Chapter 15 - Retailing (page ) Goals of Retailing: ____________ cost of selling; make profit Offer ______________ Respond to _______________ How do retailers achieve these goals?

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

Retailer Marketing Decisions Target Market: well-defined Product Assortment and Procurement: product assortment matches target market’s shopping expectations – differentiate from _____________, carry merchandise that no other competitor carries Target Stores: “upscale discount segment” – female, age 40, college-educated, 50K household income

Retailer Marketing Decisions Services and Store Atmosphere Services mix: telephone and mail orders; fitting rooms; gift wrapping Atmosphere: physical layout; look

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

Retailer Marketing Decisions Price Decision Most retailers seek: 1. High mark-up and low volume: 2. Low mark-up and high volume:

Trends in Retailing 1.New retail forms and combinations continually emerge Traditional mallspower centers and on-line shopping Factory outlet mallsupscale, smaller discounts, but more brands

Trends in Retailing 2.Intertype competition: ___________ types of retailers compete for ____ customers by offering same merchandise EX: CD purchase

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 (McDonald’s)

Trends in Retailing 6.Selling an experience: offer fun and community, invite people to congregate

Trends in Retailing 7.Competition between store-based and non-store- based retailing