kerinmarketing170

RETAILING STRATEGY

•Retailing Mix (cont)

•Store Location

§Central business district
§Regional shopping centers
§Community shopping center
§Strip location
§Power center

•Retail Image and Atmosphere

Central Business District

The oldest retail setting, the community’s downtown area.

Regional Shopping Centers

Consists of 50 to 150 stores that typically attract customers who live within a 5- to 10- mile range, often containing two or three anchor stores.

Community Shopping Center

A retail location that typically has one primary store (usually a department store branch) and 20 to 40 smaller outlets, serving a population of consumers who are within a 10- to 20- minute drive.

A cluster of stores serving people who live within a 5- to 10- minute drive.

A huge shopping strip with multiple anchor (or national stores), a convenient location, and a supermarket.

1. What are the two dimensions of the retail positioning matrix?

A: Breadth of product line and value added.

2. How does original markup differ from maintained markup?

A: Original markup is the initial selling price less retailer cost. Maintained markup is the final selling price less retailer cost.

3. A huge shopping strip with multiple anchor stores is a
______ center.

A: power

THE CHANGING
NATURE OF RETAILING

•The Wheel of Retailing

FIGURE 17-9 The Wheel of Retailing

THE CHANGING
NATURE OF RETAILING

Retail Life Cycle

The process of growth and decline that retail outlets, like products, experience.

FIGURE 17-10 The retail life cycle

FUTURE CHANGES IN RETAILING

•Multichannel Retailing
§Multichannel retailers
•The Impact of Technology
•Changing Shopping Behavior

Multichannel Retailers

Utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television, and online retailing.

1. According to the wheel of retailing, when a new retail form appears, how would you characterize its image?

A: A low-status, low-margin, low-price outlet.

2. Market share is usually fought out before the ________ stage of the retail life cycle.

A: maturity

3. What is a smart card?

A: A smart card looks like a credit card but store information about bank accounts and customer purchases on computer chips.

Chapter 17 - Summary

Retailing provides customer value in the form of various utilities: time, place, possession, and form. Economically, retailing is important in terms of the people employed and money exchanged in retail sales.
Retailing outlets can be classified along several dimensions: the form of ownership, level of service, or merchandise line.
There are several forms of ownership: independent, chain, retailer-sponsored cooperative, wholesaler-sponsored chain or franchise.
Stores vary in the level of service they provide. Three levels are self-service, limited service, or full service.
Retail outlets vary in terms of the breadth and depth of their merchandise lines. Breadth refers to the number of different items carried, and depth refers to the assortment of each item offered.
Nonstore retailing includes automatic vending, direct mail and catalogs, television home shopping, online retailing, telemarketing, and direct selling.
A retail store positions itself on two dimensions: breadth of product line and value added, which includes elements such as location, product reliability, and prestige.
Retailing strategy is based on the retailing mix, consisting of goods and services, physical distribution, and communication tactics.
In retail pricing, retailers must decide on the markup, markdown, and timing for the markdown. Off-price retailers offer brand-name merchandise at lower than regular prices. This retailing form includes warehouse clubs, outlet stores, and single-price retailers.
Retail store location is an important retail mix decision. The common alternatives are the central business district, a regional shopping center, a community shopping center, or a strip location. A variation of the strip location is the power center, which is a strip location with multiple national anchor stores and a supermarket.
Retail image and atmosphere help retailers create the appropriate buying experience for their target market.
New retailing forms are explained by the wheel of retailing. Stores enter as low-status, low-margin outlets. Over time, they add services and raise margins, which allows a new form of low-status, low-margin retailing outlet to enter.
Like products, retail outlets have a life cycle consisting of four stages: early growth, accelerated development, maturity, and decline.
Multichannel retailers utilize and integrate a combination of store and nonstore formats. Technology will change the way consumers pay for purchases in the future. Smart cards may lead to a cashless society.

Chapter 17 ( cont...)

Marketing: Retailing
1 2

Chapter 17 ( cont...)

Marketing: Retailing 1 2

Marketing: Retailing
1 2