Retail Marketing Strategy

Dr. Mary JoyceSpring 2007

Class Objectives—Week of 1/22/07

• To define retailing;• What trends are shaping today’s global retailers?

• What are the career options in retailing?• What are the different types of retailers?• How do services retailers differ from merchandise retailers?

• What are vertical vs. traditional marketing systems?

What is this thing called retailing?

• Retailing comprises the activities involved in marketing goods and services to consumers for their personal, family, or household use.

• Retailing is the last stage in the distribution process, but might also be looked at as the initial stage in the process . . .

• Retailers are the liaison between the commercial channel and final consumers

Distribution functions performed by retailers

• Providing assortments of products and services

• Breaking bulk• Holding inventory• Providing services• Increasing the value of products and services

Types of retailers

• There are two types of retailers—the quick and the dead . . .

• Cereality

Types of retailers

• http://www.nxtbook.com/nxtbooks/nrfe/stores0106-globalretail/index.php

Types of retailers

• Type of merchandise – http://www.census.gov/epcd/www/naics.html

• Variety and assortment (breadth, depth, SKUs)

• Services offered• Prices & costs of offering breadth and depth of merchandise and services

Careers in retailing

• Store management• Merchandise management• Corporate staff

– MIS– Operations/Distribution– Promotions/Advertising– Loss Prevention– Finance/Control– Real Estate– Store Design– HRM

Services retailers and the continuum

Whole-saleclub

Super-market

Cate-gory

Special-ist

Opti-cal

centerRestau-

rant Air-line

Bank/Univer-sityAll goods/

No services

All services/No goods

Spec-ialtyDept.Store

Services vs. Merchandise Retailers

• Intangibility• Simultaneous production and consumption

• Perishability• Inconsistency

Retail ownership

• Independent (Sterling Art)– SBA

• Chain• Franchise• Leased department • Vertical marketing system• Consumer cooperative

Traditional vs. vertical marketing systems

Character Traditional Administered Contractual Corporate

Cooperation Little-none Some-good Good Complete

Control None Economic power and leadership

Contracts Ownership

Examples typical of independents

Miller’s Beer, O.M. Scott

McDonalds, IGA, Ace Hardware

Sherwin-Williams, Gap,

Limited