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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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Presentation on theme: "McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved."— Presentation transcript:

1 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2 LO1 Identify retailers in terms of the utilities they provide. Explain the alternative ways to classify retail outlets. LO2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 13, YOU SHOULD BE ABLE TO: Describe the many methods of nonstore retailing. LO3 13-2

3 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 13, YOU SHOULD BE ABLE TO: LO4 Specify the retailing mix actions used to implement a retailing strategy. Explain changes in retailing with the wheel of retailing and the retail life cycle concepts. LO5 Describe the types of firms that perform wholesaling activities and their functions. LO6 13-3


5 THE VALUE OF RETAILING LO1 Retailing Consumer Utilities Offered by Retailing Place Possession The Global Economic Impact of Retailing Form Time CarMax Video 13-5

6 FIGURE 13-1 FIGURE 13-1 Which retailer best provides which utilities? 13-6

7 CLASSIFYING RETAIL OUTLETS LO2 Level of Service Form of Ownership Merchandise Line 13-7


9 CLASSIFYING RETAIL OUTLETS FORM OF OWNERSHIP LO2 Independent Retailer Corporate Chain Wholesaler-Sponsored Voluntary Chains Contractual Systems Retailer-Sponsored Cooperatives 13-9

10 CLASSIFYING RETAIL OUTLETS FORM OF OWNERSHIP LO2 Franchising Contractual Systems Business-Format Franchises Product-Distribution Franchises 13-10

11 Self-Service CLASSIFYING RETAIL OUTLETS LEVEL OF SERVICE LO2 Limited Service Full-Service 13-11

12 FIGURE 13-2 FIGURE 13-2 Stores vary in terms of the breadth and depth of their merchandise lines 13-12

13 Depth of Product Line CLASSIFYING RETAIL OUTLETS TYPE OF MERCHANDISE LINE LO2 Specialty Outlets Category Killers 13-13

14 Breadth of Product Line CLASSIFYING RETAIL OUTLETS TYPE OF MERCHANDISE LINE LO2 General Merchandise Stores Scrambled Merchandising Hypermarket Intertype Competition Supercenter 13-14

15 FIGURE 13-A FIGURE 13-A For Lands End, intertype competition means that there is competition between various dissimilar retail outlets 13-15

16 FIGURE 13-B FIGURE 13-B Many retailing activities do not involve a store 13-16

17 NONSTORE RETAILING LO3 Automatic Vending Direct Mail and Catalogs 13-17

18 NONSTORE RETAILING LO3 Television Home Shopping Online Retailing 13-18

19 NONSTORE RETAILING LO3 Telemarketing Direct Selling Do-Not-Call Registry 13-19

20 FIGURE 13-3 FIGURE 13-3 Elements of a retailing strategy 13-20

21 RETAILING STRATEGY RETAILING MIX LO4 Retailing Mix Original Markup Maintained Markup Retail Pricing Markdown Gross Margin 13-21

22 RETAILING STRATEGY RETAILING MIX LO4 Everyday Low Pricing (EDLP) Everyday Fair Pricing Benchmark or Signpost Items 13-22

23 RETAILING STRATEGY RETAILING MIX LO4 Off-Price Retailing Warehouse Club Outlet Store Single/Extreme Value Store 13-23

24 RETAILING STRATEGY RETAILING MIX LO4 Store Location Regional Shopping Centers Central Business District Anchor Stores Strip Mall Community Shopping Center Power Center 13-24

25 RETAILING STRATEGY RETAILING MIX LO4 Retail Communication Shopper Marketing Image Merchandise Category Management Marketing Metrics Sales per Sq. Ft. Same Store Sales 13-25

26 USING MARKETING DASHBOARDS Why Apple Stores May Be the Best in the United States! Sales per Square Foot ($) and Same Store Sales Growth (%) LO

27 RETAILING STRATEGY POSITIONING A RETAIL STORE LO4 Retail Positioning Matrix Breadth of Product Line Value Added 13-27

28 FIGURE 13-C FIGURE 13-C The four positioning strategies for retailers 13-28

29 THE CHANGING NATURE OF RETAILING THE WHEEL OF RETAILING AND RETAIL LIFE CYCLE LO5 Wheel of Retailing Retail Life Cycle Multichannel Retailers 13-29

30 FIGURE 13-4 FIGURE 13-4 The wheel of retailing describes how outlets change over time 13-30

31 FIGURE 13-5 FIGURE 13-5 The retail life cycle describes the stage of growth and decline for retail outlets 13-31

32 Merchant Wholesalers Full-Service Wholesalers General Merchandise (Full-Line) Wholesalers Specialty Merchandise (Limited-Line) Wholesalers WHOLESALING LO

33 Merchant Wholesalers Limited-Service Wholesalers Rack Jobbers Cash and Carry Wholesalers Drop Shippers/Desk Jobbers Truck Jobbers WHOLESALING LO

34 Manufacturers Agents or Representatives Manufacturers Agents or Representatives Selling Agents Brokers Manufacturers Branch Offices Sales Offices Agents and Brokers WHOLESALING LO


36 VIDEO CASE 13 MALL OF AMERICA 1. Why has Mall of America been such a marketing success so far? 13-36

37 VIDEO CASE 13 MALL OF AMERICA 2. What (a) retail and (b) consumer trends have occurred since Mall of America was opened in 1992 that it should consider when making future plans? 13-37

38 VIDEO CASE 13 MALL OF AMERICA 3. (a) What criteria should Mall of America use in adding new facilities to its complex? (b) Evaluate (i) retail stores, (ii) entertainment offerings, and (iii) hotels on these criteria

39 VIDEO CASE 13 MALL OF AMERICA 4. What specific marketing actions would you propose that Mall of America managers take to ensure its continuing success in attracting visitors (a) from the local metropolitan area and (b) from outside of it? 13-39

40 Retailing Retailing consists of all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use

41 Scrambled Merchandising Scrambled merchandising consists of offering several unrelated product lines in a single store

42 Telemarketing Telemarketing consists of using the telephone to interact with and sell directly to consumers

43 Retailing Mix The retailing mix consists of the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise

44 Shopper Marketing Shopper marketing is the use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store

45 Category Management Category management is an approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category

46 Wheel of Retailing The wheel of retailing is a concept that describes how new forms of retail outlets enter the market

47 Retail Life Cycle The retail life cycle is the process of growth and decline that retail outlets, like products, experience. It consists of the early growth, accelerated development, maturity, and decline stages

48 Multichannel Retailers Multichannel retailers are retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television home shopping, and online retailing

49 Merchant Wholesalers Merchant wholesalers are independently owned firms that take title to the merchandise they handle

50 Manufacturers Agents Manufacturers agents are agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Also called manufacturers representatives

51 Brokers Brokers are independent firms or individuals whose principal function is to bring buyers and sellers together to make sales

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