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Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit...
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Transcript of Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit...
![Page 1: Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How.](https://reader030.fdocuments.us/reader030/viewer/2022020801/56649eeb5503460f94bfc1a1/html5/thumbnails/1.jpg)
Chapter 15 - Retailing(page 284-290)
Goals of Retailing:
• ____________ cost of selling; make profit
• Offer ______________
• Respond to _______________
How do retailers achieve these goals?
![Page 2: Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How.](https://reader030.fdocuments.us/reader030/viewer/2022020801/56649eeb5503460f94bfc1a1/html5/thumbnails/2.jpg)
Applications
Type of Retailer (Table 15.1):Specialty store: narrow product line; deep assortment within
that line
Department Store: several product lines (departments) - clothing, home furnishings, household goods;
Convenience Store: located near residential areas; 24/7; limited line of high turnover convenience items at higher prices
Off-price retailer: sold at less than retail; often leftover goods, irregulars; obtained at reduced prices and charged to customers at lower prices
![Page 3: Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How.](https://reader030.fdocuments.us/reader030/viewer/2022020801/56649eeb5503460f94bfc1a1/html5/thumbnails/3.jpg)
Retailer Marketing Decisions
Target Market: well-defined
Product Assortment and Procurement: product assortment matches target market’s shopping expectations – differentiate from _____________, carry merchandise that no other competitor carries
Target Stores: “upscale discount segment” – female, age 40, college-educated, 50K household income
![Page 4: Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How.](https://reader030.fdocuments.us/reader030/viewer/2022020801/56649eeb5503460f94bfc1a1/html5/thumbnails/4.jpg)
Retailer Marketing Decisions
Services and Store Atmosphere
Services mix: telephone and mail orders; fitting rooms; gift wrapping
Atmosphere: physical layout; look
![Page 5: Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How.](https://reader030.fdocuments.us/reader030/viewer/2022020801/56649eeb5503460f94bfc1a1/html5/thumbnails/5.jpg)
Retailer Marketing Decisions
Price Decision
Markup (profit); markdown (slow moving items)
EDLP
Pricing decision must reflect target market, product assortment and procurement, and competition
![Page 6: Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How.](https://reader030.fdocuments.us/reader030/viewer/2022020801/56649eeb5503460f94bfc1a1/html5/thumbnails/6.jpg)
Retailer Marketing Decisions
Price Decision
Most retailers seek:
1. High mark-up and low volume:
2. Low mark-up and high volume:
![Page 7: Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How.](https://reader030.fdocuments.us/reader030/viewer/2022020801/56649eeb5503460f94bfc1a1/html5/thumbnails/7.jpg)
Trends in Retailing
1. New retail forms and combinations continually emerge
Traditional malls power centers and on-line shopping
Factory outlet malls upscale, smaller discounts, but more brands
![Page 8: Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How.](https://reader030.fdocuments.us/reader030/viewer/2022020801/56649eeb5503460f94bfc1a1/html5/thumbnails/8.jpg)
Trends in Retailing
2. Intertype competition: ___________ types of retailers compete for ____ customers by offering same merchandise
EX: CD purchase
![Page 9: Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How.](https://reader030.fdocuments.us/reader030/viewer/2022020801/56649eeb5503460f94bfc1a1/html5/thumbnails/9.jpg)
Trends in Retailing
3. Growth of giant retailers: Wal-Mart
4. Technology as a competitive tool: produce better forecasts; order electronically from suppliers
5. Global expansion of major retailers: unique formats; strong brand positioning (McDonald’s)
![Page 10: Chapter 15 - Retailing (page 284-290) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How.](https://reader030.fdocuments.us/reader030/viewer/2022020801/56649eeb5503460f94bfc1a1/html5/thumbnails/10.jpg)
Trends in Retailing
6. Selling an experience: offer fun and community, invite people to congregate
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Trends in Retailing
7. Competition between store-based and non-store-based retailing