The document discusses key concepts in retailing. It begins by outlining seven learning objectives, which are then each explained in their own section. The objectives cover the importance of retailing, ways to classify retailers, major retail operations, non-store retailing techniques, franchising, developing a retail marketing strategy, and new developments. For each objective, there are definitions and examples provided to illustrate the concepts. Major topics that are explored include classifying retailers based on ownership, service level, assortment, and price. Common retail operations like department stores, supermarkets, and discount stores are defined. Non-store options like direct marketing and electronic retailing are also outlined.
2. Learning Objectives
1. Discuss the importance of retailing in the
economy
2. Explain the dimensions by which retailers
can be classified
3. Describe the major types of retail operations
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3. Learning Objectives (continued)
4. Discuss nonstore retailing techniques
5. Define franchising and describe its
two basic forms
6. List the major tasks involved in developing
a retail marketing strategy
7. Describe new developments in retailing
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5. Retailing
Retailing
All the activities directly related to
the sale of goods and services to
the ultimate consumer for
personal, non-business use.
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6. The Role of Retailing
Retailers account for 11.7 percent of U.S.
employment
Retailing accounts for 13 percent of U.S.
businesses
Retailers ring nearly 40 percent of the
U.S. GDP
Industry is dominated by a
few giant organizations,
such as Wal-Mart
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9. Classification of Retail Operations
Ownership
Ownership
Level of Service
Level of Service
Product Assortment
Product Assortment
Price
Price
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11. Level of Service
Self Service
Full Service
Factory outlets
Discount stores
Warehouse clubs
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Exclusive stores
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12. Types of Stores and Their
Characteristics
Type of Retailer
Type of Retailer
Service
Service
Level
Level
AssortAssortment
ment
Price
Price
Gross
Gross
Margin
Margin
Department Store
Department Store
Specialty Store
Specialty Store
Broad
Broad
Narrow
Narrow
Mod-High
Mod-High
Mod-High
Mod-High
Mod High
Mod High
High
High
Supermarket
Supermarket
Low
Low
Broad
Broad
Moderate
Moderate
Low
Low
Convenience Store
Convenience Store
Low
Low
Med-Narrow
Mod High
Med-Narrow High
Mod
Mod High
Mod High
Drugstore
Drugstore
Low-Mod
Low-Mod
Medium
Medium
Low
Low
Full-line Discounter
Full-line Discounter
Mod-Low
Mod-Low
Med-Broad Mod Low
Med-Broad Mod Low
Specialty Discounter
Specialty Discounter
Mod-Low
Mod-Low
Med-Broad Mod Lo-low Mod Low
Med-Broad Mod Lo-low Mod Low
Warehouse Clubs
Warehouse Clubs
Low
Low
Broad
Broad
Off-price Retailer
Off-price Retailer
Low
Low
Med-Narrow Low
Med-Narrow Low
Low
Low
Restaurant
Restaurant
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Mod Hi-High
Mod Hi-High
High
High
Low-High
Low-High
Med-Narrow Low-High
Med-Narrow Low-High
Low-High
Low-High
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Moderate
Moderate
Low-lower
Low-lower
Mod Low
Mod Low
Low
Low
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13. Gross Margin
Gross Margin
The amount of money the retailer
makes as a percentage of sales
after the cost of goods sold is
subtracted.
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17. Mass Merchandising
Mass Merchandising
Retailing strategy using moderate
to low prices on large quantities of
merchandise and lower service to
stimulate high turnover of
products.
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18. Supercenters and Extreme Value
Retailing
Supercenter
Supercenter
Retail store combining groceries
Retail store combining groceries
and general merchandise goods
and general merchandise goods
with a wide range of services.
with a wide range of services.
Extreme-value Smaller stores with a narrower
Extreme-value Smaller stores with a narrower
product selection emphasizing daily
product selection emphasizing daily
necessities at rock bottom prices.
necessities at rock bottom prices.
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22. Types of Direct Marketing
Direct Mail
Direct Mail
Catalogs & Mail Order
Catalogs & Mail Order
Telemarketing
Telemarketing
Electronic Retailing
Electronic Retailing
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25. Basic Forms of Franchising
Product and Trade Name
Product and Trade Name
Franchising
Franchising
Business Format
Business Format
Franchising
Franchising
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26. Largest U.S. Franchisers
1 McDonald’s
2 Southland (7-Eleven)
7 Tandy (Radio Shack)
3 Subway
8 Jani-King
4 Burger King
9 Taco Bell
5 KFC
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6 Pizza Hut
10 Dairy Queen
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27. Basic Forms of Franchising
Product and
Product and
Trade Name
Trade Name
Franchising
Franchising
Business
Business
Format
Format
Franchising
Franchising
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Dealer agrees to sell certain
Dealer agrees to sell certain
products provided by a
products provided by a
manufacturer or wholesaler.
manufacturer or wholesaler.
An ongoing business relationship
An ongoing business relationship
between a franchiser
between a franchiser
and a franchisee.
and a franchisee.
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33. Product Offering
Product Offering
The mix of products offered to the
consumer by the retailer; also
called the product assortment or
merchandise mix.
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35. Factors to Consider in Site Selection
Economic growth
Economic growth
potential
potential
Area competition
Area competition
Geography
Geography
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39. Presentation of the Retail Store
Employee type and density
Employee type and density
Merchandise type and density
Merchandise type and density
Fixture type and density
Fixture type and density
Sound
Sound
Odors
Odors
Visual factors
Visual factors
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40. Personnel and Customer Service
Trading Up
Trading Up
Two Common
Two Common
Selling
Selling
Techniques
Techniques
Suggestion Selling
Suggestion Selling
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41. Customer Service for On-Line Retailers
Easy-to-use Web site
Easy-to-use Web site
Product availability
Product availability
Simple returns
Simple returns
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