DHD 2009 MKT243 Fundamental Of Marketing
1
Fundamental Of Fundamental Of MarketingMarketingMKT243MKT243
Chapter 8Chapter 8
RetailingRetailing
DHD 2009 MKT243 Fundamental Of Marketing
2
Slide OutlineSlide Outline• Classification of retails operations• Major types of retail operations• Non-store retailing• Franchising• Retail marketing strategy• Trends in retailing
DHD 2009 MKT243 Fundamental Of Marketing
3
Retailing-All activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use.
Retailers are businesses whose sales come primarily from retailing
RetailingRetailing
DHD 2009 MKT243 Fundamental Of Marketing
4
Classification of Retail Classification of Retail OperationsOperations
A retail establishment can be classified according to:1. Ownership• Independent retailers-Retailers owned by a single person
or partnership, not large retail institution.• Chain stores- Stores owned and operated as a group by a
single organization• Franchise-Stores owned and operated by individuals but
are licensed by a larger supporting organization
2. Level of servicei. Full service operation of an outletii. Self-service operation
DHD 2009 MKT243 Fundamental Of Marketing
5
Classification of Retail Classification of Retail OperationsOperations
3. Product AssortmentNumber of product lines and product items offered by the retailer.
4. PriceDepends on the gross margin which is the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted.
DHD 2009 MKT243 Fundamental Of Marketing
6
Major Store Retailer TypesMajor Store Retailer Types
DHD 2009 MKT243 Fundamental Of Marketing
7
Cont…Cont…• Drugstore
A retail store that stocks pharmacy-related products and services as its main draw
• RestaurantSell food and drink and also provide valuable service for consumers in the form of preparation of the food and service.
DHD 2009 MKT243 Fundamental Of Marketing
8
Non-store RetailingNon-store Retailing• Def: Shopping without visiting a store
Type of Non-store Retailing
Characteristics Examples
1. Automatic Vending
•The use of machine to offer goods for sale e.g. soft drinks, candy, snack•Usually found in college cafeteria, office building•More convenience and coin-operated machine
•Top-up machine•Soft drink machine
DHD 2009 MKT243 Fundamental Of Marketing
9
Non-store RetailingNon-store RetailingType of Non-
store RetailingCharacteristics Examples
2. Direct Retailing
•Sell product door to door, office to office, or at home sales parties•Selling product through representative
•Electrolux•Water filter•Avon
3. Direct Marketing
•a.k.a direct-response marketing•Techniques used to get consumers to make a purchase from their home, office, or other non-retail setting•E.g: direct mail, catalog and mail order, telemarketing.
•Nutrilife
DHD 2009 MKT243 Fundamental Of Marketing
10
Non-store RetailingNon-store RetailingType of Non-
store RetailingCharacteristics Examples
4. Electronic Retailing
•It includes 24 hour, shop-at-home TV networks, on-line retailing•Shop-at-home TV network•Online Retailing-shopping available to consumers with access to the internet.
•Smart shop
•E-bay, yahoo.shop
DHD 2009 MKT243 Fundamental Of Marketing
11
FranchisingFranchising• Franchise-is a continuing relationship
in which a franchiser grants to a franchisee the business rights to operate or to sell the product
• Franchiser-The originator of a trade mark, product, methods of operation and so on, that grants operating rights to another party to sell its product
DHD 2009 MKT243 Fundamental Of Marketing
12
FranchisingFranchising• Franchisee-An individual or business
that is granted the right to sell another party’s product
Example:McD, Starbuck, Coffeebean,…
DHD 2009 MKT243 Fundamental Of Marketing
13
Basic Forms of FranchisingBasic Forms of Franchising
Business FormatFranchising
Business FormatFranchising
Product and Trade Name Franchising
Product and Trade Name Franchising
DHD 2009 MKT243 Fundamental Of Marketing
14
Retail Marketing StrategyRetail Marketing StrategyThe key task:1. Defining the target market
Who is the target market?
2. Choosing the Retailing Mix
DHD 2009 MKT243 Fundamental Of Marketing
15
Retailing MixRetailing Mix
DHD 2009 MKT243 Fundamental Of Marketing
16
Presentation of the Retail Presentation of the Retail StoreStore
Employee type and densityEmployee type and density
Merchandise type and densityMerchandise type and density
Fixture type and densityFixture type and density
SoundSound
OdorsOdors
Visual factorsVisual factors
6
DHD 2009 MKT243 Fundamental Of Marketing
17
Trends in RetailingTrends in Retailing1. Entertainment2. Convenience and Efficiency3. Customer Management 4. M-commence
DHD 2009 MKT243 Fundamental Of Marketing
18
RetailingRetailing
Retailers have to consider:– Non-store retailing– Retail convergence– Megaretailers– Retail technology– Global expansion– Retail stores as communities
The Future of Retailing
DHD 2009 MKT243 Fundamental Of Marketing
19
WholesalingWholesalingWholesaling includes all activities involved in selling goods and services to those buying for resale or
business use
Top Related