Retailing Mix

7/27/2019 Retailing Mix

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RETAILING


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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.


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Classificationof

RetailEstablishments

Ownership-place

Level of Service-promotion

Product Assortment-product

Price

Retailers manipulate their 4 Ps to get the best position in themarketplacein other words, to create a competitive advantage

CLASSIFYING RETAIL OUTLETS


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IndependentRetailers-one store

ownership

Chain Stores-manystores but only one

owner

Franchises-manyowners of many

stores

CLASSIFICATION BY OWNERSHIP


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Product and

Trade Name

Franchising

BusinessFormat

Franchising

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 franchisers

product in the exact way the

franchiser prescribes.

Ex McDonalds, Wendy's

BASIC FORMS OF FRANCHISING


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Full ServiceSelf Service

Discount stores

Exclusive storesFactory outlets

Warehouse clubs

CLASSIFICATION BY LEVEL OF

SERVICE


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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


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CLASSIFICATION BY PRODUCT

OFFERING

Depth of Product Line

Specialty Outlets

Category Killers

Breadth of Product Line

General Merchandise Stores

Scrambled Merchandising

Why do this?


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Breadth versus depth of merchandise lines


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Department Stores

Specialty Stores

Supermarkets

Drugstores

Convenience Stores

Discount Stores

Restaurants

MAJOR TYPES OF RETAILERS BY

PRODUCT OFFERING


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Major Formsof

NonstoreRetailing

Automatic Vending

Direct Marketing

Electronic Retailing

NON-STORE RETAILING


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Telemarketing

Catalogs & Mail Order

Direct Mail

DirectMarketing needs

no personalinteraction

DIRECT MARKETING


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Choosing theRetailing Mix

Product

Price

Promotion

Place

Personnel

Presentation

CHOOSING THE RETAIL MIX


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TargetMarket

Product

Price

Promotion

Place

Personnel

Presentation

CHOOSING THE RETAIL MIX


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Employee Type & Density

Merchandise Type & Density

Fixture Type & Density

Sound

Odors

Visual Factors

Factors

inCreatingStores

Atmosphere

PRESENTATION (COMMUNICATION) OF

THE RETAIL STORE


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How many

How knowledgeable

How helpful / invasive

Fit the image of the product

Good personal sellers

FactorsinPersonneldecisions

PERSONNEL OF THE RETAIL STORE


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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?


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RETAILING STRATEGY - LOCATION

Central Business District

Regional Shopping Centers

Strip Location

Multichannel Retailers

Anchor Stores

FreestandingStore

ShoppingCenter Tenant

Mall Tenant

Parasites

Destination stores

Power centers


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FIGURE 14-5 The retail life cycle


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Scrambled Merchandising

Scrambled merchandising involves

offering several unrelated product lines in

a single store.


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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.


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Shrinkage

Shrinkage is the breakage and theft of

merchandise by customers and

employees.


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Multichannel Retailers

Multichannel retailers utilize and

integrate a combination of traditional

store formats and nonstore formats such

as catalogs, television, and online

retailing.


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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.


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Parasites

Parasite storesdo 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.)


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Destination Stores

Stores that generate customers from larger

trading areas than their neighbors or

competitors.

i.e.-Dunkin Donuts: Its worth the trip!


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Power Centers

Huge shopping strips with multiple

anchors and often a supermarket


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Anchor Stores

A large store, such as a department store or

supermarket, that is prominently located ina shopping mall to attract customers who

are then expected to patronize the other

shops in the mall.

Documents

Retailing Mix