MKT Ch 14

Trpes of arranging retail operations

Ownership level of service product assortment, price arrangements

Ownership arrangements

-independent retailer- retailer owned by single person or partnership, not operated as part of larger retail institution, ex: local bakery

--chain store- part of group of the same store owned and operated by a single organization, Ex: j c penney

Franchise- relationship with the business rights to operate in sell product are granted by the franchiser. Ex: panera and other restaurants

Level of service arrangements

Full service: alterations, credit delivery consulting, return gift lay in personal shopping

Low service- customers responsible for any info gathering handling use, product assembly, ex- IKEA

Lowest service- product kiosk vending machine

Product assortment arrangement

Specialty store- have thinnest product assortments usually carry single. Narrow product lines that are deep ex: Chocolate store

Full line discounter: typically carry very wide assortments of merchandise that are shallow

Price arrangements

Traditional department stores- typically charge fill price

Discounters outlets and off price- retailers use low prices to lure shoppers, example marshals

Types of in store retailers

Department store- store several departments ex:macy’s

Specialty stores- store specializing in a given type of merchandise ex shoe store

Supermarket- large self service retailer that specializes in food and some non food ex Meijer

Drugstore- pharmacy related products ex CVS

Convience store- limited high turnover goods

Discount store- competes on basis of low prices

Full line discount stores- carrie's depth of product within single product category

Supercenter- large retailer stock wide variety of merchandise ex walmart

Specialty discount store- offer single line self service discount prices ex foot locker

Category killer- discount that dominates in narrow segment ex best buy

Warehouse club- limited selection bulk from warehouse, membership, ex Costco

Off price retailers- sales at 25% or more below traditional department stores ex TJ Maxx

Factory outlet- off price retailer that is owned & operated by manufacturer ex Coach outlet

Used good retailers- Goodwill

Rrstureants- retailer provides food and drink and food preparation and presentation

Nonstore retailing types

Automatic vending- use of machines to offer goods to se

Self service tech- allows customers to provide themselves with products, services without intervention of an employee

Direct retailing- used to get customers to make a purchase from their home

Telemarketing- so directly to customers through phone call

Direct mail- postal mail or email

Shop at home TV networks- product television shows to home view

Online retailing- available shopping through personal computers

Sharing economy- connect customers to exchange goods and services ex Airbnb, Facebook mkt place, Uber

The Retailing Mix

1. Product

2. Promotion

3. Place

4. Price

5. Presentation- atmosphere overall impression conveyed by a store's layout, sound, odor, temp, visual colors, employee type

6. Personnel- sales personnel retail sales people customer service

Retailing decison for services (4)

1. Minimizing wait times

2. Managing service capacManaging service capacity

3. Improve service delivery

4. For establishing channel y network coherence

Future developments

1. Retail channel omnifications- reduction of multiple retail channel systems into a single system to save money and create efficiency

2. Click-and-collect: buying something online and traveling to physical store to pick up product, curb side pick up