Retailing Lecture
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This document discusses various aspects of retailing including: - Retailing involves all activities related to selling goods and services directly to consumers for personal use. Shopping provides both necessities and entertainment. - Retailers must select target markets and position themselves competitively through their merchandise, prices, and store atmospheres. Location is also important for retailer success. - Retailers are increasingly using omnichannel strategies, engaging consumers through both physical and digital stores, to provide shopping convenience and build customer loyalty. Effective use of mobile and social media is also key to reaching online audiences.
Retailing Lecture
- 1. Retailing
- 2. Retailing is the last link in the distribution chain
- 4. The Value of Retailing • Retailing – includes all activities involved in selling, renting, and providing goods and service to ultimate customers for personal, family, or household use –Shopping vs buying –Shopping is not only a way to acquire necessities but also a social activity and often an adventure
- 5. Ultimate customers for personal, family, or household use?
- 6. The Value of Retailing • Retailing – includes all activities involved in selling, renting, and providing goods and service to ultimate customers for personal, family, or household use –Shopping vs buying –Shopping is not only a way to acquire necessities but also a social activity and often an adventure
- 10. “Buying is automatic. Shopping is an entertaining act.” Shopping Seth Godin, December 15 2015
- 11. Buying
- 12. “Shopping is looking around, spending time in search of choosing how to spend money. Shopping is buying something you've never purchased before.” Shopping Seth Godin, December 15 2015
- 15. Buying is easy
- 19. Consumer Utilities Offered by Retailing • These utilities are offered by most retailers in varying degrees 9
- 20. Forms of Ownership • Form of ownership – distinguishes retail outlets on the basis of whether individuals, corporate chains, or contractual systems own or control the outlet –Independent Retailer –Corporate Chain –Contractual System 0
- 21. Who has the power? The franchisor or franchisee?
- 22. The franchise agreement is a legally binding contract
- 23. Target Market Selection and Positioning • Selecting a Target Market • Retail Positioning • Shopper Marketing 3
- 24. Why?
- 25. “There’s a demographic profile of a Costco member that is more affluent, more college- educated, higher in home ownership, with generally more kids living at home.”
- 26. Is there a typical IKEA shopper?
- 27. “I should start by saying we’ve always had a very broad audience. We’ve pursued that intentionally because we feel we have a home furnishing product for virtually every life stage, income and demographic…. Bill Agee, Marketing Director, IKEA U.S.
- 28. …However, we know that certain segments will come to us more easily than others. Certainly, we recognize the importance of young families. That is a key customer group for us. Another big group is young people who are living away from home for the first time.” Bill Agee, Marketing Director, IKEA U.S.
- 29. What is The Gap’s target market?
- 30. It tries to meet the clothing needs of infants, kids, teenagers, and baby boomers.
- 31. ‘The Gap has served up a steady diet of simple, unobjectionable casual clothing designed to appeal to everyone.’ Is this statement correct? Explain.
- 32. Target Market Selection and Positioning • Selecting a Target Market • Retail Positioning • Shopper Marketing 2
- 33. Who is this?
- 35. Usage Situations
- 36. A Positioning Map for Apparel Retailers
- 39. ‘The Gap has served up a steady diet of simple, unobjectionable casual clothing designed to appeal to everyone.’ Is this statement correct? Explain.
- 40. Target Market Selection and Positioning • Shopper Marketing –Discipline designed to understand how consumers behave as shoppers in different channels and formats –Multichannel practice that makes use of traditional media, new media, direct marketing, loyalty, trade promotion, and innumerable other marketing techniques 0
- 42. Actually shop
- 43. Actually shop
- 45. Actually Shop.
- 46. It’s remarkable, the amount of time Americans spend trying to negotiate or navigate.
- 47. Wal-Mart has lowered its furniture displays to make the items more accessible.
- 48. Retailing Mix 8
- 49. Products and Services • Self-Service • Limited Service • Full Service 9 • Depth of Line • Breadth of Line • Scrambled merchandising • Planogram Level of Service Merchandise Mix Store Atmosphere
- 50. Retail Pricing • Must decide on a mark-up • Markdown – discounting a product – Timing is important – Everyday low pricing – eliminates most markdowns – Off-price retailing – brand-name merchandise (excess inventory) at lower than regular price; unpredictable – Shrinkage – breakage and theft of merchandise by customers and employees 0
- 51. What are the three most important things in retailing?
- 55. It’s a hot summer day, and you want to sell lemonade at the beach. Unfortunately, the beach is only 100 metres long, and a competitor surrounded by customers is already set up at the 50-metre line.
- 56. Where do you set up your lemonade stand?
- 57. Lemonade Stand • Most frequent answer is ‘at the 25M line’ • Confident customers will come, even from the opposite end of the beach because your marketing will be better • Assumed you need a space of your own – away from competitors
- 59. ‘Correct’ Answer •At the 50-metre line, right next to the competitor’s stand •That’s where the customers are, and you can always compete on price or the taste of your lemonade
- 60. A good location may let a retailer succeed even if its strategy is mediocre. Is this true? Give examples.
- 61. For the following types of products, how far would you travel to reach a store: • Eggs and milk • Socks • Running shoes • Home theatre system
- 62. Trade Area
- 63. Location decisions have strategic importance because they can be used to develop a sustainable competitive advantage
- 64. Location Decisions Many types of locations are available each with its own strengths and weaknesses.
- 65. Tradeoff Between Locations Rent Traffic There are relative advantages and disadvantages to consider with each location.
- 66. Physical Location • Central Business District • Regional Shopping Centre • Community Shopping Centre • Strip Location • Power Centre 6
- 67. Do you like to shop in Saskatoon’s CBD? Why?
- 68. In what other city(s) do you love to shop in the CBD? Why?
- 69. In what cities do you not feel safe downtown?
- 70. Does the image of a store’s neighbourhood influence where you shop?
- 71. Physical Location • Central Business District • Regional Shopping Centre • Community Shopping Centre • Strip Location • Power Centre 1
- 72. Close your eyes and you could be in any mall, anywhere…
- 73. At each end is an overstuffed department store with fragrance spritzers and makeup artists…
- 74. …In between are children's stores showing pink clothes on the left, blue on the right,…
- 75. …interspersed with teen clothing stores where the lighting is dim. Throw in numerous shoe stores and another version of The Gap.
- 76. That's the problem. Consumers are aggravated and uninspired by the sameness and predictability of shopping malls?
- 77. Is the shopping mall dead?
- 78. How can shopping malls compete with the Internet?
- 79. ‘Malls need to do something that is memorable.’
- 80. What are they doing?
- 82. How would you describe Market Mall’s region or trade area?
- 83. What Power Centre is this?
- 85. Communication • Multichannel Retailers – use a combination of traditional store formats and non-store formats such as catalogues and online retailing 5
- 86. Have you ever purchased something from an infomercial, DRTV ad or shopping channel?
- 87. Non-Store Retailing • Occurs outside a retail outlet –Automatic Vending and Kiosks –Television Home Shopping 7
- 88. Non-Store Retailing –Direct Marketing •Direct Mail and Catalogues •Telemarketing –Often used with direct mail •Direct Selling 8
- 89. Online Retailing • Allows consumers to search for, evaluate, and order through the Internet –24-hour access, comparison shopping, and in-home privacy –“bricks and clicks” –Facebook and Twitter influences online buying • Mobile banking and a cashless future 9
- 95. Why Consumers Shop and Buy Online 5
- 96. Describing the Online Consumer • 94% of Canadians say they use the Internet to compare prices • 60% of Canadians go online to read or write reviews 6 – Social media recommendations influence decisions – Twitter and Facebook followers have greater impact on buying – Globally 70% trust online opinions
- 98. Retailer Usage of the Mobile Channel • The key is to provide methods to retain customer interest and loyalty via a consistent shopping and branding experience across channels 8
- 99. The Hema Super(duper) market and "New Retail"
- 100. Wholesaling Merchant Wholesalers Full Service • General merchandise • Specialty merchandise Limited- service • Rack jobbers • Cash and carry • Drop shippers • Truck jobbers Agents and Brokers Manufacturer s’ Agents Selling Agents Brokers Manufacturer’s Branches and Offices Branch Office Sales office 00
- 101. What We Have Covered •Place •Marketing Channels & Supply Chain •Retailing