Marketing Levy Chapter 16 Retailing and Multichannel Marketing

Factors for Establishing a Relationship with Retailers
1. Choosing retailing partners
2. Identifying types of retailers
3. Developing a retail strategy
4. Managing a multi channel strategy
Retailing
The set of business activities that add value to products and services sold to consumers for their personal or family use; includes products bought at stores, through catalogs and over the internet, as well as services like fast-food restaurants, airlines, and hotels.
Multi-channel Strategy
Selling in more than one channel ( store internet catalog)
Distribution Intensity
The number of supply chain members to use at each level to supply chain.
Intensive Distribution
A strategy designed to get products into as many outlets as possible.
Exclusive Distribution
Strategy in which only selected retailers can sell a manufacturer’s brand.
Selective Distribution
Lies between the intensive and exclusive distribution strategies, uses a few selected customers in a territory.
Conventional Supermarket
Type of retailer that offers groceries, meat and produce with limited sales of nonfood items such as health and beauty aids and general merchandise in a self-service format.
Stock Keeping Units (SKUs)
Individual items within each product category; the smallest unity available for inventory control
Limited Assortment Supermarkets
Retailers that offer only one of two brands or sizes of most products (usually including store brand) and attempt to achieve great efficiency to lower costs and prices. See Extreme Value Food Retailers
Extreme Value Food Retailers
Retailers that offer only one of two brands or sizes of most products (usually including store brand) and attempt to achieve great efficiency to lower costs and prices. See Limited Assortment Supermarkets.
Supercenters
Large stores combining full-line discount stores with supermarkets in one place.
Warehouse Clubs
Large retailers with an irregular assortment, low service levels and low prices that often require membership for shoppers.
Convenience Stores
Type of retailer that provides a limited number of items at a convenient location in a small store with speedy checkout.
Department Stores
A retailer that carries many different types of merchandise (broad variety) and lots of items within each type (deep assortment) offers some customer services and its organized into separate departments to display its merchandise.
Full-Line Discount Stores
Retailers that offer low prices, limited service and a broad variety of merchandise.
Speciality Stores
A type of retailer that concentrates on a limited number of complementary merchandise categories in a relatively small store.
Drugstores
A speciality store that concentrates on health and personal grooming merchandise through pharmaceuticals may represent more than 60 percent of its sales.
Category Specialists
A retailer that offers a narrow variety but a deep assortment of merchandise.
Big Box Retailers
Discount stores that offer a narrow but deep assortment of merchandise. See Category Killer
Category Killers
A specialist that offers an extensive assortment in a particular, category that other retailers have difficulty competing
Extreme Value Retailers
A general merchandise discount store found in a lower-income urban or rural areas.
Off-price Retailers
A type of retailer that offers an inconsistent assortment of merchandise at relatively low prices.
Service Retailers
A firm that primarily sells services rather than merchandise.
Exclusive Co-brand
Developed by national brand vendor and retailer and sold only by that retailer
Mobile Commerce (M-Commerce)
Communicating with or selling to consumers through wireless handheld devices such as cellular phones.
Cooperative (co-op) Advertising
An agreement between a manufacturer and retailer in which the manufacturer agrees to defray some of the advertising costs.
Share of Wallet
The percentage of the customer’s purchases made from a particular retailer.
On-Line Chats
Instant messaging or voice conversation with an online sales representative.