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McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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Presentation on theme: "McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved."— Presentation transcript:

1 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2 THE VALUE OF RETAILING LO1  Retailing Retailing 14-2

3 Retailing Retailing consists of all activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use. 14-3

4 THE VALUE OF RETAILING LO1  Retailing Retailing 14-4

5 THE VALUE OF RETAILING LO1  Retailing Retailing  Consumer Utilities Offered by Retailing 14-5

6 THE VALUE OF RETAILING LO1  Retailing Retailing  Consumer Utilities Offered by Retailing Place Possession Form Time 14-6

7 THE VALUE OF RETAILING LO1  Retailing Retailing  Consumer Utilities Offered by Retailing Place Possession Form Time 14-7 Store Web site Vending machine

8 THE VALUE OF RETAILING LO1  Retailing Retailing  Consumer Utilities Offered by Retailing Place Possession Form Time 14-8 Store Web site Vending machine

9 THE VALUE OF RETAILING LO1  Retailing Retailing  Consumer Utilities Offered by Retailing Place Possession Form Time 14-9 Financing Layaway plans Means to accept credit/debit cards

10 THE VALUE OF RETAILING LO1  Retailing Retailing  Consumer Utilities Offered by Retailing Place Possession Form Time Restaurant prepares food

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

12 CLASSIFYING RETAIL OUTLETS FORM OF OWNERSHIP LO  Contractual Systems Franchising  Business-Format Franchises  Product-Distribution Franchises

13 FIGURE 14-A FIGURE 14-A The top five franchises in the United States Franchising allows corporation to expand into more local markets without tying up capital. Franchising allows local business person to associate with national brand and to gain advertising, economies of scale and sometimes financing.

14 CLASSIFYING RETAIL OUTLETS LEVEL OF SERVICE LO  Self-Service Warehouse stores  Limited Service  Full-Service

15 FIGURE 14-2 FIGURE 14-2 Stores vary in terms of the breadth and depth of their merchandise lines 14-15

16 FIGURE 14-2 FIGURE 14-2 Stores vary in terms of the breadth and depth of their merchandise lines Shoe store Narrow breadth Deep product line

17 FIGURE 14-2 FIGURE 14-2 Stores vary in terms of the breadth and depth of their merchandise lines Discount store Wide breadth Shallow product line

18  Depth of Product Line CLASSIFYING RETAIL OUTLETS TYPE OF MERCHANDISE LINE LO2 Specialty Outlets Category Killers  Breadth of Product Line General Merchandise Stores Scrambled Merchandising 14-18

19 NONSTORE RETAILING LO3  Automatic Vending  Direct Mail and Catalogs 14-19

20 NONSTORE RETAILING LO3  Television Home Shopping  Online Retailing 14-20

21 NONSTORE RETAILING LO3  Telemarketing Telemarketing  Direct Selling Do-Not-Call Registry 14-21

22 FIGURE 14-3 FIGURE 14-3 Elements of a retailing strategy 14-22

23 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

24 RETAILING STRATEGY RETAILING PRICING LO4  Everyday Low Pricing (EDLP)  Everyday Fair Pricing  Benchmark or Signpost Items  Off-Price Retailing Consumers determine overall pricing by displayed prices. Not lowest price but retailer attempts to establish value of higher prices

25 RETAILING STRATEGY STORE LOCATION LO4  Central Business District 14-25

26 RETAILING STRATEGY STORE LOCATION LO4  Central Business District  Regional Shopping Centers

27 RETAILING STRATEGY STORE LOCATION LO4  Central Business District Anchor Stores  Regional Shopping Centers

28 RETAILING STRATEGY STORE LOCATION LO4  Central Business District Anchor Stores  Regional Shopping Centers  Strip Location

29 RETAILING STRATEGY STORE LOCATION LO4  Central Business District Anchor Stores  Regional Shopping Centers  Strip Location  Power Center

30 THE CHANGING NATURE OF RETAILING THE WHEEL OF RETAILING AND RETAIL LIFE CYCLE LO5  Wheel of Retailing Wheel of Retailing  Retail Life Cycle Retail Life Cycle 14-30

31 FIGURE 14-4 FIGURE 14-4 The wheel of retailing: How outlets change over time 14-31

32 FIGURE 14-5 FIGURE 14-5 The retail life cycle describes the stage of growth and decline for retail outlets 14-32

33 WHOLESALING MERCHANT WHOLESALERS LO6  Merchant Wholesalers Merchant Wholesalers Full-Service Wholesalers  General Merchandise (Full-Line) Wholesalers  Specialty Merchandise (Limited-Line) Wholesalers 14-33

34 WHOLESALING MERCHANT WHOLESALERS LO6  Rack Jobbers  Cash and Carry Wholesalers  Drop Shippers/Desk Jobbers  Truck Jobbers  Merchant Wholesalers Merchant Wholesalers Limited-Service Wholesalers 14-34

35 WHOLESALING OTHER INTERMEDIARIES LO6  Agents and Brokers Manufacturer’s Agents Selling Agents Brokers  Manufacturer Itself Branch Offices Sales Offices 14-35

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

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

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

39 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

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

41 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

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

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

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

45 Manufacturer’s Agents Manufacturer’s agents are agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Also called manufacturer’s representatives

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


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