2 fundamental steps in the marketing strategy process: 1)Select target market 2)Develop retailing mix to satisfy
: (6 components) merchandise strategy, customer service standards, pricing guidelines, target
market analysis, promotion goals, location/distribution decisions, and store atmosphere choices. In
combination, project a desired retail image.
Selecting a Target Market
Factors that influence selection: size & profit potential of the market, level of competition for business.
Most ID’d in terms of demographics
Good Location=$$ Boonies= 0
Determines success or failure of a business
Locations in Planned Shopping Centers
Planned Shopping Center
: Group of retail stores planned, coordinated, and marketed as a unit.
Shifted away from downtown districts toward suburban shopping centers.
5 main types of PSCs:
Neighbrhd shop cnter
: smaller, 5-15 stores. Convenience items & limited shopping goods. trade area = Few
Community shop cnter
: trade area extending a few miles. 10-30 store, local dept or large store main tenant.
Shopping goods, offices, bank, theater, grocery. Some have declined (box stores), some opting for free-
Regional shop cnter
: large 300,000+ sqf shopping space. Major dept stores, with 200+ smaller stores to
supplement. Within 30 min driving from 250,000 people. Wide assortment of goods & services. Some going
: Located near regional or superregional mall, brings huge specialty stores together as stand-
alone stores in a single trading area.
: combination of shopping, theaters, stages, fountains, greenways, restaurants, etc. 300,000-1
mil sqf. Seek to offer intimate & easy access. Convenience, safety, pleasant. Upscale. Decline of malls, rise
market in luxury gds.
Store Atmospherics **
: combination of physical characteristics and amenities that contribute to a store’s image.
Create it with smells, music, layout, merch presentation, lighting, color, cleanliness.
Goal: Complement retailer image, respond to customer’s interests, and induce shoppers to buy.
Types of Retailers
Most retailing operations fit in different categories/classifications
Classification by Form of Ownership
distinguishes corporate chain from independent retailer.
Independents might join voluntary chains, or enter franchise agreements.
: groups of retail outlets owned by corp & handle the same product lines. More control, but big
investmt required. Volume purchases, so cheaper.
: family, indep owned. Over 12% of all businesses in US. Friendly, personalized service.
Co-ops provide volume buying power.
Classification by Shopping Effort