TRADING UP…AT TARGET!
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-5
FIGURE 17-2 Retail sales ($billions), by type
of business
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-8
CLASSIFYING RETAIL OUTLETS
• Form of Ownership
 Independent Retailer
 Corporate Chain
 Contractual Systems
• Business-Format Franchises
• Product-Distribution Franchises
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-13
MARKETING NEWSNET
Say Good-Bye to Bar Codes!
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Radio Shack
What form of retail ownership?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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FIGURE 17-3 The top five franchises in the
United States
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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CLASSIFYING RETAIL OUTLETS
• Level of Service
 Self-Service
 Limited Service
 Full-Service
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-17
CLASSIFYING RETAIL OUTLETS
• Type of Merchandise Line
 Depth of Product Line
• Specialty Outlets
• Category Killers
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-18
FIGURE 17-4 Breadth versus depth of
merchandise lines
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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CLASSIFYING RETAIL OUTLETS
• Merchandise Line
 Breadth of Product Line
• General Merchandise Stores
• Scrambled Merchandising
• Hypermarket
• Supercenter
• Intertype Competition
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-20
FIGURE 17-5 Differences between
hypermarkets and supercenters
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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NONSTORE RETAILING
• Automatic Vending
• Direct Mail and Catalogs
• Television Home Shopping
• Online Retailing
• Telemarketing
 Do-Not-Call Registry
• Direct Selling
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-25
FIGURE 17-6 Forms of nonstore retailing
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-26
Coke Vending Machine
What are the strengths and weaknesses
of this form of nonstore retailing?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-27
Specialty Catalogs
What are the strengths and weaknesses
of this form of nonstore retailing?
Sears
Lilly’s Kids
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L.L. Bean
Slide 17-28
QVC Television Home Shopping
What are the strengths and weaknesses
of this form of nonstore retailing?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-29
Online Retailing
What are the strengths and weaknesses
of this form of nonstore retailing?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Internet Cafés
What are the strengths and weaknesses
of this form of nonstore retailing?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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FIGURE 17-7 Elements of a retailing
strategy
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FIGURE 17-8 Retail positioning matrix
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FIGURE 17-A Implications of the retailing
positioning matrix
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Slide 17-39
ADVERTISEMENT 17-A Tiffany: A retailer in
the high-value added/narrow line quadrant
of the retail positioning matrix
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-40
RETAILING STRATEGY
• Retailing Mix
 Retail Pricing
• Markup
 Original Markup
• Markup on Selling Price
• Markup on Cost
 Maintained Markup
 Gross Margin
• Markdown
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-41
RETAILING STRATEGY
• Retailing Mix
 Retail Pricing
• Everyday Low Pricing
• Everyday Fair Pricing
• Prices as Benchmarks or Signposts
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-42
RETAILING STRATEGY
• Retailing Mix
 Retail Pricing
• Shrinkage
• Off-Price Retailing
 Warehouse Club
 Outlet Store
 Single-Price or Extreme Value Retailers
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-43
ETHICS AND SOCIAL
RESPONSIBILITY ALERT
Who Takes the Five-Finger Discount?
You’ll Be Surprised!
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-44
RETAILING STRATEGY
• Retailing Mix
 Store Location
• Central Business District
• Regional Shopping Center
 Anchor Stores
• Community Shopping Center
• Strip Location
• Power Center
• Carts, Kiosks, and Wall Units
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-45
RETAILING STRATEGY
• Retailing Mix
 Retail Communication
• Image
• Atmosphere or Ambiance
 Merchandise
• Category Management
• Consumer Marketing at Retail (CMAR)
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-47
THE CHANGING NATURE
OF RETAILING
• The Wheel of Retailing
• The Retail Life Cycle
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Slide 17-51
FIGURE 17-9 The wheel of retailing
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Slide 17-52
Taco Bell
Where is it on the wheel of retailing and
the retail life cycle?
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Slide 17-53
FIGURE 17-10 The retail life cycle
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-54
FUTURE CHANGES IN RETAILING
• Multichannel Retailing
 Multichannel Retailers
• The Impact of Technology
• Changing Shopping Behavior
 Vertical Malls
 Co-Branding
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-55
VIDEO CASE 17
Mall of America
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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VIDEO CASE 17
Mall of America
1. Why has Mall of America been such a
marketing success so far?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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VIDEO CASE 17
Mall of America
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?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-68
VIDEO CASE 17
Mall of America
3. (a) What criteria should Mall of
America use in adding new facilities
to its complex? (b) Evaluate
(i) retail stores, (ii) entertainment
offerings, and (iii) hotels on these
criteria.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-69
VIDEO CASE 17
Mall of America
4. What specific marketing actions
would you propose that Mall of
America managers take to ensure
its continuing success in attracting
visitors (a) from the local
metropolitan area and (b) from
outside of it?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 17-70