Slide 1What is Retailing?Types of RetailersAmount of ServiceBreadth and Depth of Product LineBreadth and Depth of Product LineBreadth and Depth of Product LineBreadth and Depth of Product LineBreadth and Depth of Product LineBreadth and Depth of Product LineRelative Prices ClassificationRelative Prices ClassificationRelative Prices ClassificationRelative Prices ClassificationOrganizational ClassificationOrganizational ClassificationOrganizational ClassificationRetailer Marketing DecisionsAssortment and Services DecisionsPrice, Promotion, & Place DecisionsThe Future of RetailingRetailing and Wholesaling(Well, actually just retailing)Chapter 11What is Retailing?Textbook definition:Retailing includes all the activities involved in selling products or services directly to final consumers for their personal use.What’s wrong with this definition?Don’t retailers serve business markets also? YesTypes of RetailersRetailers are classified based on:Amount of Service They OfferBreadth & Depth of Product LinesRelative Prices ChargedHow They Are OrganizedAmount of ServiceSelf-Service Retailers:Serve customers who are willing to perform their own “locate-compare-select” process to save money. Ex piggly wigglyLimited-Service Retailers:Provide more sales assistance because they carry more shopping goods about which customers need information. Ex best buyFull-Service Retailers:Usually carry more specialty goods for which customers like to be “waited on.” ex auto dealerships; high end jewelry storesBreadth and Depth of Product LineSpecialty Stores:Carry narrow product lines with deep assortmentswithin those lines.EX: yankee candle; sunglass hutBreadth and Depth of Product LineDepartment Stores:Carry a wide variety of product lines—typically clothing, home furnishings, and household goods.Each line is operated as a separate departmentmanaged by specialist buyers or merchandisers.EX: macy’s; bloomingdalesBreadth and Depth of Product LineSupermarket:Large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of food, laundry, and household products.EX: publix; winn dixieBreadth and Depth of Product LineConvenience Stores:Small stores located near residential areas that are open long hours 7 days a week and carrya limited line of high-turnover convenience goods.EX: weigels; 7 elevenBreadth and Depth of Product LineSuperstores:Much larger than regular supermarkets and offer a large assortment of routinely purchasedfood products, nonfood items, and services.EX: Walmart; tescoBreadth and Depth of Product LineCategory Killers:Giant specialty stores that carry a very deepassortment of a particular line and is staffedby knowledgeable employees.EX: toys r us; StaplesRelative Prices ClassificationDiscount Store:A retail institution that sells standard merchandiseat lower prices by accepting lower margins andselling at higher volume.EX: Dollar general;Relative Prices ClassificationOff-Price Retailer:Retailer that buys at less-than-regular wholesaleprices and sells at less than retail. EX:Relative Prices ClassificationFactory Outlet:Off-price retailing operation that is owned and operated by a manufacturer and that normallycarries the manufacturer’s surplus, discontinued,or irregular goods.EX: Tanger outletsRelative Prices ClassificationWarehouse Club:Off-price retailer that sells a limited selection ofbrand-name grocery items, appliances, clothing,and a hodgepodge of other goods at deep discounts to members who pay annual membership fees.EX: Cosco; Sams clubOrganizational ClassificationChain Stores:Two or more outlets that are owned and controlled,have central buying and merchandising, and sell similar lines of merchandise.Ex: Saks fifth avennue; TargetOrganizational ClassificationVoluntary Chain:A wholesaler-sponsored group of independentretailers that engages in bulk buying and commonmerchandising.EX: IGA;Organizational ClassificationFranchise:A contractual association between a manufacturer, wholesaler, or service organization (a franchiser) and independent businesspeople (franchisees) whobuy the right to own and operate one or moreunits in the franchise system.EX:Retailer Marketing DecisionsRetailer Strategy:Segmentation and targetingStore differentiation and positioningRetail marketing mixRetailers cannot make meaningful decisions related to the retail marketing mix until they first define and profile their target market.Assortment and Services DecisionsProduct Assortment:Brand of mrchandise Merchandising eventsServices Mix:Different numbers and types of services are key to non-price storedifferentiationStore Atmosphere:Physical layout and “feel” of The storePrice, Promotion, & Place DecisionsPrice policy must fit its target market and positioning, product and service assortment, and competitionCan use any or all of the promotion tools—advertising,personal selling, sales promotion, public relations,and direct marketing—to reach consumersRetailers can locate in CBDs (central business districts), various types of shopping centers, strip malls, etc.The Future of Retailing1. New Retail Forms and Shortening Retail Life Cycles2. Growth of nonstore retailing3. Retail Convergence4. Rise of the megaretailers5. Growing Importance of Retail Technology 6. Global expansion of major retailers7. Retail stores as “communities” or