The Basis of Retail Establishments - Book Report/Review Example

One with self-service is known as factory stores while those falling in between the two levels are discount stores.Product assortment: this is classified by the breadth and depth of products served. Some are deep and narrow in their offering where they keep selected products but all varieties. Others keep a lesser number of product lines but few items in each product line.Price: based on pricing, retail establishments can go for discount pricing, benchmarking, or markup pricing.#4: The wheel-of-retailing depicts pattern changes in retailing.

According to this concept, a new retailer begins by marketing its products at lower prices to gain an initial foothold. When the business catches up, it then turns into conventional retailers by increasing the prices and adding on more services. At this stage, it gets threatened by new low-priced retailers which mark the turning of the wheel (Boone & Kurtz 2010, p.451). This concept does not apply to online retailing as a comparison of prices is available online. Further, physical costs are very less in online retailing thereby making competition stiff and compelling retailers to keep prices low most of the time.

Chapter 12#1: The five promotion mix tools are:Advertising- a paid form of impersonal communication of goods and ideas.Personal selling- comprises two-way communication and interaction where there is a number of potential buyers.Sales promotion- makes use of short-term incentives to stimulate sales.Public relations- is a kind of campaign or program that tends to improve the idea or image of the overall good or product.Direct marketing- is again a non-personal form of communicating product features.

#3: Push and pull are two strategies differentiated by the flow of demand and supply. In a push strategy, the products are manufactured first and then promoted to the public by various modes like personal selling, advertising, etc. On the contrary, a pull strategy is marked by determining the demand and pattern first and then promoting the manufactured products to the consumers. Tools employed here are consumer advertising, marketing research, etc.#6: Public relations are a valuable tool in the hands of marketers to build, protect and promote their image.

By means of tools like speeches, news, social networking, events, and others, public relations activity helps an organization build a brand image of its products. While favorable publicity is the trademark of this approach, it even helps in weeding out any rumors or unfavorable stories about the product or organization.