Marketing 13
Retailing
RETAILING -- 13
 Types
 Classification
 Non-store retailing
 Franchising
 Retail Strategy
 Global considerations
13.1
RETAILING
 DEFINITION (p. 436) To ultimate consumer
 Classification based on:
 Ownership
 Independent; Chain; Franchise
 Level of Service
 Full/High  None
 Product Assortment
 Specialty vs. Full Line
 Price
 Retail  Discount & Off-Price
13.2
Major Types of Retail
Operations
 Department Stores
 Organization
 National Chain
 Federated, Mays, Nordstrom
 Declining Growth
 & Changing merchandise
13.3
Major Types of Retail
Operations
 Specialty stores
 Size
 Convenience
 & Selection
 Growth
13.4
Major Types of Retail
Operations
 Supermarkets
 Spending
 60% of food $
 One stop shopping
 Loyalty programs
 Diversify
 Scrambled (Wide Variety of Products)
 Gas
 Ethnic
13.5
Major Types of Retail
Operations
 Drugstores
 OTC &
+
 Convenience store products
 Convenience stores
 Neighborhood
 Convenience items
 Restaurants
 Chain
 Ethnic
 Specialty
13.6
Major Types of Retail Operations
 Discount stores
 Full line discounters
 Ltd service; assortment “hard goods” (housewares, toys, auto, hardware,
sports, garden, clothing, bedding…) Wal-Mart
 Super centers
 Grocery + general merchandise + Services (Rx, dry cleaning, portrait,
photo, hair, optical, restaurant…) Wal-Mart Super Center
 Specialty Discount Stores
 Nearly complete, single line (sports, electronic, auto, office suppliers).
 Category killers
 Warehouse/membership clubs
 Costco, BJ’s, Sam’s
 Off price retailers
 TJ Maxx, Ross, Marshall’s, Tuesday Morning
13.7
Non-store Retailing
 Automatic Vending
 Soft drinks & Snack foods
 = 85% of $40 Billion/yr.
 Direct Retailing
BA Vending Machines
 Avon, Mary Kay, Cutco
 Direct Marketing
 direct mail, catalogs
 Electronic Retailing
 QVC, online
13.8
FRANCHISING
 Important part of retailing
 Product and trade name
 Business format
 Cost
 Risk/Reward
13.9
Retail Marketing Strategy
Marketing
Research
& Analysis
Environmental
Scanning
& Analysis
Service,
Operations &
Channel
Partnerships
Targeting, &
Positioning
Product
Customers
Integrated
Marketing
13.10
Communication
Price
Location
Six P’s of Retailing
 Product
 Place
 Promotion
 Price
 Presentation
 Personnel
RETAIL MIX
 Product Offering
 Product assortment or Merchandise Mix
 Width and depth
 Efficient Consumer Response
 Need to manage inventory
 Electronic Data Interchange
 Cut price on slow movers
 Private Brands
 Kenmore, Craftsman, Die Hard
13.11
RETAIL MIX
 Location
 Free Standing: Destination Stores
 Shopping Center
 Neighborhood: AKA Strip Centers
 Community: One or two anchors
 Regional Malls: ‘nuff said.
 Lifestyle Centers: Open air, Yuppified
13.12
RETAIL MIX
 Pricing
 Key in positioning
 Everyday low pricing
13.13
RETAIL MIX
 Presentation – Atmosphere
 Employees
 Merchandise
 Fixtures
 Sound
 Odors
 Visuals
13.14
New Developments in Retailing
 Interactivity




Increase customer involvement
Entertainment
Guests
Fishing at LL Bean, climbing at REI
 M-commerce
 Cell phones, PDA
 Buy a Coke by phone
EXERCISE
 Select a discount retailer and a specialty
retailer. For each describe their retail mix.
Refer to the previous five slides.
13.15