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7/28/2019 Berman Ev 04
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Chapter 4
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II.
Store-Based
Retail Strategy
Mix
III.
Service vs.
Goods Retail
Strategy Mix
IV.
Nonstore-Based
Retail Strategy Mix
and Nontraditional
Retailing
I.
Ownership
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I.
Ownership
Independent Chain
Franchise
Lease Department
Vertical Marketing System
Consumer Cooperative
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Flexibility Investment Costs Down
Specialists
Strong Control Image
Consistency
Independence Entrepreneurial Drive
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Lack of Power
No Economies of Scale
Labor Intensive Limited Access to Advertising
Over-dependence on Owner
Limited Resources for Long-runPlanning
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Bargaining Power
Cost Efficiencies
Operating Efficiencies Technical Abilities
Advertising Availability
Defined Management Philosophies
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Time and Resources Spent on Long-runPlanning
Limited Flexibility
Investments High
Managerial Control Difficult
Limited Independence for Personnel
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Product/Trademark
Business Format
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Manufacturer-Retailer
Service Sponsor-Retailer
Wholesaler-Retailer
Cooperative
Voluntary
http://careers.wsj.com/franchise/index.html7/28/2019 Berman Ev 04
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Small Capital Investment
Brand Awareness
Operation Procedures andManagement Skills
Cooperative Marketing
Exclusive Selling Rights Purchasing Costs
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Oversaturation
Franchisor Overselling
Contract Provisions Cancellation Clauses
Short Duration
Gross Sales Based Royalties
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National or Global Presence
Ownership Qualifications Set
Money Obtained onDelivery
Stringent Rules for Franchisees
Franchisee Work Incentive Royalties Continue
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Damaged Reputation
Loss of Customer Loyalty
Intra-franchise Competition Reduced Resale Value
Injured Profitability
Franchisee Desire forIndependence
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Fills Merchandise and Expertise Gaps
Enlarged Market
Reduces Store Costs Lessee Assumes Administration Rol
Percent of Revenues
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Conflicts in Operating Procedures
Damaged Image
Customer Blame
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Well Know Store
Reduced Costs
Economies of Scale
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Inflexibility in Hours
Product Line Restrictions
Raised Rent
Sales Expectations Not Met
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FOOD-ORIENTED RETAILERS
Convenience Store
Conventional Supermarket
Food-Based Superstore
Combined Store
Box (limited-line) Store Warehouse Store
II.
Store-Based
Retail Strategy
Mix
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GENERAL MERCHANDISE RETAILERS
Specialty Store
Variety Store
Traditional Department Store
Full-Line Discount Store
Off-Price Chain
Factory Outlet
Membership Club Flea Market
II.
Store-Based
Retail Strategy
Mix
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III.Service vs.
Goods Retail
Strategy Mix
Rented Goods
Owned Goods
Nongoods
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Direct Marketing
Direct Selling
Vending Machine
World Wide Web
Other Emerging
Retail Formats
IV.Nonstore-Based
Retail Strategy Mix
and Nontraditional
Retailing
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ManufacturerIndependent Manufacturer
Ownership
WholesalerIndependent Wholesaler
Ownership
RetailerIndependent Retailer
Ownership
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Manufacturer
Wholesaler
Retailer
Two Channel Members
Own All Facilities and
Perform All Functions
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Manufacturer
Wholesaler
Retailer
All Production and Distribution
Functions are Performed By
One Channel Member
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Owned by Consumers
Most Popular in Grocery
Retailing
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Ways Retail Institutes Can BeClassified
Retail Ownership Types and
Characteristics of Each
Exertion of Influence in the Channel
of Distribution
By Manufacturers
By Wholesalers By Retailers
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Questions?
Questions?
Questions?