Professional Documents
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Retailing
What is Retailing?
selling goods or services directly to final consumers for personal, non-business use.
Nonstore Retailing
Direct selling multilevel selling and network marketing selling door-to-door, or at home sales parties Direct marketing direct mail, catalog marketing, telemarketing, television direct-response marketing, electronic shopping Automatic vending variety of merchandise, impulse goods, hosiery, cosmetics, hot food, etc. Buying service storeless retailer servicing a specific clienteleusually employees of a large organizationwho are entitled to buy from a list of retailers that have agreed to give discounts in return for membership
Franchise Operations
The franchiser develops a good marketing strategy and the retail franchise holders carry out the strategy in their own units. Strong legal contracts govern the relationship. Franchisers have been successful with newcomers. especially popular with service operations Franchise sales account for about half of all retail sales.
Characteristics of Franchises
The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments The franchisee pays for the right to be part of the system The franchisor provides its franchisees with a system for doing business
Retailers Marketing Decisions (cont.) Store atmosphere Store activitiesbrick-and-mortar and e-commerce Communicationsadvertisement, special sale, money-saving coupons, etc. Locations
Store Atmosphere
Walls Lighting Signage Product placement Floors Surface space Music
Location Decision
General business districtsdowntown Regional shopping centerslarge suburban malls containing 40 to 200 stores, typically featuring one or two nationally known anchor store, such as JC Penney or Lord & Taylor Community shopping centerssmaller malls with one anchor store and between 20 and 40 smaller stores Strip malls stripscluster of stores, usually housed in one long building, serving a neighborhoods needs for groceries, hardware, laundry, shoe repair, and dry cleaning Location within a larger storecertain well-known retailersMcDonalds, Starbucks, Nathans, Dunkin Donuts locate new, smaller units as concession space within larger stores or operations, such as airports, schools, or department stores
Private Labels
Larger stores enjoy economies of scale Corporate chain stores also enjoy economies of scale
Account for about half of all retail sales (and much higher in some product categories) Continuing to grow
Competitive effects impact other retailers New types of specialists and intermediaries will continue to develop