Chapter 11 Ver2e1 Chapter 11 ©2000 South-Western College Publishing Retailing Retailing Prepared by Deborah Baker Texas Christian University

Chapter 11 Ver2e2 Chapter 11 Objectives 1.Discuss the importance of retailing in the U.S. economy. 2.Explain the dimensions by which retailers can be classified. 3.Describe the major types of retail operations. 4.Discuss nonstore retailing techniques. (continued) ©2000 South-Western College Publishing

Chapter 11 Ver2e3 Chapter 11 Objectives 5.Define franchising and describe its two basic forms. 6.List the major tasks involved in developing a retail marketing strategy. 7.Discuss the challenges of expanding retailing operations into global markets. 8.Describe future trends in retailing. ©2000 South-Western College Publishing

Chapter 11 Ver2e4 The Role of Retailing  Retailing is one of the largest employers  Over half of retail sales are produced by less than 10% of retail establishments  Industry is dominated by a few giant organizations:  Wal-Mart  Sears  Kmart  JC Penney  Dayton Hudson Corporation ©2000 South-Western College Publishing

Chapter 11 Ver2e5 Classification of Retail Establishments Establishments Ownership Level of Service Product Assortment Price Classification of Retail Operations ©2000 South-Western College Publishing

Chapter 11 Ver2e6 Major Types of Retail Operations Department Stores Specialty Stores Supermarkets Drugstores Convenience Stores Discount Stores Restaurants ©2000 South-Western College Publishing

Chapter 11 Ver2e7 Types of Stores & Their Characteristics ©2000 South-Western College Publishing Type of Retailer Department Store Specialty Store Supermarket Convenience Store Drugstore Full-line Discounter Specialty Discounter Warehouse Clubs Off-price Retailer Restaurant ServiceLevelServiceLevel Mod Hi-High High Low Low-Mod Mod-Low Low Low-High Assort-mentAssort-mentPricePrice Gross Margin Broad Narrow Broad Med-Narrow Medium Med-Broad Broad Med-Narrow Mod-High Moderate Mod High Moderate Mod Low Mod Lo-low Low-lower Low Low-High Mod High High Low Mod High Low Mod Low Low Low-High

Chapter 11 Ver2e8 Categories of Discount Stores Full-Line Discounters ©2000 South-Western College Publishing Discount Specialty Stores Warehouse Clubs Off-Price Discount Retailers

Chapter 11 Ver2e9 ©2000 South-Western College Publishing Nonstore Retailing Major Forms of Nonstore Retailing Major Forms of Nonstore Retailing Automatic Vending Direct Retailing Direct Marketing Electronic Retailing

Chapter 11 Ver2e10 ©2000 South-Western College Publishing Telemarketing Catalogs & Mail Order Direct Mail Typesof Direct Marketing Typesof

Chapter 11 Ver2e11 ©2000 South-Western College Publishing On-Line Retailing Shop-at-Home Networks Types of ElectronicRetailing ElectronicRetailing Electronic Retailing

Chapter 11 Ver2e12  An opportunity to become an independent businessperson  Established product or service  Technical training and assistance by franchiser  Quality control standards by franchiser to ensure product uniformity ©2000 South-Western College Publishing Franchising Benefits of Franchising Wendy's and the Wendy's logo are registered trademarks of Wendy's International, Inc. All rights reserved. Copyright © 2000

Chapter 11 Ver2e13 ©2000 South-Western College Publishing Business Format Franchising Product and Trade Name Franchising Product and Trade Name Franchising Basic Forms of Franchising Franchising Franchising

Chapter 11 Ver2e14 ©2000 South-Western College Publishing Develop the “Six P’s” Define & Select a Target Market Key Tasks in Strategic Retailing Key Tasks in Strategic Retailing Retail Marketing Strategy

Chapter 11 Ver2e15 Defining & Selecting a Target Market ©2000 South-Western College Publishing STEP 1: Segment the Market STEP 1: Segment the Market Demographics Geographics Psychographics STEP 2: Choose the Retailing Mix STEP 2: Choose the Retailing Mix Product Price Promotion Place Personnel Presentation

Chapter 11 Ver2e16 The Retailing Mix ©2000 South-Western College Publishing Target Market Product Price Promotion Place Personnel Presentation

Chapter 11 Ver2e17 Presentation of the Retail Store ©2000 South-Western College Publishing Employee Type & Density Merchandise Type & Density Fixture Type & Density Sound Odors Visual Factors Determinants of a Store’s AtmosphereDeterminants Atmosphere

Chapter 11 Ver2e18 ©2000 South-Western College Publishing Suggestive Selling Trading Up Two Common Selling Techniques Two Common Selling Techniques Personnel and Customer Service

Chapter 11 Ver2e19 Global Retailing ©2000 South-Western College Publishing Spread of communication and mass media Lowering of trade barriers and tariffs High growth potential in untapped markets Reasons for Global Expansion

Chapter 11 Ver2e20 Global Retailing ©2000 South-Western College Publishing Prerequisites for Going Global Secure Domestic Position Secure Domestic Position Long-Term Perspective ConsistentGlobal and Corporate Strategies ConsistentGlobal and Corporate Strategies

Chapter 11 Ver2e21 ©2000 South-Western College Publishing Market Size & Economics Infrastructure & Distribution Competition Operations Financial & Tax Reporting Merchandise Acceptability Partnering Capability Factors Used to Analyze Global Retail Markets Global Retailing

Chapter 11 Ver2e22 Trends in Retailing ©2000 South-Western College Publishing Trends in Retailing Entertainment Convenience and Efficiency Customer Management

Chapter 11 Ver2e23 ©2000 South-Western College Publishing Clienteling Loyalty Programs Customer Relationship Marketing Emerging Customer Management Strategies Customer Management