Chapter 11 Ver2e1 Chapter 11 ©2000 South-Western College Publishing Retailing Retailing Prepared by...

Chapter 11 Ver2e 1

Chapter 11Chapter 11

©2000 South-Western College Publishing

RetailingRetailing

Prepared byPrepared byDeborah BakerDeborah BakerTexas Christian UniversityTexas Christian University

Chapter 11 Ver2e 2

Chapter 11 ObjectivesChapter 11 Objectives

1. Discuss the importance of retailing in the U.S. economy.

2. Explain the dimensions by which retailers can be classified.

3. Describe the major types of retail operations.

4. Discuss nonstore retailing techniques. (continued)


Chapter 11 Ver2e 3

Chapter 11 ObjectivesChapter 11 Objectives

5. Define franchising and describe its two basic forms.

6. List the major tasks involved in developing a retail marketing strategy.

7. Discuss the challenges of expanding retailing operations into global markets.

8. Describe future trends in retailing.


Chapter 11 Ver2e 4

The Role of RetailingThe Role of Retailing

Retailing is one of the largest employers

Over half of retail sales are produced by less than 10% of retail establishments

Industry is dominated by a few giant organizations:

Wal-Mart Sears Kmart JC Penney Dayton Hudson Corporation


Chapter 11 Ver2e 5

ClassificationClassificationof of

Retail Retail EstablishmentsEstablishments

ClassificationClassificationof of

Retail Retail EstablishmentsEstablishments

OwnershipOwnership

Level of ServiceLevel of Service

Product AssortmentProduct Assortment

PricePrice

Classification of Retail OperationsClassification of Retail Operations


Chapter 11 Ver2e 6

Major Types of Retail OperationsMajor Types of Retail Operations

Department StoresDepartment Stores

Specialty StoresSpecialty Stores

SupermarketsSupermarkets

DrugstoresDrugstores

Convenience StoresConvenience Stores

Discount StoresDiscount Stores

RestaurantsRestaurants


Chapter 11 Ver2e 7

Types of Stores & Their CharacteristicsTypes of Stores & Their Characteristics


Type of RetailerType of RetailerType of RetailerType of Retailer

Department StoreDepartment Store

Specialty StoreSpecialty Store

SupermarketSupermarket

Convenience StoreConvenience Store

DrugstoreDrugstore

Full-line DiscounterFull-line Discounter

Specialty DiscounterSpecialty Discounter

Warehouse ClubsWarehouse Clubs

Off-price RetailerOff-price Retailer

RestaurantRestaurant

Service Service LevelLevel

Service Service LevelLevel

Mod Hi-HighMod Hi-High

HighHigh

LowLow

LowLow

Low-ModLow-Mod

Mod-LowMod-Low

Mod-LowMod-Low

LowLow

LowLow

Low-HighLow-High

Assort-Assort-mentment

Assort-Assort-mentment PricePricePricePrice GrossGross

MarginMarginGrossGrossMarginMargin

BroadBroad

NarrowNarrow

BroadBroad

Med-NarrowMed-Narrow

MediumMedium

Med-BroadMed-Broad

Med-BroadMed-Broad

BroadBroad



Mod-HighMod-High

Mod-HighMod-High

ModerateModerate

Mod HighMod High

ModerateModerate

Mod LowMod Low

Mod Lo-lowMod Lo-low

Low-lowerLow-lower

LowLow

Low-HighLow-High

Mod HighMod High

HighHigh

LowLow

Mod HighMod High

LowLow

Mod LowMod Low

Mod LowMod Low

LowLow

LowLow

Low-HighLow-High

Chapter 11 Ver2e 8

Categories of Discount StoresCategories of Discount Stores

Categories Categories of Discount of Discount

StoresStores

Full-LineDiscounters


Discount Specialty Stores

WarehouseClubs

Off-PriceDiscount Retailers

Chapter 11 Ver2e 9©2000 South-Western College Publishing

Nonstore RetailingNonstore Retailing

Major FormsMajor Formsofof

NonstoreNonstoreRetailingRetailing

Major FormsMajor Formsofof

NonstoreNonstoreRetailingRetailing

Automatic VendingAutomatic Vending

Direct RetailingDirect Retailing

Direct MarketingDirect Marketing

Electronic RetailingElectronic Retailing


TelemarketingTelemarketing

Catalogs & Mail OrderCatalogs & Mail Order

Direct MailDirect MailTypes Types

of of DirectDirect

MarketingMarketing

Types Types of of

DirectDirectMarketingMarketing

Direct MarketingDirect Marketing


On-Line RetailingOn-Line Retailing

Shop-at-Home NetworksShop-at-Home NetworksTypes Types

ofofElectronicElectronicRetailingRetailing

Types Types ofof

ElectronicElectronicRetailingRetailing

Electronic RetailingElectronic Retailing

Chapter 11 Ver2e 12

An opportunity to become an independent businessperson

Established product or service

Technical training and assistance by franchiser

Quality control standards by franchiser to ensure product uniformity


FranchisingFranchising

Benefits of FranchisingBenefits of Franchising

Wendy's and the Wendy's logo areregistered trademarks of Wendy's International, Inc.

All rights reserved. Copyright © 2000


Business FormatFranchising

Business FormatFranchising

Product and Trade Name Franchising

Product and Trade Name Franchising

Basic FormsBasic Formsof of


Basic FormsBasic Formsof of




Develop the “Six P’s”Develop the “Six P’s”

Define & Select a Target Market

Define & Select a Target MarketKey Tasks Key Tasks

in in StrategicStrategicRetailingRetailing

Key Tasks Key Tasks in in

StrategicStrategicRetailingRetailing

Retail Marketing StrategyRetail Marketing Strategy

Chapter 11 Ver2e 15

Defining & Selecting a Target MarketDefining & Selecting a Target Market


STEP 1:Segment the Market

STEP 1:Segment the Market

DemographicsDemographics

GeographicsGeographics

PsychographicsPsychographics

STEP 2:Choose the Retailing Mix

STEP 2:Choose the Retailing Mix

ProductProduct

PricePrice

PromotionPromotion

PlacePlace

PersonnelPersonnel

PresentationPresentation

Chapter 11 Ver2e 16

The Retailing MixThe Retailing Mix


TargetTargetMarketMarket

ProductProduct

PricePrice

PromotionPromotion

PlacePlace

PersonnelPersonnel

PresentationPresentation

Chapter 11 Ver2e 17

Presentation of the Retail StorePresentation of the Retail Store


Employee Type & DensityEmployee Type & Density

Merchandise Type & DensityMerchandise Type & Density

Fixture Type & DensityFixture Type & Density

SoundSound

OdorsOdors

Visual FactorsVisual Factors

DeterminantsDeterminantsof a Store’sof a Store’s

Atmosphere Atmosphere

DeterminantsDeterminantsof a Store’sof a Store’s

Atmosphere Atmosphere


Suggestive SellingSuggestive Selling

Trading UpTrading UpTwo Common Two Common

SellingSellingTechniquesTechniques

Two Common Two Common SellingSelling

TechniquesTechniques

Personnel and Customer ServicePersonnel and Customer Service

Chapter 11 Ver2e 19

Global RetailingGlobal Retailing


Spread of communication and mass media

Spread of communication and mass media

Lowering of trade barriers and tariffsLowering of trade barriers and tariffs

High growth potential in

untapped markets

High growth potential in

untapped markets

Reasons for Reasons for Global ExpansionGlobal Expansion

Chapter 11 Ver2e 20



Prerequisites forPrerequisites forGoing GlobalGoing Global

Secure DomesticPosition

Secure DomesticPosition

Long-TermPerspectiveLong-TermPerspective

ConsistentGlobal andCorporateStrategies

ConsistentGlobal andCorporateStrategies


Market Size & EconomicsMarket Size & Economics

Infrastructure & DistributionInfrastructure & Distribution

CompetitionCompetition

OperationsOperations

Financial & Tax ReportingFinancial & Tax Reporting

Merchandise AcceptabilityMerchandise Acceptability

Partnering CapabilityPartnering Capability

Factors UsedFactors Usedto Analyzeto Analyze

Global RetailGlobal RetailMarketsMarkets

Factors UsedFactors Usedto Analyzeto Analyze

Global RetailGlobal RetailMarketsMarkets


Chapter 11 Ver2e 22

Trends in RetailingTrends in Retailing


Trends in Trends in RetailingRetailing

EntertainmentEntertainment

Convenience and EfficiencyConvenience and Efficiency

Customer ManagementCustomer Management


ClientelingClienteling

Loyalty ProgramsLoyalty Programs

Customer RelationshipMarketing

Customer RelationshipMarketing

EmergingEmergingCustomerCustomer

ManagementManagementStrategiesStrategies

EmergingEmergingCustomerCustomer

ManagementManagementStrategiesStrategies

Customer ManagementCustomer Management

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