Marketing chapter 17a retailing

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights


THE VALUE OF RETAILING

Retailing
– All activities involved in selling,
renting, and providing goods and
services to ultimate consumers for
personal, family, or household use
– Approximately 1.5 Million in U.S.

Slide 17-6


THE VALUE OF RETAILING

Retailing
• Consumer Utilities Offered by Retailing
– Allows consumers and producers to meet and
creates customer value in the form of utilities
provided

• Consumer Utilities Offered by Retailing
–
–
–
–

Time
Place
Possession
Form
Slide 17-6


FIGURE 17-1 Which retailer best provides
which utilities?

17-7


FIGURE 17-2 The relative size of different
types of retailers

17-8


THE VALUE OF RETAILING

Retailing
• The Global Economic Value of
Retailing
– Represented by number of people
employed and total amount of money
exchanged in retail sales

• The Global Impact of Retailing
– Wal-Mart, Home Depot, and Target

– Daiei – Japan
– Printemps – France
– Marks & Spencer - Britain
Slide 17-6


RETAILERS ARE REINVENTING THEIR STORES
TO MATCH THE WAY YOU WANT TO SHOP!

17-10


CLASSIFYING RETAIL OUTLETS
• Form of Ownership – who owns
– Individuals, Corporate Chains, Contractual
Systems

• Level of Service – degree of service
provided
– Self-, limited-, and full-service

• Merchandise Line – how many different
types of products store carries and in
what assortment

Slide 17-13


LO2

CLASSIFYING RETAIL OUTLETS
FORM OF OWNERSHIP



Form of Ownership



Independent Retailer



Corporate Chain



Contractual Systems
• Wholesaler-Sponsored Voluntary Chains
• Retailer-Sponsored Cooperatives

17-14


LO2



CLASSIFYING RETAIL OUTLETS
FORM OF OWNERSHIP

Contractual Systems, cont.
• Franchising
 Business-Format
Franchises

 Product-Distribution
Franchises
17-15


FIGURE 17-3 The top five franchises in the
United States

17-16


LO2

CLASSIFYING RETAIL OUTLETS
LEVEL OF SERVICE



Self-Service



Limited Service



Full-Service

17-17


CLASSIFYING RETAIL OUTLETS
TYPE OF MERCHANDISE LINE

 Depth of Product Line – carries large assortment
Limited-line – considerable assortment
Single-line – tremendous depth in one primary line
• Specialty Outlets
Category Killers – specialty discount outlets

Slide 17-18


CLASSIFYING RETAIL OUTLETS
TYPE OF MERCHANDISE LINE

 Breadth of Product Line
• General Merchandise Stores – broad product line
with limited depth
• Scrambled Merchandising – several unrelated
product lines in a single store

Slide 17-20

CLASSIFYING RETAIL OUTLETS
TYPE OF MERCHANDISE LINE
 Breadth of Product Line
• Hypermarket – large store (>200K sq ft)
•Form of scrambled merchandising
•Popular in Europe
•Variety, quality, low price for food, groceries,
and general merchandise
• Supercenter – approx 70K sq ft with
full-size grocery
• Intertype Competition
Slide 17-20


FIGURE 17-4 Stores vary in terms of the
breadth and depth of their merchandise
lines

17-21


FIGURE 17-5 Hypermarkets are popular in
Europe while supercenters are popular in
the U.S.

17-22


FIGURE 17-6 Many types of retailers do not

have stores

17-23


LO3

NONSTORE RETAILING



Automatic Vending



Direct Mail and Catalogs

17-24


NONSTORE RETAILING

LO3



Television Home
Shopping



Online Retailing

17-25


NONSTORE RETAILING

LO3



Telemarketing

• Do-Not-Call Registry



Direct Selling
17-27


FIGURE 17-7 Elements of a retailing
strategy

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RETAILING STRATEGY
• Positioning a Retail Store

 Retail Positioning Matrix
• Breadth of Product Line
•Range of products sold through each outlet

• Value Added
•Elements such as location, product reliability, or prestige

Slide 17-36


FIGURE 17-8 The four positioning
strategies for retailers

17-34


RETAILING STRATEGY

LO4

RETAILING MIX



Retailing Mix



Retail Pricing
• Original Markup

• Maintained Markup
• Gross Margin



Markdown

17-35