Exploring Retail Marketing Retailing Is Everywhere There are

Exploring Retail Marketing

Retailing Is Everywhere There are many types of retailing and many places retailers do business.

The Beginnings As basic needs were met… Food, water, shelter, clothing People wanted more than they could provide for themselves Began swapping or trading General stores appeared Specialty stores became common Catalog retailing opened the doors

The Beginnings Cont. Shopping Centers became… Shopping Malls The Internet

What is Retailing? Selling of products and services. Products-goods and services that have a monetary value. Two major types Those that sell products or goods Those that provide a service

Retailing is Global Some type of retailing exists everywhere Advances in communications and the Internet have made it a more global activity U. S. companies have expanded to other nations. Foreign countries have outlets in the U. S. Goods are produces on a global level.

Where’d it come from? Examine your clothing and possessions you have with you today. Identify the item, brand name, store purchased, and where they were made.

Traditional store based retailers Operate and conduct business from a fixed location Display merchandise for customers to inspect and purchase Try to make it appealing so you will make a purchase Most prevalent form of retailing Each has distinguishing characteristics

Internet Retailers Sell their goods and services though the Internet. Click and mortar versus brick and mortar Shop from any location in the world 24/7, 365.

Familiarity Breeds Success Some retail companies use the Web to do more than just send customers to their store locations. Sephora is a beauty-store chain that carries over 250 lines of products. Its Web site, Sephora. com, has the image and accessibility of the retail stores. Customers can find the same products and personalized customer service that is found in the retail store. This familiarity puts customers at ease so they will shop online again.

Online Activity 1. View the Sephora Web site. What makes the site successful? sephora 2. Select a site with a retail presence that you’ve shopped at before. Does the site convey a familiarity similar to the store? If so, describe. If not, what could they do?

Catalog Retailers Purchase products through the mail or other delivery services. Purchase goods, store in a warehouse Typically don’t have a retail store Photographs with descriptions and prices List of prospective customers

Counterfeit Products Sales of counterfeit items totaled well over $200 -600 billion in sales lost Sale of goods without permission of the trademark or copyright of the owner Dramatically increased with the easily copied items like CDs, software, and DVDs. Top end knockoffs are even more lucrative Manufacturers are fighting back with magnetic tags and hologram stickers as well as prosecuting offenders. The high cost of fakes

The top ten counterfeited goods Footwear $99. 8 million 38% of sales 1. Consumer Electronics $31. 8 million 12% of sales Handbags/Wallets/ Backpacks & Apparel $21. 5 million 8% of sales Watches/Parts $15. 5 million 6% of sales Computers/Hardware $12. 5 million 5% of sales Media/Pharmaceuticals Jewelry $11. 1 million 4% of sales $10. 5 million 4% of sales Toys/Electronic Games $5. 5 million 2%

Dilemna of Counterfeits/Activity i Manufacturers are fighting back with magnetic tags and hologram stickers. Watch out for Web sites, too. Operators of Fakegifts. com were recently shut down by a federal grand jury. ASSIGNMENT- FIND TWO KNOCKOFF WEBSITES…WHAT DO THEY CARRY?

Retailing is High Tech The Internet allows retailers to: Increase their customer base Ease purchasing Retailing Video Train employees TV/Satellite for training/company info Retailing Computers Track inventory & orders Operate cash registers Reordering from sales data Gather customer data Scanners Up-to-date info

Nature of Retailing Many characteristics are shared by all retailers Most important-The desire to make their products available when & where the customer wants them.

Channels of Distribution How the product gets from the manufacturer to the retailer. Direct Channel Directly from the manufacturer to the consumer Avon Indirect Channel Product makes an additional stop Producer Channel Manufacturer owns the retail store Levi Costco & Sams Club Act as wholesaler and retailer Business & individuals

Manufacturers/Producers A Agents Wholesalers Indirect Direct Retailers A B C Consumers D E

Benefits of Retailing is the 2 nd largest industry nationally in number of stores, or outlets, and in number of employees. Benefits customers, community, and the local and national economies.

Benefits to Customers Stores Catalog Internet Browsing, Touching & Feeling products Convenience Entertainment/ Social Interaction Personal Service Portability; access Safety Broad selection Cash Payment Visual Presentation Detailed Info/ Personalization Problem Solving Info Immediate gratification

Benefits to the Community Source of employment Support local community activities Pizza night National retailers support national philanthropic efforts Breast cancer, special Olympics

Benefits to the Economy Local retailers purchase products from national companies Needs and Wants Purchases are determined by the condition of the economy Sales and the Economy Retail sales help to forecast the health of the economy

Case Study Old Navy first set sail in 1994 as part of the Gap, Inc. fleet of companies. Gap was founded in 1969 by Donald and Doris Fisher in San Francisco with a single store. It is now one of the top retailers in the world with about 4700 stores in 90 countries. The first 3 stores opened in Nor. Cal offering hip but affordable clothing. It expanded and earned $1 billion in its first three years. Old Navy entered international waters in 1991, launching 12 stores in Canada.

INNOVATIVE MARKETING Old Navy’s employee headsets, campy ads and “the denim game” ranked in the top 20 in brand recall surpassing some Super Bowl ads. Their commercials have a mix of pop culture personalities-Barbara Eden, Eartha Kitt, and Morgan Fairchild. By targeting costconscious customers, with unique marketing and promotions, Old Navy has continued to sail the high seas. Who do you think is a typical Old Navy customer?

Old Navy and the Fleet Activity Get in groups of no more than four students. Compare and Contrast the companies under the Gap umbrella. Consider the 4 Ps (product, place, price and promotion) Prepare a document explaining your findings. Be prepared to present it.

What Retailers Do Buying Merchandise Determining Selling Price Storing Goods for Purchase Advertising & Promoting Displaying Merchandise Selling Goods & Services Servicing Products Providing Customer Service Risk Management Hiring/Managing Employees

What is your favorite retailer? 1. What kind of merchandise do they sell? 2. Why do you like it? Explain 3. How long has the store been in business? 4. What similar stores compete with it? 5. What advantages do the competition have over your favorite store? 6. What advantages does your store have over its competitors?