Types of retailing done

1. RETAILING AND
WHOLESALING

2. THE VALUE OF RETAILING
Retailing
Retailing includes all activities involved in
Selling and providing goods and
services to ultimate consumers for personal,
or household use.

3. ClassificationClassification
of of
Retail Retail
EstablishmentsEstablishments
ClassificationClassification
of of
Retail Retail
EstablishmentsEstablishments
Ownership-placeOwnership-place
Level of Service-promotionLevel of Service-promotion
Product Assortment-productProduct Assortment-product
PricePrice
Retailers manipulate their 4 P’s to get the best position in the
marketplace– in other words, to create a competitive advantage
CLASSIFYING RETAIL OUTLETS

4. Independent
Retailers-one store
ownership
Independent
Retailers-one store
ownership
Chain Stores-many
stores but only one
owner
Chain Stores-many
stores but only one
owner
Franchises-many
owners of many
stores
Franchises-many
owners of many
stores
CLASSIFICATION BY OWNERSHIP

5. Product and
Trade Name
Franchising
Product and
Trade Name
Franchising
Business
Format
Franchising
Business
Format
Franchising
Dealer agrees to sell certain
products provided by a
manufacturer, but can use any sales
tactics he chooses.
Ex-Michelin Tires, Avon
Dealer agrees to sell certain
products provided by a
manufacturer, but can use any sales
tactics he chooses.
Ex-Michelin Tires, Avon
Dealer must sell the franchiser’s
product in the exact way the
franchiser prescribes.
Ex – McDonalds, Wendy's
Dealer must sell the franchiser’s
product in the exact way the
franchiser prescribes.
Ex – McDonalds, Wendy's
BASIC FORMS OF FRANCHISING

6. Full Service Self Service
Discount stores
Exclusive stores
Factory outlets
Warehouse clubs
CLASSIFICATION BY LEVEL OF
SERVICE

7. The mix of products offered to the
consumer by the retailer; also called
the product assortment
Deep & narrow-like Starbucks
Or
Shallow & broad like Walmart
CLASSIFICATION BY PRODUCT
OFFERING

8. CLASSIFICATION BY PRODUCT
OFFERING
 Depth of Product Line
• Specialty Outlets
• Category Killers
 Breadth of Product Line
• General Merchandise Stores
• Scrambled Merchandising
Why do this?

9. Breadth versus depth of merchandise lines

10. Department StoresDepartment Stores
Specialty StoresSpecialty Stores
SupermarketsSupermarkets
DrugstoresDrugstores
Convenience StoresConvenience Stores
Discount StoresDiscount Stores
RestaurantsRestaurants
MAJOR TYPES OF RETAILERS BY
PRODUCT OFFERING

11. Major FormsMajor Forms
ofof
NonstoreNonstore
RetailingRetailing
Major FormsMajor Forms
ofof
NonstoreNonstore
RetailingRetailing
Automatic VendingAutomatic Vending
Direct MarketingDirect Marketing
Electronic RetailingElectronic Retailing
NON-STORE RETAILING

12. TelemarketingTelemarketing
Catalogs & Mail OrderCatalogs & Mail Order
Direct MailDirect Mail
DirectDirect
Marketing needs Marketing needs
no personal no personal
interactioninteraction
DirectDirect
Marketing needs Marketing needs
no personal no personal
interactioninteraction
DIRECT MARKETING

13. Choosing the
Retailing Mix
Choosing the
Retailing Mix
ProductProduct
PricePrice
PromotionPromotion
PlacePlace
PersonnelPersonnel
PresentationPresentation
CHOOSING THE RETAIL MIX

14. TargetTarget
MarketMarket
Product
Product
Price
Price
Promotion
Promotion
Place
Place
Personnel
Personnel
Presentation
Presentation
CHOOSING THE RETAIL MIX

15. Employee Type & DensityEmployee Type & Density
Merchandise Type & DensityMerchandise Type & Density
Fixture Type & DensityFixture Type & Density
SoundSound
OdorsOdors
Visual FactorsVisual Factors
Factors Factors
inin
CreatingCreating
Store’sStore’s
Atmosphere Atmosphere
Factors Factors
inin
CreatingCreating
Store’sStore’s
Atmosphere Atmosphere
PRESENTATION (COMMUNICATION) OF
THE RETAIL STORE

16. How manyHow many
How knowledgeableHow knowledgeable
How helpful / invasiveHow helpful / invasive
Fit the image of the productFit the image of the product
Good personal sellersGood personal sellers
Factors Factors
inin
Personnel Personnel
decisionsdecisions
Factors Factors
inin
Personnel Personnel
decisionsdecisions
PERSONNEL OF THE RETAIL STORE

17. RETAILING STRATEGY-PRICING
 Use Everyday Low Pricing
 Benchmark or Signpost Items –
items used by consumers as an index
of overall price level of the store
I.e. – “How much do they sell T shirts for?”
 Allow for Shrinkage and discounting
OR
 How much mark-up?

18. RETAILING STRATEGY - LOCATION
 Central Business District
 Regional Shopping Centers
 Strip Location
 Multichannel Retailers
• Anchor Stores
Freestanding
Store
Freestanding
Store
Shopping
Center Tenant
Shopping
Center Tenant
Mall TenantMall Tenant
• Parasites
• Destination stores
• Power centers

19. FIGURE 14-5 FIGURE 14-5 The retail life cycle

20. Scrambled Merchandising
Scrambled merchandising involves
offering several unrelated product lines in
a single store.
Scrambled merchandising involves
offering several unrelated product lines in
a single store.

21. Retailing Mix
The retailing mix includes the activities
related to managing the store and the
merchandise in the store, which includes
retail pricing, store location, retail
communication, and merchandise.
The retailing mix includes the activities
related to managing the store and the
merchandise in the store, which includes
retail pricing, store location, retail
communication, and merchandise.

22. Shrinkage
Shrinkage is the breakage and theft of
merchandise by customers and
employees.
Shrinkage is the breakage and theft of
merchandise by customers and
employees.

23. Multichannel Retailers
Multichannel retailers utilize and
integrate a combination of traditional
store formats and nonstore formats such
as catalogs, television, and online
retailing.
Multichannel retailers utilize and
integrate a combination of traditional
store formats and nonstore formats such
as catalogs, television, and online
retailing.

24. Retail Life Cycle
The retail life cycle is the process of
growth and decline that retail outlets, like
products, experience, which consists of
the early growth, accelerated
development, maturity, and decline
stages.
The retail life cycle is the process of
growth and decline that retail outlets, like
products, experience, which consists of
the early growth, accelerated
development, maturity, and decline
stages.

25. Parasites
Parasite stores do not create their own
traffic. They make money based on
their proximity to things that will draw
foot traffic. (bigger stores, train
stations, airports, office buildings, etc.)
Parasite stores do not create their own
traffic. They make money based on
their proximity to things that will draw
foot traffic. (bigger stores, train
stations, airports, office buildings, etc.)

26. Destination Stores
Stores that generate customers from larger
trading areas than their neighbors or
competitors.
i.e.-Dunkin’ Donuts: “It’s worth the trip!”
Stores that generate customers from larger
trading areas than their neighbors or
competitors.
i.e.-Dunkin’ Donuts: “It’s worth the trip!”

27. Power Centers
Huge shopping strips with multiple
anchors and often a supermarket
Huge shopping strips with multiple
anchors and often a supermarket

28. Anchor Stores
A large store, such as a department store
or supermarket, that is prominently
located in a shopping mall to attract
customers who are then expected to
patronize the other shops in the mall.
A large store, such as a department store
or supermarket, that is prominently
located in a shopping mall to attract
customers who are then expected to
patronize the other shops in the mall.