1. Principles of Marketing - UNBSJ
BA 2303
Principles of Marketing - UNBSJ
Retailing
Instructor – Terry Conrod

2. Learning Objectives BA 2303
Explain the alternative ways to classify retail outlets.
Describe the many methods of non-store retailing.
Classify retailers in terms of the retail positioning matrix.
Develop retailing mix strategies over the life cycle of a retail store.
Identify the challenges Canadian retailers face as they pursue sustainable growth.

3. THE VALUE AND SCOPE OF RETAILING
BA 2303
THE VALUE AND SCOPE OF RETAILING
Classifying Retail Outlets
Form of ownership
Level of service
Merchandise line 3

4. THE VALUE OF RETAILING Form of Ownership BA 2303 Independent Retailer
Corporate Chain
Contractual System 4

5. The top five franchises in North America
BA 2303
The top five franchises in North America 5

6. THE VALUE OF RETAILING Level of Service BA 2303 Self-Service
Limited Service
Full-Service 6

7. THE VALUE OF RETAILING Merchandise Line BA 2303 Depth of Line
Breadth of Line
Scrambled merchandising
Hypermarket
Intertype competition 7

8. Breadth versus depth of merchandise lines
BA 2303
Breadth versus depth of merchandise lines 8

9. BA 2303
Concept Check
Centralized decision making and purchasing are an advantage of __________________ ownership.
corporate chain 9

10. What are some examples of new forms of self-service retailers?
BA 2303
Concept Check
What are some examples of new forms of self-service retailers?
Answer:
Some new forms of self-service retailers include airlines’ use of self-service kiosks to check in and print boarding passes. Home building supply operations also use this approach. 10

11. BA 2303
Concept Check
Would a shop for big men’s clothes carrying pants in sizes 40 to 60 have a broad or deep product line?
Answer:
A shop for big men's clothes would have a deep product line because they carry a considerable assortment (or depth) of a related line of items. 11

12. Forms of non-store retailing
BA 2303
Forms of non-store retailing 12

13. NON-STORE RETAILING BA 2303 Automatic Vending
Direct Mail and Catalogues
Television Home Shopping
Online Retailing
Telemarketing
Direct Selling 13

14. Concept Check specialty
BA 2303
Concept Check
Successful catalogue retailers often send ________ catalogues to _____ markets identified in their databases.
specialty
niche 14

15. BA 2303
Concept Check
How are retailers increasing consumer interest and involvement in online retailing?
Answer:
Retailers are increasing consumer interest and involvement in online retailing in several ways. Consumers can: (1) Pay dues to become a member of an online discount service, (2) Use a shopping "bot", (3) Go directly to online malls or online shopping directories, or (4) Go to a specific online retailer's individual site 15

16. Where are direct selling retail sales growing? Why?
BA 2303
Concept Check
Where are direct selling retail sales growing? Why?
Answer:
Direct selling retail sales is growing in countries outside North America. It will continue to grow in markets where door-to-door convenience is important and personalized service is needed. 16

17. RETAILING STRATEGY Positioning a Retail Store BA 2303
Retail Positioning Matrix
Keys to Positioning 17

18. Retail positioning matrix
BA 2303
Retail positioning matrix 18
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.

19. Elements of a retailing strategy
BA 2303
Elements of a retailing strategy 19

20. RETAILING STRATEGY Retailing Mix BA 2303 Retail Pricing Store Location
Shrinkage
Off-price retailing
Store Location
Central business district
Regional shopping centres
Community shopping centre
Strip location
Power centre 20

21. RETAILING STRATEGY Retailing Mix (cont.) BA 2303 Retail Communication
Merchandise
Category management 21

22. What are the two dimensions of the retail positioning matrix?
BA 2303
Concept Check
What are the two dimensions of the retail positioning matrix?
Answer:
The two dimensions of the retail positioning matrix are: (1) breadth of product line and (2) value added 22

23. How does original markup differ from maintained markup?
BA 2303
Concept Check
How does original markup differ from maintained markup?
Answer:
Original markup is the difference between retailer cost and initial selling price. Maintained markup is the difference between the final selling price and retailer cost; also called gross margin. 23

24. A huge shopping strip with multiple anchor stores is a ______ centre.
BA 2303
Concept Check
A huge shopping strip with multiple anchor stores is a ______ centre.
power 24

25. © 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
BA 2303
The Wheel of Retailing 25
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.

26. © 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
BA 2303
The retail life cycle 26
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.

27. CHALLENGES CANADIAN RETAILERS FACE AS THEY PURSUE SUSTAINABLE GROWTH
BA 2303
CHALLENGES CANADIAN RETAILERS FACE AS THEY PURSUE SUSTAINABLE GROWTH
Use of Integrated Multichannel Retailing
Embracing Technology and Using it Wisely
Better Understanding of the Complex Canadian Shopper
Demonstrating Corporate Social Responsibility and Going Green
Providing a Satisfying Customer Experience
Effective Use of Human Capital 27

28. Usually, such firms enter as low-status, low-margin operations.
BA 2303
Concept Check
According to the wheel of retailing, when a new retail form appears, how would you characterize its image?
Answer:
Usually, such firms enter as low-status, low-margin operations. 28

29. BA 2303
Concept Check
Market share is usually fought out before the ________ stage of the retail life cycle.
maturity 29

30. Concept Check What is a smart card? Answer:
BA 2303
Concept Check
What is a smart card?
Answer:
Smart cards look like credit cards but store information on computer chips instead of magnetic strips. 30

31. BA 2303
Retailing
All activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use.

32. BA 2303
Form of Ownership
Distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems own the outlet.

33. BA 2303
Level of Service
The degree of service provided to the customer by self-, limited-, and full-service retailers.

34. BA 2303
Merchandise Line
How many different lines a merchant carries and in what assortment.

35. BA 2303
Depth of Product Line
The store carries a large assortment of each item.

36. Breadth of Product Line
BA 2303
Breadth of Product Line
The variety of different items a store carries.

37. Scrambled Merchandising
BA 2303
Scrambled Merchandising
Offering several unrelated product lines in a single retail store.

38. BA 2303
Hypermarket
A large store (over 200,000 sq. ft.) offering a mix of 40% food products and 60% general merchandise.

39. Intertype Competition
BA 2303
Intertype Competition
Competition between very dissimilar types of retail competitors.

40. BA 2303
Telemarketing
Using the telephone to interact with and sell directly to customers.

41. Retail Positioning Matrix
BA 2303
Retail Positioning Matrix
Positions retail outlets on two dimensions: breadth of product line and value added.

42. BA 2303
Retailing Mix
In retailing strategy, the (1) goods and services, (2) physical distribution, and (3) communications tactics chose by a store.

43. BA 2303
Shrinkage
Breakage and theft of merchandise by customers and employees.

44. BA 2303
Off-Price Retailing
Selling brand-name merchandise at lower than regular prices.

45. Central Business District
BA 2303
BA 2303
Central Business District
The oldest retail setting, the community’s downtown area.

46. Regional Shopping Centres
BA 2303
Regional Shopping Centres
Consists of 50 to 150 stores that typically attract customers who live within a 5- to 10- mile range, often containing two or three anchor stores.

47. Community Shopping Centre
BA 2303
Community Shopping Centre
A retail location that typically has one primary store (usually a department store branch) and 20 to 40 smaller outlets, serving a population of consumers who are within a 10- to 20- minute drive.

48. BA 2303
Strip Location
A cluster of stores serving people who live within a 5- to 10- minute drive.

49. BA 2303
Power Centre
A huge shopping strip with multiple anchor (or national stores), a convenient location, and a supermarket.

50. BA 2303
Retail Life Cycle
The process of growth and decline that retail outlets, like products, experience.

51. BA 2303
Wheel of Retailing
A concept that describes how new retail outlets enter the market as low-status, low-margin stores, and gradually add embellishments that raise their prices, and status. They now face a new low-status, low- margin operator and the cycle starts to repeat itself.

52. BA 2303
Category Management
An approach that assigns a manager with the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category.

53. BA 2303
Lifestyle Centre
An open-air cluster of specialty retailers, along with theatres, restaurants, fountains, play areas, and green spaces.

54. Integrated Multichannel Retailing
BA 2303
Integrated Multichannel Retailing
Utilizing a seamless combination of traditional store formats and nonstore formats, such as catalogues, television, electronic kiosks, and online retailing.