Topic-7-The-Retail-Market-Place-pp.ppt

61Topic 7The Retail Market Place.Selling products and services to final consumers for personal,non-business useIn-store or Non-storeActivity:List examples of In-store retail odepartment store,supermarkets,boutique stores,convenience store,markets,Activity:List some examples of Non-store retailing odirect mail,internet,vending machines,party selling,direct selling62What is Retailing?7.1.People and organisations that assist the movement of goods and services from manufacturer to consumerThey enable more efficient processes to occur,such as:oBreaking bulk orders into smaller deliveriesoCollecting goods from several suppliers to deliver to individual retailersoHolding stock63Marketing Intermediaries7.2.Marketing Intermediaries.65Some Retailing TermsWholesaleroPurchase in bulk sell in smaller quantitiesoSource from several suppliersoHold stockRetailersoSource stock from wholesalers(such as a Central Distribution Centre)or producers to sell to consumersTransportoMovement of goods from producer to retaileroMay involve storage in warehouses7.2.Distribution Centre.DC current and unborn network modelmanufacturer/supplierdistributorscustomersshopspurchasing logistics in the futurelogistics in the present.67Some Retailing Terms Marketing ServicesoVendor Refill the supplier replenishes the stock in the retail storeoMerchandising arranging merchandise and in-store displays.May be done by the retailer or may be provided by the producer or wholesalerSales RepresentationoSales people are needed to represent suppliersoThis role may be filled by Manufacturing Agents who represent the supplieroBuy-Sell operation is when the Manufactures Agents act as direct suppliers of merchandise.68Some Retailing Terms Positioning MerchandiseoPositioning is how customers see products in relation to competitive products(it is not about the location of the store of products!)oSome of the elements of the Marketing Mix that influence customer perception are:The price e.g.expensive or cheapPackaging e.g.graphically appealing or plain Distribution e.g.boutique store or discount storePerceived qualityPromotion is it represented as being better than competitors.How is this store positioned?.610Types of Retail VenuesDepartment StoreoWide range of merchandiseoUsually divided into areas of similar merchandise,such as white goods,furniture,electrical appliances,sound and TV equipment,womens fashion,mens fashionExample on next slide oActivity:name some of the department stores in your country or local area.What do they sell?7.3.612Types of Retail VenuesMass RetailersoUsually wide range of merchandiseoOften low price and limited service or self-serviceoOften a central checkoutoActivity:what merchandise would you purchase from these stores?Name some of these stores.613Types of Retail VenuesVariety StoresoSimilar to Mass RetailersoUsually lower pricesoSelf serviceSpecialist RetailersoFocus on specific category or range of merchandise such as white goods or electrical merchandiseoUsually have sales people to assist customers.Variety StoreSpecialist Retailer.615Types of Retail VenuesBrand RetailersoSpecialist in specific brands or supplierGroceryoMainly offering food itemsoOften self-service with central checkouts;such as supermarketsoMay be small speciality food stores with full serviceHardwareoSpecialising in building and home maintenance products.Hardware.617Positioning and PlacementStore Layout and Product PlacementoActivity:Where would you place each of these food groups in a supermarket MilkBreadFruit and vegetablesConfectionery(chips,sweets,lollies)Snack barsMagazinesMeat 7.4.Most grocery stores have similar layouts.619Positioning and PlacementStore Layout and Product PlacementoActivity:Where would you place each of these food groups in a supermarket Milk towards the back to draw people deep into the store;as most people buy this productBread also a main product;so deep inside the storeFruit and vegetables usually found at one end;people either begin or end their shopping with this groupConfectionery(chips,sweets,lollies)in the middle after customers have developed a buying habitSnack bars near the checkout for impulse buyMagazines-near the checkout for impulse buyMeat like fruit and vegetables to one side7.4.Activity 7.2Product“positioning”is seen from the customers point of view.It is an evaluation of many attributes of the product or organisation and might include how the 4ps are presented,packaging,customer service and general image of the organisation or product.Activity 7.3 Merchandising in department stores is designed to draw customers deep into the store and keep them there.Items will be grouped according to relationships between them;for example,men s shirts will be located near slacks or suites.Shoes are often located deep inside the store as they are a product that customers seek rather than impulse buy.By placing them deep inside,customers will have to walk past fashion items,which will gain their attention.Variety stores are competing with other stores in the same shopping centre;so they need to have their most desirable merchandise at the front of the store to catch the passing customer traffic.Strip shops are often“destination”merchants.Customers will specifically seek out and visit the store.They often have repeat customers and often dont have much nearby competition in their specific markets.However,they will often be located near accessory specialists to gain benefit from passing customers.Their external signage is often important so customers can find them.Merchandising should be designed to keep the customer in the store for as long as possible;so it must be interesting and purchase friendly.In the retail market place how do large department stores segment,target and position their stores against small retail clothing stores?In the retail market place large department stores will segment the market by using a total market approach by selling products aimed at the entire population.By dividing up the market into different groups based on different bases such as demographic-different age groups of customers demanding different products and user types or benefits for specific products.Department stores offer a larger amount of variety in the product ranges and products for all age groups on display which includes clothing,cosmetics,shoes,accessories,home products,watches and jewellery in their market mix.Small retail shops will concentrate their strategy on a single market-young people with a focus on specific products-female clothing or mens clothing.