Chapter 17 – Retailing and Multichannel Marketing

Retailing
selling to consumers for their personal or family use through stores, catalogs, the Internet, and including services like fast-food restaurants, airlines, and hotels.
Establishing a Relationship with Retailers
1) choosing retail partners, 2) identifying types of retail stores, 3) developing a retail strategy using the 4 Ps, 4) managing an effective multi channel strategy
Distribution intensity
1) intensive, 2) selective, 3) exclusive
Intensive distribution
distribution designed to place products in as many outlets as possible
Exclusive distribution
distribution that relies on a somewhat limited number of retailers to sell products
Selective distribution
distribution that only allows a few hand-picked retailers to sell products
Conventional supermarket
a self-service retail food store offering groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise
Stock Keeping Units
What SKU stands for; it represents each unique product item at a store
Supercenters
very large stores (185,000 square feet) that combine a supermarket with a full-line discount store
Warehouse clubs
large retailers (100,000-150,000 square feet) that offer a limited and irregular assortment of food and general merchandise, large package sizes, little service, and low prices to the general public and small businesses
Convenience Stores
they provide a limited variety and assortment of merchandise at a convenient location in 3,000- to 5,000-square-foot stores with speedy checkout. They are the modern version of the neighborhood mom-and-pop grocery/general store
Full-line discount stores
retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise.
?
retailers that offer a broad variety of merchandise, limited service, and low prices
Specialty Stores
concentrate on a limited number of complementary merchandise categories and provide a high level of service
Drug stores
specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise
Category specialists
big box retailers that offer a narrow but deep assortment of merchandise with low prices and a predominantly self-service approach
??
category specialists offering equipment and material used by do-it-yourselfers and contractors to make home improvements
Extreme Value retailers
small, full-line discount stores that offer a limited merchandise assortment at very low prices
Off-price retailers
offer an inconsistent assortment of brand name merchandise at a signi´Čücant discount from the manufacturer’s suggested retail price (MSRP)
???
off-price retailers owned by manufacturers or department or specialty store chains
Service retailers
firms that primarily sell services rather than merchandise
Share of wallet
the percentage of the customer’s purchases made from that particular retailer
Benefits of stores for consumers
1) Browsing, 2) Touching & Feeling Products, 3) Personal Service, 4) Cash and Credit Payment, 5) Entertainment and Social Experience, 6) Immediate Gratification, 7) Risk Reduction
Benefits of the internet and multichannel retailing
1) Deeper and Broader Selection, 2) Personalization, 3) Gain Insights into Consumer Shopping Behavior, 4) Increase Customer Satisfaction & Loyalty
????
when the customers who formerly made purchases at a retailer’s store or catalog now make the same purchases through the retailer’s Internet channel