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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
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LO1 Identify retailers in terms of the utilities they provide. Explain the alternative ways to classify retail outlets. LO2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 13, YOU SHOULD BE ABLE TO: Describe the many methods of nonstore retailing. LO3 13-2
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LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 13, YOU SHOULD BE ABLE TO: LO4 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 13-3
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RETAILERS LOVE IT WHEN THE MAYOR VISITS! 13-4
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THE VALUE OF RETAILING LO1 Retailing Retailing Consumer Utilities Offered by Retailing Place Possession The Global Economic Impact of Retailing Form Time CarMax Video 13-5
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FIGURE 13-1 FIGURE 13-1 Which retailer best provides which utilities? 13-6
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CLASSIFYING RETAIL OUTLETS LO2 Level of Service Form of Ownership Merchandise Line 13-7
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MAKING RESPONSIBLE DECISIONS GREEN ISN’T JUST A COLOR TO RETAILERS. IT’S A VALUE! LO2 13-8
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CLASSIFYING RETAIL OUTLETS FORM OF OWNERSHIP LO2 Independent Retailer Corporate Chain Wholesaler-Sponsored Voluntary Chains Contractual Systems Retailer-Sponsored Cooperatives 13-9
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CLASSIFYING RETAIL OUTLETS FORM OF OWNERSHIP LO2 Franchising Contractual Systems Business-Format Franchises Product-Distribution Franchises 13-10
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Self-Service CLASSIFYING RETAIL OUTLETS LEVEL OF SERVICE LO2 Limited Service Full-Service 13-11
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FIGURE 13-2 FIGURE 13-2 Stores vary in terms of the breadth and depth of their merchandise lines 13-12
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Depth of Product Line CLASSIFYING RETAIL OUTLETS TYPE OF MERCHANDISE LINE LO2 Specialty Outlets Category Killers 13-13
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Breadth of Product Line CLASSIFYING RETAIL OUTLETS TYPE OF MERCHANDISE LINE LO2 General Merchandise Stores Scrambled Merchandising Hypermarket Intertype Competition Supercenter 13-14
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FIGURE 13-A FIGURE 13-A For Lands’ End, intertype competition means that there is competition between various dissimilar retail outlets 13-15
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FIGURE 13-B FIGURE 13-B Many retailing activities do not involve a store 13-16
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NONSTORE RETAILING LO3 Automatic Vending Direct Mail and Catalogs 13-17
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NONSTORE RETAILING LO3 Television Home Shopping Online Retailing 13-18
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NONSTORE RETAILING LO3 Telemarketing Telemarketing Direct Selling Do-Not-Call Registry 13-19
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FIGURE 13-3 FIGURE 13-3 Elements of a retailing strategy 13-20
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RETAILING STRATEGY RETAILING MIX LO4 Retailing Mix Retailing Mix Original Markup Maintained Markup Retail Pricing Markdown Gross Margin 13-21
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RETAILING STRATEGY RETAILING MIX LO4 Everyday Low Pricing (EDLP) Everyday Fair Pricing Benchmark or Signpost Items 13-22
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RETAILING STRATEGY RETAILING MIX LO4 Off-Price Retailing Warehouse Club Outlet Store Single/Extreme Value Store 13-23
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RETAILING STRATEGY RETAILING MIX LO4 Store Location Regional Shopping Centers Central Business District Anchor Stores Strip Mall Community Shopping Center Power Center 13-24
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RETAILING STRATEGY RETAILING MIX LO4 Retail Communication Shopper Marketing Image Merchandise Category Management Marketing Metrics Sales per Sq. Ft. Same Store Sales 13-25
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USING MARKETING DASHBOARDS Why Apple Stores May Be the Best in the United States! Sales per Square Foot ($) and Same Store Sales Growth (%) LO4 13-26
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RETAILING STRATEGY POSITIONING A RETAIL STORE LO4 Retail Positioning Matrix Breadth of Product Line Value Added 13-27
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FIGURE 13-C FIGURE 13-C The four positioning strategies for retailers 13-28
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THE CHANGING NATURE OF RETAILING THE WHEEL OF RETAILING AND RETAIL LIFE CYCLE LO5 Wheel of Retailing Wheel of Retailing Retail Life Cycle Retail Life Cycle Multichannel Retailers Multichannel Retailers 13-29
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FIGURE 13-4 FIGURE 13-4 The wheel of retailing describes how outlets change over time 13-30
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FIGURE 13-5 FIGURE 13-5 The retail life cycle describes the stage of growth and decline for retail outlets 13-31
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Merchant Wholesalers Merchant Wholesalers Full-Service Wholesalers General Merchandise (Full-Line) Wholesalers Specialty Merchandise (Limited-Line) Wholesalers WHOLESALING LO6 13-32
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Merchant Wholesalers Merchant Wholesalers Limited-Service Wholesalers Rack Jobbers Cash and Carry Wholesalers Drop Shippers/Desk Jobbers Truck Jobbers WHOLESALING LO6 13-33
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Manufacturer’s Agents or Representatives Manufacturer’s Agents or Representatives Selling Agents Brokers Manufacturers Branch Offices Sales Offices Agents and Brokers WHOLESALING LO6 13-34
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