Post on 08-Apr-2018
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Chapter 16
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ZARA Places Retail Stores in
High-End, High Traffic Areas
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What is Retailing?
Retailing includes all the activities involved in selling
goods or services directly to final consumers forpersonal, nonbusiness use.
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Major Retailer Typesy Specialty store
y Department store
y Supermarkety Convenience store
y Discount store
y Off-price retailer
y Superstorey Catalog showroom
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Levels of
R
etail ServiceSelf-service
Self-selection
Limited service
Full service
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Retail Positioning Map
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NonstoreR
etailingDirect
selling
Buying
service
Automatic
vending
Direct
marketing
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Major Types of Corporate
Retail Organizations
y Corporate chain store
yVoluntary chainy Retailer cooperative
y Consumer cooperative
y Franchise organization
y Merchandising conglomerate
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CorporateR
etailing
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What is a Franchising System?
Afranchising system is a system of individual
franchisees, a tightly knit group of enterprises whosesystematic operations are planned, directed, andcontrolled by the operations franchisor.
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Characteristics of Franchises
y The franchisor owns a trade or service mark and
licenses it to franchisees in return for royaltypayments
y The franchisee pays for the right to be part of thesystem
y The franchisor provides its franchisees with a systemfor doing business
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Quiznos is a Franchising System
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Changes in the
R
etail Environment
y New retail forms and combinations
y
Growth of intertype competitiony Competition between store-based and non-store-
based retailing
y Growth of giant retailers
y
Decline of middle market retailersy Growing investment in technology
y Global profile of major retailers
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New Retail Forms and Combinations
y Combination retailers
y Pop-ups
y Showcase stores
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R
etailersM
arketing DecisionsTarget market
Product assortmentProcurement
Prices
Services
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RetailersMarketing Decisions
(cont.)
Store atmosphere
Store activities
Communications
Locations
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Retail CategoryManagement
Define the category
Figure out its role
Set goals
Choose the audience
Implement the plan
Figure out tactics
Assess performance
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Direct Product Profitability
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R
etailer ServicesM
ixPrepurchase services
Postpurchase services
Ancillary services
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Store AtmosphereyWalls
y Lighting
y Signage
y Product placement
y Floors
y Surface space
y Music
The Fornarina flagship store featuresaward-winning retail design.
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Tips for Increasing Sales
inR
etail Space
y Keep shoppers in the store
y
Honor the transition zoney Dont make them hunt
y Make merchandise available to the reach and touch
y Note that men do not ask questions
yRemember women need space
y Make checkout easy
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Location Decisiony Central business districts
y Regional shoppingcenters
y Community shoppingcenters
y Shopping strips
y Location within a largerstore
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Indicators of Sales Effectiveness
Number of people passing by
% who enter store
% of those who buy
verage amountspent per sale
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Private Labels
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Private Label Brands
y Private labels are ubiquitous
y Consumers accepts private labelsy Private-label buyers come from all socioeconomic
strata
y Private labels are not a recessionary phenomenon
y Consumer loyalty shifts from manufacturers toretailers
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Wholesaling Functionsy Selling and promoting
y Buying and assortment
buildingy Bulk breaking
y Warehousing
y Transportation
y Financing
y Risk bearingy Market information
y Management servicesand counseling
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MajorWholesaler Types
Merchant
Full-service
Limited-service
Brokers and agents
Manufacturers
Specialized
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Market Logistics Planning
y Deciding on the companys value proposition to its
customersy Deciding on the best channel design and network
strategy
y Developing operational excellence
y Implementing the solution
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What are
Integrated Logistics Systems?
An integrated logistics system (ILS)includes materials management, material
flow systems, and physical distribution, aidedby information technology.
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Market Logistics
y Sales forecasting
y Distribution scheduling
y Production plans
y Finished-goodsinventory decisions
y
Packaging
y In-plant warehousing
y Shipping-room
processing
y Outboundtransportation
y Field warehousing
y Customer delivery andservicing
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Market Logistics Decisions
y How should ordersbe handled?
y
Where should stockbe located?
y How much stockshould be held?
y How should goods beshipped?
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Transportation Factors
y Speed
y Frequency
y
Dependabilityy Capability
yAvailability
y Traceability
y Cost
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Containerization