Core Concepts of Marketing

260 CHAPTER 10 CHANNELCONCEPTS:DISTRIBUTINGTHEPRODUCT

threathasbeentherapidgrowthoffranchising.Franchisingis nota newdevelopment.The

majoroilcompaniessuchas~(obilhavelongenfranchiseditsdealers, whoonlysellthe

productsofthef;-anchiser(theoilcompanies).Automobilemanufacturers alsoenfrancilise

theirdealers,whosella stipulatedmakeofcar(e.g.,Chevrolet)endoperatethei~business

tosomeextentasthemanufacturerwishes.

PlannedShoppingCenterslMaUs AfterWorldWarII,theUnitedStatesunder-

went manychanges.Amongthosemostinfluentialonretailingwerethegrowthofthepop-

ulationandoftheeconomy.Newhighwayconstructionenabledpeopletoleavetheconge~ted

centralcitiesandmovetonewlydevelopedsuburbanresidentialcommunities.~hismove-

menttothesuburbsestablishedtheneedfornewcentersofretailingtoservetheexplod-

ingpopulations.By 1960 therewere4,500suchcenterswithbothchainsandnonchains

vyingferlocation~.

Suchregi~mal:.;hoppingcentersaresuccessfulbecausetheyprovidecustomerswith

a wideas:;orLnen:of~1foducts.Ifyouwanttobuya suitora dress,a regionalshopping

centerpr0videsmanyalternativesinonelocation.Regionalcentersarethoselargercen-

tersthattypicallyhaveoneormoredepartmentstoresasmajortenants.Communitycen-

tersaremOCieratf;~Ysizedwithperhapsa juniordepartmentstore;whileneighborhoodcenters

aresmall,withthekeystOfeusuallya supermarket.Localclustersareshoppingdistricts

thathavesimplygrownovertimearoundkeyintersections, courthouses,andthelike.String

streetlocationsarealongmajortrafficroutes,whileisolatedlocationsarefreestandingsites

notnecessarilyinheavytrafficareas. Storesinisolatedlocationsmustusepromotionor

someotheraspectoftheirmarketingmixtoattractshoppers.Still,asindicatedinthe:next

Newsline,mallsarefacingseriousproblems.

NEWSLINE:THEMALL: ATHINGOFTHEPAST?

Shewasbornintoretailroyalty,adouble-deckershrinetocapitalism

thatseducedcoolcustomersaCIdwild-~yedshopaholicsaliketoroam

herexhaustingmixof 200 stores }-Ierfunky,W-shapeddesignwas

pure1960s,asifdreamedupbythatera'snotedarchitecturalwhiz,

MikeBrady.Whenherdoorsopenedthefirstmorning,abrassband

serenadedthearrivingmob.

CinderellaCity,oncethebiggestcoveredmallontheplanet,wasa

verybigdeal-foraboutsixyears,untilthenextgleamingmallcame

alongin1974.That'swhenthemusicstoppedatCinderellaCity.

Soonthepatronsgrewscarce,theconcretebegancrvmblingand

graffitistainedsomeofthewalls.It'snotpretty,butthat'sthe~old

lawoftheconsumerjungle.Oneminuteyou'reluringshoppersfrom

milesaroundtochuganOrangeJuliusorgrabasnackatthePretzel

Hut; a fewyearsgoby,andthey'replantingyouinthedreadedmall

graveyard.

Backthen,peoplemadeadayoutofwanderingthemassivecon-

coursesand lunchinginthefoodcourts.Today,withlessfree:jme

availableformanypeople,shoppingisseenasanecessity.Spending

timewithyourfamilyandathomeismoreimportantthanspending

timeinastore.

Thenewestmallsreflectthemodernneedforshoppingspeed.Cov-

eredshoppingcentersnowcomeequippedwithdozensofdoorstothe

out s ideinsteadoftwomainentrancesthatushercrowdsinandout