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Part Six Distribution Decisions 17 Retailing and Direct Marketing Objectives 1. To understand the purpose and function of retailers in the marketing channel 2. To identify the major types of retailers 3. To understand direct marketing and two other forms of nonstore retailing 4. To examine major types of franchising and the benefits and weaknesses of franchising 5. To explore strategic issues in retailing 2 Copyright 169。 Houghton Mifflin Company. All rights reserved. Chapter Outline ? The Nature of Retailing ? Major Types of Retail Stores ? Direct Marketing ? Other Types of Nonstore Retailing ? Franchising ? Strategic Issues in Retailing 3 Copyright 169。 Houghton Mifflin Company. All rights reserved. The Nature of Retailing ? Retailing – Transactions in which ultimate consumers are the buyers ? Retailers – Organizations that purchase products for the purpose of reselling them to ultimate consumers ? Retailers add value—shopping convenience, services, and purchasing assistance to customers ? Retailers create utility—time, place, possession, and form – Success in retailing es from having a strong customer focus coupled with desired levels of service, product quality, and innovation. 4 Copyright 169。 Houghton Mifflin Company. All rights reserved. 5 Copyright 169。 Houghton Mifflin Company. All rights reserved. Major Types of Retail Stores ? GeneralMerchandise Retailers – A retail establishment that offers a variety of product lines – Department stores ? Large retail anizations characterized by wide product mixes and anized into separate departments to facilitate marketing efforts and internal management – Discount stores ? Selfservice, general merchandise stores offering brand name and private brand products at low prices 6 Copyright 169。 Houghton Mifflin Company. All rights reserved. Major Types of Retail Stores (cont’d) ? GeneralMerchandise Retailers (cont’d) – Supermarkets ? Large, selfservice stores that carry a plete line of food products, along with some nonfood products – Superstores ? Giant retail outlets that carry food and nonfood products found in supermarkets, as well as most routinely purchased consumer products 7 Copyright 169。 Houghton Mifflin Company. All rights reserved. Major Types of Retail Stores (cont’d) ? GeneralMerchandise Retailers (cont’d) – Hypermarkets ? Stores that bine supermarket and discount shopping in one location – Warehouse clubs ? Largescale, membersonly establishments that bine features of cashandcarry wholesaling with discount retailing 8 Copyright 169。 Houghton Mifflin Company. All rights reserved. Major Types of Retail Stores (cont’d) ? GeneralMerchandi