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Copyright?2011byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/IrwinCopyright?2011byThLO1Identifyretailersintermsofthe
utilitiestheyprovide.Explainthealternativewaysto
classifyretailoutlets.LO2LEARNINGOBJECTIVES(LO)
AFTERREADINGCHAPTER14,YOUSHOULDBEABLETO:Describethemanymethodsofnonstoreretailing.LO314-2LO1IdentifyretailersintermsLEARNINGOBJECTIVES(LO)
AFTERREADINGCHAPTER14,YOUSHOULDBEABLETO:LO4Specifytheretailingmixactionsusedtoimplementaretailingstrategy.Explainchangesinretailingwiththewheelofretailingandtheretaillifecycleconcepts.LO5Describethetypesoffirmsthatperformwholesalingactivitiesandtheirfunctions.LO314-3LEARNINGOBJECTIVES(LO)
AFTE84MILLIONCONSUMERSWERESHOPPINGONLINEONCYBERMONDAY.WEREYOUONEOFTHEM?14-484MILLIONCONSUMERSWERESHOPTHEVALUEOFRETAILINGLO1RetailingConsumerUtilitiesOfferedbyRetailingPlacePossessionTheGlobalEconomicImpactofRetailingFormTime14-5THEVALUEOFRETAILINGLO1RetaiFIGURE14-1Whichretailerbestprovideswhichutilities?14-6FIGURE14-1WhichretailerbCLASSIFYINGRETAILOUTLETSLO2LevelofServiceFormofOwnershipMerchandiseLine14-7CLASSIFYINGRETAILOUTLETSLO2LMAKINGRESPONSIBLEDECISIONS
EnvironmentallyFriendlyRetailingTakesOff!LO214-8MAKINGRESPONSIBLEDECISIONS
ECLASSIFYINGRETAILOUTLETSFORMOFOWNERSHIPLO2IndependentRetailerCorporateChainWholesaler-SponsoredVoluntaryChainsContractualSystemsRetailer-SponsoredCooperatives14-9CLASSIFYINGRETAILOUTLETSLO2ICLASSIFYINGRETAILOUTLETSFORMOFOWNERSHIPLO2FranchisingContractualSystemsBusiness-Format
FranchisesProduct-Distribution
Franchises14-10CLASSIFYINGRETAILOUTLETSLO2FSelf-ServiceCLASSIFYINGRETAILOUTLETSLEVELOFSERVICELO2LimitedServiceFull-Service14-11Self-ServiceCLASSIFYINGRETAILFIGURE14-2Storesvaryintermsofthebreadthanddepthoftheirmerchandiselines14-12FIGURE14-2StoresvaryintDepthof
ProductLineCLASSIFYINGRETAILOUTLETSTYPEOFMERCHANDISELINELO2Specialty
OutletsCategory
KillersBreadthof
ProductLineGeneral
Merchandise
StoresScrambled
Merchandising14-13Depthof
ProductLineCLASSIFYFIGURE14-A
Manyretailertypesdon’thavestores:customervs.retailerinvolvement14-14FIGURE14-AManyretailertyNONSTORERETAILINGLO3AutomaticVendingDirectMailandCatalogs14-15NONSTORERETAILINGLO3AutomaticNONSTORERETAILINGLO3TelevisionHomeShoppingOnlineRetailing14-16NONSTORERETAILINGLO3TelevisioNONSTORERETAILINGLO3TelemarketingDirectSellingDo-Not-CallRegistryMaryKay14-17NONSTORERETAILINGLO3TelemarkeFIGURE14-3Elementsofaretailingstrategy14-18FIGURE14-3ElementsofareRETAILINGSTRATEGYRETAILPRICINGLO4RetailingMixOriginal
MarkupMaintainedMarkupGross
MarginMarkdown14-19RETAILINGSTRATEGYLO4RetailingRETAILINGSTRATEGYRETAILPRICINGLO4EverydayLowPricing(EDLP)EverydayFairPricingBenchmarkorSignpostItemsOff-PriceRetailingOutletStore14-20RETAILINGSTRATEGYLO4EverydayRETAILINGSTRATEGYSTORELOCATIONLO4CentralBusinessDistrictAnchorStoresRegionalShoppingCentersStripMallPowerCenterMultichannelRetailers14-21RETAILINGSTRATEGYLO4CentralBMallofAmericaTVAd
Whattypeofstorelocation?LO414-22MallofAmericaTVAd
WhattypRETAILINGSTRATEGYRETAILCOMMUNICATION&MERCHANDISELO4RetailCommunicationAtmosphereorAmbianceImageMerchandiseCategoryManagementMarketingMetricsConsumerMarketingatRetail(CMAR)14-23RETAILINGSTRATEGYLO4RetailCoUSINGMARKETINGDASHBOARDS
WhyAppleStoresMayBe
theBestintheUnitedStates!SalesperSquareFoot($)andSameStoreGrowth(%)LO414-24USINGMARKETINGDASHBOARDS
WhyTHECHANGINGNATUREOFRETAILINGTHEWHEELOFRETAILINGANDRETAILLIFECYCLELO5WheelofRetailingRetailLifeCycle14-25THECHANGINGNATUREOFRETAILIFIGURE14-4Thewheelofretailingdescribeshowoutletschangeovertime14-26FIGURE14-4ThewheelofretFIGURE14-5Theretaillifecycledescribesthestageofgrowthanddeclineforretailoutlets14-27FIGURE14-5TheretaillifeWHOLESALINGMERCHANTWHOLESALERSLO6MerchantWholesalersFull-ServiceWholesalersGeneralMerchandise
(Full-Line)WholesalersSpecialtyMerchandise
(Limited-Line)Wholesalers14-28WHOLESALINGLO6MerchantWholesaWHOLESALINGMERCHANTWHOLESALERSLO6RackJobbersCashandCarryWholesalersDropShippers/DeskJobbersTruckJobbersMerchantWholesalersLimited-ServiceWholesalers14-29WHOLESALINGLO6RackJobbersCashWHOLESALINGOTHERINTERMEDIARIESLO6AgentsandBrokersManufacturer’s
AgentsSellingAgentsBrokersManufacturerItselfBranchOfficesSalesOffices14-30WHOLESALINGLO6AgentsandBrokeMALLOFAMERICA:SHOPPING
ANDAWHOLELOTMOREVIDEOCASE1414-31VIDEOCASE1414-31VIDEOCASE14MALLOFAMERICA1.
WhyhasMallofAmericabeensuchamarketingsuccesssofar?14-32VIDEOCASE141.WhyhasMallVIDEOCASE14MALLOFAMERICA2.
What(a)retailand(b)consumertrendshaveoccurredsinceMallofAmericawasopenedin1992thatitshouldconsiderwhenmakingfutureplans?14-33VIDEOCASE142.What(a)retaVIDEOCASE14MALLOFAMERICA3.
(a)WhatcriteriashouldMallofAmericauseinaddingnewfacilitiestoitscomplex?
(b)Evaluate(i)retailstores,
(ii)entertainmentofferings,and(iii)hotelsonthesecriteria?14-34VIDEOCASE143.(a)WhatcriteVIDEOCASE14MALLOFAMERICA4.
WhatspecificmarketingactionswouldyouproposethatMallofAmericamanagerstaketo
ensureitscontinuingsuccessinattractingvisitors(a)fromthelocalmetropolitanareaand
(b)fromoutsideofit?14-35VIDEOCASE144.WhatspecificRetailingRetailingconsistsofallactivitiesinvolvedinselling,renting,andprovidingproductsandservicestoultimateconsumersforpersonal,family,orhouseholduse.14-36RetailingRetailingconsistsofScrambledMerchandisingScrambledmerchandisingconsistsofofferingseveralunrelatedproductlinesina
singleretailstore.14-37ScrambledMerchandisingScramblTelemarketingTelemarketingconsistsofusingthetelephonetointeractwithandselldirectlytoconsumers.14-38TelemarketingTelemarketingconRetailingMixTheretailingmixconsistsof
theactivitiesrelatedtomanagingthestoreandthemerchandiseinthestore,whichincludesretailpricing,storelocation,retailcommunication,andmerchandise.14-39RetailingMixTheretailingmixMultichannelRetailersMultichannelretailersareretailersthatutilizeandintegrate
acombinationoftraditionalstoreformatsandnonstoreformatssuchascatalogs,television,andonlineretailing.14-40MultichannelRetailersMultichaCategoryManagementCategorymanagementisanapproach
tomanagingtheassortmentofmerchandiseinwhichamanagerisassignedtheresponsibilityforselecting
allproductsthatconsumersinamarketsegmentmightviewassubstitutesfor
eachother,withtheobjectiveofmaximizingsalesandprofitsinthecategory.14-41CategoryManagementCategorymaWheelofRetailingThewheelofretailingisaconceptthatdescribeshownewformsofretailoutletsenterthemarket.14-42WheelofRetailingThewheelofRetailLifeCycleTheretaillifecycleisthe
processofgrowthanddecline
thatretailoutlets,likeproducts,experienceovertime.Theretaillifecycleconsistsoftheearlygrowth,accelerateddevelopment,maturity,anddeclinestages.14-43RetailLifeCycleTheretailliMerchantWholesalersMerchantwholesalersareindependentlyownedfirmsthattaketitletothemerchandise
theyhandle.14-44MerchantWholesalersMerchantwManufacturer’sAgentsManufacturer’sagentsareagentswhoworkforseveralproducersandcarrynoncompetitive,complementarymerchandiseinanexclusiveterritory.Alsocalledmanufacturer’srepresentatives.14-45Manufacturer’sAgentsManufactuBrokersBrokersareindependentfirms
orindividualswhoseprincipalfunctionistobringbuyersandsellerstogethertomakesales.14-46BrokersBrokersareindependentCopyright?2011byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/IrwinCopyright?2011byThLO1Identifyretailersintermsofthe
utilitiestheyprovide.Explainthealternativewaysto
classifyretailoutlets.LO2LEARNINGOBJECTIVES(LO)
AFTERREADINGCHAPTER14,YOUSHOULDBEABLETO:Describethemanymethodsofnonstoreretailing.LO314-48LO1IdentifyretailersintermsLEARNINGOBJECTIVES(LO)
AFTERREADINGCHAPTER14,YOUSHOULDBEABLETO:LO4Specifytheretailingmixactionsusedtoimplementaretailingstrategy.Explainchangesinretailingwiththewheelofretailingandtheretaillifecycleconcepts.LO5Describethetypesoffirmsthatperformwholesalingactivitiesandtheirfunctions.LO314-49LEARNINGOBJECTIVES(LO)
AFTE84MILLIONCONSUMERSWERESHOPPINGONLINEONCYBERMONDAY.WEREYOUONEOFTHEM?14-5084MILLIONCONSUMERSWERESHOPTHEVALUEOFRETAILINGLO1RetailingConsumerUtilitiesOfferedbyRetailingPlacePossessionTheGlobalEconomicImpactofRetailingFormTime14-51THEVALUEOFRETAILINGLO1RetaiFIGURE14-1Whichretailerbestprovideswhichutilities?14-52FIGURE14-1WhichretailerbCLASSIFYINGRETAILOUTLETSLO2LevelofServiceFormofOwnershipMerchandiseLine14-53CLASSIFYINGRETAILOUTLETSLO2LMAKINGRESPONSIBLEDECISIONS
EnvironmentallyFriendlyRetailingTakesOff!LO214-54MAKINGRESPONSIBLEDECISIONS
ECLASSIFYINGRETAILOUTLETSFORMOFOWNERSHIPLO2IndependentRetailerCorporateChainWholesaler-SponsoredVoluntaryChainsContractualSystemsRetailer-SponsoredCooperatives14-55CLASSIFYINGRETAILOUTLETSLO2ICLASSIFYINGRETAILOUTLETSFORMOFOWNERSHIPLO2FranchisingContractualSystemsBusiness-Format
FranchisesProduct-Distribution
Franchises14-56CLASSIFYINGRETAILOUTLETSLO2FSelf-ServiceCLASSIFYINGRETAILOUTLETSLEVELOFSERVICELO2LimitedServiceFull-Service14-57Self-ServiceCLASSIFYINGRETAILFIGURE14-2Storesvaryintermsofthebreadthanddepthoftheirmerchandiselines14-58FIGURE14-2StoresvaryintDepthof
ProductLineCLASSIFYINGRETAILOUTLETSTYPEOFMERCHANDISELINELO2Specialty
OutletsCategory
KillersBreadthof
ProductLineGeneral
Merchandise
StoresScrambled
Merchandising14-59Depthof
ProductLineCLASSIFYFIGURE14-A
Manyretailertypesdon’thavestores:customervs.retailerinvolvement14-60FIGURE14-AManyretailertyNONSTORERETAILINGLO3AutomaticVendingDirectMailandCatalogs14-61NONSTORERETAILINGLO3AutomaticNONSTORERETAILINGLO3TelevisionHomeShoppingOnlineRetailing14-62NONSTORERETAILINGLO3TelevisioNONSTORERETAILINGLO3TelemarketingDirectSellingDo-Not-CallRegistryMaryKay14-63NONSTORERETAILINGLO3TelemarkeFIGURE14-3Elementsofaretailingstrategy14-64FIGURE14-3ElementsofareRETAILINGSTRATEGYRETAILPRICINGLO4RetailingMixOriginal
MarkupMaintainedMarkupGross
MarginMarkdown14-65RETAILINGSTRATEGYLO4RetailingRETAILINGSTRATEGYRETAILPRICINGLO4EverydayLowPricing(EDLP)EverydayFairPricingBenchmarkorSignpostItemsOff-PriceRetailingOutletStore14-66RETAILINGSTRATEGYLO4EverydayRETAILINGSTRATEGYSTORELOCATIONLO4CentralBusinessDistrictAnchorStoresRegionalShoppingCentersStripMallPowerCenterMultichannelRetailers14-67RETAILINGSTRATEGYLO4CentralBMallofAmericaTVAd
Whattypeofstorelocation?LO414-68MallofAmericaTVAd
WhattypRETAILINGSTRATEGYRETAILCOMMUNICATION&MERCHANDISELO4RetailCommunicationAtmosphereorAmbianceImageMerchandiseCategoryManagementMarketingMetricsConsumerMarketingatRetail(CMAR)14-69RETAILINGSTRATEGYLO4RetailCoUSINGMARKETINGDASHBOARDS
WhyAppleStoresMayBe
theBestintheUnitedStates!SalesperSquareFoot($)andSameStoreGrowth(%)LO414-70USINGMARKETINGDASHBOARDS
WhyTHECHANGINGNATUREOFRETAILINGTHEWHEELOFRETAILINGANDRETAILLIFECYCLELO5WheelofRetailingRetailLifeCycle14-71THECHANGINGNATUREOFRETAILIFIGURE14-4Thewheelofretailingdescribeshowoutletschangeovertime14-72FIGURE14-4ThewheelofretFIGURE14-5Theretaillifecycledescribesthestageofgrowthanddeclineforretailoutlets14-73FIGURE14-5TheretaillifeWHOLESALINGMERCHANTWHOLESALERSLO6MerchantWholesalersFull-ServiceWholesalersGeneralMerchandise
(Full-Line)WholesalersSpecialtyMerchandise
(Limited-Line)Wholesalers14-74WHOLESALINGLO6MerchantWholesaWHOLESALINGMERCHANTWHOLESALERSLO6RackJobbersCashandCarryWholesalersDropShippers/DeskJobbersTruckJobbersMerchantWholesalersLimited-ServiceWholesalers14-75WHOLESALINGLO6RackJobbersCashWHOLESALINGOTHERINTERMEDIARIESLO6AgentsandBrokersManufacturer’s
AgentsSellingAgentsBrokersManufacturerItselfBranchOfficesSalesOffices14-76WHOLESALINGLO6AgentsandBrokeMALLOFAMERICA:SHOPPING
ANDAWHOLELOTMOREVIDEOCASE1414-77VIDEOCASE1414-31VIDEOCASE14MALLOFAMERICA1.
WhyhasMallofAmericabeensuchamarketingsuccesssofar?14-78VIDEOCASE141.WhyhasMallVIDEOCASE14MALLOFAMERICA2.
What(a)retailand(b)consumertrendshaveoccurredsinceMallofAmericawasopenedin1992thatitshouldconsiderwhenmakingfutureplans?14-79VIDEOCASE142.What(a)retaVIDEOCASE14MALLOFAMERICA3.
(a)WhatcriteriashouldMallofAmericauseinaddingnewfacilitiestoitscomplex?
(b)Evaluate(i)retailstores,
(ii)entertainmentofferings,and(iii)hotelsonthesecriteria?14-80VIDEOCASE143.(a)WhatcriteVIDEOCASE14MALLOFAMERICA4.
WhatspecificmarketingactionswouldyouproposethatMallofAmericamanagerstaketo
ensureitscontinuingsuccessinattractingvisitors(a)fromthelocalmetropolitanareaand
(b)fromoutsideofit?14-81VIDEOCASE144.WhatspecificRetailingRetailingconsistsofallactivitiesinvolvedinselling,renting,andprovidingproductsandservicestoultimateconsumersforpersonal,family,orhouseholduse.14-82RetailingRetailingconsistsofScrambledMerchandisingScrambledmerchandisingconsistsofofferingseveralunrelatedproductlinesina
singleretailstore.14-83ScrambledMerchandisingScramblTelemarketingTelemarketingconsistsofusingthetelephonetointeractwithandselldirectlytoconsumers.14-84TelemarketingTelemarketingconRetailingMixTheretailingmixconsistsof
theactivitiesrelatedtomanagingthestoreandthemerchandiseinthestore,whichincludesretailpricing,storelocation,retailcommunication,andmerchandise.14-
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