canadian marketing in action, 6 th ed. keith j. tuckwell ©2004 pearson education canada inc. 13-1...
TRANSCRIPT
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-1
Wholesaling
The buying or handling of merchandise and subsequently reselling it to organizational users, other wholesalers, and retailers.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-2
Wholesaling Functions
ManufacturerManufacturer
WholesalerWholesaler
RetailerRetailer
ConsumerConsumer
Market Coverage Holding Inventory Order Processing Market Intelligence Sales Support Assortment Breaking Bulk
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-3
Retailing
Activities related to the sale of goods
and services to final consumers, for
personal, family, and household use.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-4
Retailing Functions
ManufacturerManufacturer
WholesalerWholesaler
RetailerRetailer
ConsumerConsumer
Sorting Inventory Marketing
•Advertising•Sales & Sales Promotion•Pricing
Merchandising Credit and Services
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-5
Retail by Ownership
In terms of ownership, there are three prevalent forms:
ChainsChains
IndependentsIndependents
FranchisesFranchises
Operate 4 or more stores in same business.
Operate 1 to 3 stores.
Stores operated on the basis of a contractual agreement.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-6
Franchising
A retailer operating in an identical manner from one location to another.
McDonald’sMcDonald’s
Harvey’sHarvey’s
Choice HotelsChoice Hotels
MidasMidas
Piggybacking and co-branding are now popular among franchise operations.
Pizza Hut, KFC and Taco Bell under one roof.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-7
Retail by Marketing Strategy
Product lines and services offered are another means of classifying retailers.
Full ServeFull Serve
Self ServeSelf Serve
Limited ServeLimited Serve
Bay and Sears
Costco
Wal-Mart
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-8
Retail by Marketing Strategy
Stores can be classified based on the variety of products they offer.
SpecialtySpecialty
Limited LineLimited Line
“Big Box”“Big Box”
General Merch.General Merch.
Bluenotes, Old Navy
Athletes’ World, Bata
Staples Business DepotSears
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-9
Alternate Forms of Retailing
Vending and Automated Merchandising
Direct Home Retailing
Direct Marketing
Catalogue Marketing
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-10
E-tailing
Time-pressed consumers are looking at convenient alternatives.
Only 1% of sales but significant potential ahead.
Consumers are migrating toward online buying.
Customer service and fast delivery are important aspects of online marketing.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-11
Elements of Retail Planning
Location Brand Identity Atmosphere Merchandise Assortment Merchandise Control Marketing Strategy
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-12
Site Location
Location
Location
Location
Location
Location
Location
• Central Business District• Suburban Mall• Mega-Mall• Strip Mall• Power Mall• Freestanding Store
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-13
Brand Identity
Branding strategies influence consumers’ perceptions of a store.
HarryRosenHarryRosen
Quality, contemporary fashion and personalized service (a cut above).
La SenzaLa SenzaRacy and exotic (men’s view); pretty and comfortable (women’s view).
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-14
Atmosphere
Physical characteristics that help develop an image and attract customers.
Appearance(inside/outside)
Store Layout
Displays
Appearance(inside/outside)
Store Layout
Displays
Wal-Mart has bins, sale signs and and industrial style shelves.
La Senza has an elegant, bedroom-style environment.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-15
Merchandise Assortment
The assortment of merchandise is described as breadth of selection and depth of selection.
BreadthBreadth
DepthDepth
The number of classifications of goods.
The number of brands and styles in each classification.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-16
Product Mix Strategy
Retailers opt for consistency of product or they add unrelated products to the mix.
1. Assortment Consistency
2. Scrambled Merchandising
3. Stock Balance
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc.
13-17
Merchandise Control
Stock turnover (stockturn) is a key measure of retail success and control.
Stockturn = SalesAverage Inventory
If sales are $1,000,000 and the average inventory is $200,000, the stockturn would be 5.