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Published byHope Dixon Modified over 9 years ago
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Chapter 4
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To Show Retail Classifications To Study Retail Ownership Type To Explore Influences in the Channel of Distribution
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II. Store-Based Retail Strategy Mix III. Service vs. Goods Retail Strategy Mix IV. Nonstore-Based Retail Strategy Mix and Nontraditional Retailing I. Ownership
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I. Ownership Independent Chain Franchise Lease Department Vertical Marketing System Consumer Cooperative
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Flexibility Investment Costs Down Specialists Strong Control Image Consistency Independence Entrepreneurial Drive
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Lack of Power No Economies of Scale Labor Intensive Limited Access to Advertising Over-dependence on Owner Limited Resources for Long-run Planning
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Bargaining Power Cost Efficiencies Operating Efficiencies Technical Abilities Advertising Availability Defined Management Philosophies
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Time and Resources Spent on Long-run Planning Limited Flexibility Investments High Managerial Control Difficult Limited Independence for Personnel
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Product/Trademark Business Format
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Manufacturer-Retailer Service Sponsor-Retailer Wholesaler-Retailer Cooperative Voluntary
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Small Capital Investment Brand Awareness Operation Procedures and Management Skills Cooperative Marketing Exclusive Selling Rights Purchasing Costs
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Oversaturation Franchisor Overselling Contract Provisions Cancellation Clauses Short Duration Gross Sales Based Royalties
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National or Global Presence Ownership Qualifications Set Money Obtained on Delivery Stringent Rules for Franchisees Franchisee Work Incentive Royalties Continue
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Damaged Reputation Loss of Customer Loyalty Intra-franchise Competition Reduced Resale Value Injured Profitability Franchisee Desire for Independence
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Fills Merchandise and Expertise Gaps Enlarged Market Reduces Store Costs Lessee Assumes Administration Rol Percent of Revenues
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Conflicts in Operating Procedures Damaged Image Customer Blame
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Well Know Store Reduced Costs Economies of Scale
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Inflexibility in Hours Product Line Restrictions Raised Rent Sales Expectations Not Met
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FOOD-ORIENTED RETAILERS Convenience Store Conventional Supermarket Food-Based Superstore Combined Store Box (limited-line) Store Warehouse Store II. Store-Based Retail Strategy Mix
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GENERAL MERCHANDISE RETAILERS Specialty Store Variety Store Traditional Department Store Full-Line Discount Store Off-Price Chain Factory Outlet Membership Club Flea Market II. Store-Based Retail Strategy Mix
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III. Service vs. Goods Retail Strategy Mix Rented Goods Owned Goods Nongoods
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Direct Marketing Direct Selling Vending Machine World Wide Web Other Emerging Retail Formats IV. Nonstore-Based Retail Strategy Mix and Nontraditional Retailing
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Manufacturer Independent Manufacturer Ownership Wholesaler Independent Wholesaler Ownership Retailer Independent Retailer Ownership
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Manufacturer Wholesaler Retailer Two Channel Members Own All Facilities and Perform All Functions
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Manufacturer Wholesaler Retailer All Production and Distribution Functions are Performed By One Channel Member
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Owned by Consumers Most Popular in Grocery Retailing
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Ways Retail Institutes Can Be Classified Retail Ownership Types and Characteristics of Each Exertion of Influence in the Channel of Distribution –By Manufacturers –By Wholesalers –By Retailers
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