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Chapter 4. To Show Retail Classifications To Study Retail Ownership Type To Explore Influences in the Channel of Distribution.

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Presentation on theme: "Chapter 4. To Show Retail Classifications To Study Retail Ownership Type To Explore Influences in the Channel of Distribution."— Presentation transcript:

1 Chapter 4

2 To Show Retail Classifications To Study Retail Ownership Type To Explore Influences in the Channel of Distribution

3 II. Store-Based Retail Strategy Mix III. Service vs. Goods Retail Strategy Mix IV. Nonstore-Based Retail Strategy Mix and Nontraditional Retailing I. Ownership

4 I. Ownership Independent Chain Franchise Lease Department Vertical Marketing System Consumer Cooperative

5 Flexibility Investment Costs Down Specialists Strong Control Image Consistency Independence Entrepreneurial Drive

6 Lack of Power No Economies of Scale Labor Intensive Limited Access to Advertising Over-dependence on Owner Limited Resources for Long-run Planning

7 Bargaining Power Cost Efficiencies Operating Efficiencies Technical Abilities Advertising Availability Defined Management Philosophies

8 Time and Resources Spent on Long-run Planning Limited Flexibility Investments High Managerial Control Difficult Limited Independence for Personnel

9 Product/Trademark Business Format

10 Manufacturer-Retailer Service Sponsor-Retailer Wholesaler-Retailer Cooperative Voluntary

11 Small Capital Investment Brand Awareness Operation Procedures and Management Skills Cooperative Marketing Exclusive Selling Rights Purchasing Costs

12 Oversaturation Franchisor Overselling Contract Provisions Cancellation Clauses Short Duration Gross Sales Based Royalties

13 National or Global Presence Ownership Qualifications Set Money Obtained on Delivery Stringent Rules for Franchisees Franchisee Work Incentive Royalties Continue

14 Damaged Reputation Loss of Customer Loyalty Intra-franchise Competition Reduced Resale Value Injured Profitability Franchisee Desire for Independence

15 Fills Merchandise and Expertise Gaps Enlarged Market Reduces Store Costs Lessee Assumes Administration Rol Percent of Revenues

16 Conflicts in Operating Procedures Damaged Image Customer Blame

17 Well Know Store Reduced Costs Economies of Scale

18 Inflexibility in Hours Product Line Restrictions Raised Rent Sales Expectations Not Met

19 FOOD-ORIENTED RETAILERS Convenience Store Conventional Supermarket Food-Based Superstore Combined Store Box (limited-line) Store Warehouse Store II. Store-Based Retail Strategy Mix

20 GENERAL MERCHANDISE RETAILERS Specialty Store Variety Store Traditional Department Store Full-Line Discount Store Off-Price Chain Factory Outlet Membership Club Flea Market II. Store-Based Retail Strategy Mix

21 III. Service vs. Goods Retail Strategy Mix Rented Goods Owned Goods Nongoods

22 Direct Marketing Direct Selling Vending Machine World Wide Web Other Emerging Retail Formats IV. Nonstore-Based Retail Strategy Mix and Nontraditional Retailing

23 Manufacturer Independent Manufacturer Ownership Wholesaler Independent Wholesaler Ownership Retailer Independent Retailer Ownership

24 Manufacturer Wholesaler Retailer Two Channel Members Own All Facilities and Perform All Functions

25 Manufacturer Wholesaler Retailer All Production and Distribution Functions are Performed By One Channel Member

26 Owned by Consumers Most Popular in Grocery Retailing

27 Ways Retail Institutes Can Be Classified Retail Ownership Types and Characteristics of Each Exertion of Influence in the Channel of Distribution –By Manufacturers –By Wholesalers –By Retailers

28 Questions?


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