MK Chapter 15 Flashcards
Retailing
Transactions in which ultimate consumers are the buyers
Major Types of Retail Stores
- General-Merchandise Retailers
- Specialty Retailers
General Merchandise Retailers
A retail establishment that offers a variety of product lines
- department stores
- discount stores
- supermarkets
- superstores
- hypermarkets
- warehouse clubs
- warehouse showrooms
- convenience stores
Department stores
Large retail organizations characterized by wide product mixes and organized into separate departments to facilitate marketing efforts and internal management
Discount stores
Self-service, general merchandise stores offering brand name and private brand products at low prices
Supermarkets
Large, self-service stores that carry a complete line of food products, along with some nonfood products
Superstores
Giant retail outlets that carry food and nonfood products found in supermarkets, as well as most routinely purchased consumer products
Hypermarkets
Stores that combine supermarket and discount shopping in one location
Warehouse clubs
Large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing
Warehouse showrooms
Retail facilities in large, low-cost buildings with large on-premise inventories and minimal services
Convenience stores
Small self-servicestore offering a narrow product assortment in a convenient location.
3 types of specialty retailers - ex of each
- Traditional specialty retailers
- off price retailers
- category killers
Traditional Specialty Retailers
- Also called “limited-line” and “single-line” retailers
- Carry a narrow product mix with deep product lines (e.g., pet supplies)
- Have higher costs and higher margins
- Provide more product selection (first-line brands), product expertise, and high levels of personal service
Off-price Retailers
- Buy manufacturers’ seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts
- Charge less than department stores for comparable merchandise and offer few customer services
- Have established long-term relationships with suppliers for continuing supplies of reduced-price goods
Category Killers
Concentrate on a major product category and compete on the basis of low prices and product availability
Ex. of Category Killers
- Toys ‘R’ Us
- Home Depot
- Best Buy
- Office Depot
- PETsMart
- Barnes & Noble
Strategic Issues in Retailing
- Retail Store Location
- Types of location
- Retail Positioning
- Store Image
Retail Store Location
Factors affecting location
- Intended target market - Kinds of products - Suitability site for customer access - Characteristics of existing retail operations
Types of Locations
- Free-standing structures
- Traditional business districts
Retail Positioning
Identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment
Store Image
Atmospherics
- The physical elements in a store’s design that appeal to consumers’ emotions and encourage buying - Interior layout, colors, furnishings, and lighting - Exterior storefront and entrance design, display windows, and traffic congestion
Category management
Managing groups of similar products that may be produced by different manufacturers
Direct Marketing
- The use of telephone, internet, and nonpersonal media to introduce products to consumers, who then can purchase them via mail, telephone, or the Internet
- A type of nonstore retailing
Direct Response Marketing
A type of marketing that occurs when a retailer advertises a product and makes it available through mail or telephone orders
