Sales & Marketing
Session 2
Kay Geronikos
(Business & Finance Faculty)
Business Studies Teacher
RETAILING
• Retailing includes all the activities involved in
selling products or services to final consumers
for their personal (non business) use.
• Retailers reach consumers key moments of
truth, ultimately influencing their actions at
the point of purchase.
• Shopper marketing idea is being embraced by
marketers – ie. Marketing targeted to
consumers while they are shopping.
RETAILING
• Nonstore retailing has been growing in recent
years – much faster than store retailing
• Selling to the final consumer through the
internet, direct mail, catalogs and other directselling approaches.
• This section focuses on store retailing.
TYPES OF RETAILERS
Individual Activity
• See Table 10.3 handout of types of retailers
• Provide one example (name of store or
retailers) of each type of retailer.
TYPES OF RETAILERS
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Activity
Pick a familiar product
Identify two different store types that you can
purchase this product at
Compare the stores: product assortment,
services & prices
If you where going to buy the product, where
would you buy it and why?
RETAILER MARKETING DECISIONS
Segmentation, Targeting, Differentiation &
Positioning Decisions
• Retailers must first segment and define their
target markets and then decide how they will
differentiate and position themselves in these
markets
• This decision allows retailers to make consistent
decisions about product assortment, services,
pricing, advertising, store décor, or any of the
other decisions that must support their positions.
RETAILER MARKETING DECISIONS
• Many retailers, even big ones, fail to define
their target markets and positions clearly and
suffer the consequences.
• Can you think of any retailer that suffers from
a lack of clearly defining their target market?
RETAILER MARKETING DECISIONS
Product Assortment & Services Decisions
• Product Assortment – should differentiate the
retailer while matching the target shoppers
expectations eg. Woolworths only carries
Macro Wholefoods
• Services Mix – can help set one retailer apart
from another eg. David Jones has in store
brand specialists to assist the customer.
RETAILER MARKETING DECISIONS
Product Assortment & Services Decisions
• Store’s Atmosphere – is another important
element for the retailer. Aim is to create a unique
in store experience.
• Many retailers practice “experimental retailing”
such as the Dubai Mall – See Marketing at Work
11.2 p. 383)
• Have you been into an Apple store recently?
Describe the store’s atmosphere and how it
makes you feel.
RETAILER MARKETING DECISIONS
Price Decision
• A retailer’s price policy must fit its target
market and positioning, product & service
assortment, the competition, and economic
factors.
• Most retailers seek either high prices on lower
volume (most specialty stores) or low markups
on higher volume (mass merchandisers)
RETAILER MARKETING DECISIONS
Price Decision
• Retailers must also decide on the extent to which
they will use sales and other price promotions.
– No price promotions (offer product & service quality instead)
– Some practice everyday low pricing (Big W & Kmart)
– High – Low pricing (Charge higher prices on everday basis,
coupled with frequent sales and price promotions to increase
store traffic)
RETAILER MARKETING DECISIONS
Promotion Decision
• Retailers use any or all of the promotional
tools – advertising, personal selling, sales
promotion, PR and direct marketing to reach
consumers.
• Most retailers have also set up web sites,
offering customers information and selling
merchandise directly.
RETAILER MARKETING DECISIONS
Place Decision
• Three critical factors in retailing success:
Location
Location
Location!
• Identify a few popular successful reatilers –
where are they located?
RETAILER MARKETING DECISIONS
Place Decision
• Most stores today cluster together to increase
their customer pulling power and to give
customers the convenience of one-stop
shopping
• Main shopping strips, community shopping
centre or a regional shopping centre
eg.westfields,
RETAILER MARKETING DECISIONS
Place Decision
• Shopping Centres: The current trend is toward
large power centres (open shopping centres)
on the one hand and smaller lifestyle centres
on the other – or a hybrid version of the two
called a lifestyle-power centre.
• Today’s centres are more about creating
places to be rather than just places to buy.
RETAILING TRENDS AND DEVELOPMENTS
• The following retailing development need to be taken into
account when planning and executing competitive strategies:
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Must keen adapting to changes
A slowed economy and tighter consumer spending
Growth of nonstore retailing – Born Globals
Retail convergence e.g books can be purchased just about anywhere!
The rise of megaretailers
Growing importance of retail technology
Global expansion of major retailers
Retail stores as communities eg coffee available within stores, internet
available within stores.
Case Study
• Read Case Study – retailing ups and downs
• Answer questions in pairs
• Discussion on questions to follow.