1. McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Identify retailers in terms of the utilities they provide.
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 13, YOU SHOULD BE ABLE TO:
LO1
Identify retailers in terms of the utilities they provide.
LO2
Explain the alternative ways to classify retail outlets.
LO3
Describe the many methods of nonstore retailing.
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3. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 13, YOU SHOULD BE ABLE TO:
Specify the retailing mix actions used to implement a retailing strategy.
Explain changes in retailing with the wheel of retailing and the retail life cycle concepts.
LO5
Describe the types of firms that perform wholesaling activities and their functions.
LO6
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4. RETAILERS LOVE IT WHEN THE MAYOR VISITS!
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5. Consumer Utilities Offered by Retailing
THE VALUE OF RETAILING
LO1
Retailing
Consumer Utilities Offered by Retailing
Place
Form
CarMax Video
Possession
Time
The Global Economic Impact of Retailing
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6. FIGURE 13-1 Which retailer best provides which utilities?
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7. CLASSIFYING RETAIL OUTLETS
Form of Ownership
Level of Service
Merchandise Line
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8. MAKING RESPONSIBLE DECISIONS GREEN ISN’T JUST A COLOR TO RETAILERS
MAKING RESPONSIBLE DECISIONS GREEN ISN’T JUST A COLOR TO RETAILERS. IT’S A VALUE!
LO2
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9. CLASSIFYING RETAIL OUTLETS
FORM OF OWNERSHIP
LO2
Independent Retailer
Corporate Chain
Contractual Systems
Wholesaler-Sponsored Voluntary Chains
Retailer-Sponsored Cooperatives
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10. CLASSIFYING RETAIL OUTLETS
FORM OF OWNERSHIP
LO2
Contractual Systems
Franchising
Business-Format Franchises
Product-Distribution Franchises
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11. CLASSIFYING RETAIL OUTLETS
LEVEL OF SERVICE
LO2
Self-Service
Limited Service
Full-Service
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12. FIGURE 13-2 Stores vary in terms of the breadth and depth of their merchandise lines
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13. CLASSIFYING RETAIL OUTLETS TYPE OF MERCHANDISE LINE
Depth of Product Line
Specialty Outlets
Category Killers
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14. CLASSIFYING RETAIL OUTLETS TYPE OF MERCHANDISE LINE
Breadth of Product Line
General Merchandise Stores
Scrambled Merchandising
Hypermarket
Supercenter
Intertype Competition
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15. FIGURE 13-A For Lands’ End, intertype competition means that there is competition between various dissimilar retail outlets
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16. FIGURE 13-B Many retailing activities do not involve a store
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17. Direct Mail and Catalogs
NONSTORE RETAILING
LO3
Automatic Vending
Direct Mail and Catalogs
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18. Television Home Shopping
NONSTORE RETAILING
LO3
Television Home Shopping
Online Retailing
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19. NONSTORE RETAILING Telemarketing Direct Selling Do-Not-Call Registry
LO3
Telemarketing
Do-Not-Call Registry
Direct Selling
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20. FIGURE 13-3 Elements of a retailing strategy
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21. RETAILING STRATEGY Retailing Mix Retail Pricing Markdown
LO4
Retailing Mix
Retail Pricing
Original Markup
Maintained Markup
Gross Margin
Markdown
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22. Everyday Low Pricing (EDLP)
RETAILING STRATEGY
RETAILING MIX
LO4
Everyday Low Pricing (EDLP)
Everyday Fair Pricing
Benchmark or Signpost Items
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23. RETAILING STRATEGY Off-Price Retailing Warehouse Club Outlet Store
RETAILING MIX
LO4
Off-Price Retailing
Warehouse Club
Outlet Store
Single/Extreme Value Store
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24. RETAILING STRATEGY Store Location Central Business District
RETAILING MIX
LO4
Store Location
Central Business District
Regional Shopping Centers
Anchor Stores
Community Shopping Center
Strip Mall
Power Center
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25. RETAILING STRATEGY Retail Communication Merchandise Image
RETAILING MIX
LO4
Retail Communication
Image
Shopper Marketing
Merchandise
Category Management
Marketing Metrics
Sales per Sq. Ft.
Same Store Sales
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26. Sales per Square Foot ($) and Same Store Sales Growth (%)
USING MARKETING DASHBOARDS Why Apple Stores May Be the Best in the United States!
LO4
Sales per Square Foot ($) and Same Store Sales Growth (%)
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27. POSITIONING A RETAIL STORE
RETAILING STRATEGY
POSITIONING A RETAIL STORE
LO4
Retail Positioning Matrix
Breadth of Product Line
Value Added
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28. FIGURE 13-C The four positioning strategies for retailers
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29. Multichannel Retailers
THE CHANGING NATURE OF RETAILING
THE WHEEL OF RETAILING AND RETAIL LIFE CYCLE
LO5
Wheel of Retailing
Retail Life Cycle
Multichannel Retailers
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30. FIGURE 13-4 The wheel of retailing describes how outlets change over time
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31. FIGURE 13-5 The retail life cycle describes the stage of growth and decline for retail outlets
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32. WHOLESALING Merchant Wholesalers Full-Service Wholesalers
LO6
Merchant Wholesalers
Full-Service Wholesalers
General Merchandise (Full-Line) Wholesalers
Specialty Merchandise (Limited-Line) Wholesalers
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33. WHOLESALING Merchant Wholesalers Limited-Service Wholesalers
LO6
Merchant Wholesalers
Limited-Service Wholesalers
Rack Jobbers
Cash and Carry Wholesalers
Drop Shippers/Desk Jobbers
Truck Jobbers
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34. WHOLESALING Agents and Brokers Manufacturers
LO6
Agents and Brokers
Manufacturer’s Agents or Representatives
Selling Agents
Brokers
Manufacturers
Branch Offices
Sales Offices
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35. MALL OF AMERICA: SHOPPING AND A WHOLE LOT MORE
VIDEO CASE 13
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36. 1. Why has Mall of America been such a marketing success so far?
VIDEO CASE 13
MALL OF AMERICA
1. Why has Mall of America been such a marketing success so far?
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37. VIDEO CASE 13
MALL OF AMERICA
2. What (a) retail and (b) consumer trends have occurred since Mall of America was opened in 1992 that it should consider when making future plans?
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38. VIDEO CASE 13
MALL OF AMERICA
3. (a) What criteria should Mall of America use in adding new facilities to its complex? (b) Evaluate (i) retail stores, (ii) entertainment offerings, and (iii) hotels on these criteria.
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39. VIDEO CASE 13
MALL OF AMERICA
4. What specific marketing actions would you propose that Mall of America managers take to ensure its continuing success in attracting visitors (a) from the local metropolitan area and (b) from outside of it?
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40. Retailing
Retailing consists of all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.
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41. Scrambled Merchandising
Scrambled merchandising consists of offering several unrelated product lines in a single store.
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42. Telemarketing
Telemarketing consists of using the telephone to interact with and sell directly to consumers.
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43. 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.
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44. Shopper Marketing
Shopper marketing is the use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store.
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45. 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.
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46. Wheel of Retailing
The wheel of retailing is a concept that describes how new forms of retail outlets enter the market.
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47. Retail Life Cycle
The retail life cycle is the process of growth and decline that retail outlets, like products, experience. It consists of the early growth, accelerated development, maturity, and decline stages.
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48. Multichannel Retailers
Multichannel retailers are retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television home shopping, and online retailing.
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49. Merchant Wholesalers
Merchant wholesalers are independently owned firms that take title to the merchandise they handle.
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50. 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.
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51. Brokers
Brokers are independent firms or individuals whose principal function is to bring buyers and sellers together to make sales.
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