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2. Retailing 1-2 LEARNING OBJECTIVES (LO) After reading Chapter 16, you should be able to : LO2 LO1 LO3 Identify retailers in terms of the utilities they provide. Explain the alternative ways to classify retail outlets. Describe the many methods of nonstore retailing.

3. Retailing 1-3 LEARNING OBJECTIVES (LO) After reading Chapter 16, you should be able to : LO5 LO4 Classify retailers in terms of the retail positioning matrix, and specify retailing mix actions. Explain changes in retailing with the wheel of retailing and the retail life cycle concepts.

4. Robinson’s Retailing in Action Opening Story – Robinson’s 1-4

5. 1-5 Retailers Provide Utilities LO1 The Value of Retailing Retailers provide Utility  Retailing Retailing  Consumer Utilities Offered by Retailing Place Possession Form Time

6. 1-6 FIGURE 16-1 FIGURE 16-1 Which retailer best provides which utilities? Retailers Provide Utilities LO1

7. 1-7 Retailers Provide Utilities LO1 FIGURE 16-2 FIGURE 16-2 Retail sales (US$ million) in the Asia Pacific, by type of retailer

8. 1-8 Retailers Provide Utilities LO1 The Value of Retailing Retailers provide Utility  The Global Economic Impact of Retailing

9. 1-9 Classifications of Retail Outlets LO2 Classifying Retail Outlets Forms of Ownership  Independent Retailer  Form of Ownership Form of Ownership  Corporate Chain 1. Wholesaler-Sponsored Voluntary Chains  Contractual Systems 2. Retailer-Sponsored Cooperatives

10. 1-10 Classifications of Retail Outlets LO2 Classifying Retail Outlets Forms of Ownership 3. Franchising  Contractual Systems  Business-Format Franchises  Product-Distribution Franchises

11. 1-11 Classifications of Retail Outlets LO2 FIGURE 16-3 FIGURE 16-3 The top five global franchises

12. 1-12 Classifications of Retail Outlets LO2 Classifying Retail Outlets Levels of Service  Self-Service  Limited Service  Full-Service

13. 1-13 Classifications of Retail Outlets LO2 Classifying Retail Outlets Merchandise Line  Depth of Product Line Depth of Product Line Specialty Outlets Category Killers

14. 1-14 Classifications of Retail Outlets LO2 FIGURE 16-4 FIGURE 16-4 Stores vary in terms of the breadth and depth of their merchandise lines

15. 1-15 Classifications of Retail Outlets LO2 Classifying Retail Outlets Merchandise Line  Breadth of Product Line Breadth of Product Line General Merchandise Stores Scrambled Merchandising  Hypermarket Hypermarket  Intertype Competition Intertype Competition  Supercenter

16. 1-16 Classifications of Retail Outlets LO2 FIGURE 16-5 FIGURE 16-5 Forms of nonstore retailing

17. 1-17 Methods of Nonstore Retailing LO3 Nonstore Retailing Retailing outside of stores  Automatic Vending  Direct Mail and Catalogs

18. 1-18 Methods of Nonstore Retailing LO3 Nonstore Retailing Retailing outside of stores  Television Home Shopping  Online Retailing

19. 1-19 Methods of Nonstore Retailing LO3 Nonstore Retailing Online Shopping

20. 1-20 Methods of Nonstore Retailing LO3 Nonstore Retailing Retailing outside of stores  Telemarketing Telemarketing  Direct Selling Do-Not-Call Registry

21. 1-21 Methods of Nonstore Retailing LO3 FIGURE 16-7 FIGURE 16-7 Direct sales data of selected Asian countries

22. 1-22 The Retail Positioning Matrix & Retailing Mix Actions LO4 FIGURE 16-7 FIGURE 16-7 Elements of a retailing strategy

23. 1-23 The Retail Positioning Matrix & Retailing Mix Actions LO4 Retailing Strategy Positioning a Retail Store  Retail Positioning Matrix Retail Positioning Matrix Breadth of Product Line Value Added  Keys to positioning Keys to positioning

24. 1-24 The Retail Positioning Matrix & Retailing Mix Actions LO4 FIGURE 16-8 FIGURE 16-8 The four positioning strategies for retailers

25. 1-25 The Retail Positioning Matrix & Retailing Mix Actions LO4 Retailing Strategy The Retailing Mix  Retailing Mix Retailing Mix Original Markup Maintained Markup  Retail Pricing Gross Margin

26. 1-26 The Retail Positioning Matrix & Retailing Mix Actions LO4 Retailing Strategy The Retailing Mix  Everyday Low Pricing (EDLP)  Everyday Fair Pricing  Benchmark or Signpost Items  Markdown

27. 1-27 The Retail Positioning Matrix & Retailing Mix Actions LO4 Retailing Strategy The Retailing Mix  Off-Price Retailing Off-Price Retailing Warehouse Club Outlet Store Single/One-Price Policy Store

28. 1-28 The Retail Positioning Matrix & Retailing Mix Actions LO4 Retailing Strategy The Retailing Mix  Store Location Regional Shopping Centers Central Business District  Anchor Stores Strip Location Community Shopping Center Power Center

29. 1-29 The Retail Positioning Matrix & Retailing Mix Actions LO4 SM, Mall of Asia What Retailing Mix did they use?

30. 1-30 The Retail Positioning Matrix & Retailing Mix Actions LO4 Retailing Strategy The Retailing Mix  Retail Communication Atmosphere or Ambiance Image  Merchandise Category Management Metrics  Consumer Marketing at Retail (CMAR)

31. 1-31 The Retail Positioning Matrix & Retailing Mix Actions LO4 Marketing Dashboards Apple Stores: The Best in the US? Sales per Square Foot ($) and Same Store Growth (%)

32. 1-32 The Wheel of Retailing & the Retail Life Cycle LO5 The Changing Nature of Retailing The Wheel of Retailing & Retail Life Cycle  Wheel of Retailing Wheel of Retailing  Retail Life Cycle Retail Life Cycle

33. 1-33 The Wheel of Retailing & the Retail Life Cycle LO5 FIGURE 16-9 FIGURE 16-9 The wheel of retailing: How outlets change over time

34. 1-34 The Wheel of Retailing & the Retail Life Cycle LO5 FIGURE 16-10 FIGURE 16-10 The retail life cycle describes the stage of growth and decline for retail outlets

35. 1-35 The Wheel of Retailing & the Retail Life Cycle LO5 The Changing Nature of Retailing The Future of Retailing  Multichannel Retailers Multichannel Retailers  The Impact of Technology  Changing Shopping Behavior