Marketing Chapter 16 Retailing and Multichannel Marketing

Retailing
set of business activities that add value to products and services sold to consumers for their personal or family use (products bought at stores, catalogs, internet, etc)
Multichannel strategy
involves selling in more than one channel
1) Choosing retailing partners
2) Identifying types of retailers
3) Developing a retail strategy
4) Managing a multichannel strategy
4 factors for establishing a relationship with retailers
distribution intensity
number of channel members to use at each level of the marketing channel
1) Intensive
2) Exclusive
3) Selective
3 levels of distribution intensity
intensive distribution
designed to place products in as many outlets as possible
exclusive distribution
granting exclusive geographic territories to one or very few retail customers so no other retailers in the territory can sell that particular brand
Selective distribution
few selected retail customers in a territory to sell products
Conventional supermarket
self-service retail food store offering groceries, meat, and produce with limited sales of nonfood items, stocks 30,000 SKU
Stock keeping units
unique inventory item
Limited assortment supermarkets
only stock 2,000 SKU
Supercenters
large stores that combine a supermarket with a full-line discount store (Walmart)
Warehouse clubs
large retailers that offer a limited and irregular assortment of food and general merchandise, little service, and low prices to the general public and small businesses (Sam’s Club)
Convenience stores
provide a limited variety and assortment of merchandise at a convenient location with speedy checkout
Department stores
retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments
Full-line discount stores
retailers that offer a broad variety of merchandise, limited service, and low prices
Speciality stores
concentrate on a limited number of complementary merchandise categories and provide a high level of service
Drugstores
specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise
Category specialities or big box retailers
offer a narrow but deep assortment of merchandise, can kill a category of merchandise for other retailers because of low prices
Home improvement center
category specialist 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 limited merchandise assortment at very low prices (Dollar General)
Off-price retailers (close-out retailers)
offer an inconsistent assortment of brand name merchandise at a significant discount from the MSRP (TjMaxx)
irregulars
merchandise with minor mistakes in construction
Outlet stores (factory outlet)
off-price retailers owned by a manufacturer, department or speciality store chain
Services retailers
firms that primarily sell services rather than merchandise
mobiel commerce
product and service purchases through mobile devices
1) Browsing
2) Touching and feeling products
3) Personal service
4) Cash and credit payment
5) Entertainment and social experience
6) Immediate gratification
7) Risk reduction
7 benefits of stores to consumers
online chat
provides customers with the opportunity to click a button at any time and have an instant messaging email or voice conversation with a customer service representative
cookie
collect data on how consumers behave through a website monitoring each mouse click to track characteristics of the products customers considered and what they looked at
cannibalization
customers who made purchases at the retailer’s store now make the same purchases through the retailer’s internet channel