1. Marketing 13
Retailing

2. RETAILING -- 13 Types Classification Non-store retailing Franchising
Retail Strategy
Global considerations
13.1

4. RETAILING DEFINITION (p. 436) To ultimate consumer
Classification based on:
Ownership
Independent; Chain; Franchise
Level of Service
Full/High  None
Product Assortment
Specialty vs. Full Line
Price
Retail  Discount & Off-Price
13.2

5. Major Types of Retail Operations
Department Stores
Organization
National Chain
Federated, Mays, Nordstrom
Declining Growth
& Changing merchandise
13.3

6. Major Types of Retail Operations
Specialty stores
Size
Convenience
& Selection
Growth
13.4

7. Major Types of Retail Operations
Supermarkets
Spending
60% of food $
One stop shopping
Loyalty programs
Diversify
Scrambled (Wide Variety of Products)
Gas
Ethnic
13.5

8. Major Types of Retail Operations
Drugstores
OTC &
Convenience store products
Convenience stores
Neighborhood
Convenience items
Restaurants
Chain
Ethnic
Specialty
13.6

9. Major Types of Retail Operations
Discount stores
Full line discounters
Ltd service; assortment “hard goods” (housewares, toys, auto, hardware, sports, garden, clothing, bedding…) Wal-Mart
Super centers
Grocery + general merchandise + Services (Rx, dry cleaning, portrait, photo, hair, optical, restaurant…) Wal-Mart Super Center
Specialty Discount Stores
Nearly complete, single line (sports, electronic, auto, office suppliers).
Category killers
Warehouse/membership clubs
Costco, BJ’s, Sam’s
Off price retailers
TJ Maxx, Ross, Marshall’s, Tuesday Morning
13.7

10. Non-store Retailing Automatic Vending Direct Retailing
Soft drinks & Snack foods
= 85% of $40 Billion/yr.
Direct Retailing
Avon, Mary Kay, Cutco
Direct Marketing
direct mail, catalogs
Electronic Retailing
QVC, online
BA Vending Machines
13.8

11. FRANCHISING Important part of retailing Product and trade name
Business format
Cost
Risk/Reward
13.9

12. Retail Marketing Strategy
Targeting, &
Positioning
Marketing
Research
& Analysis
Product
Environmental
Scanning
& Analysis
Customers
Price
Service,
Operations &
Channel
Partnerships
Location
Integrated
Marketing
Communication
13.10

13. Six P’s of Retailing Product Place Promotion Price Presentation
Personnel

14. RETAIL MIX Product Offering Product assortment or Merchandise Mix
Width and depth
Efficient Consumer Response
Need to manage inventory
Electronic Data Interchange
Cut price on slow movers
Private Brands
Kenmore, Craftsman, Die Hard
13.11

15. RETAIL MIX Location Free Standing: Destination Stores Shopping Center
Neighborhood: AKA Strip Centers
Community: One or two anchors
Regional Malls: ‘nuff said.
Lifestyle Centers: Open air, Yuppified
13.12

16. RETAIL MIX
Pricing
Key in positioning
Everyday low pricing
13.13

17. RETAIL MIX Presentation – Atmosphere Employees Merchandise Fixtures
Sound
Odors
Visuals
13.14

18. New Developments in Retailing
Interactivity
Increase customer involvement
Entertainment
Guests
Fishing at LL Bean, climbing at REI
M-commerce
Cell phones, PDA
Buy a Coke by phone

20. EXERCISE
Select a discount retailer and a specialty retailer. For each describe their retail mix. Refer to the previous five slides.
13.15