enjoyment. They want to go away with memories
of a good time. The next generation of successful
retailers will offer more than just merchandise
and services; these sites will ensure that their
customers are entertained. This concept has
been dubbed “shoppertainment.”
Retailers are responding to this new
concept, resulting in an increase in the number of
entertainment-oriented stores. The idea is to draw
people for the entertainment value, with shopping
resulting from the entertainment. Some of the
newest shopping areas have built images around
theme park atmospheres. This also provides a
focus in planning the image and physical facilities
of a store or mall. Consumers expect to fi nd some
combination of restaurants, game arcade, and
multiplex theater where they shop.
Some stores and shopping centers are now
marketing themselves as tourist attractions, with
high-tech computer simulations and virtual reality
experiences. They offer interactive play with
different action outcomes based on user input.
Some malls feature indoor amusement centers
where people can go on rides or become “virtual
characters” in their favorite fi lms or TV shows.
The entertainment areas are also helping to fi ll
vacant mall spaces of stores that have closed.
Additionally, if retailers cannot make
shopping fun, they are considering moving the
shopping to where the fun is. Retailers that are
planning to open new stores might consider
locating near a movie complex, restaurant area,
casino, or in a mall where entertainment is being
added. The entertainment areas and retail stores
do not compete for sales of merchandise, but do
compete for some consumer time and money. To
bring in sales, the entertainment and retail store
segments do joint cross-marketing, promoting
themselves together to draw consumers to the
site. Consumers take advantage of both the
entertainment and shopping while they are there.
If the experience is satisfying, they will return.
The two basic retailing philosophies of
effi ciency and entertainment do not compete
with each other since they fi ll different consumer
needs at different times. Shoppers regularly visit
local shopping centers for their immediate needs,
and shop as pleasurable entertainment during
leisure times.
Summing It Up
Retail positioning enables stores to
market effectively. Retailers must defi ne their
target markets clearly and conduct ongoing
market research about the changing tastes
of their customer base. To better satisfy their
customers, retailers develop and follow specifi c
merchandising and operational policies. They
try to understand the rational and emotional
buying motives of their customers, as well as the
product and patronage motives that might affect
customers’ buying decisions.
Competition affecting retailers might be
direct, indirect, vertical, or lifestyle competition.
To differentiate from competitors, each retailer
should present a well-defi ned image. This can
be done with a combination of its merchandise
fashion level, services offered, physical
environment, employees, and promotion.
Retail product strategy involves a store’s
entire selection of goods and services. Different
approaches to assortment breadth and depth,
and levels of services, should be considered.
Price strategy involves using price to attract
customers. It must also be based on the retailer’s
image and target market. The relationship of
price to quality should be considered, and the
option of price promoting. Other specifi c pricing
approaches are pricing below the market, value
pricing below suggested list price, entering into
a price war, using a price line selling policy, or
following an everyday low pricing strategy.
Place strategy relates to site location
and facilities design. Store location might be
in a central business district, neighborhood
13-31 The existence of wide aisles, clear
intersections, and good signage provides
for effi cient shopping.
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