chapter 13copyright ©2009 cengage learning inc. all rights reserved 1 mktg designed by amy mcguire,...
TRANSCRIPT
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 1
MKTG
Designed byAmy McGuire, B-books, Ltd.
Prepared byDeborah Baker, Texas Christian University
Lamb, Hair, McDaniel 2008-2009
Retailing
13
CHAPTER
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 2
Learning Outcomes
Discuss the importance of retailing in the U.S. economy
Explain the dimensions by which retailers can be classified
Describe the major types of retail operations
LO1
LO2
LO3
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 3
Learning Outcomes
Discuss nonstore retailing techniques
Define franchising and describe its two basic forms
List the major tasks involved in developing a retail marketing strategy
Describe new developments in retailing
LO4
LO5
LO6
LO7
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 4
LO1
Retailing
All the activities directly
related to the sale of goods
and services to the ultimate
consumer for personal,
non-business use.
RetailingRetailing
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 5
LO1
The Role of Retailing
Over 1 million U.S. retailers employ more than 15 million people
Retailers account for 11.6 percent of U.S. employment
Retailing accounts for 13 percent of U.S. businesses
Retailers ring up almost $4 trillion in sales—nearly 40 percent of the U.S. GDP
Industry is dominated by a few giant organizations, such as Wal-Mart
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 6
REVIEW LEARNING OUTCOMELO1
The Importance of Retailing
11.6% 13%
40%
Retailing as a %of U.S. employment
Retailing as a %of U.S. businesses
Retailing as a %of GDP
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 7
LO2
Classification of Retail Operations
OwnershipOwnership
Level of ServiceLevel of Service
Product AssortmentProduct Assortment
PricePrice
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 8
LO2
Classification of Ownership
IndependentRetailers
IndependentRetailers
Chain StoresChain Stores
FranchisesFranchises
Owned by a single person or partnership and not part of a larger retail institution
Owned by a single person or partnership and not part of a larger retail institution
Owned and operated as a group by a single organizationOwned and operated as a group by a single organization
The right to operate a business or sell a productThe right to operate a business or sell a product
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 9
LO2
Level of Service
Full Service Self Service
Discount stores Exclusive storesFactory outlets Warehouse clubs
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 10
LO2
Types of Stores and Their Characteristics
Assort-Assort-mentment PricePrice GrossGross
MarginMargin
Broad
Narrow
Broad
Med-Narrow
Medium
Med-Broad
Med-Broad
Broad
Med-Narrow
Narrow
Mod-High
Mod-High
Moderate
Mod High
Moderate
Mod Low
Mod Lo-low
Low-very low
Low
Low-High
Mod High
High
Low
Mod High
Low
Mod Low
Mod Low
Low
Low
Low-High
Type of RetailerType of Retailer
Specialty Store
Supermarket
Convenience Store
Drugstore
Full-line Discounter
Specialty Discounter
Warehouse Clubs
Off-price Retailer
Restaurant
Service Service LevelLevel
Mod Hi-High
High
Low
Low
Low-Mod
Mod-Low
Mod-Low
Low
Low
Low-High
Department Store
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 11
LO2
Price
The amount of money
the retailer makes as a
percentage of sales after
the cost of goods sold is
subtracted.
GrossMargin
GrossMargin
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 12
Major Types of Retail OperationsLO3
Department StoresDepartment Stores
Specialty StoresSpecialty Stores
SupermarketsSupermarkets
DrugstoresDrugstores
Convenience StoresConvenience Stores
Discount StoresDiscount Stores
RestaurantsRestaurants Online
http://www.walgreens.com
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 13
Categories of Discount StoresLO3
Full-LineDiscounters
Specialty Discount Stores
WarehouseClubs
Off-PriceDiscount Retailers
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 14
Discount StoresLO3
MassMerchandising
MassMerchandising
Retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products.
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 15
Discount StoresLO3
SupercenterSupercenter
Retail store combining groceries and general merchandise goods with a wide range of services.
Retail store combining groceries and general merchandise goods with a wide range of services.
Full-line discounterFull-line discounter
Retailer offering consumers very limited service and carrying a broad assortment of well-known, nationally branded “hard goods”.
Retailer offering consumers very limited service and carrying a broad assortment of well-known, nationally branded “hard goods”.
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 16
Specialty Discount StoresLO3
CategoryKillers
CategoryKillers
Specialty discount stores that heavily dominate their narrow merchandise segment.
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 17
REVIEW LEARNING OUTCOMELO3
Types of Retail OperationsDepartment
Stores
Department Stores
Specialty Stores
Specialty Stores SupermarketSupermarket DrugstoresDrugstores Convenience
Stores
Convenience Stores
Discount Stores
Discount Stores RestaurantsRestaurants
ScrambledMerchandising
ScrambledMerchandising
Full-line
Specialty
Warehouse
Off-price
supercenter
extreme- value
categorykiller
factoryoutlet
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 18
LO4
Nonstore Retailing
Automatic VendingAutomatic Vending
Direct RetailingDirect Retailing
Direct MarketingDirect Marketing
Electronic RetailingElectronic Retailing
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 19
LO4
Direct Retailing
Door-to-DoorDoor-to-Door
Office-to-OfficeOffice-to-Office
Home Sales PartiesHome Sales Parties
Online
http://www.avon.com
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 20
LO4
Types of Direct Marketing
TelemarketingTelemarketing
Catalogs & Mail OrderCatalogs & Mail Order
Direct MailDirect Mail
Electronic RetailingElectronic Retailing
Shop-at-home networksOnline retailing
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 21
REVIEW LEARNING OUTCOMELO4
Nonstore Retailing Techniques
Vending
Direct retailing
Direct marketing
Electronic retailing
direct mailcatalogstelemarketing
onlineshop at home
Nonstore RetailingNonstore Retailing
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 22
Basic Forms of FranchisingLO5
Business FormatFranchising
Business FormatFranchising
Product and Trade Name Franchising
Product and Trade Name Franchising
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 23
FranchisingLO5
Product and Trade Name Franchising
Product and Trade Name Franchising
Dealer agrees to sell in products provided by a manufacturer or wholesaler.
Dealer agrees to sell in products provided by a manufacturer or wholesaler.
BusinessFormat
Franchising
BusinessFormat
Franchising
An ongoing business relationship between a franchiser and a franchisee.
An ongoing business relationship between a franchiser and a franchisee.
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 24
Retail Marketing Strategy
LO6
Develop the “Six Ps”
Define & Select a Target Market
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 25
Defining a Target Market
LO6
STEP 1:Segment the Market
STEP 1:Segment the Market
DemographicsDemographics
GeographicsGeographics
PsychographicsPsychographics
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 26
Choosing the Retailing Mix
LO6
STEP 2:Choose the Retailing Mix
STEP 2:Choose the Retailing Mix
ProductProduct
PricePrice
PromotionPromotion
PlacePlace
PersonnelPersonnel
PresentationPresentation
Online
http://www.publix.com
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 27
The Retailing Mix
LO6
TargetTargetMarketMarket
ProductProduct
PricePrice
PlacePlace
PromotionPromotion
PersonnelPersonnel
PresentationPresentation
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 28
Choosing the Retailing Mix
LO6
ProductOffering
ProductOffering
The mix of products offered to
the consumer by the retailer;
also called the product
assortment or merchandise
mix.
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 29
Retail Promotion Strategy
LO6
AdvertisingAdvertising
Public RelationsPublic Relations
PublicityPublicity
Sales PromotionSales Promotion
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 30
The Proper Location
LO6
Economic growth potential
Economic growth potential
CompetitionCompetition
GeographyGeography
Choosing a Community Choosing a Site
Freestanding StoreFreestanding Store
Shopping CenterShopping Center
MallMall
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 31
Important Factors for Site Choice
LO6
Neighborhood socioeconomics
Traffic flows
Land costs
Zoning regulations
Public transportation
Site’s visibility, parking, entrances and exits,accessibility, and safety
Fit with other stores
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 32
Shopping Center and Mall Locations
LO6
Design attracts shoppers
Activities and anchor stores draw customers
Ample parking Unified image Sharing of common
area expenses
Expensive leases
Failure of common promotion efforts
Lease restrictions
Hours of operation
Anchor store domination
Direct competitors
Consumer time limits
Advantages Disadvantages
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 33
Retail Prices
LO6
QualityImage
High PriceHigh Price Low Price Low Price
Good ValueSingle Price Point
EDLP
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 34
Presentation of the Retail Store
LO6
AtmosphereAtmosphere The overall impression
conveyed by a store’s
physical layout, décor, and
surroundings
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 35
Presentation of the Retail Store
LO6
Employee type and densityEmployee type and density
Merchandise type and densityMerchandise type and density
Fixture type and densityFixture type and density
SoundSound
OdorsOdors
Visual factorsVisual factorsOnline
http://www.apple.com
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 36
Personnel and Customer Service
LO6
Suggestion SellingSuggestion Selling
Trading UpTrading Up
Two Common Two Common SellingSelling
TechniquesTechniques
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 37
Customer Service for On-Line Retailers
LO6
Easy-to-use Web site Easy-to-use Web site
Product availabilityProduct availability
Simple returnsSimple returns
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 38
REVIEW LEARNING OUTCOMELO6
Developing a Retail Marketing Strategy
Chapter 13 Copyright ©2009 Cengage Learning Inc. All rights reserved 39
LO7
New Developments in Retailing
InteractivityInteractivityConsumers areinvolved in the retail experience.
Consumers areinvolved in the retail experience.
M-commerceM-commercePurchasing goods through mobile devices.
Purchasing goods through mobile devices.