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es 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. 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. Direct Marketing ? Direct Marketing – The use of telephone and nonpersonal media to introduce products to consumers, who then can purchase them via mail, telephone, or the Inter – A type of nonstore retailing ? Nonstore Retailing – The selling of products outside the confines of a retail facility 12 Copyright 169。 Houghton Mifflin Company. All rights reserved. Other Types of Nonstore Retailing ? Direct Selling – The marketing of products to ultimate consumers through facetoface sales presentations at home or in the workplace ? Party plans: hosting groups to view a product demonstration and encouraging participants to purchase the products – Benefits ? Personal attention to customer ? Convenience of time and place of presentation – Limitations ? High costs make it the most expensive form of selling ? Negative consumer view of direct selling 16 Copyright 169。 Houghton Mifflin Company. All rights reserved. 20 Copyright 169。 Houghton Mifflin Company. All rights reserved. Strategic Issues in Retailing (cont’d) ? Traditional Shopping Centers – Neighborhood shopping centers ? Usually consist of several small convenience and specialty stores. – Community shopping centers ? Include one or more department stores (anchors), some specialty stores, and convenience stores. – Regional shopping centers ? Have the largest department stores, the widest product mix, and the deepest product lines of all shopping centers. 24 Copyright 169。 Houghton Mifflin Company. All rights reserved. Strategic Issues in Retailing (cont’d) ? Retail Positioning – Identifying an unserved or underserved market segment and serving it through a strategy t