ch11: retailing

Nonstore Retailing

- Online Retailing - Catalog Marketing - Shop-at-home Television Networks - Automated Vending - Direct Selling

Being Strategic

- Operationally efficient - Store image - Store atmosphere - Store layout and product display - Merchandise Management

Reilly's law of retail gravitation

1. Isolated Store- freestanding retail outlet located on either a highway or major road 2. Unplanned business district- retail location where two or more stores are situated together or in close proximity 3. Planned shopping center- group of architecturally unique business establishments on a site that is centrally owned or managed.

Impacts on Retailing

B2C and C2C Wheel of Retailing

wheel of retailing

Breaking bulk and providing assortment Communication Facilitating functions Completing transactions

Physical Stores

Buy online- pickup in store Mobile apps

Major Types of retail stores

Discount stores: 1) Full-line discount stores: carry a wide assortment of merchandise across popular categories. Includes supercenter formats. 2) Specialty discount stores: offer a wide selection of merchandise within a single category. Sometimes referred to as Category killers. Supermarkets: Carry a wide and complex line of groceries, meat, dairy, products and baked goods plus a limited array of non food products Warehouse Clubs Outlets that operate in warehouse-like facilities that offer merchandise in bulk quantities, at ultra-low prices, to shoppers who pay an annual fee to join. Convenience Stores: Small, self-service stores that are open long hours and carry a limited number of frequently purchased items. Drugstores: Specialty retailers that concentrate on selling over-the-counter and prescription pharmaceutical products as well as health products, personal grooming items, and general merchandise. Specialty Stores: Store that concentrates on selling one line of goods or services and carries a narrow but deep merchandise assortment Off-Price Retailers: Stores that feature brand-name merchandise bought at less-than-regular wholesale prices and sold at less-than retail prices Department Stores: Merchandise outlets that carry a wide variety of product lines, with each line operated as a separate department and managed by specialist merchandisers and buyers Leased Departments: A section within a retail store that is rented to an outside party Extreme-Value Retailers: Stores that carry an assortment of inexpensive and popularly priced merchandise. Factory Outlets: Manufacturer-owned retail establishments that sell the excess merchandise resulting from closeouts, cancelled orders from other retailers, discontinued goods and irregular items Service Retailers: Retail organization that primarily offer mechanical or human efforts (services), rather than merchandise, to consumers.

Impulse purchases

In-store displays and attractive layouts in preparation for impulse purchases

How Marketers Classify Retailers

Level of Service 1) Self-service: customers perform certain tasks on their own. Typically for retailers selling a large percentage of low-margin products. 2) Full-service: customers are assisted through every step of the process. Higher end products for customers with more disposable income. Ownership and Organization: Major forms of retail organizations: 1) Corporate chains: two or more retail outlets that are commonly owned and controlled 2) Retailer cooperative: group of independent retailers that band together to set up a jointly owned, central wholesale operation that also conducts joint merchandising and promotion 3) Voluntary chain: group of independent retailers, sponsored by wholesalers, who band together for increased buying power 4) Franchising: Franchisees owns various franchise locations with the name, products, services (entire system) provided by the corporate franchise owner Breadth and Depth of Merchandise Assortment: The number of distinct goods or service product lines that a retailer carries and the number of individual items offered within a single product line Merchandise Pricing: Prices that are charged along with the service provided

retailing

all the of the business activities involved in the sales of goods and services to the ultimate consumer for their personal, family or household use

retailer

any organization that sells directly to end-user consumers

B2C

business to consumer

C2C

consumer to consumer

Average dollar amount of a single sale transaction

less than $100 Controlling costs for every transaction Increasing in-store traffic Thinking in terms of "lifetime" value