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Unformatted text preview: The Nature of Retailing Retailing: covers all the activities involved in the sale of products to final consumers. Planning a retailers strategy A retailer should carefully identify possible target markets and try to understand why these people buy where they do. A retailers whole offering is its Product Features of offering relate to needs: Convenience available hours, finding needed products, fast checkout, location Product selection width and depth of assortment Special Services - Fairness in dealings correcting problems, return priveledges, purchase risks Helpful information product information, sales help, displays Prices - value Social Image - Shopping Atmosphere A retailer must set a policy based upon all the issues above. Consumer needs relate to segmentation and positioning. Different types of retailers emphasize different strategies depending on their target market. Conventional Retailers try to avoid price competition Conventional retailers are single-line or limited-line stores stores that specialize in certain lines of related products rather than a wide assortment. The main advantage of limited-line retailers is that they can satisfy some target markets better. Expand Assortment and Service to Compete at a high price A Specialty Shop: a type conventional limited-line store usually small and has distinct personality. These shops aim at carefully defined target markets by offering a unique product assortment, knowledgeable salesclerks, and better service. Catering to certain types of customers whom the management and salespeople know well simplifies buying, speeds turnover, and cuts cost due to obsolescence and style changes. Department Stores: larger stores that are organized into many separate departments and offer many product lines. They are usually strong in customer services, including credit, merchandise return, delivery, and sales help Evolution of Mass-Merchandising retailers Modern retailers believe in mass-merchandising concept retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets. Mass-merchandisers are large, self-service stores with many departments that emphasize soft goods and staples but still follow the discount houses emphasis on lower margins to get faster turnover.lower margins to get faster turnover....
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- Fall '11