RETAILING

Multichannel Marketing Management

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RETAILERS ARE REINVENTING THEIR STORES TO MATCH THE WAY YOU WANT TO SHOP!

RETAILERS LOVE ITWHEN THE MAYOR VISITS!

THE VALUE OF RETAILING

Retailing

Consumer Utilities Offered by Retailing

• Place

• Possession

The Global Economic Impact of Retailing

• Form

• Time

Which retailer best provides which utilities?

The relative size of different types of retailers

CLASSIFYING RETAIL OUTLETSFORM OF OWNERSHIP

Independent Retailer

Form of Ownership

Corporate Chain

• Wholesaler-Sponsored Voluntary Chains

Contractual Systems

• Retailer-Sponsored Cooperatives

CLASSIFYING RETAIL OUTLETSFORM OF OWNERSHIP

• Franchising

Contractual Systems

Business-FormatFranchises

Product-DistributionFranchises

The top five franchises in the United States

Self-Service

CLASSIFYING RETAIL OUTLETSLEVEL OF SERVICE

Limited Service

Full-Service

Depth of Product Line

CLASSIFYING RETAIL OUTLETSTYPE OF MERCHANDISE LINE

• Specialty Outlets

• Category Killers

Breadth of Product Line

CLASSIFYING RETAIL OUTLETSTYPE OF MERCHANDISE LINE

• General Merchandise Stores

• Scrambled Merchandising

Hypermarket

Intertype Competition

Supercenter

Stores vary in terms of the breadth and depth of their merchandise lines

Hypermarkets are popular in Europe and Latin America while supercenters are popular in the U.S.

For Lands’ End, intertype competition means that there is competition between

various dissimilar retail outlets

Many types of retailers do not have stores

NONSTORE RETAILING

Automatic Vending

Direct Mail and Catalogs

NONSTORE RETAILING

Television Home Shopping

Online Retailing

GOING ONLINEGet Ready to Woot!

NONSTORE RETAILING

Telemarketing

Direct Selling

• Do-Not-Call Registry

Elements of a retailing strategy

RETAILING STRATEGYPOSITIONING A RETAIL STORE

Retail Positioning Matrix

• Breadth of Product Line

• Value Added

The four positioning strategies for retailers

RETAILING STRATEGYRETAILING MIX

Retailing Mix

• Original Markup

• Maintained Markup

Retail Pricing

Markdown

• Gross Margin

RETAILING STRATEGYRETAILING MIX

Everyday Low Pricing (EDLP)

Everyday Fair Pricing

Benchmark or Signpost Items

Shrinkage

RETAILING STRATEGYRETAILING MIX

Off-Price Retailing

• Warehouse Club

• Outlet Store

• Single/One-Price Policy Store

RETAILING STRATEGYRETAILING MIX

Store Location

• Regional Shopping Centers

• Central Business District

Anchor Stores

• Strip Location

• Community Shopping Center

• Power Center

RETAILING STRATEGYRETAILING MIX

Retail Communication

• Atmosphere or Ambiance

• Image

Merchandise

• Category Management

• Metrics

Sales per Sq. Ft. Same Store Sales

USING MARKETING DASHBOARDSWhy Apple Stores May Be

the Best in the United States!

Sales per Square Foot ($) and Same Store Growth (%)

Same Store Growth (%) = Store Sales Year 2 ($) Š Store Sales Year 1 ($)

Store Sales Year 1 ($)

100

Sales per Square Foot ($) =

Total Sales ($)

Selling Area in Square Feet (#)

THE CHANGING NATUREOF RETAILING

THE WHEEL OF RETAILING AND RETAIL LIFE CYCLE

Wheel of Retailing

Retail Life Cycle

The wheel of retailing: How outlets change over time

The retail life cycle describes the stage of growth and decline for retail outlets

FUTURE CHANGES IN RETAILING

Multichannel Retailers

Managing the Customer Experience

Category Management

MARKETING MATTERSThe Multichannel Marketing Multiplier

MAKING RESPONSIBLE DECISIONSGREEN ISN’T JUST A COLOR TO RETAILERS.

IT’S A VALUE!

MALL OF AMERICA: SHOPPINGAND A WHOLE LOT MORE

VIDEO CASE

VIDEO CASEMALL OF AMERICA

1. Why has Mall of America been such a marketing success so far?

VIDEO CASEMALL OF AMERICA

2. What (a) retail and (b) consumer trends have occurred since Mall of America was opened in 1992 that it should consider when making future plans?

VIDEO CASEMALL OF AMERICA

3. (a) What criteria should Mall of America use in adding new facilities to its complex?(b) Evaluate (i) retail stores,(ii) entertainment offerings, and (iii) hotels on these criteria?

VIDEO CASEMALL OF AMERICA

4. What specific marketing actions would you propose that Mall of America managers take toensure its continuing success in attracting visitors (a) from the local metropolitan area and(b) from outside of it?

ARE THERE TOO MANY RETAIL STORES?

SUPPLEMENTALLECTURE NOTE

RETAILING

FRANCHISING OFFERS OPPORTUNITIES AND

FINANCIAL, LEGAL, AND CULTURAL CHALLENGES

SUPPLEMENTALLECTURE NOTE

RETAILING