Lecture Marketing (11/e): Chapter 16 – Kerin, Hartley, Rudelius
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16-1
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO:
LO1
Identify retailers in terms of the
utilities they provide.
LO2
Explain the alternative ways to
classify retail outlets.
LO3
Describe the many methods of
nonstore retailing.
16-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO:
LO4
Classify retailers in terms of the
retail positioning matrix, and specify
retailing mix actions.
LO5
Explain changes in retailing with
the wheel of retailing and the
retail life cycle concepts.
16-3
RETAILERS LOVE IT
WHEN THE MAYOR VISITS!
16-4
THE VALUE OF RETAILING
LO1
Retailing
Consumer Utilities Offered by Retailing
CarMax
Video
• Place
• Form
• Possession
• Time
The Global Economic
Impact of Retailing
16-5
FIGURE 16-1 Which retailer best provides
which utilities?
16-6
FIGURE 16-2 The relative size of different
types of retailers
16-7
LO2
CLASSIFYING RETAIL OUTLETS
Form of Ownership
Level of Service
Merchandise Line
16-8
LO2
MAKING RESPONSIBLE DECISIONS
GREEN ISN’T JUST A COLOR TO RETAILERS.
IT’S A VALUE!
16-9
LO2
CLASSIFYING RETAIL OUTLETS
FORM OF OWNERSHIP
Independent Retailer
Corporate Chain
Contractual Systems
• Wholesaler-Sponsored Voluntary Chains
• Retailer-Sponsored Cooperatives
16-10
LO2
CLASSIFYING RETAIL OUTLETS
FORM OF OWNERSHIP
Contractual Systems
• Franchising
Business-Format
Franchises
Product-Distribution
Franchises
16-11
FIGURE 16-3 The top five franchises in the
United States
16-12
LO2
CLASSIFYING RETAIL OUTLETS
LEVEL OF SERVICE
Self-Service
Limited Service
Full-Service
16-13
FIGURE 16-4 Stores vary in terms of the
breadth and depth of their merchandise
lines
16-14
LO2
CLASSIFYING RETAIL OUTLETS
TYPE OF MERCHANDISE LINE
Depth of Product Line
• Specialty Outlets
• Category Killers
16-15
LO2
CLASSIFYING RETAIL OUTLETS
TYPE OF MERCHANDISE LINE
Breadth of Product Line
• General Merchandise Stores
• Scrambled Merchandising
Hypermarket
Walmart
Video
Supercenter
Intertype Competition
16-16
FIGURE 16-5 Hypermarkets are popular in
Europe while supercenters are popular in
the U.S.
16-17
FIGURE 16-A For Lands’ End, intertype
competition means that there is competition
between various dissimilar retail outlets
16-18
FIGURE 16-6 Many retailing activities do
not involve a store
16-19
LO3
NONSTORE RETAILING
Automatic Vending
Direct Mail and Catalogs
16-20
NONSTORE RETAILING
LO3
Television Home
Shopping
Online Retailing
16-21
LO3
GOING ONLINE
For Some Consumers, Shopping is a Game!
16-22
NONSTORE RETAILING
LO3
Telemarketing
• Do-Not-Call Registry
Direct Selling
16-23
FIGURE 16-7 Elements of a retailing
strategy
16-24
LO4
RETAILING STRATEGY
POSITIONING A RETAIL STORE
Retail Positioning Matrix
• Breadth of Product Line
• Value Added
16-25
