Lecture Marketing: The core (5/e): Chapter 13 – Kerin, Hartley, Rudelius

                                McGraw­Hill/Irwin                                                                                           Copyright © 2013 by The McGraw­Hill Companies, Inc.  All rights reserved.


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 13, 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.

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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 13, YOU SHOULD BE ABLE TO:

LO4

Specify the retailing mix actions used
to implement a retailing strategy.

LO5

Explain changes in retailing with the
wheel of retailing and the retail life
cycle concepts.

LO6

Describe the types of firms that
perform wholesaling activities and
their functions.
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RETAILERS LOVE IT
WHEN THE MAYOR VISITS!

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THE VALUE OF RETAILING

LO1



Retailing



Consumer Utilities Offered by Retailing

CarMax
Video



• Place

• Form

• Possession

• Time

The Global Economic
Impact of Retailing
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FIGURE 13-1 Which retailer best provides
which utilities?

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LO2

CLASSIFYING RETAIL OUTLETS



Form of Ownership



Level of Service



Merchandise Line

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LO2

MAKING RESPONSIBLE DECISIONS

GREEN ISN’T JUST A COLOR TO RETAILERS.
IT’S A VALUE!

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LO2

CLASSIFYING RETAIL OUTLETS
FORM OF OWNERSHIP



Independent Retailer



Corporate Chain



Contractual Systems
• Wholesaler-Sponsored Voluntary Chains
• Retailer-Sponsored Cooperatives
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LO2



CLASSIFYING RETAIL OUTLETS
FORM OF OWNERSHIP

Contractual Systems
• Franchising
 Business-Format
Franchises

 Product-Distribution

Franchises
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LO2

CLASSIFYING RETAIL OUTLETS
LEVEL OF SERVICE



Self-Service



Limited Service



Full-Service
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FIGURE 13-2 Stores vary in terms of the
breadth and depth of their merchandise
lines

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LO2



CLASSIFYING RETAIL OUTLETS
TYPE OF MERCHANDISE LINE

Depth of Product Line

• Specialty Outlets

• Category Killers
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LO2



CLASSIFYING RETAIL OUTLETS
TYPE OF MERCHANDISE LINE

Breadth of Product Line
• General Merchandise Stores
• Scrambled Merchandising
 Hypermarket

 Supercenter

 Intertype Competition

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FIGURE 13-A For Lands’ End, intertype
competition means that there is competition
between various dissimilar retail outlets

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FIGURE 13-B Many retailing activities do
not involve a store

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LO3

NONSTORE RETAILING



Automatic Vending



Direct Mail and Catalogs

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NONSTORE RETAILING

LO3



Television Home
Shopping



Online Retailing

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NONSTORE RETAILING

LO3



Telemarketing

• Do-Not-Call Registry



Direct Selling

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FIGURE 13-3 Elements of a retailing
strategy

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RETAILING STRATEGY

LO4

RETAILING MIX



Retailing Mix



Retail Pricing
• Original Markup
• Maintained Markup
• Gross Margin



Markdown
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LO4

RETAILING STRATEGY
RETAILING MIX



Everyday Low Pricing (EDLP)



Everyday Fair Pricing



Benchmark or Signpost Items

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LO4



RETAILING STRATEGY
RETAILING MIX

Off-Price Retailing

• Warehouse Club

• Outlet Store

• Single/Extreme Value Store
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RETAILING STRATEGY

LO4



RETAILING MIX

Store Location
• Central Business District
• Regional Shopping Centers
 Anchor Stores

• Community Shopping Center
• Strip Mall
• Power Center
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RETAILING STRATEGY

LO4



RETAILING MIX

Retail Communication
• Image
• Shopper Marketing



Merchandise
• Category Management
• Marketing Metrics
 Sales per Sq. Ft.

 Same Store Sales
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