Marketing Principles & Perspectives of Retailing.ppt
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- 2. 1-2 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Chapter 14 14 Retailing Retailing
- 3. 1-3 ► Understand the economic importance of Understand the economic importance of retailing and its role in the marketing channel. retailing and its role in the marketing channel. ► Cite evidence of the globalization of retailing. Cite evidence of the globalization of retailing. ► Discuss some of the advances in retailing Discuss some of the advances in retailing technology. technology. ► Explain the reasons behind the growth of Explain the reasons behind the growth of non-store retailing non-store retailing After studying this chapter After studying this chapter you should be able to: you should be able to:
- 4. 1-4 ►Describe key factors in the retail Describe key factors in the retail marketing environment, and marketing environment, and understand how they relate to retail understand how they relate to retail strategy. strategy. ►Cite important ethical and legal issues Cite important ethical and legal issues facing retailers. facing retailers. After studying this chapter After studying this chapter you should be able to: you should be able to:
- 5. 1-5 The Role of Retailing The Role of Retailing ► Retailing: Retailing: An important part of many marketing An important part of many marketing channels, includes all the activities involved in channels, includes all the activities involved in selling products and services to the ultimate, selling products and services to the ultimate, or final, consumer. or final, consumer. ► Retail Sales: Retail Sales: Sales to final consumers; wholesale sales are Sales to final consumers; wholesale sales are those to other businesses that in turn resell the those to other businesses that in turn resell the product or service, or use it in running their product or service, or use it in running their own businesses. own businesses.
- 6. 1-6 Economic Importance Economic Importance Sales Profits Company ($ millions) ($ millions) Employees 1. Wal-Mart 219,812 6,671 1,383,000 2. Home Depot 53,553 3,044 256,300 3. Kroger 50,098 1,043 288,000 4. Sears Roebuck 41,078 735 310,000 5. Target 39,888 1,368 223,550 6. Albertson’s 37,931 501 220,000 7. Kmart 36,910 (95) 240,525 8. Safeway 34,301 1,254 193,000 9. JC Penny 32,004 98 270,000 10. Walgreen 24,623 886 106,000 In the U.S., 3 million retailers generate $2.5 trillion in revenues annually!
- 7. 1-7 Retailers’ Uniqueness Retailers’ Uniqueness in the Channel in the Channel Provide Product Assortment Emphasize Store Atmospherics Sell Smaller Quantities of Product More Frequently
- 8. 1-8 Types of Retailers Types of Retailers ► Independent Independent Retailers: Retailers: Own and operate Own and operate only one retail only one retail outlet. outlet. ► Chains: Chains: A retail chain owns A retail chain owns and operates and operates multiple retail multiple retail outlets. outlets.
- 9. 1-9 Types of Retailers Types of Retailers ►Franchising: Franchising: Retail franchising is a form of chain Retail franchising is a form of chain ownership in which a franchisee pays the ownership in which a franchisee pays the franchisor (parent company) fees or royalties franchisor (parent company) fees or royalties and agrees to run the franchise by prescribed and agrees to run the franchise by prescribed norms, in exchange for use of the franchisor’s norms, in exchange for use of the franchisor’s name. name. ►McDonald’s McDonald’s ►Jiffy Lube Jiffy Lube ►Holiday Inn Holiday Inn There are 3,000 franchise companies in the U.S. that operate 558,000 separate establishments!
- 10. 1-10 Top 10 International Top 10 International Retail Franchises Retail Franchises 1. 1. McDonald’s McDonald’s 2. 2. Great Wraps Great Wraps 3. 3. Subway Subway 4. 4. Kentucky Fried Chicken Kentucky Fried Chicken 5. 5. Kumon Math and Reading Centers Kumon Math and Reading Centers 6. 6. Meineke Discount Muffler Shops Meineke Discount Muffler Shops 7. 7. TCBY Treats TCBY Treats 8. 8. Thrifty Car Rental Thrifty Car Rental 9. 9. Blimpie Subs & Salads Blimpie Subs & Salads 10. 10. Mail Boxes Etc. Mail Boxes Etc.
- 11. 1-11 Types of Retailers Types of Retailers ► Leased Departments: Leased Departments: Leased departments are sections in a retail Leased departments are sections in a retail store that the owner rents to a second store that the owner rents to a second party. party. ► Cooperatives Cooperatives ► Retail Cooperatives: Retail Cooperatives: Independent retailers banding together to Independent retailers banding together to counter chain store competition. counter chain store competition.
- 12. 1-12 Trends in Retailing Trends in Retailing Global Retailing Technological Advances Stronger Customer Service
- 13. 1-13 Nonstore Retailing Nonstore Retailing ►Direct Retailing Direct Retailing ►Direct Marketing Direct Marketing ►E-Retailing E-Retailing ►Direct Selling Direct Selling ►Vending Machine Sales Vending Machine Sales Stores account for 90% of retail sales, but nonstore retailing is growing faster than store-based retailing!
- 14. 1-14 Developing Retailing Strategy Developing Retailing Strategy
- 15. 1-15 Uncontrollable Factors Uncontrollable Factors ►Consumers Consumers ►Competition Competition ►Economic Conditions Economic Conditions ►Seasonality Seasonality
- 16. 1-16 Controllable Factors Controllable Factors ► Location Location Central Business District (CBD) Central Business District (CBD) Strip Centers Strip Centers Shopping Malls Shopping Malls Freestanding Sites Freestanding Sites ► Goods and Services Goods and Services ► Pricing Pricing ► Marketing Communications Marketing Communications
- 17. 1-17 Types of Strategy Mix Types of Strategy Mix ► Specialty Stores Specialty Stores ► Department Stores Department Stores ► Convenience Stores Convenience Stores ► Margin and Turnover Strategy Margin and Turnover Strategy Mixes Mixes ► Gross Margin Gross Margin ► Inventory Turnover Inventory Turnover
- 18. 1-18 Ethical and Legal Issues Ethical and Legal Issues in Retailing in Retailing ► Consumer Fraud Consumer Fraud ► Supplier Labor Practices Supplier Labor Practices ► Retail Theft Retail Theft ► Slotting Allowances Slotting Allowances ► Use of Customer Use of Customer Information Information ► Ecological Ecological Considerations Considerations