chapter 16 - retailing

Retailing 16Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Objectives• Define retailing; understand how retailing Define retailing; understand how retailing

evolves and some ethical issues in retailingevolves and some ethical issues in retailing

• Understand how we classify retailersUnderstand how we classify retailers

• Describe the more common forms of nonstore Describe the more common forms of nonstore retailing including B2C e-commerceretailing including B2C e-commerce

• Understand the importance of store image to a Understand the importance of store image to a retail positioning strategy and explain how a retail positioning strategy and explain how a retailer can create a desirable image in the retailer can create a desirable image in the marketplacemarketplace

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The final stop in the distribution channel in which organizations The final stop in the distribution channel in which organizations sell goods and services to consumers for their personal usesell goods and services to consumers for their personal use

Wheel of retailing

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Figure 16.1Figure 16.1The Wheel of RetailingThe Wheel of Retailing

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Retail life cycle

INTRODUCTION

Aggressive entrepreneurs

Pop up retailers

GROWTH

Sales grow

New competitors

Stores expand offerings

MATURITY

Multiple competitors

Profits decline

New products offered

DECLINE

Offerings become obsolete

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The economy

Demographics

Technology

Globalization

Demographics

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Technology

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Technology is revolutionizing retailing – particularly in terms of how consumers shop. The Internet not only offers marketers a new selling venue, it has become a primary source of information for shoppers.

GlobalizationCopyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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Self-Service Limited-Service

Full-Service

Classify Retailersby Service Level

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STORES NON-STORE

Retail types

Convenience

Supermarkets

Specialty

Discount

Off-price

Warehouse clubs

Factory outlets

Department

Hypermarkets

Classify Retailers

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NARROW BROAD

SHA

LLO

WD

EEPM

erch

andi

se D

epth

Merchandise Breadth

Convenience stores (airport gift shop)

Warehouse club (Sam’s, Costco)

Specialty stores (Legendaryheroes.com)

Super retailers (Amazon.com)

by Merchandise selection

Table 16.1Table 16.1Major Types of RetailersMajor Types of Retailers

Table 16.1Table 16.1Major Types of Retailers, Cont.Major Types of Retailers, Cont.

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Store Types

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Convenience Convenience Store

Convenience StoresConvenience Stores

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STORES NON-STORE

Retail types

Convenience

Supermarkets

Specialty

Discount

Off-price

Warehouse clubs

Factory outlets

Department

Hypermarkets

Direct selling

Door to door

Party selling

Vending machines

Auctions/eBay

Garage sales, Craigslist.com

Online retailers

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Non-Store

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B2C E-commerce

Virtual channels are unlikely to replace traditional Virtual channels are unlikely to replace traditional onesones

Stores must continue to evolve to lure shoppers Stores must continue to evolve to lure shoppers away from computersaway from computers

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E-commerce

Benefits to the firm allows consumers and marketers to easily find and make exchanges in a global marketplace

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E-commerce

Limitations to the firm Site maintenance costs can be highe-commerce can be hard to implementmay cannibalize in-store sales

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Benefits to the Consumer

What do you like best about online shopping?

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Limitations for the Consumer

delays in in delivery, fraud risks, the inability to feel the goods or check sizing

Have you ever had any problems with online shopping?

Table 16.2Table 16.2Benefits and Limitations of Benefits and Limitations of

E-CommerceE-Commerce

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Store Image how the target market perceives the store—its market position relative to the competition

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LUXU

RYTHRIFTY

TRADITIONAL

FASHION FORWARD

Macy’s

Sears

Saks Fifth Ave.

Lord & Taylor

Bergdorf Goodman

Bloomingdales

Barney’s

Henri Bendel

Store image mapping

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STORE DESIGN

Image elements

Atmospherics

Music, color, lighting

Traffic flow

Visual merchandising

PRICING

STORE PERSONNEL

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Atmospherics The use of materials, furnishings, and other design elements can create a desired store image

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Lighting, color, music

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Store Layout

The arrangement of merchandise in the store, and how shelves, racks, tables, and cash registers are placed. The arrangement of each element is critical for directing the traffic flow, or how shoppers move through the retail environment.

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Store Layout

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Visual Merchandising

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Pricing and store image

Pricing policyPricing policy- Price points are price ranges - - Price points are price ranges - of a storeof a store’’s merchandise s merchandise - Price points play a role in - Price points play a role in establishing its imageestablishing its image

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallStore Location

Business districts Business districts Shopping centersShopping centersFreestanding Freestanding retailersretailersNontraditional store Nontraditional store locationslocations

Figure 16.7Figure 16.7Business DistrictsBusiness Districts

Figure 16.7Figure 16.7Shopping CentersShopping Centers

Figure 16.7Figure 16.7Freestanding StoresFreestanding Stores

Figure 16.7Figure 16.7Nontraditional Store LocationsNontraditional Store Locations

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