kotler retailing.ppt

8/14/2019 kotler retailing.ppt

1/18

1-1


2/18

1-2

McGraw-Hill/Irwin Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

14

Retailing


3/18

1-3

Understand the economic importance ofretailing and its role in the marketingchannel.

Cite evidence of the globalization of retailing.

Discuss some of the advances in retailing

technology.

Explain the reasons behind the growth ofnon-store retailing

After studying this chapteryou should be able to:


4/18

1-4

Describe key factors in the retailmarketing environment, and understandhow they relate to retail strategy.

Cite important ethical and legal issuesfacing retailers.

After studying this chapteryou should be able to:


5/18

1-5

The Role of Retailing

Retailing:

An important part of many marketing

channels, includes all the activities involved in

selling products and services to the ultimate,

or final, consumer.

Retail Sales:

Sales to final consumers; wholesale sales are

those to other businesses that in turn resell

the product or service, or use it in running

their own businesses.


6/18

1-6

Economic Importance

Sales ProfitsCompany ($ millions) ($ millions) Employees

1. Wal-Mart 219,812 6,671 1,383,0002. Home Depot 53,553 3,044 256,3003. Kroger 50,098 1,043 288,0004. Sears Roebuck 41,078 735 310,0005. Target 39,888 1,368 223,5506. Albertsons 37,931 501 220,0007. Kmart 36,910 (95) 240,525

8. Safeway 34,301 1,254 193,0009. JC Penny 32,004 98 270,00010. Walgreen 24,623 886 106,000

In the U.S., 3 m il l ion retai lers generate

$2.5 tr i l l ion in revenues annual ly!

R i U i


7/181-7

Retai ers Uniquenessin the Channel

Provide

ProductAssor tment

Emphasize

StoreAtmospher ics

Sell Smaller

Quant i ties o f Product

More Frequently


8/181-8

Types of Retailers

IndependentRetailers:

Own and operate

only one retailoutlet.

Chains:

A retail chain ownsand operates

multiple retailoutlets.


9/181-9

Types of Retailers

Franchising: Retail franchising is a form of chain

ownership in which a franchisee pays the

franchisor (parent company) fees orroyalties and agrees to run the franchise byprescribed norms, in exchange for use of thefranchisors name.

McDonalds

Jiffy Lube

Holiday Inn

There are 3,000 franchis e compan ies

in the U.S. that operate 558,000

separate establ ishments!


10/181-10

Top 10 InternationalRetail Franchises

1. McDonalds

2. Great Wraps

3. Subway

4. Kentucky Fried Chicken

5. Kumon Math and Reading Centers

6. Meineke Discount Muffler Shops

7. TCBY Treats

8. Thrifty Car Rental9. Blimpie Subs & Salads

10. Mail Boxes Etc.


11/181-11

Types of Retailers

Leased Departments: Leased departments are sections in a retail

store that the owner rents to a secondparty.

Cooperatives

Retail Cooperatives: Independent retailers banding together to

counter chain store competition.


12/181-12

Trends in Retailing

GlobalRetailing Technological

Advances Stronger

CustomerService


13/181-13

Nonstore Retailing

Direct Retailing

Direct Marketing

E-Retailing

Direct Selling

Vending Machine Sales

Stores account for

90% o f retai l sales, bu t

non store retai l ing is

grow ing faster thanstore-based

retai l ing!


14/181-14

Developing Retailing Strategy


15/181-15

Uncontrollable Factors

Consumers

Competition

Economic ConditionsSeasonality


16/181-16

Controllable Factors

Location

Central Business District (CBD)

Strip Centers

Shopping Malls

Freestanding Sites

Goods and Services

Pricing

Marketing Communications


17/181-17

Types of Strategy Mix

Specialty Stores

Department Stores

Convenience Stores

Margin and Turnover StrategyMixes

Gross Margin

Inventory Turnover

Ethi l d L l I


18/181-18

Ethical and Legal Issuesin Retailing

Consumer Fraud

Supplier Labor Practices

Retail TheftSlotting Allowances

Use of CustomerInformation

Ecological Considerations

kotler retailing.ppt

Documents