1. Key Concepts

2.  Over 1 million U.S. retailers employ more than 15 million people  Retailers account for 11.6 percent of U.S. employment  Retailing accounts for 13 percent of U.S. businesses  Retailers ring up almost $4 trillion in sales — nearly 40 percent of the U.S. GDP  Industry is dominated by a few giant organizations, such as Wal-Mart

3. 11.6% 13% 40% Retailing as a % of U.S. employment Retailing as a % of U.S. businesses Retailing as a % of GDP

4. Independent Retailers Independent Retailers Chain Stores Franchises Owned by a single person or partnership and not part of a larger retail institution Owned and operated as a group by a single organization The right to operate a business or sell a product The right to operate a business or sell a product

5. Full Service Self Service Discount storesExclusive storesFactory outlets Warehouse clubs

6. LO 2 AssortmentPrice Gross Margin Broad Narrow Broad Med-Narrow Medium Med-Broad Broad Med-Narrow Narrow Mod-High Moderate Mod High Moderate Mod Low Mod Lo-low Low-very low Low Low-High Mod High High Low Mod High Low Mod Low Low Low-High Type of Retailer Specialty Store Supermarket Convenience Store Drugstore Full-line Discounter Specialty Discounter Warehouse Clubs Off-price Retailer Restaurant ServiceLevel Mod Hi-High High Low Low-Mod Mod-Low Low Low-High Department Store

7. The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted. Gross Margin Gross Margin

8. Department Stores Specialty Stores Supermarkets Drugstores Convenience Stores Discount Stores Restaurants

9. Full-Line Discounters Specialty Discount Stores Warehouse Clubs Off-Price Discount Retailers

10. Mass Merchandising Retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products.

11. Supercenter Retail store combining groceries and general merchandise goods with a wide range of services. Full-line discounters Retailer that offers consumers very limited service and carries a broad assortment of well- known, nationally branded “hard goods”.

12. Category Killers Specialty discount stores that heavily dominate their narrow merchandise segment.

13. Automatic Vending Direct Retailing Direct Marketing Electronic Retailing

14. Door-to-Door Avon, Mary Kay Door-to-Door Avon, Mary Kay Office-to-Office Home Sales Parties Tupperware Home Sales Parties Tupperware

15. Telemarketing Catalogs & Mail Order Direct Mail Electronic Retailing Online 24/7 Electronic Retailing Online 24/7 Shop-at-home networks On-line retailing

16. Business Format Franchising Product and Trade Name Franchising Product and Trade Name Franchising

17. LO 5 Product and Trade Name Franchising Dealer agrees to sell products provided by a manufacturer or wholesaler. Business Format Franchising Business Format Franchising An ongoing business relationship between a franchiser and a franchisee.

18. McDonald’s Southland Subway Burger King KFC Pizza Hut RadioShack Taco Bell Dairy Queen Hooter’s Jason’s Deli Marble Slab Quiznos Sub

19. Develop the “Six Ps” Define & Select a Target Market

20. STEP 1: Segment the Market STEP 1: Segment the Market Demographics Geographics Psychographics

21. STEP 2: Choose the Retailing Mix STEP 2: Choose the Retailing Mix Product Price Promotion Place Personnel Presentation

22. Target Market Product Price Place Promotion Personnel Presentation

23. LO 6 Product Offering Product Offering The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix.

24. Advertising Public Relations Publicity Sales Promotion

25. Economic growth potential Competition Geography Choosing a Community Choosing a Site Freestanding Store Shopping Center Mall

26.  Neighborhood socioeconomics  Traffic flows  Land costs  Zoning regulations  Public transportation  Site’s visibility, parking, entrances and exits, accessibility, and safety  Fit with other stores

27.  Design attracts shoppers  Activities and anchor stores draw customers  Ample parking  Unified image  Sharing of common area expenses  Expensive leases  Failure of common promotion efforts  Lease restrictions  Hours of operation  Anchor store domination  Direct competitors  Consumer time limits AdvantagesDisadvantages

28. Quality Image High Price Low Price Good Value Single Price Point EDLP

29. LO 6 Atmosphere The overall impression conveyed by a store’s physical layout, décor, and surroundings

30. Employee type and density Merchandise type and density Fixture type and density Sound Odors Visual factors

31. Suggestion Selling Trading Up Two Common Retail Selling Techniques

32. Easy-to-use Web site Product availability Simple returns

33. New Developments in Retailing Interactivity Consumers are involved in the retail experience. Consumers are involved in the retail experience. M-commerce Purchasing goods through mobile devices.