1. Unit 4 MT102 RETAIL MANAGEMENT: A STRATEGIC APPROACH 1 11th Edition
BERMAN EVANS 1

2. Objectives Review Concepts
To contrast single-channel and multi-channel retailing
To look at the characteristics of the three major retail institutions involved with nonstore-based strategy mixes: direct marketing, direct selling, and vending machines – with an emphasis on direct marketing 2 2

3. Objectives (cont.)
To explore the emergence of electronic retailing through the World Wide Web
To discuss two other nontraditional forms of retailing: video kiosks and airport retailing
To discuss why it is important for a retailer to properly identify, understand, and appeal to its customers
To enumerate and describe a number of consumer demographics, lifestyle factors, needs and desires – and to explain how these concepts can be applied to retailing 3 3

4. Figure 6-1a: Approaches to Retailing Channels
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 4 4

5. Figure 6-1b: Approaches to Retailing Channels
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 5 5

6. Nonstore Retailing Retailing strategy that is not store-based
Exceeds $410 billion annually
80% comes from direct marketing
Web-based retailing is the fastest- growing area
Web retailing expected to reach $180 annually as of 2012
Berman and Evans, 2010 6

7. Nontraditional Retailing
Nontraditional retailing also includes formats that do not fit into store and nonstore-based categories:
Video kiosks
Airport retailing
Berman and Evans, 2010 7 7

8. Direct Marketing France Italy
Customer is initially exposed to a good or service through a non-personal medium and then orders by mail, phone, fax, or computer
Annual U.S. sales exceed $325 billion (including the Web)
Other leading countries include
Japan
Germany
Great Britain
France
Italy
Berman and Evans, 2010 8 8

9. Strategic Business Advantages of Direct Marketing
Reduced costs
Lower prices
Large geographic coverage
Convenient to customers
Ability to pinpoint customer segments
Ability to eliminate sales tax for some
Ability to supplement regular business without additional outlets
Berman and Evans, 2010 9

10. Strategic Business Limitations of Direct Marketing
Products often cannot be examined prior to purchase
Costs may be underestimated
Response rates to catalogs under 10%
Clutter exists
Long lead time required
Industry reputation sometimes negative
Berman and Evans, 2010 10 10

11. Data-Base Retailing
Collection, storage, and usage of relevant customer information
name
address
background
shopping interests
purchase behavior
Observation of rule
Berman and Evans, 2010 11 11

12. Emerging Trends Evolving activities Changing customer lifestyles
Increasing competition
Increasing usage of dual distribution channels
Changing media roles, technological advances, and global penetration
Berman and Evans, 2010 12 12

13. Figure 7-1: What Makes Retail Shoppers Tick
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 13

14. Demographics and Lifestyles
consumer data that is objective, quantifiable, easily identifiable, and measurable
Lifestyles
ways in which consumers and families live and spend time/money
Berman and Evans, 2010 14

15. Helpful Facts for Understanding U.S. Demographics
Typical household has an annual income of $50,000
Top 1/5 of households earn $100,000 or more
Lowest 1/5 of households earn under $21,000
High incomes lead to high discretionary income
Berman and Evans, 2010 15

16. Helpful Facts for Understanding U.S. Demographics (cont.)
There are 5 million more females than males
Three-fifths of females age 20 and older are in the labor force
Most U.S. employment is in services
More than 25% of all U.S. adults aged 25 and older have at least graduated from a four-year college 16

17. Illustrations
Gender Roles Consumer Sophistication and Confidence Poverty of Time Component Lifestyles 17

18. Current event of the Week

19. References
Berman, B., Evans, J. (2010). Retail management: A strategic approach. Boston: Prentice Hall.