Chapter 16 - Retailing
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Transcript of Chapter 16 - Retailing
Retailing 16Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Objectives• Define retailing; understand how retailing Define retailing; understand how retailing
evolves and some ethical issues in retailingevolves and some ethical issues in retailing
• Understand how we classify retailersUnderstand how we classify retailers
• Describe the more common forms of nonstore Describe the more common forms of nonstore retailing including B2C e-commerceretailing including B2C e-commerce
• Understand the importance of store image to a Understand the importance of store image to a retail positioning strategy and explain how a retail positioning strategy and explain how a retailer can create a desirable image in the retailer can create a desirable image in the marketplacemarketplace
RetailingCopyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
The final stop in the distribution channel in which organizations The final stop in the distribution channel in which organizations sell goods and services to consumers for their personal usesell goods and services to consumers for their personal use
Wheel of retailing
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Figure 16.1Figure 16.1The Wheel of RetailingThe Wheel of Retailing
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Retail life cycle
INTRODUCTION
Aggressive entrepreneurs
Pop up retailers
GROWTH
Sales grow
New competitors
Stores expand offerings
MATURITY
Multiple competitors
Profits decline
New products offered
DECLINE
Offerings become obsolete
Future of retailingCopyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
The economy
Demographics
Technology
Globalization
Demographics
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Technology
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Technology is revolutionizing retailing – particularly in terms of how consumers shop. The Internet not only offers marketers a new selling venue, it has become a primary source of information for shoppers.
GlobalizationCopyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Self-Service Limited-Service
Full-Service
Classify Retailersby Service Level
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STORES NON-STORE
Retail types
Convenience
Supermarkets
Specialty
Discount
Off-price
Warehouse clubs
Factory outlets
Department
Hypermarkets
Classify Retailers
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NARROW BROAD
SHA
LLO
WD
EEPM
erch
andi
se D
epth
Merchandise Breadth
Convenience stores (airport gift shop)
Warehouse club (Sam’s, Costco)
Specialty stores (Legendaryheroes.com)
Super retailers (Amazon.com)
by Merchandise selection
Table 16.1Table 16.1Major Types of RetailersMajor Types of Retailers
Table 16.1Table 16.1Major Types of Retailers, Cont.Major Types of Retailers, Cont.
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Store Types
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Convenience Convenience Store
Convenience StoresConvenience Stores
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STORES NON-STORE
Retail types
Convenience
Supermarkets
Specialty
Discount
Off-price
Warehouse clubs
Factory outlets
Department
Hypermarkets
Direct selling
Door to door
Party selling
Vending machines
Auctions/eBay
Garage sales, Craigslist.com
Online retailers
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Non-Store
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B2C E-commerce
Virtual channels are unlikely to replace traditional Virtual channels are unlikely to replace traditional onesones
Stores must continue to evolve to lure shoppers Stores must continue to evolve to lure shoppers away from computersaway from computers
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E-commerce
Benefits to the firm allows consumers and marketers to easily find and make exchanges in a global marketplace
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E-commerce
Limitations to the firm Site maintenance costs can be highe-commerce can be hard to implementmay cannibalize in-store sales
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Benefits to the Consumer
What do you like best about online shopping?
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Limitations for the Consumer
delays in in delivery, fraud risks, the inability to feel the goods or check sizing
Have you ever had any problems with online shopping?
Table 16.2Table 16.2Benefits and Limitations of Benefits and Limitations of
E-CommerceE-Commerce
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Store Image how the target market perceives the store—its market position relative to the competition
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LUXU
RYTHRIFTY
TRADITIONAL
FASHION FORWARD
Macy’s
Sears
Saks Fifth Ave.
Lord & Taylor
Bergdorf Goodman
Bloomingdales
Barney’s
Henri Bendel
Store image mapping
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STORE DESIGN
Image elements
Atmospherics
Music, color, lighting
Traffic flow
Visual merchandising
PRICING
STORE PERSONNEL
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Atmospherics The use of materials, furnishings, and other design elements can create a desired store image
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Lighting, color, music
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Store Layout
The arrangement of merchandise in the store, and how shelves, racks, tables, and cash registers are placed. The arrangement of each element is critical for directing the traffic flow, or how shoppers move through the retail environment.
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Store Layout
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Visual Merchandising
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Pricing and store image
Pricing policyPricing policy- Price points are price ranges - - Price points are price ranges - of a storeof a store’’s merchandise s merchandise - Price points play a role in - Price points play a role in establishing its imageestablishing its image
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallStore Location
Business districts Business districts Shopping centersShopping centersFreestanding Freestanding retailersretailersNontraditional store Nontraditional store locationslocations
Figure 16.7Figure 16.7Business DistrictsBusiness Districts
Figure 16.7Figure 16.7Shopping CentersShopping Centers
Figure 16.7Figure 16.7Freestanding StoresFreestanding Stores
Figure 16.7Figure 16.7Nontraditional Store LocationsNontraditional Store Locations
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