1. Retail Institutions
Marketing 7

2. Ownership
Independent
Retailers
Independent
Retailers
Chain StoresChain Stores
FranchisesFranchises
ClassificationClassification
ofof
OwnershipOwnership
ClassificationClassification
ofof
OwnershipOwnership

3. Types of Retailing
1. Food Retailer
2. General Merchandise
Retailers
3. Nonstore Retailers
4. Service Retailing

4. Food Retailers
• Conventional Supermarkets
– Is a self service food store offering groceries, meat and has a size of
under 20,000 square feet.
• Superstores
– Are large supermarkets (20,000to 50,000sq ft)
• Supercenters
– Are a combination of a supermarket and a general merchandise
discount store under one roof (150,000 sq ft)
• Warehouse Supermarkets
– Are discount food retailers that offe merchandise in a no frills
environment
• Convenience Stores
– Provides a limited variety and assortment of merchandise at a
convenient location in a 3,000 to 8,000 sq ft store with speedy check out

11. General Merchandise Retail Stores
• Department stores
• Discount Stores
• Specialty Stores
• Category Specialists / Killers
• Home Improvement Centers
• Warehouse Clubs
• Off Retailers Retailers

17. Catalogue retailing
communicates via a catalogue (!) – history in rural communities –
growth is slowing
Direct-mail
communicates using letters/brochures – history in rural communities
Direct Sell
retailing communicates through personal, face-to-face contact-
stagnant growth
TV Home Shopping
communicates via TV(!) – growth is stagnant
Vending Machines – growth is stagnant
Status of non-electronic non-store retailing

21. Shopping Comparison – Major Marketing
Difference for Customer Relationship
(from retailer’s perspective)
In-store visit
• Only captures
customer information
if the customer buys
something
• If the customer walks
out of the store, no
way of re-connecting
with them
On-line visit
• Can see which
items/categories a
customer views, even
if they do not buy
anything
• Can get back in touch
with the customer
with suggested
merchandise based
on customer’s on-line
journey through their
site

22. What Can You Buy Now
on the Internet?
 Not much and it isn’t easy
 Successful Internet retailers
­ Dell, Gateway Computers ( + software)
­ Amazon.Com
­ Travel Services
­ Gifts - 1-800-FLOWERS
­ Niche Products – Beauty products, wine

23. Factors Affecting the
Diffusion of an Innovation
• Ease with which the innovation can be tried
out
– On-line access
• Perceived risks of adoption
– Security, Privacy
• Perceived benefits compared to present
alternatives (going to store or buying from
catalogs)

24. Internet Applications for
Store-based Retailers
• Building Brand Name and Store Image
– Limited Reach and Frequency
– Rational Versus Emotional Appeals
– Managing Virtual Communities
• Pre-Shopping Information
• Selling Merchandise

25. Store-based Retailers Vs.
Electronic Retail Entrepreneurs
• Knowledge of Retailing
– Assortment Planning
– Distribution Systems
• Reputation
• Customer Database
• Convenient Locations for Picking Up,
Returning
• Established Vendor Relationships

26. Winners and Losers
• Catalog Retailers Are Well Positioned
• Most Vendors Will Not Be Able to Effectively
Selling Directly to Consumers
• Store-Based Retailers Have Strong Potential
But Need to Exploit the Unique Benefits of
Internet – Personalization – “Mass
Customization”

27. Wholesaling
• the activity of selling to buyers for resale
or to further their own business
operations.
• It refers to the marketing activities
associated with selling products to
purchasers that resell the products, use
them to make another product, or use
them to conduct business activities.

28. Categories and Types of
Wholesalers
• Categories
– Merchant wholesalers
• Take title to products they
resell, earnings from mark up
– Agents, Brokers, Commission
Merchants
• Do not take title to products
they resell earnings from
commissions
– Manufacturers’ sales branches
and offices
• Producer owned, to survive
must add to producer
profitability
• Types
– Full service: General
Merchandise, limited line, rack
jobbers
– Limited Functions: truck
jobbers, drop shippers, cash
and carry, catalog wholesalers
– Manufacturers’ agents, import
& export agents, brokers,
commission merchants,
auction companies
– Sales branches