MKTG

1. MKTG Lamb, Hair, McDaniel 20072008 13 CHAPTER Retailing Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University

2. Reminders • Thursday, Nov. 1st – Ken Burns 7 p.m. Braden • Thursday, Nov. 8th – Naomi Judd 7:30 p.m. Braden • 11/1: Chapter 13 “Best Buy Case & Quiz” due Nov. 8th • 11/6: Chapters 14 & 15 – Marketing You Assignment Due Nov. 15th (Instructions available later today on the u-drive and website) • 11/13: Exam 3 via Thomson Now • (Chapters 11-15) • 11/13 & 11/15: Chapter 16

3. All the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. Retailing Retailing LO1

4. The Role of Retailing • Over 1 million U.S. retailers employ more than 15 million people • Retailers account for 11.6 percent of U.S. employment • Retailing accounts for 13 percent of U.S. businesses • Retailers ring up almost $4 trillion in sales—nearly 40 percent of the U.S. GDP • Industry is dominated by a few giant organizations, such as Wal-Mart LO1

5. Retailing as a %of U.S. employment Retailing as a %of U.S. businesses Retailing as a %of GDP 11.6% 13% 40% REVIEW LEARNING OUTCOME LO1 The Importance of Retailing

6. Classification of Retail Operations Ownership Level of Service Product Assortment Price LO2

7. Independent Retailers Owned by a single person or partnership and not part of a larger retail institution Chain Stores Owned and operated as a group by a single organization Franchises The right to operate a business or sell a product Classification of Ownership LO2

8. Self Service Full Service Factory outlets Warehouse clubs Discount stores Exclusive stores Level of Service LO2

9. Type of Retailer Service Level Assort- ment Price GrossMargin Mod Hi-High Broad Mod-High Mod High Department Store Specialty Store High Narrow Mod-High High Supermarket Low Broad Moderate Low Convenience Store Low Med-Narrow Mod High Mod High Drugstore Low-Mod Medium Moderate Low Full-line Discounter Mod-Low Med-Broad Mod Low Mod Low Specialty Discounter Mod-Low Med-Broad Mod Lo-low Mod Low Warehouse Clubs Low Broad Low-very low Low Off-price Retailer Low Med-Narrow Low Low Restaurant Low-High Narrow Low-High Low-High Types of Stores and Their Characteristics LO2

10. The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted. Price Gross Margin LO2

11. Major Types of Retail Operations Department Stores Specialty Stores Supermarkets Drugstores Convenience Stores Discount Stores http://www.walgreens.com Restaurants Online LO3

12. Automatic Vending Direct Retailing Direct Marketing Electronic Retailing Nonstore Retailing LO4

13. Door-to-Door Office-to-Office Home Sales Parties http://www.avon.com Online Direct Retailing LO4

14. Direct Mail Catalogs & Mail Order Telemarketing Electronic Retailing Types of Direct Marketing Shop-at-home networks On-line retailing LO4

15. Developing a Retail Marketing Strategy

16. Group Activity • Bloomington/Normal is rated as one of the top cities in the nation for restaurants • Assume that you and your group members represent an investment group considering the development of a restaurant in Bloomington/Normal • Brainstorm a restaurant concept you believe would be successful in Bloomington/Normal

17. Group Activity • Identify the target market • Specify the demographics, lifestyle, and other relevant factors • Identify aspects of the restaurant’s strategy: • Product (menu items) • Pricing • Promotion • Place - Location • Personnel • Presentation/Atmospherics