MKT 340 Ch13 ppt

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LO1 Identify retailers in terms of theutilities they provide.

Explain the alternative ways toclassify retail outlets.LO2

LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 13, YOU SHOULD BE ABLE TO:

Describe the many methods of nonstore retailing.LO3

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LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 13, YOU SHOULD BE ABLE TO:

LO4 Specify the retailing mix actions used to implement a retailing strategy.

Explain changes in retailing with the wheel of retailing and the retail life cycle concepts.

LO5

Describe the types of firms that perform wholesaling activities and their functions.

LO6

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IF YOU LIKE TO SHOP, YOU WILLLOVE GOOGLE GLASS(ES)!

Google Glass

http://kerin.tv/cr6e/v13-1


THE VALUE OF RETAILINGLO1

Retailing

Consumer Utilities Offered by Retailing

• Place

• Possession

The Global Economic Impact of Retailing

• Form

• Time

CarMaxVideo

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FIGURE 13-1 Which retailer best provides which utilities?

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CLASSIFYING RETAIL OUTLETSLO2

Level of Service

Form of Ownership

Merchandise Line

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MAKING RESPONSIBLE DECISIONSWHAT COLOR IS YOUR RETAILER?

IS IT GREEN?

LO2

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U.S. Green RetailerAssoc.

http://kerin.tv/cr6e/ppt13-1


CLASSIFYING RETAIL OUTLETSFORM OF OWNERSHIP

LO2

Independent Retailer

Corporate Chain

• Wholesaler-Sponsored Voluntary Chains

Contractual Systems

• Retailer-Sponsored Cooperatives

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CLASSIFYING RETAIL OUTLETSFORM OF OWNERSHIP

LO2

• Franchising

Contractual Systems

Business-FormatFranchises

Product-DistributionFranchises

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Self-Service

CLASSIFYING RETAIL OUTLETSLEVEL OF SERVICE

LO2

Limited Service

Full-Service

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FIGURE 13-2 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

LO2

• Specialty Outlets

• Category Killers

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Breadth of Product Line

CLASSIFYING RETAIL OUTLETSTYPE OF MERCHANDISE LINE

LO2

• General Merchandise Stores

• Scrambled Merchandising

Hypermarket

Intertype Competition

Supercenter

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FIGURE 13-A For Lands’ End, intertype competition means that there is competition between various dissimilar retail outlets

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FIGURE 13-B Many retailing activities do not involve a store

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NONSTORE RETAILINGLO3

Automatic Vending

Direct Mail and Catalogs

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IKEA Video




Television Home Shopping

Online Retailing

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Telemarketing

Direct Selling

• Do-Not-Call Registry

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FIGURE 13-3 Elements of a retailing strategy

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RETAILING STRATEGYRETAIL PRICING

LO4

Retailing Mix

• Original Markup

• Maintained Markup

Retail Pricing

Markdown• Gross Margin

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LO4

Everyday Low Pricing (EDLP)

Everyday Fair Pricing

Benchmark or Signpost Items

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LO4

Off-Price Retailing

• Warehouse Club

• Outlet Store

• Single/Extreme Value Store13-23


RETAILING STRATEGYRETAILING MIX

LO4

Store Location

• Regional Shopping Centers

• Central Business District

Anchor Stores

• Strip Mall

• Community Shopping Center

• Power Center13-24


RETAILING STRATEGYRETAILING MIX

LO4

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 (%)

LO4

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THE CHANGING NATURE OF RETAILINGTHE WHEEL OF RETAILING AND RETAIL LIFE CYCLE

LO5

Wheel of Retailing

Retail Life Cycle

Multichannel Retailers

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McDonald’s Video



FIGURE 13-4 The wheel of retailing describes how outlets change over time

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FIGURE 13-5 The retail life cycle describes the stage of growth and decline for retail outlets

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Merchant Wholesalers

• Full-Service Wholesalers

General Merchandise(Full-Line) Wholesalers

Specialty Merchandise(Limited-Line) Wholesalers

WHOLESALINGLO6

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• Limited-Service Wholesalers

Rack Jobbers

Cash and Carry Wholesalers

Drop Shippers/Desk Jobbers

Truck Jobbers

WHOLESALINGLO6

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• Manufacturer’s Agents or Representatives

• Selling Agents

• Brokers

Manufacturers• Branch Offices

• Sales Offices

Agents and Brokers

WHOLESALINGLO6

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MALL OF AMERICA: SHOPPINGAND A WHOLE LOT MORE

VIDEO CASE 13

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Mall of AmericaVideo



VIDEO CASE 13MALL OF AMERICA

1. Why has Mall of America been such a marketing success so far?

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2. What (a) retail and (b) consumer trends have occurred since Mall of America was opened in 1992 that it should consider when making future plans?

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3. What criteria should Mall of America use in adding new facilities to its complex?Evaluate: (a) retail stores,(b) entertainment offerings, and (c) hotels on these criteria.

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4. What specific marketing actions would you propose that Mall of America managers take toensure its continuing success in attracting visitors (a) from the local metropolitan area and(b) from outside of it?

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Retailing

Retailing consists of all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.

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Scrambled Merchandising

Scrambled merchandising consists of offering several unrelated product lines in asingle store.

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Telemarketing

Telemarketing consists of using the telephone to interact with and sell directly to consumers.

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Retailing Mix

The retailing mix consists ofthe activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise.

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Shopper Marketing

Shopper marketing is the useof displays, coupons, product samples, and other brand communications to influence shopping behavior in a store.

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Category Management

Category management is an approachto managing the assortment of merchandise in which a manager is assigned the responsibility for selectingall products that consumers in a market segment might view as substitutes foreach other, with the objective of maximizing sales and profits in the category.

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Wheel of Retailing

The wheel of retailing is a concept that describes how new forms of retail outlets enter the market.

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Retail Life Cycle

The retail life cycle is theprocess of growth and declinethat retail outlets, like products, experience. It consists of the early growth, accelerated development, maturity, and decline stages.

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Multichannel Retailers

Multichannel retailers are retailers that utilize and integratea combination of traditional store formats and nonstore formats such as catalogs, television home shopping, and online retailing.

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Merchant wholesalers are independently owned firms that take title to the merchandisethey handle.

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Manufacturer’s Agents

Manufacturer’s agents are agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Also called manufacturer’s representatives.

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Brokers

Brokers are independent firmsor individuals whose principal function is to bring buyers and sellers together to make sales.

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