1. Retailing Final stop on the distribution path
The process by which products are sold to consumers for personal use
Retailers add value with image, inventory, service quality, location, and pricing policies

2. The Wheel of Retailing
New types of retailers find it easiest to enter the market by offering goods at lower prices than competitors; after they gain a foothold, they gradually trade up, improving facilities and increasing the quality and assortment of merchandise, and offering special amenities; upscaling increases costs causing prices to rise; higher prices open the door for a new entrant charging lower prices

3. Wheel of Retailing

4. Wheel of Retailing

5. Retail Life Cycle
Retailers are also products because they provide benefits and must offer a competitive advantage to survive
Introduction: new retailer takes a unique approach to doing business
Growth: retailer catches on with shoppers, sales and profits rise, others start to copy it so retailer expands offerings
Maturity: many have copied it and an entire industry has formed, profits decline
Decline: retail format becomes obsolete

6. What’s in Store for the Future
Demographics
Globalization
Technology

7. Major Demographic Factors
Convenience
Catering to
specific age groups
Recognizing
ethnic diversity

8. Meeting Multiple Needs

9. Retailers Go Global

10. Classifying Retailers
All retailers are classified by the NAICS codes
Some lines still blurred
scrambled merchandising - strategy of carrying a combination of food and nonfood items

11. Classifying Retailers by Service
Self-service
Limited-service
Full-service

12. Limited-Service Retailer

13. Self-Service Retailer

14. Limited-Service Retailer

15. Full-Service Retailer

16. Classifying by Merchandise Selection
Merchandise breadth is the number of different product lines available
Narrow versus broad assortments
Merchandise depth is the variety of choices available for each specific product
Shallow versus deep assortments

17. Merchandise Selection

18. Store Types Convenience stores Supermarkets Specialty stores
Department stores
Hypermarket stores
Discount stores
General merchandise discount stores
Off-price retailers
Warehouse clubs
Factory outlet stores

19. Convenience Stores

20. Warehouse Clubs

21. Nonstore Retailing
Any method a firm uses to complete an exchange that does not require a customer visit to a store
Direct selling
Automatic vending

22. Direct Selling
Direct selling occurs when a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise
Door-to-Door Sales
Parties and Networks
party plan systems
multilevel pyramid schemes

23. Party Plan System

24. Multi-level Networks Amway uses
direct selling through multi-level networks
to expand globally

25. Automatic Vending
Appealing for selling convenience goods because of small space required, and minimal personnel to maintain and operate

26. Vending Machines

27. Levi Strauss Vending Machine
Levi Strauss sells
jeans in vending
machines to French
consumers

28. Virtual Models Online

29. E-Commerce and the Customer
Benefits
Shop 24/7
Less travel
More choices
More information
Price competition
Fast delivery
Limitations
Lack of security
Fraud
Can’t touch items
Hard to distinguish color/texture online
Expensive to return

30. Comparison Web sites

31. E-Commerce and the Marketer
Benefits
The World is your marketplace
Decreases costs
Very specialized businesses possible
Real-time pricing
Tracking of consumer behavior
Limitations
Lack of security
Must maintain site
Price competition
Conflicts with conventional retailers
Legal issues not resolved

32. The Problem of Identity Theft

33. Store Positioning Strategy
Atmospherics
Store Image

34. REI Enhances Store Image

35. Mapping Store Personality

36. Store Design: Setting the Stage
Store layout and traffic flow
Fixture type and merchandise density
The sound of music
Color and lighting
The Actors: Store Personnel
Pricing policy

37. Building the Theater: Store Location
Types of locations
Site selection
Location planners evaluate trade area and conduct site evaluation
traffic flow, number of parking spaces available, ease of delivery access, visibility from street, local zoning laws, population characteristics, community life cycle, mobility, degree of competition

38. Grid Layout

39. Types of Store Locations

40. Site Selection Reflect growth strategy
Convenient to customers in trade area
Population characteristics
Degree of competition
Target market location