Marketing 13Marketing 13RetailingRetailing
13.113.1
RETAILING -- 13RETAILING -- 13
TypesTypes ClassificationClassification Non-store retailingNon-store retailing FranchisingFranchising Retail StrategyRetail Strategy Global considerationsGlobal considerations
13.213.2
RETAILINGRETAILING DEFINITION DEFINITION (p. 436) To ultimate consumer(p. 436) To ultimate consumer
Classification based on:Classification based on: OwnershipOwnership
Independent; Chain; FranchiseIndependent; Chain; Franchise
Level of ServiceLevel of Service Full/High Full/High None None
Product AssortmentProduct Assortment Specialty vs. Full LineSpecialty vs. Full Line
PricePrice Retail Retail Discount & Off-Price Discount & Off-Price
13.313.3
Major Types of Retail Major Types of Retail OperationsOperations
Department StoresDepartment Stores
OrganizationOrganization
National ChainNational Chain Federated, Mays, NordstromFederated, Mays, Nordstrom
Declining GrowthDeclining Growth & Changing merchandise& Changing merchandise
13.413.4
Major Types of Retail Major Types of Retail OperationsOperations
Specialty storesSpecialty stores
SizeSize
ConvenienceConvenience & Selection& Selection
GrowthGrowth
13.513.5
Major Types of Retail Major Types of Retail OperationsOperations
SupermarketsSupermarkets SpendingSpending
60% of food $60% of food $ One stop shoppingOne stop shopping
Loyalty programsLoyalty programs
DiversifyDiversify Scrambled Scrambled (Wide Variety of Products)(Wide Variety of Products)
GasGas EthnicEthnic
13.613.6
Major Types of Retail Major Types of Retail OperationsOperations
DrugstoresDrugstores OTC & +OTC & + Convenience store productsConvenience store products
Convenience storesConvenience stores NeighborhoodNeighborhood Convenience itemsConvenience items
RestaurantsRestaurants ChainChain EthnicEthnic SpecialtySpecialty
13.713.7
Major Types of Retail OperationsMajor Types of Retail Operations Discount storesDiscount stores
Full line discounters Full line discounters Ltd service; assortment “hard goods” (housewares, toys, auto, hardware, Ltd service; assortment “hard goods” (housewares, toys, auto, hardware,
sports, garden, clothing, bedding…) Wal-Martsports, garden, clothing, bedding…) Wal-Mart
Super centersSuper centers Grocery + general merchandise + Services (Rx, dry cleaning, portrait, Grocery + general merchandise + Services (Rx, dry cleaning, portrait,
photo, hair, optical, restaurant…) Wal-Mart Super Centerphoto, hair, optical, restaurant…) Wal-Mart Super Center
Specialty Discount StoresSpecialty Discount Stores Nearly complete, single line (sports, electronic, auto, office suppliers).Nearly complete, single line (sports, electronic, auto, office suppliers). Category killersCategory killers
Warehouse/membership clubsWarehouse/membership clubs Costco, BJ’s, Sam’sCostco, BJ’s, Sam’s
Off price retailersOff price retailers TJ Maxx, Ross, Marshall’s, Tuesday MorningTJ Maxx, Ross, Marshall’s, Tuesday Morning
13.813.8
Non-store RetailingNon-store Retailing
Automatic VendingAutomatic Vending Soft drinks & Snack foodsSoft drinks & Snack foods = 85% of $40 Billion/yr.= 85% of $40 Billion/yr.
Direct RetailingDirect Retailing Avon, Mary Kay, CutcoAvon, Mary Kay, Cutco
Direct MarketingDirect Marketing direct mail, catalogsdirect mail, catalogs
Electronic RetailingElectronic Retailing QVC, onlineQVC, online
BA Vending Machines
13.913.9
FRANCHISINGFRANCHISING
Important part of retailingImportant part of retailing
Product and trade nameProduct and trade name
Business formatBusiness format
CostCost Risk/RewardRisk/Reward
13.1013.10
Retail Marketing StrategyRetail Marketing Strategy
Location
Targeting, &Positioning
Product
Price
IntegratedMarketingCommunication
Service, Operations &ChannelPartnerships
MarketingResearch & Analysis
EnvironmentalScanning& Analysis
Customers
Six P’s of RetailingSix P’s of Retailing
ProductProduct PlacePlace PromotionPromotion PricePrice PresentationPresentation PersonnelPersonnel
13.1113.11
RETAIL MIXRETAIL MIX Product OfferingProduct Offering
Product assortment or Merchandise MixProduct assortment or Merchandise Mix Width and depthWidth and depth
Efficient Consumer ResponseEfficient Consumer Response Need to manage inventoryNeed to manage inventory
Electronic Data InterchangeElectronic Data Interchange Cut price on slow moversCut price on slow movers
Private BrandsPrivate Brands Kenmore, Craftsman, Die HardKenmore, Craftsman, Die Hard
13.1213.12
RETAIL MIXRETAIL MIX LocationLocation
Free Standing: Destination StoresFree Standing: Destination Stores Shopping CenterShopping Center
Neighborhood: AKA Strip CentersNeighborhood: AKA Strip Centers
Community: One or two anchorsCommunity: One or two anchors
Regional Malls: ‘nuff said.Regional Malls: ‘nuff said.
Lifestyle Centers: Open air, Yuppified Lifestyle Centers: Open air, Yuppified
13.1313.13
RETAIL MIXRETAIL MIX
PricingPricing
Key in positioningKey in positioning
Everyday low pricingEveryday low pricing
13.1413.14
RETAIL MIXRETAIL MIX Presentation – AtmospherePresentation – Atmosphere
EmployeesEmployees
MerchandiseMerchandise
FixturesFixtures
Sound Sound
OdorsOdors
VisualsVisuals
New Developments in RetailingNew Developments in Retailing
InteractivityInteractivity Increase customer involvementIncrease customer involvement EntertainmentEntertainment GuestsGuests Fishing at LL Bean, climbing at REIFishing at LL Bean, climbing at REI
M-commerceM-commerce Cell phones, PDA Cell phones, PDA Buy a Coke by phoneBuy a Coke by phone
13.1513.15
EXERCISEEXERCISE
Select a discount retailer and a specialty Select a discount retailer and a specialty retailer. For each describe their retail mix. retailer. For each describe their retail mix. Refer to the previous five slides.Refer to the previous five slides.
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