RETAILING

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

Level of Service-promotion Product Assortment-product

Classification of Retail Establishments

Price

Retailers manipulate their 4 Ps 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

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

Product and Trade Name Franchising

Business Format Franchising

CLASSIFICATION BY LEVEL OF SERVICE

Self Service
Discount stores

Full Service

Factory outlets Warehouse clubs

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 Scrambled Merchandising 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 Mail

Direct Marketing needs no personal interaction

Catalogs & Mail Order

Telemarketing

CHOOSING THE RETAIL MIX

Product Choosing the Retailing Mix Price Promotion

Place Personnel 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 Stores Atmosphere

Sound Odors Visual Factors

PERSONNEL OF THE RETAIL STORE

How many How knowledgeable

How helpful / invasive

Factors in Personnel decisions

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
Parasites

Regional Shopping Centers

Anchor Stores

Freestanding Store

Strip Location
Destination stores Power centers

Shopping Center Tenant

Mall Tenant

Multichannel Retailers

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.