Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Objectives
To
Understand the Functions of Retailers in the Marketing Channel To Identify the Major Types of Retailers To overview the Major Types of Franchising To identify Strategic Issues in Retailing
Retailing
Retailers implement and conclude the actual sale of products to the final consuming units, the ultimate user.
Importance Of Retailing
Distribution Functions
- Time, Place
- Information & Possession Utility
Marketing Functions
A Retailing Career
Salary Societal Perspective Geographic mobility
Retail Career
Women in retailing
Career Progression
Flexibility
Decisiveness Success
Perseverance
Organization
Creativity
Enthusiasm
Initiative
Specialty Retailers
- Limited Line - Off Price Retailers - Category Killers - Convenience stores
In-Store
Department Store
Chain operations Wide variety & selection Full service - delivery, credit, returns, repair Examples:
Supermarkets - Large, self service stores with wide variety of food & some nonfood products Low mark ups & profit margins, Departmentalized with Centralized checkout, Ex: Albertsons, Safeway
Employees
Annual sales per store (in millions)
100,000
60,000 70,000
Specialty Stores
Convenience Stores
Limited variety Shallow selection Fast service, High markup Examples: 7-11, Wawa
Circle K, Sheetz
Deep Selection (Product line) Fashion response leader Personalized service Narrow Variety (Product line) High markup
Ex: The GAP, a SPA, bookstore Wallpapers to Go,
STOP & GO
Category Killers
Just For Feet, the category killer in the athletic footware and apparel sector founded in 1977, cruised through the 1990s. However, Just For Feet has suffered financial setbacks from a lack of adapting to changes in the evolving retail landscape.
Mass merchandise retailers Low: status, margin price, service (Wholesale clubs)
Wheel of Retailing
High Prices & Markups, Many services, Expensive Surroundings,
Department Stores
Enter
Department stores
Low prices & Low markups, few services,
(austere) surroundings
Department stores
1890 -1910
austere
1990s
History
In 1936,at age 30, Paul D'Amour , a bread route salesman for the Wonder Bread Baking Co. purchased the Y Cash Market in Mass. In 1947, it was incorporated, Big Y Foods, Inc. In 1952, they leased a 10,000 square foot store (Springfield) In the 1980s it was a technology leader in scanning, information systems & security.
Progressive Grocer, Mar. 2003
Their goal is to exceed their customers' evolving expectations by seeking better ways to create and deliver world class service and value.
MARCH 25, 2003 -- It expanded its online shopping service to include Unlimited Choices, a program to give customers access to more than 30,000 additional products such as ethnic & special dietary foods & A wide assortment of non-food items, including toys, books, housewares and gifts not carried in a typical Big Y store.
A typical 55,000 square foot Big Y store carries some 35,000 different items.( bigy.com)
Sales Visits
Bank Retailing
$388
Telemarketing
Convenient
Interactive Shopbots
E-tailing was about 20 billion dollars in 2000 and estimated to rise to over 100 billion by 2005.
Privacy/Security
The use of machines to dispense products includes items such as candy, chewing gum, soft drinks, cigarettes, newspapers, and coffee
Advantages: small amount of space needed and no sales personnel Disadvantages: high costs of equipment and frequent servicing
#1 Customers
Place
Promotion
location!
= Convenience
Free standing structure Central Business District (CBD) Shopping Malls (avg. age 23 yrs 2002)
- Neighborhood shopping center - Community shopping center - Regional shopping center
Strategic Issue #2
Merchandise Assortment
Retail buyers must match their product selection, quality, price with constantly changing consumer wants. Scrambled merchandising- adding unrelated products to generate traffic & higher margins
Strategic Issue #2
Store Promotions
Store Services
Store Personnel
Store Layout/Image
Store Atmospherics
The sum total of all store stimuli, interior & exterior physical characteristics that appeal to emotions (psychological field) Components: Ambient factors, Design and Social Factors.
Store Atmospherics
Design Factors (Perceptions) Floor covering - Ceilings Wall coverings - Dressing Rooms Displays/Fixtures - Aisles Color - Layout Cleanliness - Signage Furnishings - windows
Store Atmospherics
Social factors: In store service (sales personnel social & emotional labor) - Courteous Rude behavior - Knowledgeable Low information - Service Insincere - Employee dress norms (casual ??) Make it convenient & pleasurable for customers to shop and pay for merchandise
highly motivated, experienced & well paid work force - Retail jobs often pay poorly, are not challenging and produce high turnover
33%
Estimates: 2005
Post-Sale Services
Strategic Issue
Retailer Advertising
Location + Merchandise + Services + Atmospherics + ? Store Image
Advertising Medium(s) Newspapers - Television - Radio Magazine - Direct Mail - Videos-Web
Ideal Stores: What factors are most important in deciding where to shop? surveyed women said:
Price and Value Quality and Selection of Merchandise
44%
34%
Service
11%
Shopping Environment
11%
Source: Newspaper Advertising Bureau Inc. (1986)
Retail Positioning
Identifying an underserved market niche, or segment, and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment
Example : Wal-Mart
1.
2. 3.
4.
Sam Walton computerized operations to lower costs to lower prices to meet target market needs with four different retail concepts: Wal-Mart discount stores Supercenters Neighborhood Markets Sams Club
Functional Advantages
- Focus on customer satisfaction - Integrate total product offerings
Result
- Added value to product - Consumer loyalty increases
Examples: Disneyland, Sea Cruises, Destination Resorts
Suppliers
Intense Distribution Brand Loyalty Low Markup/High Volume
Analysts
---------------------------------------------------------------------BJ's (BJ) 44% 81% Costco (COST) 54% 100% Dillard's (DDS) 63% 6% Federated (FD) 33% 56% ----------------------------------------------------------------------
40%
24%
---------------------------------------------------------------------Kmart (KM) 33% 0% ---------------------------------------------------------------------Kohl's (KSS) 46% 94% ---------------------------------------------------------------------May (MAY) 46% 50% ---------------------------------------------------------------------Saks (SKS) 52% 6% ---------------------------------------------------------------------Sears (S) 57% 11% ----------------------------------------------------------------------
69% 75%
89% 94%
Consumer Relevancy Awards, Criteria: Easy to shop/access Price/Value Product Assortment Service Enjoyable Shopping experience
Consumer Rankings of store attributes: 1. Cleanliness 2. Courtesy & Respect 3. Easily visible prices 4. Well packaged products to avoid damage 5. An honest price
Department Stores Grocery Chain Drug Store Chain Electronic Stores Specialty Store Clothing, shoes & accessories Discount Store Chain Overall . . . . . . . . . . .
J C Penny Publix CVS Best Buy Barnes & Noble GAP Wal-Mart ???
100%
1965 1980 Year 1995
SOURCE: Vision for the New Millennium . . .(Atlanta: Kurt Salmon Associates, 1997). Used with permission
For Scents:
Experiment Variables
For Music:
Slow tempo classical = low arousal music Fast tempo classical = high arousal music
Survey Method
343 customers were asked/270 participated Most were female and under 20 62% said they purchased something in the store
Ex) When low arousal music was paired with low arousal scent, the perceived pleasure was higher than when low arousal music was paired with high arousal scent.
+ + +
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Operating Information
Franchising
A franchiser licenses (to the franchisee) the right to distribute/sell specified products (trademark s) according to operational guide-lines (Time, place, price, supplies, etc.) Develops & controls marketing strategies
Franchising: Advantages
Less Capital Required Use the Experience of Others Assurance of Customers Rapid Product Distribution Smaller Probability of Failure Advertising Assistance Highly Motivated owner/operators
Franchising: Disadvantages
Controlled by Franchiser (Power) Cost of Franchise Hard Work and Long Hours Reduced Personal Control