MKT 11 Chapter 16 – Retailing and Multichannel Marketing

Retailing
The set of business activities that add value to products and services sold to consumers for their personal and family use.
Multichannel strategy
Involves selling in more than one channel.
Distribution intensity
The number of channel members to use at each level of the marketing channel.
Intensive distribution
Designed to place products in as many outlets as possible.
Exclusive distribution
Granting exclusive geographical territories to one or very few retail customers so no other retailers in the territory can sell a particular brand.
Selective distribution
Relies on a few selective retail customers in a territory to sell products.
Conventional supermarket
A self service retail food store offering groceries, meat, and produce with limited sales of non-food items and general merchandise. Stocks about 30,000 SKUs.
Stock keeping units (SKU)
Represents a unique inventory item.
Limited assortment supermarkets
aka Extreme value food retailiers stock only about 2000 SKUs.
Supercenters
Large stores that combine a supermarket with a full-line discount store.
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.
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 for displaying merchandise.
Full-line discount stores
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.
Drugstores
Specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise.
Category specialists
Big box retailers/category killers – offer a narrow but deep assortment of merchandise.
Home improvement center
A category specialist offering equipment and material ussed 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 significant discount from the manufacturer’s suggested retail price. (MSRP)
Outlet stores
Off-price retailers owned by manufacturers or department or specialty store chains.
Factory outlets
Stores owned by manufacturers
Services retailers
Firms that primarily sell services rather than merchandise.
Share of wallet
The percentage of the customer’s purchases made from that particular retailer.
Online chat
Provides customers with the opportunity to click a button at any time and have an instant messaging e-mail or voice conversation with a customer service representative.