RETAIL L1

• Retailing

  All the activities involved in selling products or services directly to final consumers for their personal, non-business use
• Many organizations such as manufacturers, wholesalers and retailers, do retailing
• Retailers


  • Play an important role in connecting brands with consumers in the final phases of the buying process and at the point of purchase
• Omnichannel buyers


  Consumers who make little distinction between in-store and online shopping, and for whom the path to a retail purchase runs across multiple channels
• Multichannel


  All channels available to the consumer but are not integrated
• Omnichannel


  All channels available to the consumer and they are connected
• Non-store retailing has grown faster than store retailing in recent years
• Non-store retailing includes


  • Selling to final consumers through direct mail, catalogs, telephone, Internet, TV home-shopping shows, home and office parties, door-to-door contact, vending machines, and other direct-selling approaches
• Retail stores


  • Come in all shapes and sizes, and new retail types keep emerging
  • Can be classified in terms of several characteristics, including the amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and how they are organized
• Specialty store


  A store that carries a narrow product line with a deep assortment, such as apparel stores, sporting-goods stores, furniture stores, florists, and bookstores
• Department store


  A store that carries several product lines—typically clothing, home furnishings, and household goods—with each line operated as a separate department managed by specialist buyers or merchandisers
• Supermarket


  A relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumer's total needs for grocery and household products
• Convenience store


  A relatively small store located near residential areas, open long hours seven days a week, and carrying a limited line of high-turnover convenience products at slightly higher prices
• Discount store


  A store that carries standard merchandise sold at lower prices with lower margins and higher volumes
• Off-price retailer


  A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail; often leftover goods, overruns, and irregulars obtained at reduced prices from manufacturers or other retailers
• Superstore


  A very large store traditionally aimed at meeting consumers' total needs for routinely purchased food and non-food items
• In the past, retailers attracted customers with unique product assortments and more or better services
• Today, retail assortments and services are looking more and more alike, and it's now more difficult for any one retailer to offer exclusive merchandise
• Service differentiation among retailers has also eroded. Many department stores have trimmed their services, whereas discounters have increased theirs
• Customers have become smarter and more price-sensitive. They see no reason to pay more for identical brands, especially when service differences are shrinking
• Many retailers today are rethinking their marketing strategies.
• Retailers must decide on three major product variables

  • Product Assortment
  • Service Mix
  • Store Atmosphere
• Product Assortment


  The retailer's product assortment should differentiate the retailer from competition, while matching the target shoppers' expectations
• Service Mix


  The services mix can also help set one retailer apart from another by offering a distinct customer experience
• Store Atmosphere


  The store's atmosphere is another element in the retailer's arsenal. Every store has a physical layout that creates an environment that suits the target market and moves the customers to buy
• Store Atmosphere

  
  

  Retail stores are much more than simply an assortment of goods. They are environments to be experienced by the people who shop in them
• Store atmospheres offer a powerful tool by which retailers can differentiate their stores from their competitors
• Price Decisions


  Retailers must balance their pricing with competition. Most retailers seek either high markups on lower volume (=specialty stores) or low markups on higher volume (=mass merchandisers and discount stores)
• Place Decisions

  Retailers must locate their stores in areas that are accessible to the target market
• Promotion Decisions


  Retailers use any or all of the promotion tools— advertising, personal selling, sales promotion, public relations, and direct marketing to reach their customers
• Retailers play an important role in connecting brands with consumers in the final phases of the buying process and at the point of purchase.
• Consumers are increasingly becoming omnichannel buyers, who make little distinction between in-store and online shopping, and for whom the path to a retail purchase runs across multiple channels.
• Retailer Strategy:

  • Target Market
  • Retail Store Positioning
• Retailer Marketing Mix:

  • Product and Service Assortment
  • Prices
  • Promotion
  • Place