PRESENTATION
SUBJECT MARKETTING
ROLL NO 2215
SEMESTER 3RD
GROUP 2ND
TOPIC RETAILING AND
IT`S TYPES &
MARKETTING DECISIONS
SUBMITTED BY
LAIBA SHAKEEL
SUBMITTED TO
MAM SUMMAIYA
RETAILING
Definition:
All activities involved in selling goods or services direct to the final
consumers for personal non business use.
In these activities products and services are
sold in smaller quantities and with high frequency.
RETAILERS:
A person or business that sell goods to the public in relatively small
quantities for use or consumption rather than for sale.
Types of retailers on the basis of
amount of services
Amount of services are further
divided into three types
a)Limited Service retailer
b)Self Service retailer
c)Full Service retailer
Self Service Retailers
Serve customers who are willing to
perform their own locate-
company-select process to serve
money.
They include Wal-Mart and
SuperMarkets
Limited service retailer
Provide more sales assistance
because they carry more
shopping goods about which
customer need more
information.
Example include sears and JC
penney
Full service retailer
Assist customers in every phase of
the shopping process resulting in
higher costs that are passed on to
the customers as high prices.
Includes department stores and
specialty stores.
Types of retailers on the basis
of product line
Product line are further divided into 7 types
a) Specialty stores
b) Department stores
c) Super market
d) Convenience store
e) Super store
f) Category killer
g) Service retailer
Specialty stores
A retail stores that carries a narrow product
line with a deep assortment (variety of
collection) within that line, for example
Bata and Service shoe stores. Both these
examples only sell shoes and related items
nothing else.
Department store
A retail organization that carries a wide
variety of product lines each is
operated as a separate department,
for example Haji Karim Baksh (HKB) in
Lahore and Aaghas in Karachi carry
wide variety of product lines.
Super market
A large low cost, high volume, self
services that carries high variety of
grocery and house hold products.
Best examples for super market are
Imtiaz super market (Pakistan)
kroger (United States).
CONVENIENCE STORE
A small store located near a residential
area that is open long hours seven
days a week and carries limited line
with high turned convenience goods.
Examples of convenience store is local
kirana shops that keep products of
daily necessity of life.
Super store
Superstores are much larger than regular
super market and offer large assortment
variety of routinely purchased food
products, nonfood items and services. Wal-
Mart (United states), Big Bazaar (India) offer
super centers Wal-Mart, which has more
than 2,200 supercenters worldwide and
opening more and more.
Category killer
A giant specialty store that carries a very
deep assortment of a particular line and is
staffed by knowledgeable employees. Size
of airplane hanger that carry in a wide
range of categories including books, baby
gear, toys, electronics, towels, party goods
and even pet supplies etc.
Service retailer
A retailer whose product line is actually a service,
including hostels, airlines, banks, colleges and
many others. Service retailers are growing faster
than product retailer.
Types of retailer on the basis of
relative price
Retailer can also be classified according to the prices they
charge. The retailers that feature low prices are discount
stores and “off price” retailer.
Relative price retailer are further divided into 5 types
a) Discount store
b) Off-price retailer
c) Independent off-price retailer
d) Factory outlets
e) Warehouse club
Discount store
A retailer operation that sells standard
merchant off lower prices by accepting
margins and selling at higher volume.
According to one financial guru, a
world-leading retailer Wal-Mart is “the
retailing machine of all time”
dominates the discounters.
OFF Price retailer
A retailer that buys a less-than-
regular wholesale prices and
sells at less than retail. Off-price
retailers can be found in all
areas, from food, clothing and
electronics.
Independent off-price
retailer
Independent off-price retailer is an off-
price retailer that is either independent
owned and run or is a division of a
larger retail operations are run by
smaller independents, most large off-
price retailer chains. Examples include
store retailers such a TJ Maxx,
Marshalls, owned by Tjx companies.
Factory outlets
An off-price retailing operation that is owned and
operated by a manufacturer and that normally
carries the manufacturer’s surplus (excess or left
over), discontinued (no longer available) or
irregular goods (out of order-incorrect).
Firms such as Nike, Reebak, Levi Stravss and others
sometimes grood together in factory outlets malls
retail centers, where they offers prices as low as
50% below normal retailer.
Warehouse club
An off-price retailer that sells a limited
selection of brand name grocery items,
clothing, and hodgepodge (collection) of
other goods at deep discounts to members
who pay annual membership fees.
Examples are “Castco” Bj’s wholesale Club
in the united states “or Metro” in pakistan
Types of retailer on the basis of
organizational approach
Organizational approach are further divided into 5
types.
a) Corporate chain
b) Voluntary chains
c) Retailer cooperatives
d) Frunchise organization
e) Mercahndising conglomerates
Corporate chains
▪ Corporate chains are two or more
outlets that are commonly owned
and controlled.
▪ Size allows them to buy in large
quantities at lower prices and gain
promotion economies
▪ _ SEARS
▪ _ CVS
Voluntary chains
Voluntary chains are wholesale sponsored groups
of independent retailers that engage in group
buying and common merchandising.
IGA
Western Auto
Retailer Cooperatives
Retailer cooperatives is a group of
independent retailer that band together to
set up a joint merchandising and promotion
effort.
• Ace Hardware
• Associated Grocers
Frunchise organization
Frunchise organization are based on some unique
product or services; on a method of doing
business or on the trade name, good will, or patent
that the frunchisor has developed.
Merchandising conglomerates
Merchandising conglomerates are
corporations that combines several retailing
forms under central ownership.
Limited Brands
Major Retailer Marketing Decisions
a)Target Market and Positioning Decisions
b)Product Assortment Services Decisions
c) Price Decision
d)Promotion Decision
e) Place Decision
f) Site Selection for Retail Location
Target market and positioning
decision
The target market are first must be defined by
retailers and then they will make decision about
how to position themselves in those markets.
In defining target market and position clearly, too
many retailers fail. They struggle to have
something for everyone and wind up fulfilling no
market well. On the other hand, successfully
retailers specify their target markets properly and
position themselves effectively.
Product assortment and
service decision
There are three main product variables upon which the
retailers must make decision. These three variable are
services mix, product assortment and store atmosphere.
The classification of product of retailers should
agree with the target shoppers expectations. A retailer can
utilize any of product differentiate itself from customers.
Price decision
The price policy of a retailer is very important
positioning element and should be decided in
relation to its product and service classification,
its target market and its competition.
All the retailers want to charge high
margins and at high volume of sales but the
occasionally go together. Many retailers either
get low markups at high volume of sales high
markup at low volume of sales.
Promotion decision
Normal promotion tools are used by retailers like personal
selling, advertising, public relations sales promotion and
direct market to each consumers.
They advertise in magazines, newspapers,
television and radio. Advertising may be assisted by direct
mail pieces and newspaper inserts. Personal selling needs
proper training of sales people in how to meet the
requirements of customers, greet them and manage their
complaint.
Place decision
Retailing success is based on three critical factors
reffered by retailers which are location and
location. The ability to attract customers is a key of
retailer’s location. The retailers profit are seriously
influence by costs of establishing or leasing
facilities.
Site selection for retail location
For retailer plaining to open new stores, site
selection is an important decision. They no only
measure potential of the site in terms of likely
profitability and sales but also decide that whether
they should open standalone store or a mall.
