 Retail is the sale of goods and services from individuals or businesses to the end-user.end-user  Retailers are part of an integrated system called the supply chain.  A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery.productsmanufacturersconsumerdoor-to-doordelivery  The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as for the public. RETAIL BUSINESS

2-2 Types of Retailers  Retailers Use Different Retail Mixes -merchandise: variety (breadth) / assortment (depth) -services -store design, visual merchandising -location -pricing  Infinite Variations  Some combination of retail mixes satisfy the needs of significant segments and persist over time.

Retail Stores (D epartment stores, discount retail department stores and specialty stores. ) Retailing Without a Store ( sales through TV home shopping and door-to door sellers such as Avon.) Retailing Through Mail Order Retailing Through the Internet Retailing Through Vending Machines TYPES OF RETAIL OUTLET

2-4 Three Tiers of Department Stores TIERS First Tier: Upscale, high fashion chains with exclusive designer merchandise and excellent customer service (Nordstrom, Neiman Marcus, Saks) Second Tier: Retailers sell more modestly priced merchandise with less customer service (Macy’s) Third Tier: Value oriented caters to more price conscious customer JCPenney, Sears, Kohl’s

2-5 Merchandise/Service Continuum

Marketing strategies  pricing and advertising  promoting  packaging

The goal of any ad is  to persuade consumers that they need a particular product or service.  the message of any form of advertising must appeal to the product's key demographic,  an ad must speak directly to the person most likely to need or want the product being sold.  advertising is heavily linked to consumer behavior, since no ad will influence a person's behavior if it seems irrelevant to his or her desires.

Consumer behavior and advertising are closely related  the main goal of advertising involves using the behavior of potential buyers.  The art of advertising is to use visual images and convincing copy to give consumers a sense wishing for something of need for products or services.

Advertising refers to  ways in which marketers, retailers, and other professionals communicate with potential consumers or prospects.  It usually involves the use of:  printed media communications,  television  Internet  radio MarketersConsumers Advertising

TYPES OF ADVERTISING INFORMATIONAL Specific information, understandable, legitimate claims about a product / service Help consumers make decisions PUFFERY no information Announcing invalid / incorrect The purpose of appeal consumers purchase goods/services Using the well-known person as a model Ads are divided into categories Testimonials Institutional Emotional Comparison Ad set correctly for an unrighteousness DECEPTIVE Make false claims to cheat consumers, but rather difficult to prove To confuse the user eg. weight loss diet food brand Free product is a tactic used

TYPE OF TRUTH IN ADVERTISING INFORMATION Literal truth Supported by the facts - the truth is clear & the information is easily proved A real picture Literally true but can bring a false picture of its effectiveness Information Heralded Goods / services as best portrayed The false impression Whether a deliberate / not a false impression to consumers

Packaging does influence customer behavior  Marketers must adapt the packaging to their target consumers:  a child -- cartoon character on a cereal box  a mother -- clearly labeled as being nutritional  older people -- product that is packaged in small quantities  Practicality of use is also important:  the mother of young children -- easy to open for her children's lunch-box,  a bachelor won't mind if a jam-jar is difficult to open.

Types of promotion Explanation Advertising: Any non personal paid form of communication using any form of mass media. Public relations Developing positive relationships with the organization media public, to obtain favorable publicity within the media, & being able to handle successfully negative attention. Sales promotion: Commonly used to obtain an increase in sales short term. (money off coupons or special offers). Personal selling:Selling a product service one to one Direct Mail Is the sending of publicity material to a named person (personalizing advertising), response rates increase thus increasing the chance of improving sales. Internet Marketing Promoting and selling services online using various forms of online marketing techniques such as banner advertisements, videos or social media. Sponsorship Pay an organisation to use your brand or logo. Most common use of sponsorship is with sporting events.

Promotion  These elements are personal selling, advertising, sales promotion, direct marketing and publicity.  Fundamentally, however there are three basic objectives of promotion. These are: 1. To present information to consumers as well as others. 2. To increase demand. 3. To differentiate a product.  There are different ways to promote a product:  internet advertisement,  special events,  endorsements,  and newspapers  incentive like discounts, free items, or a contest.  "promotion" (marketing company) = "special offer" (public).