Ch 17 Retailing
Terms
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- Retailing
- includes all activities involved in selling, renting, and providing goods and services to ultimate consumers of personal , family, or household use.
- Three forms of ownership
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1) individual-owned by an individual. be own boss
2) corporate- multiple outlets under common ownership.
3)contractual-independently owned stores that band together and act like a chain. - breadth of product line
- refers to the variety of different items a store carries such as appliances and CDs.
- depth of a product line
- the store carries a large assortment of each item, such as shoe store that offers running shoes, dress shoes, and children's shoes.
- scrambled merchandising
- offering several unrelated product lines in a single store
- intertype competition
- competition between very dissimilar types of retail outlets
- retail positioning matrix
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a matrix developed by the MAC group, INc a managment consulting form.
2 dim.>breadth of product line and value added.
includes activities related to managing the store and the merchandise in the store. - elements of retailing mix
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retail pricing
store locations
retail comunication
merchandise - markup
- how much should be added to the cost the retailer paid for a product to reach the final selling price
- gross margin
- the difference between final selling price and the retailer cost
- markdown
- discounting a product when the product does not sell at the original price and an adjustment is necessary
- types of locations
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central business district-downtown area
regional shopping centers-50-150 stores attract within 5-10 mile range
community shop center-one primary store(dept store) and often about 20-40 smaller outlets
strip location-clusters of stores to serve people who are within a 5-10 minute drive - wheel of retailing
- describes how new forms of retail outlets enter the market.