MKTG 311 1st Edition Lecture 23Outline of Last Lecture I. Merchant WholesalersII. Brokers and AgentsIII. Manufacturer Owned Branches and OfficesOutline of Current Lecture I. Classification by Merchandise SelectionII. Retail PricingIII. Store LocationsIV. Retailers: Ways to classify by Organizational Approach (owned)V. Second way to Classify Retailers: Level of ServiceCurrent LectureI. Classification by Merchandise Selection3rd way retailers can be classified: Merchandise Selection (Product)- Merchandise Breadth: Variety or number of product lines carried by the retailer.- Narrow Assortment: Limited number of product lines- Brand Assortment: Wide range of product lines- Merchandise Depth: Concerns the selection within the product line.- Shallow: Limited selection within the product line - Deep: Great deal of selection within the product lineThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Merchandise BreadthNarrow BroadShallow Cart Kiosk Convenience StoreDeep Specialty Stores. Example: Candle StoreDepartment Stores (Macy’s)Supermarkets/ Super StoresCategory Killers- Giant Specialty Stores (Example: Home Depot and Best Buy) – Own the industry they compete in.Hypermarket Store- Combo of supermarket and a warehouse. Carrefour (China, France, and Spain)Merchandise DepthII. Retail Pricing3 Basic choices for pricing: Retailer1. Premium Price2. Regular Price- Everyday low pricingEmphasize consistently low prices, try to eliminate mark downs. Example:Walmart- Everyday fair pricing (Target)May not offer the lowest price, but they create value through service and buying experience3. Bargain Discount Pricing: This type of retailer offers many brand name good at a significant discount- Single price (dollar store) or extreme value (Marshall’s) retailers- Factory outlet stores; Williamsburg Outlets- Warehouse Clubs: Sam’s ClubIII. Store Locations4 Retail Locations4. Central Business District, heart of the downtown. – parking crime and shoppers5. Shopping Center: Ranges from small outside shopping center (Food Lion and few smaller) 1 anchor store. Example: regional mall. New form- lifestyle center: combines the feel of a neighborhood park with convenience of outside shopping center. Example: Peninsula Town Center, City Center, Town Center6. Power Center: Retailers located by themselves, needs to be a destination. Example: Walmart, Best Buy and Barnes and Nobles7. Non-traditional Location: Kiosks and carts. Store within a store concept. Example: Harris Teeter and StarbucksIV. Retailers: Ways to classify by Organizational Approach (owned)8. Independent Retailer- Owned by and individual (mom and pop shops) presents the majority (1.1 million)9. Corporate chain store- 2 or more outlets that are commonly owned and controlled. Example: grocery stores (food lion, Harris Teeter), department stores (JC Penny’s, Macy’s)10. Contractual System- Independent stores that band together and act like a chain. Franchises are an example of this.- Business Format Franchise: Franchiser provides step by step procedures for most aspects of the business. Example: Fast Food Franchises.- Product Distribution Franchise: Provide a few general guidelines, the franchise is more independent. Example: Car dealership.11. Merchandising Conglomerate: Combines several different retail lines under one owner. Example: Limited brands, Victoria SecretV. Second way to Classify Retailers: Level of Service1. Self-Service: Customer makes purchase decisions on their own without assistance, may bring own containers and bags, may even check out of the retailer. Example: Warehouse clubs, grocery stores, gas stations, Red Box (Trend)2. Limited-Service: Falls between self-service and full service. Example: JC Penny’s and Walmart- Customer associates assist in certain departments3. Full Service: This type of retailer offers supporting services and trained customer sales associates (offer personalized and specialized service) Example: High end department stores like Nordstrom and specialty