retailing 1

7/31/2019 Retailing 1

http://slidepdf.com/reader/full/retailing-1 1/12

1

Retailing and Wholesaling



2

What is Retailing?

Includes all

the activities Involvedin Selling Goods orServices Directly to

Final Consumers forTheir Personal,Nonbusiness Use.



3

RetailingRetailing can be done in stores (store retailing)or out of a store (nonstore retailing) such as:

Direct mail,

Catalogs,

Telephone,

Home shopping shows, Internet.



4

Amount of ServiceSelf-Service, Limited-Service and

Full-Service Retailer

Product LineLength and Breadth of the Product Assortment

Relative PricesPricing Structure that is Used

by the Retailer

Retail OrganizationsIndependent, Corporate, or

ContractualOwnership Organization

Classification of Retailing



5

Self

-

Service

Retailer

Provide Few or NoServices toShoppers

i.e. Best Buy

Limited

-

Service

Retailers

Provide Only a LimitedNumber of Services

to Shoppersi.e. Sears

Full

-

Service

Retailers

Retailers that Provide aFull Range of Services

to Shoppersi.e. Neiman Marcus

Classification of Retailing:

Amount of Service



6

Specialty Stores

Department Stores

Supermarkets

Convenience Stores

Superstores

Discount Stores

Narrow Product Line, Deep Assortment i.e.The Limited or Athlete’s Foot

Wide Variety of Product Lines i.e. Clothing,Home Furnishings, Saks Fifth Avenue

Wide Variety of Food, Laundry, & HouseholdProducts i.e. Kroger

Limited Line of High-Turnover ConvenienceGoods i.e. 7-Eleven

Large Assortment of Routinely Purchased

Food & Nonfood Products i.e. Toys R UsStandard Merchandise at Lower Prices

i.e. Wal-Mart

Off-Price RetailersChanging Collection of Higher-Quality

Goods at a Reduced Price i.e. T.J. Maxx

Warehouse Clubs

Limited Selection of Brand-Name Grocery

Items, Appliances, Etc. i.e. Sam’s Club


Product Line (Tab. 13.1)Store Description



Low Prices and Offer Lower-Quality Goodsand Customer Service

Discount

Stores

“Off -Priced”

Retailers

Catalog

Showrooms

Higher Prices and Offer Higher-Quality Goodsand Customer Service

Regular Prices and Offer Normal-Quality Goodsand Customer Service


Relative Prices



Voluntary

Chain

Franchise

Organizations

Retailer

Cooperatives

MerchandisingConglomerates


Retail OrganizationCorporate

Chain



Retailer Marketing Decisions

(Fig. 13.1)

RetailerStrategy

Target Market

Retail Store

Positioning

RetailerMarketing Mix

Product and serviceassortment

Prices

Promotion

Place (location)



Product Assortment and

Services DecisionsProduct Assortment

• Width and Depth of Assortment• Quality of Products

• Product Differentiation Strategies

Services MixKey Tool of Nonprice Competitionfor Setting One Store Apart From

AnotherStore’s Atmosphere

• Physical Layout• “Feel” That Suits the Target Market

and Moves Customers to Buy



PriceDecisions

Target Market,

Product & Service

Assortment,Competition

PlaceDecisions

ShoppingCenters, Central

BusinessDistricts, or

Power Centers,or OnlineShopping

Retailer’s Price, Promotion,

and Place Decisions

PromotionDecisions

Using Advertising,

Personal Selling,Sales Promotion,Public Relations,

& DirectMarketing to

Reach Customers



New Retail Forms and Shortening Retail Lifecycle

Growth of Nonstore Retailing

Increasing Intertype Competition

Growing Importance of Retail Technology

Global Expansion of Major Retailers

Retail Stores as “Communities” or “Hangouts”

Rise of Megaretailer

The Future of Retailing

retailing 1

Documents