trade-ins The Global Economic Impact of Retailing Four of the 30 largest businesses in the United States are retailers (Walmat, Costco, Home Depot, and Target) Outlets can be classified in several ways Form of ownership-distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems own the outlet Level of service-used to describe the degree of service provided to the customer Merchandise line- describes how many different types of products a store carries and in what assortment Form of Ownership Independent Retailer- one of the most common forms of retail ownership is the independent business owned by the individual. (account for most of the 1.1 million retail establishments in the U.S. and include hardware stores, convenience stores, clothing stores, and computer and software stores) Corporate Chain- involves multiple outlets under common ownership (many of the department stores are now one of 810 Macys stores worldwide) Contractual Systems- involve independently owned stores that band together to act like a chain ( 3 kinds=retailer sponsored cooperatives, wholesaler sponsored voluntary chains, and franchises) 2 general types of franchises Business-Format Franchises Subway, McDonalds, and Radio Shack Product-Distribution Franchises- Ford dealership or Coca-Cola distributor Level or Service
Self-Service- requires that customers perform many functions and little is
provided by the outlet (ex. Costco) Limited Service- provide some services, such as credit and merchandise return, but not others, such as clothing alterations (ex. Walmart, Kmart, and Target) Full Service- include most specialty stores and department stores, provide many services to their customers (ex. Neiman Marcus, Saks Fifth Avenue, and Nordstrom) Type of Merchandise Line Depth of Product line- means the store carries a large assortment of each item, such as a shoe store that offers running shoes, dress shoes, and childrens shoes Breadth of Product line- refers to the variety of different items a store carries, such as appliances and CDs. Depth of line Stores that carry a considerable assortment (depth) of a related line of items are limited line stores. Stores that carry tremendous depth in one primary line of merchandise are single-line stores BOTH limited-and single-line stores are often referred to as specialty outlets Specialty discount outlets focus on one type of product, such as electronics (best buy), office supplies (staples), or books (barnes and noble) at very competitive prices These outlets are referred to as category killers because they often dominate the market Breadth of line Stores that carry a broad product line, with limited depth, are referred to as general merchandise stores Scrambled merchandising- offering several unrelated product lines in a single store Form of scrambled merchandising is HYPERMARKET (large stores based at more than one location)-in the U.S. this is called a Supercenter Intertype competition- means that there is competition between vary dissimilar types of retail outlets Automatic Vending Nonstore retailing includes vending machines, which make it possible to serve customers when and where stores cannot Direct Mail and Catalogs Direct mail and catalog retailing is attractive because it eliminates the cost of a store and clerks Television Home Shopping
This is possible when consumers watch a shopping channel on which
products are displayed; orders are then placed over the telephone or the internet Online Retailing Online retailing allows consumers to search for, evaluate, and order products through the internet Telemarketing Another form of non-store retailing involves using the telephone to interact with and sell directly to consumers Direct selling Direct selling, sometimes called door-to-door retailing, involves direct sales of goods and services to consumers through personal interactions and demonstrations in their home or office (ex. Mary Kay) Positioning a Retail Store Retail positioning matrix- a matrix developed by the MAC Group, Inc., a management consulting firm this matrix positions retail outlets on two dimensions: breadth of product line and value added Breadth of product line= the range of products sold through each outlet Value added= includes elements such as location, product reliability, and prestige Retailing Mix Includes activities related to managing the store and the merchandise in the store Similar to marketing mix and includes retail pricing, store location, retail communication, and merchandise. Retail pricing- retailers must decide on the markup, markdown, and timing for markdowns Off-price retailing- involves selling brand-name merchandise at lower than regular prices Store location second aspect of the retailing mix involves deciding where to locate the store and how many stores to have Central business district- the oldest retail setting, the communitys downtown area Regional shopping centers- consist of 50 to 150 stores that typically attract customers who live or work with a 5-10 mile range, these large shopping areas often contain two or three anchor stores, which are well known national or regional stores Community shopping center- typically has one primary store (usually a department store) and often about 20 to 40 smaller outlets Strip mall- serve people who are within a 5-10 minute drive Power center- a huge shopping strip with multiple anchor stores such as Home Depot, Best Buy, or JcPenny (seen as having the
convenient location found in many strip malls and the additional
power of national stores) Retail Communication A retailers communication activities can play an important role in positioning a store and creating its image Merchandise Managing the breadth and depth of the product line requires retail buyers who are familiar with the needs of the target market and the alternative products available from the many manufactures that might be interested in having a product available in the store Category Management- a popular approach to managing the assortment of merchandise Many retailers are developing an advanced form of category management called consumer marketing at retail (CMAR) The Wheel of Retailing Describes how new forms of retail outlets enter the market Usually they enter as low-status, low-margin stores such as a drive-in burger stand with no indoor seating and a limited menu and then gradually over time they add fixtures and more embellishments to their stores The Retail Life Cycle The process of growth and decline that retail outlets, like products, experience Early growth- the stage of emergence of a retail outlet, with a sharp departure from existing competition Accelerated development- both market share and profit achieve their greatest growth rates Future changes in Retailing Two exciting trends in retailing that are likely to lead many changes for retailers and consumers in the future The growth of multichannel retailing The increasing focus on customer experience management Multichannel Retailing Multichannel retailers will utilize and integrate a combination of traditional store formats and non-store formats such as catalogs, television, home shopping, and online retailing Integrated channels can make shopping simpler and more convenient a consumer can research choices online or in a catalog and then make a purchase online, over the telephone, or at the closest store The use of multiple channels allows retailers to reach a broader profile of customers Managing the Customer Experience