Retailing Mix
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Transcript of Retailing Mix
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RETAILING
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THE VALUE OF RETAILING
Retailing
Retailing includes all activities involved in
Selling and providing goods and
services to ultimate consumers for personal,
or household use.
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Classificationof
RetailEstablishments
Ownership-place
Level of Service-promotion
Product Assortment-product
Price
Retailers manipulate their 4 Ps to get the best position in themarketplacein other words, to create a competitive advantage
CLASSIFYING RETAIL OUTLETS
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IndependentRetailers-one store
ownership
Chain Stores-manystores but only one
owner
Franchises-manyowners of many
stores
CLASSIFICATION BY OWNERSHIP
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Product and
Trade Name
Franchising
BusinessFormat
Franchising
Dealer agrees to sell certain
products provided by a
manufacturer, but can use any sales
tactics he chooses.
Ex-Michelin Tires, Avon
Dealer must sell the franchisers
product in the exact way the
franchiser prescribes.
Ex McDonalds, Wendy's
BASIC FORMS OF FRANCHISING
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Full ServiceSelf Service
Discount stores
Exclusive storesFactory outlets
Warehouse clubs
CLASSIFICATION BY LEVEL OF
SERVICE
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The mix of products offered to the
consumer by the retailer; also called
the product assortment
Deep & narrow-like Starbucks
Or
Shallow & broad like Walmart
CLASSIFICATION BY PRODUCT
OFFERING
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CLASSIFICATION BY PRODUCT
OFFERING
Depth of Product Line
Specialty Outlets
Category Killers
Breadth of Product Line
General Merchandise Stores
Scrambled Merchandising
Why do this?
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Breadth versus depth of merchandise lines
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Department Stores
Specialty Stores
Supermarkets
Drugstores
Convenience Stores
Discount Stores
Restaurants
MAJOR TYPES OF RETAILERS BY
PRODUCT OFFERING
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Major Formsof
NonstoreRetailing
Automatic Vending
Direct Marketing
Electronic Retailing
NON-STORE RETAILING
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Telemarketing
Catalogs & Mail Order
Direct Mail
DirectMarketing needs
no personalinteraction
DIRECT MARKETING
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Choosing theRetailing Mix
Product
Price
Promotion
Place
Personnel
Presentation
CHOOSING THE RETAIL MIX
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TargetMarket
Product
Price
Promotion
Place
Personnel
Presentation
CHOOSING THE RETAIL MIX
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Employee Type & Density
Merchandise Type & Density
Fixture Type & Density
Sound
Odors
Visual Factors
Factors
inCreatingStores
Atmosphere
PRESENTATION (COMMUNICATION) OF
THE RETAIL STORE
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How many
How knowledgeable
How helpful / invasive
Fit the image of the product
Good personal sellers
FactorsinPersonneldecisions
PERSONNEL OF THE RETAIL STORE
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RETAILING STRATEGY-PRICING
Use Everyday Low Pricing
Benchmark or Signpost Items
items used by consumers as an index
of overall price level of the store
I.e.How much do they sell T shirts for?
Allow for Shrinkage and discounting
OR
How much mark-up?
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RETAILING STRATEGY - LOCATION
Central Business District
Regional Shopping Centers
Strip Location
Multichannel Retailers
Anchor Stores
FreestandingStore
ShoppingCenter Tenant
Mall Tenant
Parasites
Destination stores
Power centers
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FIGURE 14-5 The retail life cycle
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Scrambled Merchandising
Scrambled merchandising involves
offering several unrelated product lines in
a single store.
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Retailing Mix
The retailing mix includes the activities
related to managing the store and the
merchandise in the store, which includes
retail pricing, store location, retail
communication, and merchandise.
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Shrinkage
Shrinkage is the breakage and theft of
merchandise by customers and
employees.
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Multichannel Retailers
Multichannel retailers utilize and
integrate a combination of traditional
store formats and nonstore formats such
as catalogs, television, and online
retailing.
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Retail Life Cycle
The retail life cycle is the process of
growth and decline that retail outlets, like
products, experience, which consists of
the early growth, accelerated
development, maturity, and decline
stages.
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Parasites
Parasite storesdo not create their own
traffic. They make money based on
their proximity to things that will draw
foot traffic. (bigger stores, train
stations, airports, office buildings, etc.)
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Destination Stores
Stores that generate customers from larger
trading areas than their neighbors or
competitors.
i.e.-Dunkin Donuts: Its worth the trip!
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Power Centers
Huge shopping strips with multiple
anchors and often a supermarket
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Anchor Stores
A large store, such as a department store or
supermarket, that is prominently located ina shopping mall to attract customers who
are then expected to patronize the other
shops in the mall.