AEM 240 Ch. 14 Outline

AEM 240 Ch. 14 Outline - Chapter 14 Satisfying Marketing...

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Chapter 14: Satisfying Marketing Opportunities THE VALUE OF RETAILING Retailing’s economic value is represented by the people employed in retailing as well as by the  total amount of money exchanged in retail sales Consumer Utilities Offered by Retailing Time, place, form, and possession utilities are offered by most retailers in varying  degrees; but one utility is often emphasized more than the others The Global Economic Impact of Retailing Of the largest 30 businesses in the US are retailers (Wal-Mart, Home Depot, Target,  Costco) CLASSIFYING RETAIL OUTLETS Ways to distinguish retail outlets: Form of ownership Independent Retailer: Most common form of retail ownership is owned by an individual  o Usually offers convenience, quality personal service, and lifestyle compatibility Corporate Chain: Multiple outlets under common ownership (ex. Bloomingdales and  Macy’s both owned by Federated Department Stores Inc.)  o Advantages: Can bargain w. manufacturers to have lower prices by buying more,  consumers can deal w. multiple outlets with similar merchandise (try returning a  TAG F1 to the random retailer in Buffalo) Contractual Systems: Independently stores banding together to act like a chain (retailer- sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises) o Advantages: Retailer/wholesaler sponsored takes advantage of price discounts o Franchises Business format franchises (McDonalds)-  more restrictions
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Product distribution franchises (Ford Dealership) Level of Service (bigger difference among levels of service than among forms of ownership) Self Service: Customer performs many functions and little is provided by the outlet (ex.  warehouse stores) Limited Service: Provide some services (ie credit and merchandise return) but not others  (ie clothing alterations)  (ex. Wal-Mart), very few salespeople available Full-Service: Specialty stores, department stores Types of Merchandise Line Depth of Product line:  o stores that carry lots of related items from different product lines are  limited-line  stores o Stores that carry lots of depth in one primary line are  single-line stores Specialty discount outlets focus on one type of product (ex. electronics) at  very competitive prices and are known as category killers Breadth of Product Line o Stores that carry a broad product line with limited depth are referred to as  eneral  merchandise stores   o Scrambled merchandising  is found often, which includes several unrelated  product lines in a single store (drugstores carry food, cameras, medicine) NONSTORE RETAILING Retailing outside of stores
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