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Objectives
To understand:
The nature of retailing.
What a retailer is.
Types of retailers.
Retail marketing strategies.
Forms of non-store selling.
Retailing on the Internet.
Trends in retailing.
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Retailing
Involves the sale, and all activities directly related to the sale, of products and services to end consumers for their personal, non-business use.
Not all sales by retailers are retail sales.
Not all retailing is done by retailers.
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4. Dimensions of the Retail Market
250,000 retail stores in Canada.
Most are small.
High degree of concentration.
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5. Small Retailers’ Keys to Success
Contractual vertical marketing system.
Accessibility and convenience.
Personal service.
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6. Physical Facilities of Retailers
Most retailers operate from retail stores, although more now engage in non-store selling.
Key aspects of retail stores’ physical facilities:
Location
Design
Layout
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7. Physical Facilities of Retailers
Shopping Centres are predominant.
Having to become increasingly competitive to continue.
Classification:
Convenience centre
Neighbourhood centre
Community centre
Regional centre
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Forms of Retailing
Three factors differentiate a chain from an
independent and a vertical marketing system.
Two or more units
Central ownership
Standardization of operating policies and centralized strategic decision-making
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9. Other Forms of Retailing
Contractual Vertical Marketing System
Retail co-operatives and voluntary chains
Franchise systems
Product and trade name franchising
Business format franchising
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10. Retail Marketing Strategies
The mix emphasizes product assortment, price, location, promotion, and customer service.
Three key elements:
Breadth and depth
Price level
Number of customer services
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11. Major Types of Retailers
Department Stores:
Offer a wide variety of merchandise and services.
Don’t compete on the basis of price.
Face intense competition and high operating costs.
Discount Houses:
Are large-scale retailers.
Offer a wide range of products but less depth.
Offer low prices and fewer services.
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12. Limited-Line Retailers
Offer narrow but deep assortment and varying levels of customer service.
Specialty stores carry a narrow and deep product line, usually specializing in a single category.
Off-price retailers offer a deep assortment in a narrow line, low prices, and a few services.
Include factory outlets.
Category-killer stores offer a narrow but very deep assortment and low prices.
Dominate the category.
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13. Other Forms of Retailing
Supermarkets – moderately broad, moderately deep assortment, few customer services and place emphasis on price.
Superstore
Convenience stores – concentrate on convenience goods, have higher prices with fewer customer services.
Warehouse clubs – offer a wide breadth of products but little depth.
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Nonstore Retailing
Has grown considerably with advancing technology and changing consumer shopping preferences.
Direct Selling – personal contact between buyer and seller occurs away from a retail store.
Telemarketing – uses salespeople on the phone to sell products and services.
Direct Marketing – uses catalogues, direct mail, television shopping, and the Internet.
Automatic Vending – products sold through machines with no personal contact.
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Online Retailing
More and more companies are selling directly to consumers over the Internet.
B2C online retailing is much smaller than B2B, but is growing.
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Retailing Management
Positioning of retailers is a challenge in a competitive market.
In many retail operations, managing through seasonal and fashion cycles is necessary.
Retailers have access to considerable volumes of information through technology.
Result will be improved productivity.
Retailers will place greater emphasis on convenience, customer service, and customer retention.
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Retailing Management
Key to success is the planning of sound strategies which include:
The selection of target markets.
Product line selection.
Customer relationship management strategies.
Retail positioning.
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Retail Positioning
The retailers’ strategies and actions are designed to favourably distinguish the retailer from competitors in the minds of the target customer.
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19. Retail Positioning Strategies
Price and Service
High price  High service
Low price  Low service
Assortment, Price and Service
Product differentiation
Special service and personality augmentation
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20. Managing Retail Assortments
Many retailers are subject to seasonal or fashion cycles and thus must manage the product assortment critically.
To help retailers, consider the Fashion Adoption Processes.
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21. Fashion-Adoption Processes
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Managing the Customer
In any industry, it is very important to retain your customer.
Customer Retention Strategy:
Get to know the customer in as much detail as possible
Reward those customers who are loyal
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