Chapter 4

To Show Retail Classifications

To Study Retail Ownership Type
To Explore Influences in the Channel of
Distribution
II.
Store-Based
Retail Strategy
Mix
III.
Service vs.
Goods Retail
Strategy Mix
IV.
Nonstore-Based
Retail Strategy Mix
and Nontraditional
Retailing
I.
Ownership
I.
Ownership
Independent
Chain
Franchise
Lease Department
Vertical Marketing System
Consumer Cooperative
Flexibility
Investment Costs Down
Specialists
Strong Control
Image
Consistency
Independence
Entrepreneurial Drive

Lack of Power
No Economies of Scale
Labor Intensive
Limited Access to Advertising
Over-dependence on Owner
Limited Resources for Long-run
Planning
Bargaining Power
Cost Efficiencies
Operating Efficiencies
Technical Abilities
Advertising Availability
Defined Management Philosophies
Time and Resources Spent on Long-run
Planning
Limited Flexibility
Investments High
Managerial Control Difficult
Limited Independence for Personnel
Product/Trademark
Business Format
Manufacturer-Retailer
Service Sponsor-Retailer
Wholesaler-Retailer
Cooperative
Voluntary
Small Capital Investment
Brand Awareness
Operation Procedures and
Management Skills
Cooperative Marketing
Exclusive Selling Rights
Purchasing Costs
Oversaturation
Franchisor Overselling
Contract Provisions
Cancellation Clauses
Short Duration
Gross Sales Based Royalties
National or Global Presence
Ownership Qualifications Set
Money Obtained on
Delivery
Stringent Rules for Franchisees
Franchisee Work Incentive
Royalties Continue

Damaged Reputation
Loss of Customer Loyalty
Intra-franchise Competition
Reduced Resale Value
Injured Profitability
Franchisee Desire for
Independence
Fills Merchandise and Expertise Gaps
Enlarged Market
Reduces Store Costs
Lessee Assumes Administration Rol
Percent of Revenues
Conflicts in Operating Procedures
Damaged Image
Customer Blame
Well Know Store
Reduced Costs
Economies of Scale
Inflexibility in Hours
Product Line Restrictions
Raised Rent
Sales Expectations Not Met
FOOD-ORIENTED RETAILERS

Convenience Store
Conventional Supermarket
Food-Based Superstore
Combined Store
Box (limited-line) Store
Warehouse Store
II.
Store-Based
Retail Strategy
Mix
GENERAL MERCHANDISE RETAILERS

Specialty Store
Variety Store
Traditional Department Store
Full-Line Discount Store
Off-Price Chain
Factory Outlet
Membership Club
Flea Market
II.
Store-Based
Retail Strategy
Mix
III.
Service vs.
Goods Retail
Strategy Mix
Rented Goods
Owned Goods
Nongoods
Direct Marketing
Direct Selling
Vending Machine
World Wide Web
Other Emerging
Retail Formats
IV.
Nonstore-Based
Retail Strategy Mix
and Nontraditional
Retailing
Manufacturer
Independent Manufacturer
Ownership
Wholesaler
Independent Wholesaler
Ownership
Retailer
Independent Retailer
Ownership
Manufacturer
Wholesaler
Retailer
Two Channel Members
Own All Facilities and
Perform All Functions
Manufacturer
Wholesaler
Retailer
All Production and Distribution
Functions are Performed By
One Channel Member
Owned by Consumers
Most Popular in Grocery
Retailing
Ways Retail Institutes Can Be
Classified
Retail Ownership Types and
Characteristics of Each
Exertion of Influence in the Channel
of Distribution
By Manufacturers
By Wholesalers
By Retailers
Questions?
Questions?
Questions?