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Retailing
Chapter 11
Prepared by Deborah Baker Texas Christian University Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
1
Learning 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.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
2
Learning Objectives (continued) 4. Discuss nonstore retailing techniques. 5. Define franchising and describe its two basic forms. 6. List the major tasks involved in developing a retail marketing strategy.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
3
Learning Objectives (continued) 7. Discuss the challenges of expanding retailing operations into global markets. 8. Describe future trends in retailing.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
4
1
Learning Objective
On OnLine Line http://www.target.com http://www.target.com http://www.walmart.com http://www.walmart.com http://www.sears.com http://www.sears.com
Discuss the importance of retailing in the U.S. economy.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
5
1
Retailing
All the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
6
1
The Role of Retailing
Retailing is one of the largest employers Retailers ring up almost a third of the U.S. GDP Industry is dominated by a few giant organizations, such as Wal-Mart Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
7
Ten Largest U.S. Retailers
1
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
8
2
Learning Objective
Explain the dimensions by which retailers can be classified.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
9
2
Classification of Retail Operations Ownership Ownership Level Level of of Service Service
Classification Classification of of Retail Retail Establishments Establishments
Product Product Assortment Assortment
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Price Price 10
2
Classification of Ownership Independent Independent Retailers Retailers Chain Chain Stores Stores
Franchises Franchises
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
11
2
Level of Service
Self Service
Factory outlets Discount stores Warehouse clubs
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Full Service
Exclusive stores
12
Types of Stores and Their Characteristics
2 Type Typeof ofRetailer Retailer Department DepartmentStore Store Specialty SpecialtyStore Store Supermarket Supermarket Convenience ConvenienceStore Store Drugstore Drugstore Full-line Full-lineDiscounter Discounter Specialty SpecialtyDiscounter Discounter Warehouse WarehouseClubs Clubs Off-price Off-priceRetailer Retailer Restaurant Restaurant
Service Service Level Level Mod ModHi-High Hi-High
AssortAssortment ment Broad Broad
High High Low Low
Narrow Narrow Broad Broad
Low Low Low-Mod Low-Mod
Price Price Mod-High Mod-High Mod-High Mod-High
Moderate Moderate Med-Narrow Mod Med-Narrow ModHigh High
Mod-Low Mod-Low Mod-Low Mod-Low
Medium Moderate Medium Moderate Med-Broad Med-Broad Mod ModLow Low Med-Broad Med-Broad Mod ModLo-low Lo-low
Low Low Low Low
Broad Broad Med-Narrow Med-Narrow
Low-High Low-High
Med-Narrow Med-Narrow Low-High Low-High
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Low-lower Low-lower Low Low
Gross Gross Margin Margin Mod ModHigh High High High Low Low Mod ModHigh High Low Low Mod ModLow Low Mod ModLow Low Low Low Low Low Low-High Low-High 13
2
Gross Margin
The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
14
3
Learning Objective
Describe the major types of retail operations.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
15
3
Major Types of Retail Operations
On OnLine Line http://www.walgreens.com http://www.walgreens.com
Department Department Stores Stores Specialty Specialty Stores Stores Supermarkets Supermarkets Drugstores Drugstores Convenience Convenience Stores Stores Discount Discount Stores Stores Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Restaurants Restaurants
16
3
Categories of Discount Stores Full-Line Discounters
Categories of Discount Stores
Discount Specialty Stores Warehouse Clubs Off-Price Discount Retailers
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
17
3
Mass Merchandising
Retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
18
3
Hypermarket and Supercenter
Hypermarket Hypermarket
Supercenter Supercenter
A A large large retail retail store store combining combining aa supermarket supermarket and and aa full-line full-line discount discount store. store. Retail Retail store store combining combining groceries groceries and and general general merchandise merchandise goods goods with with aa wide wide range range of of services. services.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
19
4
Learning Objective
Discuss nonstore retailing techniques.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
20
4
Nonstore Retailing Automatic Automatic Vending Vending Direct Direct Retailing Retailing
Major Major Forms Forms of of Nonstore Nonstore Retailing Retailing
Direct Direct Marketing Marketing
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Electronic Electronic Retailing Retailing 21
4
Direct Retailing Direct Direct Retailers Retailers sell sell products: products: Home Home Sales Sales Parties Parties
Door-to-Door Door-to-Door Office-toOffice-toOffice Office
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
22
4
Direct Marketing
On OnLine Line http://www.avon.com http://www.avon.com
Direct Direct Mail Mail
Types Types of of Direct Direct Marketing Marketing
Catalogs Catalogs & & Mail Mail Order Order Telemarketing Telemarketing
Electronic Electronic Retailing Retailing Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
23
4
Electronic Retailing
On OnLine Line http://www.gap.com http://www.gap.com http://www.jcrew.com http://www.jcrew.com
Types Types of of Electronic Electronic Retailing Retailing
Shop-at-Home Shop-at-Home Networks Networks
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
On-Line On-Line Retailing Retailing
24
5
Learning Objective
Define franchising and describe its two basic forms.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
25
5
Basic Forms of Franchising
On OnLine Line http://www.sylvanlearning.com http://www.sylvanlearning.com
Basic Basic Forms Forms of of Franchising Franchising
Product Product and and Trade Trade Name Name Franchising Franchising
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Business Business Format Format Franchising Franchising
26
5
Largest U.S. Franchisers
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
27
5
Basic Forms of Franchising
Product Product and and Trade Trade Name Name Franchising Franchising Business Business Format Format Franchising Franchising
Dealer Dealer agrees agrees to to sell sell certain certain products products provided provided by by aa manufacturer manufacturer or or wholesaler. wholesaler. An An ongoing ongoing business business relationship relationship between between aa franchiser franchiser and and aa franchisee. franchisee.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
28
6
Learning Objective
List the major tasks involved in developing a retail marketing strategy.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
29
6
Retail Marketing Strategy
Key Key Tasks Tasks in in Strategic Strategic Retailing Retailing
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Define Define & & Select Select aa Target Target Market Market
Develop Develop the the “Six “Six Ps” Ps”
30
6
Defining a Target Market Demographics Demographics STEP STEP 1: 1: Segment Segment the the Market Market
Geographics Geographics Psychographics Psychographics
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
31
6
Choosing the Retailing Mix
STEP STEP 2: 2: Choose Choose the the Retailing Retailing Mix Mix
Product Product
Place Place
Price Price
Personnel Personnel
Promotion Promotion
Presentation Presentation
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
32
6
The Retailing Mix Product Product Personnel Personnel
Promotion Promotion
Target Market
Presentation Presentation
Place Place Price Price
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
33
6
Product Offering
On OnLine Line http://www.kroger.com http://www.kroger.com
The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
34
6
Retail Promotion Strategy Advertising Advertising Public Public Relations Relations
Retail Retail Promotion Promotion Strategy Strategy Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Publicity Publicity Sales Sales Promotion Promotion 35
6
Factors to Consider in Site Selection Economic Economic growth growth potential potential Area Area competition competition
Geography Geography
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
36
6
Location Decisions
On OnLine Line http://www.mallofamerica.com http://www.mallofamerica.com
Freestanding Freestanding Store Store Shopping Shopping Center Center Tenant Tenant Mall Mall Tenant Tenant Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
37
Shopping Center and Mall Locations
6
Advantages
Disadvantages
Design attracts shoppers Activities and anchor stores draw customers Ample parking Unified image
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Expensive leases Failure of common promotion efforts Lease restrictions Anchor store domination Direct competitors 38
6
Price
Low Price Good Value
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
High Price Quality Image
39
6
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 in in Creating Creating Store’s Store’s Atmosphere Atmosphere
Sound Sound
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Odors Odors Visual Visual Factors Factors 40
6
Personnel and Customer Service
Trading Trading Up Up
Two Two Common Common Selling Selling Techniques Techniques
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Suggestive Suggestive Selling Selling
41
Customer Service for On-Line Retailers
6
Easy-to-use Easy-to-use Web Web Site Site Product Product Availability Availability
Simple Simple Returns Returns
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
42
7
Learning Objective
Discuss the challenges of expanding retailing operations into global markets.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
43
The Top Ten Global Retailers
7
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
44
7
Global Retailing
Reasons for Global Expansion
Spread Spread of of communication communication and and mass mass media media
Lowering Lowering of of trade trade barriers barriers and and tariffs tariffs
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Growth Growth potential potential in in underserved underserved markets markets
45
7
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 Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
46
7
Global Retailing
On OnLine Line http://www.walmartstores.com http://www.walmartstores.com
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 Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
47
8
Learning Objective
Describe future trends in retailing.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
48
8
Trends in Retailing
Entertainment Entertainment Convenience Convenience and and Efficiency Efficiency
Trends in Retailing
Customer Customer Management Management
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
49
8
Customer Management Strategies
Customer Customer Relationship Relationship Marketing Marketing Loyalty Loyalty Programs Programs
Clienteling Clienteling
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
50
Chapter 11
Prepared by Deborah Baker Texas Christian University Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
1
Learning 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.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
2
Learning Objectives (continued) 4. Discuss nonstore retailing techniques. 5. Define franchising and describe its two basic forms. 6. List the major tasks involved in developing a retail marketing strategy.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
3
Learning Objectives (continued) 7. Discuss the challenges of expanding retailing operations into global markets. 8. Describe future trends in retailing.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
4
1
Learning Objective
On OnLine Line http://www.target.com http://www.target.com http://www.walmart.com http://www.walmart.com http://www.sears.com http://www.sears.com
Discuss the importance of retailing in the U.S. economy.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
5
1
Retailing
All the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
6
1
The Role of Retailing
Retailing is one of the largest employers Retailers ring up almost a third of the U.S. GDP Industry is dominated by a few giant organizations, such as Wal-Mart Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
7
Ten Largest U.S. Retailers
1
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
8
2
Learning Objective
Explain the dimensions by which retailers can be classified.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
9
2
Classification of Retail Operations Ownership Ownership Level Level of of Service Service
Classification Classification of of Retail Retail Establishments Establishments
Product Product Assortment Assortment
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Price Price 10
2
Classification of Ownership Independent Independent Retailers Retailers Chain Chain Stores Stores
Franchises Franchises
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
11
2
Level of Service
Self Service
Factory outlets Discount stores Warehouse clubs
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Full Service
Exclusive stores
12
Types of Stores and Their Characteristics
2 Type Typeof ofRetailer Retailer Department DepartmentStore Store Specialty SpecialtyStore Store Supermarket Supermarket Convenience ConvenienceStore Store Drugstore Drugstore Full-line Full-lineDiscounter Discounter Specialty SpecialtyDiscounter Discounter Warehouse WarehouseClubs Clubs Off-price Off-priceRetailer Retailer Restaurant Restaurant
Service Service Level Level Mod ModHi-High Hi-High
AssortAssortment ment Broad Broad
High High Low Low
Narrow Narrow Broad Broad
Low Low Low-Mod Low-Mod
Price Price Mod-High Mod-High Mod-High Mod-High
Moderate Moderate Med-Narrow Mod Med-Narrow ModHigh High
Mod-Low Mod-Low Mod-Low Mod-Low
Medium Moderate Medium Moderate Med-Broad Med-Broad Mod ModLow Low Med-Broad Med-Broad Mod ModLo-low Lo-low
Low Low Low Low
Broad Broad Med-Narrow Med-Narrow
Low-High Low-High
Med-Narrow Med-Narrow Low-High Low-High
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Low-lower Low-lower Low Low
Gross Gross Margin Margin Mod ModHigh High High High Low Low Mod ModHigh High Low Low Mod ModLow Low Mod ModLow Low Low Low Low Low Low-High Low-High 13
2
Gross Margin
The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
14
3
Learning Objective
Describe the major types of retail operations.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
15
3
Major Types of Retail Operations
On OnLine Line http://www.walgreens.com http://www.walgreens.com
Department Department Stores Stores Specialty Specialty Stores Stores Supermarkets Supermarkets Drugstores Drugstores Convenience Convenience Stores Stores Discount Discount Stores Stores Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Restaurants Restaurants
16
3
Categories of Discount Stores Full-Line Discounters
Categories of Discount Stores
Discount Specialty Stores Warehouse Clubs Off-Price Discount Retailers
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
17
3
Mass Merchandising
Retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
18
3
Hypermarket and Supercenter
Hypermarket Hypermarket
Supercenter Supercenter
A A large large retail retail store store combining combining aa supermarket supermarket and and aa full-line full-line discount discount store. store. Retail Retail store store combining combining groceries groceries and and general general merchandise merchandise goods goods with with aa wide wide range range of of services. services.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
19
4
Learning Objective
Discuss nonstore retailing techniques.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
20
4
Nonstore Retailing Automatic Automatic Vending Vending Direct Direct Retailing Retailing
Major Major Forms Forms of of Nonstore Nonstore Retailing Retailing
Direct Direct Marketing Marketing
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Electronic Electronic Retailing Retailing 21
4
Direct Retailing Direct Direct Retailers Retailers sell sell products: products: Home Home Sales Sales Parties Parties
Door-to-Door Door-to-Door Office-toOffice-toOffice Office
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
22
4
Direct Marketing
On OnLine Line http://www.avon.com http://www.avon.com
Direct Direct Mail Mail
Types Types of of Direct Direct Marketing Marketing
Catalogs Catalogs & & Mail Mail Order Order Telemarketing Telemarketing
Electronic Electronic Retailing Retailing Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
23
4
Electronic Retailing
On OnLine Line http://www.gap.com http://www.gap.com http://www.jcrew.com http://www.jcrew.com
Types Types of of Electronic Electronic Retailing Retailing
Shop-at-Home Shop-at-Home Networks Networks
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
On-Line On-Line Retailing Retailing
24
5
Learning Objective
Define franchising and describe its two basic forms.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
25
5
Basic Forms of Franchising
On OnLine Line http://www.sylvanlearning.com http://www.sylvanlearning.com
Basic Basic Forms Forms of of Franchising Franchising
Product Product and and Trade Trade Name Name Franchising Franchising
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Business Business Format Format Franchising Franchising
26
5
Largest U.S. Franchisers
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
27
5
Basic Forms of Franchising
Product Product and and Trade Trade Name Name Franchising Franchising Business Business Format Format Franchising Franchising
Dealer Dealer agrees agrees to to sell sell certain certain products products provided provided by by aa manufacturer manufacturer or or wholesaler. wholesaler. An An ongoing ongoing business business relationship relationship between between aa franchiser franchiser and and aa franchisee. franchisee.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
28
6
Learning Objective
List the major tasks involved in developing a retail marketing strategy.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
29
6
Retail Marketing Strategy
Key Key Tasks Tasks in in Strategic Strategic Retailing Retailing
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Define Define & & Select Select aa Target Target Market Market
Develop Develop the the “Six “Six Ps” Ps”
30
6
Defining a Target Market Demographics Demographics STEP STEP 1: 1: Segment Segment the the Market Market
Geographics Geographics Psychographics Psychographics
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
31
6
Choosing the Retailing Mix
STEP STEP 2: 2: Choose Choose the the Retailing Retailing Mix Mix
Product Product
Place Place
Price Price
Personnel Personnel
Promotion Promotion
Presentation Presentation
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
32
6
The Retailing Mix Product Product Personnel Personnel
Promotion Promotion
Target Market
Presentation Presentation
Place Place Price Price
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
33
6
Product Offering
On OnLine Line http://www.kroger.com http://www.kroger.com
The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
34
6
Retail Promotion Strategy Advertising Advertising Public Public Relations Relations
Retail Retail Promotion Promotion Strategy Strategy Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Publicity Publicity Sales Sales Promotion Promotion 35
6
Factors to Consider in Site Selection Economic Economic growth growth potential potential Area Area competition competition
Geography Geography
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
36
6
Location Decisions
On OnLine Line http://www.mallofamerica.com http://www.mallofamerica.com
Freestanding Freestanding Store Store Shopping Shopping Center Center Tenant Tenant Mall Mall Tenant Tenant Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
37
Shopping Center and Mall Locations
6
Advantages
Disadvantages
Design attracts shoppers Activities and anchor stores draw customers Ample parking Unified image
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Expensive leases Failure of common promotion efforts Lease restrictions Anchor store domination Direct competitors 38
6
Price
Low Price Good Value
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
High Price Quality Image
39
6
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 in in Creating Creating Store’s Store’s Atmosphere Atmosphere
Sound Sound
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Odors Odors Visual Visual Factors Factors 40
6
Personnel and Customer Service
Trading Trading Up Up
Two Two Common Common Selling Selling Techniques Techniques
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Suggestive Suggestive Selling Selling
41
Customer Service for On-Line Retailers
6
Easy-to-use Easy-to-use Web Web Site Site Product Product Availability Availability
Simple Simple Returns Returns
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
42
7
Learning Objective
Discuss the challenges of expanding retailing operations into global markets.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
43
The Top Ten Global Retailers
7
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
44
7
Global Retailing
Reasons for Global Expansion
Spread Spread of of communication communication and and mass mass media media
Lowering Lowering of of trade trade barriers barriers and and tariffs tariffs
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
Growth Growth potential potential in in underserved underserved markets markets
45
7
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 Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
46
7
Global Retailing
On OnLine Line http://www.walmartstores.com http://www.walmartstores.com
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 Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
47
8
Learning Objective
Describe future trends in retailing.
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
48
8
Trends in Retailing
Entertainment Entertainment Convenience Convenience and and Efficiency Efficiency
Trends in Retailing
Customer Customer Management Management
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
49
8
Customer Management Strategies
Customer Customer Relationship Relationship Marketing Marketing Loyalty Loyalty Programs Programs
Clienteling Clienteling
Chapter 11 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western College Publishing
50
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