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AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
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RETAILING
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SMART, CHIC,
AND CHEAP: TARGET HITS THE
BULLS-EYE!
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THE VALUE OF RETAILING |
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Retailing |
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All activities involved in selling, renting, and providing goods and
services to ultimate consumers for personal, family, or household use.
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FIGURE 17-1 Which company best represents which utilities? |
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FIGURE 17-2 Retail sales ($billion) , by type of business |
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Concept Check |
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1.
When Levi Straus makes jeans cut to a
customers exact preferences and measurements, what utility is provided?
A:
Form Utility
2.
Two
measures of the importance or retailing in the global economy are _________
and
___________________.
A: total sales and number of employees |
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CLASSIFYING RETAIL OUTLETS
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Form of Ownership |
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Distinguishes
retail outlets based on whether individuals, corporate chains, or
contractual systems own the outlet.
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FIGURE 17-3 The top five franchises |
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CLASSIFYING RETAIL OUTLETS |
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Level of Service |
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The degree of service provided to the customer by self-, limited-, and
full-service retailers.
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CLASSIFYING RETAIL OUTLETS |
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Merchandise Line |
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How many different lines a merchant carries and in what assortment.
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Depth of Product Line |
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The store
carries a large assortment of each item.
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Breadth of Product Line |
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The variety of different items a store carries.
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FIGURE 17-4 Breadth versus depth of merchandise lines |
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CLASSIFYING RETAIL OUTLETS |
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Scrambled Merchandising |
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Offering several unrelated product lines in a single retail store.
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Hypermarket |
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A large store
(over 200,000 sq ft) offering a mix of 40% food products and 60% general
merchandise.
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Intertype Competition |
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Competition between very dissimilar types of retail competitors.
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FIGURE 17-5 Supercenters are a popular store format. |
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Concept Check |
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1.
Centralized
decision making and purchasing are an advantage of
______ ownership. A: chain
2.
What are some examples of new forms of
self-service retailers?
A:
Federal Expresss self-service package shipping stations, and the
self-service scanning system being installed at K-Mart.
3.
Would a shop for big mens clothes carrying
pants in sizes 40 to 60 have a broad or deep product line?
A:
Deep
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NONSTORE RETAILING |
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FIGURE 17-6
Forms of
nonstore retailing
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NONSTORE RETAILING |
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Telemarketing |
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Using the telephone to interact with and sell directly to customers.
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Concept Check |
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1.
Successful
catalog retailers often send ________
catalogs to _____ markets identified in their databases.
A: specialty/ niche
2.
How are retailers increasing consumer interest
and involvement in online retailing?
A:
Tactics such as virtual models encourage consumer interaction and
increase involvement.
3. Where are direct selling retail sales growing? Why?
A:
Direct selling is likely to grow in market where the lack of
effective distribution channels and lack of consumer knowledge about
products increase the need for a person-to-person approach.
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RETAILING STRATEGY |
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Retail Positioning Matrix |
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Positions retail outlets on two dimensions:
breadth of product line and value added.
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FIGURE 17-7 Retail positioning matrix |
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RETAILING STRATEGY |
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Retailing Mix |
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In retailing strategy, the (1) goods and services, (2) physical
distribution, and (3) communications tactics chose by a store.
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FIGURE 17-8 The retailing mix |
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RETAILING STRATEGY |
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Shrinkage |
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Breakage and theft of merchandise by customers and employees.
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Off-Price Retailing |
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Selling brand-name merchandise at lower than regular prices.
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