The Many Faces of Retailing: In-Store, Direct, and Internet

1. 16 The Many Faces of Retailing: In-Store, Direct, and Internet

2. 16 The Many Faces of Retailing: In-Store, Direct and Internet Objectives 1. Explain the role played by retailing in the marketing mix. 2. Outline the decision framework for retailing. 3. Distinguish between limited-line retailers and general-merchandise retailers. 4. Identify and explain each of the six bases for categorizing retailers. 5. Identify the major types of mass merchandisers. 6. Discuss the opportunities and challenges of retailing through the Internet. 7. Contrast the three types of planned shopping centres. 8. Identify new trends in retailing. 16-1

3. 16 The Many Faces of Retailing: In-Store, Direct and Internet Retailing • All the activities involved in selling goods and services to the ultimate consumer. 16-2

4. 16 The Many Faces of Retailing: In-Store, Direct and Internet Wheel of Retailing • Hypothesized process of change in retailing, which suggests that new types of retailers gain a competitive foothold by offering lower prices through the reduction or elimination of their prices gradually rise, so that they then become vulnerable to a new low-price retailer with minimum services -- and the wheel turns. 16-3

5. 16 The Many Faces of Retailing: In-Store, Direct and Internet Chain Store • Group of retail stores that are centrally owned and managed and that handle the same lines of products. 16-4

6. 16 The Many Faces of Retailing: In-Store, Direct, and Internet Figure 16.1 Marketing Strategy in Retailing Identify market segments, select target market Analyze competitors’ strengths and weaknesses Develop a competitive retail marketing mix that fits the target market • Retail Marketing Mix • Goods and services Strategy • Location and Distribution Strategy • Pricing Strategy • Retail Image and Promotional Strategy Target Market 16-5

7. 16 The Many Faces of Retailing: In-Store, Direct, and Internet Retail Marketing Mix • Goods and Services Strategy • Retail Pricing Strategy • Location and Distribution Strategy • Image and Promotional Strategy • The Differentiation Triangle 16-6

8. 16 The Many Faces of Retailing: In-Store, Direct and Internet Location and Distribution Strategy Retail Trade Area Analysis Studies that assess the relative drawing power of alternative locations. Law of Retail Gravitation Principle that delineates the retail trade area of a potential site on the basis of distance between alternative locations and relative populations. 16-7

9. 16 The Many Faces of Retailing: In-Store, Direct and Internet Retail Image • The consumer’s perception of a store and of the shopping experience it provides. 16-8

10. 16 The Many Faces of Retailing: In-Store, Direct and Internet Differentiation Triangle • Differentiation of a retail store from competitors in the same strategic group through price, location, and store atmosphere and service. 16-9

11. 16 The Many Faces of Retailing: In-Store, Direct and Internet Figure 16.2 Differentiation Triangle: Avenues for Differentiation Within Strategic Groups Price Location Store Atmosphere and Service 16-10

12. 16 The Many Faces of Retailing: In-Store, Direct and Internet Figure 16.3 Bases for Classifying Retailers Shopping Effort Expended by Customers Convenience - preference retailers Shopping stores Specialty outlets Services Provided to Customers Self-service Supermarkets, vending machines, warehouse retailers Self-selection Mail-order retailing, discount retailers Limited service Door-to-door, sales, variety stores Full-service Specialty stores, department stores, large-format specialty stores Retailer Classifications Location of Retail Transactions Retail stores Nonstore retailing House-to-house Mail order and telephone Automatic merchandising Internet Margin and Turnover High-margin/low-turnover retailers Jewellery stores Low-margin/low-turnover retailers Not viable Low-margin/high-turnover retailers Discount department stores, discount stores, big box stores High-margin/high-turnover retailers convenience stores Product Lines Limited-line retailer Clothing, furniture Specialty retailer Sporting goods, tanning salon bookstore General-merchandise retailer Department store, discount store, catalogue retailer Form of Ownership Corporate chain stores Independent retailers Association of independents Retail cooperative Voluntary chain Franchise 16-11

13. 16 The Many Faces of Retailing: In-Store, Direct and Internet Limited-Line Store • Retailer that offers a large assortment of a single line of products or a few related lines of products. 16-12

14. 16 The Many Faces of Retailing: In-Store, Direct and Internet Supermarket • Large-scale, departmentalized retail store offering a large variety of food products. 16-13

15. 16 The Many Faces of Retailing: In-Store, Direct and Internet Specialty Store • Retailer that handles only part of a single line of products. 16-14

16. 16 The Many Faces of Retailing: In-Store, Direct and Internet Department Store • Large retailer that handles a variety of merchandise. 16-15

17. 16 The Many Faces of Retailing: In-Store, Direct and Internet Variety Store • Retailer that offers an extensive range and assortment of low-priced merchandise. 16-16

18. 16 The Many Faces of Retailing: In-Store, Direct and Internet Mass Merchandiser • Retailer that concentrates on high turnover of items, emphasizes lower prices than department stores, and offers reduced services. 16-17

19. 16 The Many Faces of Retailing: In-Store, Direct and Internet Discount House • Retailer that, in exchange for reduced price such traditional retail services as credit, sales assistance by clerks, and delivery. 16-18

20. 16 The Many Faces of Retailing: In-Store, Direct and Internet Membership and Warehouse Club • Very large, warehouse-type retail store that offers low prices because of its no-frill format and paid membership requirement. 16-19

21. 16 The Many Faces of Retailing: In-Store, Direct and Internet Large-Format Specialty Store • Large, warehouse-type retail store that specializes in selling a great variety of one category of merchandise at very low prices. 16-20

22. 16 The Many Faces of Retailing: In-Store, Direct and Internet Power Node • Groupings of two or more large-format retailers that result in large customer drawing power. 16-21

23. 16 The Many Faces of Retailing: In-Store, Direct and Internet Hypermarket • Mass merchandiser that operates on a low-price, self-service basis and carries lines of soft goods, hard goods, and groceries. 16-22

24. 16 The Many Faces of Retailing: In-Store, Direct and Internet Off-Price Retailer • Retailer that specializes in selling manufacturers’ excess stocks of brand-name merchandise at a discount. 16-23

25. 16 The Many Faces of Retailing: In-Store, Direct and Internet Recycled Merchandise Retailer • Retailer that sells castoff clothes, furniture, and other products. 16-24

26. 16 The Many Faces of Retailing: In-Store, Direct and Internet Liquidator • Specialty retailer that either comes into a bankrupt store and handles the closeout, or buys the entire lot and sells it in its own stores. 16-25

27. 16 The Many Faces of Retailing: In-Store, Direct and Internet Catalogue Retailer • Retailer that mails catalogues to its customers and operates from a showroom displaying samples of its products. 16-26

28. 16 The Many Faces of Retailing: In-Store, Direct and Internet House-to-House Retailer • Retailer that sells products by direct contact between the retailer-seller and the customer at the home of the customer. 16-27

29. 16 The Many Faces of Retailing: In-Store, Direct and Internet Multilevel Marketing • The development of a network among consumers to sell and deliver from one level of consumers to another using social obligation, personal influence, and motivational techniques. 16-28

30. 16 The Many Faces of Retailing: In-Store, Direct and Internet Mail-Order Merchandiser • Retailer that offers its customers the option of placing merchandise orders by mail, by telephone, or by visiting the mail-order desk of a retail store. 16-29

31. 16 The Many Faces of Retailing: In-Store, Direct and Internet Figure 16.4 Past and Future Modes of Marketing Digital Commerce Location Free Time Bound Time Free Gravitational Commerce Location Bound 16-30

32. 16 The Many Faces of Retailing: In-Store, Direct and Internet E-tailing • Retailing via Internet. 16-31

33. 16 The Many Faces of Retailing: In-Store, Direct and Internet Figure 16.5 Potential Of Products to Be Sold on the Internet Relative Potential Retail Categories Insurance/financial services Computer hardware/software Travel services Books, magazines, music/videos Flowers, gifts, greeting cards Office supplies Cars Sporting goods Consumer electronics/appliances Food and beverages Collectibles Apparel, shoes, access Health and beauty products Toys and games Tools/home improvement products Home furnishings High Moderate Low 16-32

34. 16 The Many Faces of Retailing: In-Store, Direct and Internet Planned Shopping Centre • Group of retail stores planned, coordinated, and marketed as a unit to shoppers in a particular geographic trade area. 16-33

35. 16 The Many Faces of Retailing: In-Store, Direct and Internet Types of Shopping Centres • Neighbourhood Shopping Centre • Community Shopping Centre • Regional Shopping Centre 16-34

36. 16 The Many Faces of Retailing: In-Store, Direct and Internet Scrambled Merchandising • The retail practice of carrying dissimilar lines to generate added sales volume. 16-35

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