Chapter 15 Notes PDF

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Chapter 15: Retailing Classifying Retail Outlets: Retailing provides value to consumers in the form of utilities and has a significant impact on the economy. • Form of ownership • Level of service • Merchandise line Form of Ownership: 1. Independent retailer is one of the most common forms of retail ownership. These businesses are owned by individuals and provide a high level of personal service. 2. Corporate chain involves multiple outlets under common ownership. Centralization of decision making and purchasing is common. 3. Contractual systems involve independently owned stores that band together to act like a chain. The three kinds described in chapter 15 are retailer-sponsored cooperatives, wholesale-sponsored voluntary chains, and franchises. Level of Service: 1. Self-service exists when the customer performs many functions, and little service is provided by the outlet. 2. Limited service outlets provide some services such as credit, merchandise return, and telephone ordering. 3. Full service retailers provide a complete range of services to cater to the shopper. Merchandise Line: Refers to the number of different types of products and the assortment of each type of product a store carries. Retail outlets are classified by the depth of product line, which pertains to assortment, and the breadth of product line, which refers to variety. o Scrambled merchandising o Hypermarket o Intertype competition Retailing Strategy: A retail store's position is influenced by its form of ownership, level of service, and merchandise line. The retail positioning matrix positions retail outlets on breadth of product line and value added which includes elements such as location, reliability, and prestige. • Positioning a Retail Store • Retail Positioning Matrix • Keys to Positioning • Retailing Mix • Retail Pricing • Store Location • Retail Communication • Merchandise

Elements of a Retailing Strategy:

Retail Positioning Matrix:

The Wheel of Retailing:

Retail Life Cycle:

Five Important Trends that are Shaping the Retail Landscape: 1. Travel retailing 2. Mobile retailing 3. Faster retailing 4. Experience retailing 5. Innovative retailing Video Questions: 1. What is the key to success at the Mall of America? Mall of American has been a marketing success so far because it has positioned itself as a destination rather than just a mall. It also has many forms of entertainment such as an aquarium and an amusement park which offer clients other forms of entertainment. It also has established itself as a well-known brand which contributes to its success. 2. What trends contributed to the idea for the Mall of America? How did it get started? Some retail trends that have occurred since the Mall of America opened that it should consider when making future plans is not to duplicate what they already have. Thus, it would not make sense for the mall to two of the same stores. Also, this way retailers don’t risk cannibalism in which one of their stores takes away business from their other stores 3. What challenges does the Mall of America face as it strives to continue its success?...