MRKTCH17 Retailing and Multichannel Marketing

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
multichannel strategy
selling in more than one channel (eg. stores, internet, catalog)
choose retailing partners
part of establishing relationship with retailers: look at channel structure, customer expectations, channel member characteristics, and distribution intensity
distribution intensity
the number of supply chain members to use at each level of the chain
intensive distribution
a strategy designed to get products into as many outlets as possilbe
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
identify types of retailers
part of establishing relationship with retailers: understand characteristics of retailer types to determine best channels for their product (food, general merch., service)
conventional supermarket
food retailer: offers groceries, meat, and produce with limited sales of nonfood items in a self service format
stock keeping unit
SKU
SKU
individual items within each product category; the smallest unit available for inventory control
limited assortment supermarkets
food retailer: offer only one or two brands or sizes of most products (usually including a store brand) and attempt to achieve great efficiency to lower costs and prices (aka extreme value food retailers)
extreme value food retailers
food retailer: offer only one or two brands or sizes of most products (usually including a store brand) and attempt to achieve great efficiency to lower costs and prices (aka limited assortment supermarkets)
supercenters
food retailer: large stores combining full-line discount stores with supermarkets in one place (ex: walmart)
warehouse clubs
food retailer: large retailers with an irregular assortment, low service levels, and low prices that often require membership for shoppers (ex: costco)
convenience stores
food retailer: provides a limited number of items at a convenient location in a small store with speedy checkout
department stores
general merchandise retailer: carries many different types of merchandise (broad variety) and lots of items within each type (deep assortment); offers some customer services and is organized into separate departments to display merchandise (ex: JCPenny)
full-line discount stores
general merchandise retailer: offer low prices, limited service, and a broad variety of merchandise (ex: Target)
specialty stores
general merchandise retailer: concentrates on a limited number of complementary merchandise categories in a relatively small store
drugstores
general merchandise retailer: specialty store that concentrates on health and personal grooming merchandise, though pharmaceuticals may represent >60% of its sales
category specialists
general merchandise retailer: offers an a narrow variety but a deep assortment of merchandise (ex: staples)
big box retailers
general merchandise retailer, category specialist: discount stores that offer a narrow but deep assortment of merchandise
category killers
general merchandise retailer, category specialist:a specialist that offers an extensive assortment in a particular category, so overwhelming the category that other retailers have difficulty competing
extreme value retailers
general merchandise retailer: discount store found in lower-income urban or rural areas (ex: dollar general)
off-price retailers
general merchandise retailer: offers an inconsistent assortment of merchandise at relatively low prices (ex: Marshalls)
services retailers
a firm that primarily sells services rather than merchandise (ex: Laundromat)
develop a retail strategy
part of establishing relationship with retailers: use the 4Ps; retailers perform functions to increase value of products and services
exclusive co-brand
developed by national brand vendor and retailer and sold only by that retailer
mobile-commerce
communicating with or selling to consumers through wireless handheld devices such as cellphones (aka M commerce)
M-commerce
communicating with or selling to consumers through wireless handheld devices such as cellphones (aka mobile-commerce)
cooperative advertising
an agreement between a manufacturer and retailer in which the manufacturer agrees to defray some advertising costs
share of wallet
the percentage of the customer’s purchases made from a particular retailer
online chat
instant messaging or voice conversation with an online sales representative
cookie
computer program, installed on hard drives that provide identifying info
opt in
the option giving the consumer complete conrol over the collection and dissemination of his/her personal info, usually referred to in an internet setting
opt out
the option whereby the consumer must actively choose to prevent personal info from being used or shared with third parties, usually referred to in an internet setting
manage a multichannel strategy
part of establishing relationship with retailers: require integrated customer relationship management, consistent brand image across channels, pricing consistency, and an integrated supply chain