retailing professor chip besio cox school of business
DESCRIPTION
RETAILERS ARE REINVENTING THEIR STORES TO MATCH THE WAY YOU WANT TO SHOP!TRANSCRIPT
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RETAILING
Professor Chip BesioCox School of Business
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RETAILERS ARE REINVENTING THEIR STORES TO MATCH THE WAY YOU WANT TO SHOP!
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RETAILERS LOVE ITWHEN THE MAYOR VISITS!
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THE VALUE OF RETAILING
Retailing
Consumer Utilities Offered by Retailing
• Place
• Possession
The Global Economic Impact of Retailing
• Form
• Time
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Which retailer best provides which utilities?
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The relative size of different types of retailers
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CLASSIFYING RETAIL OUTLETSFORM OF OWNERSHIP
Independent Retailer
Corporate Chain
• Wholesaler-Sponsored Voluntary Chains
Contractual Systems
• Retailer-Sponsored Cooperatives
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CLASSIFYING RETAIL OUTLETSFORM OF OWNERSHIP
• Franchising
Contractual Systems
Business-FormatFranchises
Product-DistributionFranchises
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The top five franchises in the United States
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Self-Service
CLASSIFYING RETAIL OUTLETSLEVEL OF SERVICE
Limited Service
Full-Service
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Stores vary in terms of the breadth and depth of their merchandise lines
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Depth of Product Line
CLASSIFYING RETAIL OUTLETSTYPE OF MERCHANDISE LINE
• Specialty Outlets
• Category Killers
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Breadth of Product Line
CLASSIFYING RETAIL OUTLETSTYPE OF MERCHANDISE LINE
• General Merchandise Stores
• Scrambled Merchandising
Hypermarket
Intertype Competition
Supercenter
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Hypermarkets are popular in Europe and Latin America while supercenters are popular in the U.S.
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For Lands’ End, intertype competition means that there is competition between various dissimilar retail outlets
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Many retailing activities do not involve a store
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NONSTORE RETAILING
Television Home Shopping
Online Retailing
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GOING ONLINEFor Some Consumers, Shopping is a Game!
Shopping “Bots” find best prices
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NONSTORE RETAILING
Telemarketing
Direct Selling
• Do-Not-Call Registry
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Elements of a retailing strategy
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RETAILING STRATEGYPOSITIONING A RETAIL STORE
Retail Positioning Matrix
• Breadth of Product Line
• Value Added
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The four positioning strategies for retailers
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RETAILING STRATEGYRETAILING MIX
Retailing Mix
• Original Markup
• Maintained Markup
Retail Pricing
Markdown
• Gross Margin
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RETAILING STRATEGYRETAILING MIX
Everyday Low Pricing (EDLP)
Everyday Fair Pricing
Benchmark or Signpost Items
Shrinkage
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RETAILING STRATEGYRETAILING MIX
Off-Price Retailing
• Warehouse Club
• Outlet Store
• Single/Extreme Value Store
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RETAILING STRATEGYRETAILING MIX
Store Location
• Regional Shopping Centers
• Central Business District
Anchor Stores
• Strip Mall
• Community Shopping Center
• Power Center
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RETAILING STRATEGYRETAILING MIX
Retail Communication
• Shopper Marketing
• Image
Merchandise• Category Management
• Marketing Metrics Sales per Sq. Ft. Same Store Sales
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USING MARKETING DASHBOARDSWhy Apple Stores May Be
the Best in the United States!
Sales per Square Foot ($) and Same Store Sales Growth (%)
Same Store Growth (%) =
Store Sales Year 2 ($) Š Store Sales Year 1 ($) Store Sales Year 1 ($)
100
Sales per Square Foot ($) = Total Sales ($)
Selling Area in Square Feet (#)
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THE CHANGING NATURE OF RETAILINGTHE WHEEL OF RETAILING AND RETAIL LIFE CYCLE
Wheel of Retailing
Retail Life Cycle
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The wheel of retailing describes how outlets change over time
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The retail life cycle describes the stage of growth and decline for retail outlets
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FUTURE CHANGES IN RETAILING
Multichannel Retailers
Managing the Customer Experience
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MARKETING MATTERSThe Multichannel Marketing Multiplier
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MAKING RESPONSIBLE DECISIONSGREEN ISN’T JUST A COLOR TO RETAILERS.
IT’S A VALUE!