Professional Documents
Culture Documents
Differentiation in QUANTITY
Differentiation in
Service:
DELIVERY
Differentiation in
PRICE
MARKET
PRICE
Place: differentiating your location
DIVISORIA
Areas with many people
SCHOOL
Areas with many people
• FLYERS
• POSTERS
• BILLBOARDS
• SCREEN
SAVERS
BACKGROUND
PRODUCT
OTHER
INFORMATION
MESSAGE
COMPANY
NAME
ADDRESS
TIME / DATE
TELEPHONE
#
ACTIVITY 1:
Product Shots
ACTIVITY
LO 1
Selecting a Target Market
• Home page - Introductory or first material
viewers see when they access a retailer’s
Internet site. It is the equivalent of a retailer’s
storefront in the physical world.
• Virtual store - Collection of all the pages of
information on the retailer’s Internet site.
• Ease of access - Consumer’s ability to easily
and quickly find a retailer’s Web site in
cyberspace.
LO 1
Selecting a Target Market
• Market segmentation
– Target market - Group of customers that the
retailer is seeking to serve.
– It is not easy to reach every target market,
because each target market is different from the
other.
LO 1
Selecting a Target Market
• Criteria to successfully reach a target market
– Seek a measurable market segment.
– Accessibility or the degree to which the retailer
can target its promotional or distribution efforts to
a particular market segment.
– Segment should be substantial or large enough to
be profitable for the retailer.
LO 1
Exhibit 7.2 - Retail Formats for
Accessing Your Target Market
LO 2
Location of Store-Based Retailers
Central business Advantages Disadvantages
district (CBD)
An unplanned shopping Easy access to public Inadequate and
area around the transportation. usually expensive
geographic point where all Wide product parking.
public transportation assortment. Older stores.
systems converge; it is Variety in images, High rents and taxes.
prices, and services. Traffic and delivery
usually in the center of the
Proximity to congestion.
city and often where the commercial activities. Potentially high crime
city originated historically. rate.
Decaying conditions of
inner cities.
LO 2
Location of Store-Based Retailers
Secondary business district Shopping area that is smaller than the CBD and
(SBD) that revolves around at least one department or
variety store at a major street intersection.
LO 2
Location of Store-Based Retailers
Shopping center or Centrally owned or managed shopping district that is
mall planned, has balanced tenancy (the stores complement each
other in merchandise offerings), and is surrounded by
parking facilities.
Anchor stores Stores in a shopping center that are the most dominant and
are expected to draw customers to the shopping center.
LO 2
Location of Store-Based Retailers
LO 2
Location of Store-Based Retailers
Freestanding Advantages Disadvantages
retailer
Locates along Lack of direct Lack of drawing power from
major traffic competition complementary stores
arteries and does Lower rents Difficulties in attracting
not have any Freedom in operations customers for the initial visit
adjacent retailers to and hours Higher advertising and
share traffic. promotional costs
Facilities that can be
adapted to individual Operating costs cannot be shared
needs with others
Inexpensive parking Stores may have to be built rather
than rented
Zoning laws may restrict some
activities
LO 2
THANK YOU….