chapter 4. to show retail classifications to study retail ownership type to explore influences in...
TRANSCRIPT
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Chapter 4
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• To Show Retail Classifications• To Study Retail Ownership Type• To Explore Influences in the Channel of
Distribution
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II.Store-Based
Retail StrategyMix
III.Service vs.
Goods RetailStrategy Mix
IV.Nonstore-Based
Retail Strategy Mixand Nontraditional
Retailing
I.Ownership
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I.Ownership
• Independent• Chain• Franchise• Lease Department• Vertical Marketing System• Consumer Cooperative
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• Flexibility• Investment Costs Down• Specialists• Strong Control• Image• Consistency• Independence• Entrepreneurial Drive
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• Lack of Power• No Economies of Scale• Labor Intensive• Limited Access to Advertising• Over-dependence on Owner• Limited Resources for Long-run
Planning
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• Bargaining Power• Cost Efficiencies• Operating Efficiencies• Technical Abilities• Advertising Availability• Defined Management Philosophies
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• Time and Resources Spent on Long-run Planning
• Limited Flexibility• Investments High• Managerial Control Difficult• Limited Independence for Personnel
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• Product/Trademark• Business Format
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Manufacturer-Retailer
Service Sponsor-Retailer
Wholesaler-RetailerCooperative
Voluntary
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• Small Capital Investment• Brand Awareness• Operation Procedures and
Management Skills• Cooperative Marketing• Exclusive Selling Rights• Purchasing Costs
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• Oversaturation• Franchisor Overselling• Contract Provisions• Cancellation Clauses• Short Duration• Gross Sales Based Royalties
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• National or Global Presence• Ownership Qualifications Set• Money Obtained on
Delivery• Stringent Rules for Franchisees• Franchisee Work Incentive• Royalties Continue
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• Damaged Reputation• Loss of Customer Loyalty• Intra-franchise Competition• Reduced Resale Value• Injured Profitability• Franchisee Desire for
Independence
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• Fills Merchandise and Expertise Gaps• Enlarged Market• Reduces Store Costs• Lessee Assumes Administration Rol• Percent of Revenues
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• Conflicts in Operating Procedures• Damaged Image• Customer Blame
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• Well Know Store• Reduced Costs• Economies of Scale
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• Inflexibility in Hours• Product Line Restrictions• Raised Rent• Sales Expectations Not Met
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FOOD-ORIENTED RETAILERS
• Convenience Store• Conventional Supermarket• Food-Based Superstore• Combined Store• Box (limited-line) Store• Warehouse Store
II.Store-Based
Retail StrategyMix
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GENERAL MERCHANDISE RETAILERS
• Specialty Store• Variety Store• Traditional Department Store• Full-Line Discount Store• Off-Price Chain• Factory Outlet• Membership Club• Flea Market
II.Store-Based
Retail StrategyMix
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III.Service vs.
Goods RetailStrategy Mix
•Rented Goods•Owned Goods•Nongoods
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• Direct Marketing• Direct Selling• Vending Machine• World Wide Web• Other Emerging Retail Formats
IV.Nonstore-Based
Retail Strategy Mixand Nontraditional
Retailing
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Manufacturer Independent ManufacturerOwnership
WholesalerIndependent Wholesaler
Ownership
RetailerIndependent Retailer
Ownership
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Manufacturer
Wholesaler
Retailer
Two Channel MembersOwn All Facilities andPerform All Functions
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Manufacturer
Wholesaler
Retailer
All Production and DistributionFunctions are Performed By
One Channel Member
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• Owned by Consumers• Most Popular in Grocery
Retailing
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• Ways Retail Institutes Can Be Classified
• Retail Ownership Types and Characteristics of Each
• Exertion of Influence in the Channel of Distribution– By Manufacturers– By Wholesalers– By Retailers
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Questions?
Questions?
Questions?