Copyright 2007, Prentice-Hall, Inc Specialty Stores The Gap’s product lines are limited to clothing and accessories for men, women, kids, and babies. In addition to regular sizes, petite and tall sizes are available in a variety of clothing items. Marketing in Action

Copyright 2007, Prentice-Hall, Inc Would you consider Lowe’s to be a category killer? Why or why not? Let’s Talk!

Copyright 2007, Prentice-Hall, Inc Relative Prices Classification  Discount stores  Off-price retailers –Independent off- price retailers –Factory outlets Factory outlet malls Value-retail centers –Warehouse club

Copyright 2007, Prentice-Hall, Inc Factory Outlet Malls Factory outlet malls and value-retail centers have blossomed in recent years, making them one of the hottest growth areas in retailing. Marketing in Action

Copyright 2007, Prentice-Hall, Inc Organizational Classification  Corporate chain stores  Voluntary chain  Retailer cooperative  Franchise  Merchandising conglomerates True Value is an example of a voluntary chain.

Copyright 2007, Prentice-Hall, Inc Retailing Franchise Opportunities Not all franchise opportunities are in fast food. In fact, franchises now account for 40 percent of all retail sales in the United States. Marketing in Action

Copyright 2007, Prentice-Hall, Inc Organizational Classification  Merchandising Conglomerates –Corporation that combines several diversified retailing lines and forms under central ownership, as well as some integration of their distribution and management functions. Limited Brands operates six retail brands. Visit the Web site for details.

Copyright 2007, Prentice-Hall, Inc Figure 11-1 Retailer Marketing Decisions

Copyright 2007, Prentice-Hall, Inc Amazon Targets Its Market Online retailer Amazon uses a sophisticated database to track customer purchases and individually target buyers by suggesting other items that fit past purchase profiles. Marketing in Action

Copyright 2007, Prentice-Hall, Inc Experiential Retailing Mall of America pioneered the experiential retailing concept and remains the #1 retail tourist attraction in the nation. Marketing in Action

Copyright 2007, Prentice-Hall, Inc Types of Shopping Centers  Regional shopping center or mall  Community shopping center  Neighborhood shopping center (strip mall)  Power center  Megamalls  Lifestyle centers Which form of shopping center appears to be represented by the photo?

Copyright 2007, Prentice-Hall, Inc What’s Next for Mall of America? Marketing in Action Megamall superstar, the Mall of America, has begun a billion dollar Phase II expansion that will include a world class casino, concert and performing arts hall, multi-cultural exhibits, indoor golf course, NHL-sized ice rink, themed hotel rooms, and of course, high- end retail stores.

Copyright 2007, Prentice-Hall, Inc Wholesalers Grainger, the leading wholesaler of maintenance, repair, and operating (MRO) supplies, succeeds by making life easier for the entire marketing channel. Marketing in Action

Copyright 2007, Prentice-Hall, Inc Figure 11-2 Wholesaler Marketing Decisions