Introduction
to
Chapter 15: Retailing
Designed & Prepared by Laura Rush
B-books, Ltd.
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Learning Outcomes
LO1
Discuss the importance of retailing in the
U.S. economy
LO2
Explain the dimensions by which retailers
can be classified
LO3
Describe the major types of retail operations
LO4
Discuss nonstore retailing techniques
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Learning Outcomes
LO5
Define franchising and describe its
two basic forms
LO6
List the major tasks involved in developing
a retail marketing strategy
LO7
Describe new developments in retailing
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The Role of Retailing
All the activities directly related
to the sale of goods and services
to the ultimate consumer for
personal, non-business use.
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Classification of Retail
Operations
Ownership
Level of Service
Product Assortment
Price
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Classification of Ownership
Independent
Retailers
Owned by a single person or
partnership and not part of a
larger retail institution
Chain Stores
Owned and operated as a
group by a single
organization
Franchises
The right to operate a
business or sell a product
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Price
Gross Margin The amount of money the
retailer makes as a
percentage of sales
after the cost of goods
sold is subtracted.
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Major Types of Retail
Operations
Department Stores
Specialty Stores
Supermarkets
Drugstores
Convenience Stores
Discount Stores
Online
Restaurants
http://www.walgreens.com
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Nonstore Retailing
Automatic Vending
Direct Retailing
Direct Marketing
M-commerce
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Direct Retailing
Door-to-Door
Office-to-Office
Home Sales
Parties
http://www.avon.com
Online
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Types of Direct Marketing
Direct Mail
Catalogs & Mail Order
Telemarketing
M-Commerce
Shop-at-home networks
Handheld devices
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Basic Forms of Franchising
Product and Trade Name
Franchising
Business Format
Franchising
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Franchising
Product and Trade Name Franchisingdealer agrees to sell in products
provided by a manufacturer or
wholesaler.
Business Format Franchising- An
ongoing business relationship between
a franchiser and a franchise.
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Retail Marketing Strategy
Define & Select
a Target Market
Develop the
“Six Ps”
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Defining a Target Market
Demographics
STEP 1:
Define the
Target Market
Geographics
Psychographics
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Choosing the Retailing Mix
STEP 2:
Choose the
Retailing Mix
Product
Place
Price
Personnel
Promotion
Presentation
Online
http://www.publix.com
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Retail Promotion Strategy
Advertising
Public Relations
Publicity
Sales Promotion
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The Proper Location
Choosing a Community
Choosing a Site
Economic growth
potential
Freestanding Store
Competition
Shopping Center
Geography
Mall
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Important Factors for Site
Choice

Neighborhood
socioeconomics

Traffic flows

Land costs

Zoning regulations

Public transportation

Site’s visibility, parking,
entrances and exits,
accessibility, and safety

Fit with other stores
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Shopping Center and Mall
Locations
Advantages
•
•
Design attracts
shoppers
Activities and anchor
stores draw customers
•
Ample parking
•
Can target different
demographic groups
•
Sharing of common
area expenses
Disadvantages
 Expensive leases
 Failure of common
promotion efforts
 Lease restrictions
 Hours of operation
 Anchor store
domination
 Direct competitors
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Retail Prices
High Price
Low Price
Good Value
Single Price Point
EDLP
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Quality
Image
21
Presentation of the Retail Store
Atmosphere - The overall
impression conveyed by a
store’s physical layout, décor,
and surroundings.
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Personnel and Customer
Service
Trading Up
Two Common
Selling
Techniques
Suggestion Selling
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New Developments in Retailing
Interactivity - Consumers are
involved in the retail experience.
Pop-up Shops - Temporary retail
establishments that provide
flexible locations without a
long-term commitment.
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