Chapter 13: Retailing and wholesaling. In this chapter, you learned to: 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 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 13, 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 132 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 13, YOU SHOULD BE ABLE TO: LO4 Specify the retailing mix actions used to implement a retailing strategy LO5 Explain changes in retailing with the wheel of retailing and the retail life cycle concepts LO6 Describe the types of firms that perform wholesaling activities and their functions 133 RETAILERS LOVE IT WHEN THE MAYOR VISITS! 134 THE VALUE OF RETAILING LO1 Retailing Consumer Utilities Offered by Retailing CarMax Video • Place • Form • Possession • Time The Global Economic Impact of Retailing 135 FIGURE 13-1 Which retailer best provides which utilities? 136 LO2 CLASSIFYING RETAIL OUTLETS Form of Ownership Level of Service Merchandise Line 137 LO2 MAKING RESPONSIBLE DECISIONS GREEN ISN’T JUST A COLOR TO RETAILERS IT’S A VALUE! 138 LO2 CLASSIFYING RETAIL OUTLETS FORM OF OWNERSHIP Independent Retailer Corporate Chain Contractual Systems • Wholesaler-Sponsored Voluntary Chains • Retailer-Sponsored Cooperatives 139 LO2 CLASSIFYING RETAIL OUTLETS FORM OF OWNERSHIP Contractual Systems • Franchising Business-Format Franchises Product-Distribution Franchises 1310 FIGURE 13-3 Elements of a retailing strategy 1320 RETAILING STRATEGY LO4 RETAILING MIX Retailing Mix Retail Pricing • Original Markup • Maintained Markup • Gross Margin Markdown 1321 LO4 RETAILING STRATEGY RETAILING MIX Everyday Low Pricing (EDLP) Everyday Fair Pricing Benchmark or Signpost Items 1322 LO4 RETAILING STRATEGY RETAILING MIX Off-Price Retailing • Warehouse Club • Outlet Store • Single/Extreme Value Store 1323 RETAILING STRATEGY LO4 RETAILING MIX Store Location • Central Business District • Regional Shopping Centers Anchor Stores • Community Shopping Center • Strip Mall • Power Center 1324 RETAILING STRATEGY LO4 RETAILING MIX Retail Communication • Image • Shopper Marketing Merchandise • Category Management • Marketing Metrics Sales per Sq Ft Same Store Sales 1325 USING MARKETING DASHBOARDS LO4 Why Apple Stores May Be the Best in the United States! Sales per Square Foot ($) and Same Store Sales Growth (%) Sales per Square Foot ($) = Total Sales ($) Selling Area in Square Feet (#) 1326 LO4 RETAILING STRATEGY POSITIONING A RETAIL STORE Retail Positioning Matrix • Breadth of Product Line • Value Added 1327 FIGURE 13-C The four positioning strategies for retailers 1328 LO5 THE CHANGING NATURE OF RETAILING THE WHEEL OF RETAILING AND RETAIL LIFE CYCLE Wheel of Retailing Retail Life Cycle Multichannel Retailers 1329 FIGURE 13-4 The wheel of retailing describes how outlets change over time 1330 FIGURE 13-5 The retail life cycle describes the stage of growth and decline for retail outlets 1331 WHOLESALING LO6 Merchant Wholesalers • Full-Service Wholesalers General Merchandise (Full-Line) Wholesalers Specialty Merchandise (Limited-Line) Wholesalers 1332 WHOLESALING LO6 Merchant Wholesalers • Limited-Service Wholesalers Rack Jobbers Cash and Carry Wholesalers Drop Shippers/Desk Jobbers Truck Jobbers 1333 WHOLESALING LO6 Agents and Brokers • Manufacturer’s Agents or Representatives • Selling Agents • Brokers Manufacturers • Branch Offices • Sales Offices 1334 ... AFTER READING CHAPTER 13, 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... retailing with the wheel of retailing and the retail life cycle concepts LO6 Describe the types of firms that perform wholesaling activities and their functions 13 3 RETAILERS LOVE IT WHEN THE MAYOR... VISITS! 13 4 THE VALUE OF RETAILING LO1 Retailing Consumer Utilities Offered by Retailing CarMax Video • Place • Form • Possession • Time The Global Economic Impact of Retailing 13 5 FIGURE 13- 1