Retailing

Retailing

All the activities directly

related to the sale of goods
and services to the ultimate
consumer for personal,
non-business use.
 Classification of Retail Operations

Ownership
Ownership

Level
Level of
of Service
Service

Classification
Classification Product
Product Assortment
Assortment
of
of
Retail
Retail
Establishments
Establishments Price
Price
Classification of Ownership

Independent
Independent
Retailers
Retailers

Chain
Chain Stores
Stores

Franchises
Franchises
 Level of Service

Self Service Full Service

Factory outlets Discount stores Exclusive stores

Warehouse clubs
Wheel of Retailing
 Types of Stores and
Their Characteristics
Type Service
Service Assort-
Assort- Gross
Gross
Typeof
ofRetailer
Retailer Level ment
Price
Price Margin
Level ment Margin
Department
DepartmentStore
Store Mod
ModHi-High
Hi-High Broad
Broad Mod-High
Mod-High Mod
ModHigh
High
Specialty
SpecialtyStore
Store High
High Narrow
Narrow Mod-High
Mod-High High
High
Supermarket
Supermarket Low
Low Broad
Broad Moderate
Moderate Low
Low
Convenience
ConvenienceStore
Store Low
Low Med-Narrow
Med-Narrow Mod
ModHigh
High Mod
ModHigh
High
Drugstore
Drugstore Low-Mod
Low-Mod Medium
Medium Moderate
Moderate Low
Low
Full-line
Full-lineDiscounter
Discounter Mod-Low
Mod-Low Med-Broad
Med-Broad Mod
ModLow
Low Mod
ModLow
Low
Specialty
SpecialtyDiscounter
Discounter Mod-Low
Mod-Low Med-Broad
Med-Broad Mod
ModLo-low
Lo-low Mod
ModLow
Low
Warehouse
WarehouseClubs
Clubs Low
Low Broad
Broad Low-lower
Low-lower Low
Low
Off-price
Off-priceRetailer
Retailer Low
Low Med-Narrow
Med-Narrow Low
Low Low
Low
Restaurant
Restaurant Low-High
Low-High Med-Narrow
Med-Narrow Low-High
Low-High Low-High
Low-High
 Basic Forms of Franchising

Product
Product and
and Trade
Trade Name
Name
Franchising
Franchising
Basic
Basic Forms
Forms
of
of
Franchising
Franchising
Business
Business Format
Format
Franchising
Franchising
 Basic Forms of Franchising

Product
Product and
and Dealer
Dealer agrees
agrees to
to sell
sell certain
certain
Trade
Trade Name
Name products
products provided
provided byby aa
Franchising
Franchising manufacturer
manufacturer or
or wholesaler.
wholesaler.

Business
Business
Format An
An ongoing
ongoing business
business relationship
relationship
Format
Franchising between
between aa franchiser
franchiser
Franchising
and
and aa franchisee.
franchisee.
 Retail Marketing Strategy

Define
Define && Select
Select
Key
Key Tasks
Tasks aa Target
Target Market
Market
in
in
Strategic
Strategic
Retailing
Retailing
Develop
Develop the
the Six
Six Ps
Ps
 Defining a Target Market

Demographics
Demographics

STEP
STEP 1:1: Geographics
Geographics
Segment
Segment the
the Market
Market

Psychographics
Psychographics
 Choosing the Retailing Mix

Product
Product Place
Place
STEP
STEP 2: 2:
Choose
Choose the
the Price
Price Personnel
Personnel
Retailing
Retailing Mix
Mix
Promotion
Promotion Presentation
Presentation
 The Retailing Mix

Product
Product

Personnel
Personnel Promotion
Promotion

Target
Market

Presentation
Presentation Place
Place

Price
Price
 Product Offering

The mix of products offered

to the consumer by the
retailer; also called the
product assortment or
merchandise mix.
 Retail Promotion Strategy

Advertising
Advertising

Public
Public Relations
Relations

Publicity
Publicity
Retail
Retail
Promotion
Promotion
Strategy
Strategy Sales
Sales Promotion
Promotion
Factors to Consider in Site Selection

Economic
Economic growth
growth
potential
potential

Area
Area competition
competition

Geography
Geography
 Location Decisions

Freestanding
Freestanding Store
Store

Shopping
Shopping Center
Center
Tenant
Tenant

Mall
Mall Tenant
Tenant
 Shopping Center and
Mall Locations

Advantages Disadvantages

Design attracts Expensive leases

shoppers Failure of common
Activities and anchor promotion efforts
stores draw Lease restrictions
customers Anchor store
Ample parking domination
Unified image Direct competitors
 Price

Low Price High Price

Good Value Quality

Image
 Presentation of the Retail Store

Employee
Employee Type
Type &
& Density
Density

Merchandise
Merchandise Type
Type &
& Density
Density

Fixture
Fixture Type
Type &
& Density
Density

Factors
Factors Sound
Sound
in
in
Creating
Creating Odors
Odors
Stores
Stores
Atmosphere
Atmosphere Visual
Visual Factors
Factors
 Personnel and Customer Service

Trading
Trading Up
Up
Two
Two Common
Common
Selling
Selling
Techniques
Techniques
Suggestive
Suggestive Selling
Selling
 Customer Service for
On-Line Retailers

Easy-to-use
Easy-to-use Web
Web Site
Site

Product
Product Availability
Availability

Simple
Simple Returns
Returns
 Global Retailing

Reasons for
Global Expansion

Spread
Spread of
of Growth
Growth potential
potential
communication
communication in
in underserved
underserved
and
and mass
mass media
media markets
markets
Lowering
Lowering ofof trade
trade
barriers
barriers and
and
tariffs
tariffs
 Factors Used to Analyze
Global Retail Markets
Market
Market Size
Size &
& Economics
Economics

Infrastructure
Infrastructure &
& Distribution
Distribution

Competition
Competition

Operations
Operations

Financial
Financial &
& Tax
Tax Reporting
Reporting

Merchandise
Merchandise Acceptability
Acceptability

Partnering
Partnering Capability
Capability
 Global Retailing

Secure
Secure
Domestic
Domestic
Position
Position
Prerequisites for
Going Global
Long-Term
Long-Term
Perspective
Perspective

Consistent
Consistent
Global
Global and
and
Corporate
Corporate
Strategies
Strategies
 Trends in Retailing

New
New retail
retail forms
forms
And
And combinations
combinations

Trends in Inter
Inter type
type
Retailing Competition
Competition

Growth
Growth of
of giant
giant retailers
retailers
 Trends in Retailing

Investment
Investment in
in
Technology
Technology

Trends in
Retailing Selling
Selling experiences
experiences

Store
Store vs.
vs. Non
Non store
store
retailing
retailing
 Trends in Retailing

Entertainment
Entertainment

Trends in Convenience
Convenience
Retailing and
and Efficiency
Efficiency

Customer
Customer Management
Management
 Customer Management Strategies

Customer
Customer Relationship
Relationship
Marketing
Marketing

Loyalty
Loyalty
Programs
Programs

Clienteling
Clienteling
 Market Logistics

Market logistics planning has four steps:

Deciding on the companys value
proposition to its customers
Deciding on the best channel design and
network strategy for reaching the customers
Developing operational excellence in sales
forecasting, warehouse management,
transportation management, and materials
management
Implementing the solution with the best
information systems, equipment, policies, and
procedures
Market Logistics Decisions

How should orders

be handled?
Where should
stock be located?
How much stock
should be held?
How should goods
be shipped?
Determining Optimal Order Quantity
 Transportation Factors

Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost