Chapter 15 - Retailing (page 284-290)

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Chapter 15 - Retailing(page 284-290)

• Goals of Retailing
• ____________ cost of selling make profit
• Offer ______________
• Respond to _______________
• How do retailers achieve these goals?

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Applications

• Type of Retailer (Table 15.1)
• Specialty store narrow product line deep
  assortment within that line
• Department Store several product lines
  (departments) - clothing, home furnishings,
  household goods
• Convenience Store located near residential
  areas 24/7 limited line of high turnover
  convenience items at higher prices
• Off-price retailer sold at less than retail
  often leftover goods, irregulars obtained at
  reduced prices and charged to customers at lower
  prices

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Retailer Marketing Decisions

• Target Market well-defined
• Product Assortment and Procurement product
  assortment matches target markets shopping
  expectations differentiate from _____________,
  carry merchandise that no other competitor
  carries
• Target Stores upscale discount segment
  female, age 40, college-educated, 50K household
  income

4
Retailer Marketing Decisions

• Services and Store Atmosphere
• Services mix telephone and mail orders fitting
  rooms gift wrapping
• Atmosphere physical layout look

5
Retailer Marketing Decisions

• Price Decision
• Markup (profit) markdown (slow moving items)
• EDLP
• Pricing decision must reflect target market,
  product assortment and procurement, and
  competition

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Retailer Marketing Decisions

• Price Decision
• Most retailers seek
• 1. High mark-up and low volume
• 2. Low mark-up and high volume

7
Trends in Retailing

• New retail forms and combinations continually
  emerge
• Traditional malls power centers and on-line
  shopping
• Factory outlet malls upscale, smaller
  discounts, but more brands

8
Trends in Retailing

• Intertype competition ___________ types of
  retailers compete for ____ customers by offering
  same merchandise
• EX CD purchase

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Trends in Retailing

• 3. Growth of giant retailers Wal-Mart
• 4. Technology as a competitive tool produce
  better forecasts order electronically from
  suppliers
• 5. Global expansion of major retailers unique
  formats strong brand positioning (McDonalds)

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Trends in Retailing

• Selling an experience offer fun and community,
  invite people to congregate

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Trends in Retailing

• 7. Competition between store-based and
  non-store-based retailing