Presentation on theme: "THE VALUE OF RETAILING Retailing Retailing includes all activities involved in Selling and providing goods and services to ultimate consumers for personal,"— Presentation transcript:
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.
Classification of Retail Establishments Establishments Ownership-place Level of Service-promotion Product Assortment-product Price Retailers manipulate their 4 P’s to get the best position in the marketplace– in other words, to create a competitive advantage CLASSIFYING RETAIL OUTLETS
Independent Retailers-one store ownership Independent Retailers-one store ownership Chain Stores-many stores but only one owner Franchises-many owners of many stores CLASSIFICATION BY OWNERSHIP
Product and Trade Name Franchising Business Format Franchising Business Format Franchising Dealer agrees to sell certain products provided by a manufacturer, but can use any sales tactics he chooses. Ex-Michelin Tires, Avon 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 franchiser’s product in the exact way the franchiser prescribes. Ex – McDonalds, Wendy's Dealer must sell the franchiser’s product in the exact way the franchiser prescribes. Ex – McDonalds, Wendy's BASIC FORMS OF FRANCHISING
Full Service Self Service Discount stores Exclusive stores Factory outlets Warehouse clubs Factory outlets Warehouse clubs CLASSIFICATION BY LEVEL OF SERVICE
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
Department Stores Specialty Stores Supermarkets Drugstores Convenience Stores Discount Stores Restaurants MAJOR TYPES OF RETAILERS BY PRODUCT OFFERING
Major Forms of Nonstore Retailing Major Forms of Nonstore Retailing Automatic Vending Direct Marketing Electronic Retailing NON-STORE RETAILING
Telemarketing Catalogs & Mail Order Direct Mail Direct Marketing needs no personal interaction Direct Marketing needs no personal interaction DIRECT MARKETING
Choosing the Retailing Mix Product Price Promotion Place Personnel Presentation CHOOSING THE RETAIL MIXRETAIL MIX
Target Market Product Price Promotion Place Personnel Presentation CHOOSING THE RETAIL MIX
Employee Type & Density Merchandise Type & Density Fixture Type & Density Sound Odors Visual Factors FactorsinCreatingStore’sAtmosphereFactorsinCreatingStore’sAtmosphere PRESENTATION (COMMUNICATION) OF THE RETAIL STORE
How many How knowledgeable How helpful / invasive Fit the image of the product Good personal sellers FactorsinPersonneldecisionsFactorsinPersonneldecisions PERSONNEL OF THE RETAIL STORE
RETAILING STRATEGY-PRICING 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?” Allow for Shrinkage and discounting Allow for Shrinkage and discounting OR How much mark-up?
RETAILING STRATEGY - LOCATION Central Business District Regional Shopping Centers Strip Location Multichannel Retailers Multichannel Retailers Anchor Stores Freestanding Store Shopping Center Tenant Mall Tenant Parasites Destination stores Power centers
FIGURE 14-5 FIGURE 14-5 The retail life cycleThe 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.) 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: “It’s worth the trip!” Stores that generate customers from larger trading areas than their neighbors or competitors. i.e.-Dunkin’ Donuts: “It’s 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.