Chapter 16 provides knowledge of retailing and wholesaling. This chapter identify retailers in terms of the utilities they provide, explain the alternative ways to classify retail outlets, describe the many methods of nonstore retailing, specify the retailing mix actions used to implement a retailing strategy, explain changes in retailing with the wheel of retailing and the retail life cycle concepts, describe the types of firms that perform wholesaling activities and their functions.
McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved 16-1 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO: LO1 Identify retailers in terms of the utilities they provide LO2 Explain the alternative ways to classify retail outlets LO3 Describe the many methods of nonstore retailing 16-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO: LO4 Classify retailers in terms of the retail positioning matrix, and specify retailing mix actions LO5 Explain changes in retailing with the wheel of retailing and the retail life cycle concepts 16-3 RETAILERS LOVE IT WHEN THE MAYOR VISITS! 16-4 THE VALUE OF RETAILING LO1 Retailing Consumer Utilities Offered by Retailing CarMax Video • Place • Form • Possession • Time The Global Economic Impact of Retailing 16-5 FIGURE 16-1 Which retailer best provides which utilities? 16-6 FIGURE 16-2 The relative size of different types of retailers 16-7 LO2 CLASSIFYING RETAIL OUTLETS Form of Ownership Level of Service Merchandise Line 16-8 LO2 MAKING RESPONSIBLE DECISIONS GREEN ISN’T JUST A COLOR TO RETAILERS IT’S A VALUE! 16-9 LO2 CLASSIFYING RETAIL OUTLETS FORM OF OWNERSHIP Independent Retailer Corporate Chain Contractual Systems • Wholesaler-Sponsored Voluntary Chains • Retailer-Sponsored Cooperatives 16-10 Retailing Mix The retailing mix consists of the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise 16-57 Off-Price Retailing Off-price retailing consists of selling brand-name merchandise at lower than regular prices 16-58 Central Business District A central business district is the oldest retail setting, usually located in the community’s downtown area 16-59 Regional Shopping Centers Regional shopping centers consist of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores 16-60 Community Shopping Center A community shopping center is a retail location that typically has one primary store (usually a department store branch) and often 20 to 40 smaller outlets, serving a population of consumers who are within a 10- to 20-minute drive 16-61 Strip Mall A strip mall consists of a cluster of neighborhood stores to serve people who are within a 5- to 10minute drive 16-62 Power Center A power center is a huge shopping strip with multiple anchor (or national) stores 16-63 Shopper Marketing Shopper marketing is the use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store 16-64 Category Management Category management is an approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category 16-65 Wheel of Retailing The wheel of retailing is a concept that describes how new forms of retail outlets enter the market 16-66 Retail Life Cycle The retail life cycle is the process of growth and decline that retail outlets, like products, experience It consists of the early growth, accelerated development, maturity, and decline stages 16-67 Multichannel Retailers Multichannel retailers are retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television home shopping, and online retailing 16-68 Merchant Wholesalers Merchant wholesalers are independently owned firms that take title to the merchandise they handle 16-69 Manufacturer’s Agents Manufacturer’s agents are agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory Also called manufacturer’s representatives 16-70 Brokers Brokers are independent firms or individuals whose principal function is to bring buyers and sellers together to make sales 16-71 ... Global Economic Impact of Retailing 16- 5 FIGURE 16- 1 Which retailer best provides which utilities? 16- 6 FIGURE 16- 2 The relative size of different types of retailers 16- 7 LO2 CLASSIFYING RETAIL OUTLETS... Video Supercenter Intertype Competition 16- 16 FIGURE 16- 5 Hypermarkets are popular in Europe while supercenters are popular in the U.S 16- 17 FIGURE 16- A For Lands’ End, intertype competition... Online Retailing 16- 21 LO3 GOING ONLINE For Some Consumers, Shopping is a Game! 16- 22 NONSTORE RETAILING LO3 Telemarketing • Do-Not-Call Registry Direct Selling 16- 23 FIGURE 16- 7 Elements of