CHAPTER
RETAILING AND WHOLESALING
THE VALUE OF RETAILING Retailing Retailing includes all activities involved in Selling and providing goods and services to ultimate consumers for personal, or household use.
CLASSIFYING RETAIL OUTLETS
Ownership-place
Level of Service-promotion Product Assortment-product
Classification of Retail Establishments
Price
Retailers manipulate their 4 Ps to get the best position in the marketplace in other words, to create a competitive advantage
CLASSIFICATION BY OWNERSHIP
Independent Retailers-one store ownership Chain Stores-many stores but only one owner Franchises-many owners of many stores
BASIC FORMS OF FRANCHISING
Dealer agrees to sell certain products provided by a manufacturer, but can use any sales tactics he chooses. Ex-Michelin Tires, Avon Dealer must sell the franchisers product in the exact way the franchiser prescribes. Ex McDonalds, Wendy's
Product and Trade Name Franchising
Business Format Franchising
CLASSIFICATION BY LEVEL OF SERVICE
Self Service
Discount stores
Full Service
Factory outlets Warehouse clubs
Exclusive stores
CLASSIFICATION BY PRODUCT OFFERING
The mix of products offered to the consumer by the retailer; also called the product assortment
Deep & narrow-like Starbucks Or Shallow & broad like Walmart
CLASSIFICATION BY PRODUCT OFFERING
Depth of Product Line
Specialty Outlets
Category Killers
Breadth of Product Line
General Merchandise Stores Scrambled Merchandising Why do this?
Breadth versus depth of merchandise lines
MAJOR TYPES OF RETAILERS BY PRODUCT OFFERING
Department Stores
Specialty Stores Supermarkets
Drugstores
Convenience Stores
Discount Stores
Restaurants
NON-STORE RETAILING
Automatic Vending
Direct Marketing
Major Forms of Nonstore Retailing
Electronic Retailing
DIRECT MARKETING
Direct Mail
Direct Marketing needs no personal interaction
Catalogs & Mail Order
Telemarketing
CHOOSING THE RETAIL MIX
Product Choosing the Retailing Mix Price Promotion
Place Personnel Presentation
CHOOSING THE RETAIL MIX
Product Personnel Promotion
Target Market
Presentation
Place
Price
PRESENTATION (COMMUNICATION) OF THE RETAIL STORE
Employee Type & Density Merchandise Type & Density Fixture Type & Density
Factors in Creating Stores Atmosphere
Sound Odors Visual Factors
PERSONNEL OF THE RETAIL STORE
How many How knowledgeable
How helpful / invasive
Factors in Personnel decisions
Fit the image of the product Good personal sellers
RETAILING STRATEGY-PRICING
How much mark-up?
Allow for Shrinkage and discounting OR Use Everyday Low Pricing Benchmark or Signpost Items items used by consumers as an index of overall price level of the store I.e. How much do they sell T shirts for?
RETAILING STRATEGY - LOCATION
Central Business District
Parasites
Regional Shopping Centers
Anchor Stores
Freestanding Store
Strip Location
Destination stores Power centers
Shopping Center Tenant
Mall Tenant
Multichannel Retailers
FIGURE 14-5 The retail life cycle
Scrambled Merchandising
Scrambled merchandising involves offering several unrelated product lines in a single store.
Retailing Mix
The retailing mix includes the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise.
Shrinkage
Shrinkage is the breakage and theft of merchandise by customers and employees.
Multichannel Retailers
Multichannel retailers utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television, and online retailing.
Retail Life Cycle
The retail life cycle is the process of growth and decline that retail outlets, like products, experience, which consists of the early growth, accelerated development, maturity, and decline stages.
Parasites
Parasite stores do not create their own traffic. They make money based on their proximity to things that will draw foot traffic. (bigger stores, train stations, airports, office buildings, etc.)
Destination Stores
Stores that generate customers from larger trading areas than their neighbors or competitors.
i.e.-Dunkin Donuts: Its worth the trip!
Power Centers
Huge shopping strips with multiple anchors and often a supermarket
Anchor Stores
A large store, such as a department store or supermarket, that is prominently located in a shopping mall to attract customers who are then expected to patronize the other shops in the mall.
