chapter� 16

Marketing 370 with Olson at San Diego State University

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By: Israel Barajas
Created: 2012-04-30
Size: 46 flashcards
Views: 19

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Retailing

All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

Factors for Establishing a Relationship with Retailers

Choosing retail Partners
Identifying types of retailers
Facilitating retail strategy
Managing a multichannel strategy

multichannel strategy

selling in more than one channel
e.g. store, catalog and the internet

choosing retailing partners

channel structure
customer expectations
channel member characteristics
distribution intensity

channel structure

the level of difficulty a manufacturer experiences in getting retailers to purchase its products

customer expectations

retailers should know customer preferences regarding manufacturers. and manufacturers should know their target markets and chose which retailers would suit their product the best.

channel member characteristics

the larger and more sophisticated the channel member, the less likely that it will use intermediaries

Distribution Intensity

The number of channel members to use at each level of the marketing channel. three levels
intensive
exclusive
selective

intensive distribution

strategy designed to place products in as many outlets as possible

exclusive distribution

manufacturers use a _____ ___ policy by granting exclusive geographic territories to one or few retailers.

selective distribution

helps a seller maintain a particular image and control the flow of merchandise and relies only on a few retailers on its territory to sell their products.

Identify Types of Retailers

manufacturers need to understand the general characteristics of different types of ____ to determine the best channel for their product
food ____
general merchandise ____
service ______

food retailers

supermarkets
supercenters
warehouse clubs
convenience stores

supermarkets

self service retail food store offering groceries, meat and produce

Limited assortment supermarkets are...

retailers that 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

supercenters

combination of supermarket and full line discount store. provide one stop shopping convinience to customers, since they have a little bit of everything

warehouse clubs

offer low prices to general public and small businesses, has irregular assortment of food and general merchandise and little service

convenience stores

limited variety and assortment of merchandise at a convenient location with speedy checkout, modern version of neighborhood mom and pop grocery store. limited in terms of depth and breadth and charge higher prices than supermarkets

general merchandise retailers

department stores
full-line discount stores
specialty stores
drugstores
category specialists
extreme value retailers off price retailers

department store

retailers that carry a broad variety and deep assorrment, offer customer services, and organize their stores into distinct departments for displaying merchandise
high fashion chains (exclusive designer merchandise)
modesty priced merchandise (macys)
value oriented jc penny

full line discount stores

retailers that offer a broad variety of merchandise, limited service and low prices (walmart)

specialty stores

concentrates on a limited number of complementary merchandise categories and provide high level of service. ____ ____ tailor their ___ strategy toward very specific market segments by offering deep but narrow assortments and sales associate expertise

Drugstores

Specialty stores that concentrate on health and personal grooming merchandise.

category specialists

offer a narrow but deep assorment of merchandise. predominantly self-service. (staples)
big box retailers or category killers

home improvement center

category specialists offering equipment and material used by do-it-yourself contractors for home improvemnt

extreme value retailers

full line discount stores that offer a limited merchandise assortment at very low prices. they reduce costs and maintain low prices by buying opportunistically from manufacturers with excess merchandise. broad but shallow assortment of household goods

off-price retailers

offer an inconsistent assortment of brand name merchandise at a significant discount from MSRP. may be brick-and-mortar stores, online outlets.
outlet stores
factory outlets

irregulars

merchandise that has minor mistakes in construction

Outlet Stores

off-price retailers that often stock irregulars, out-of-season merchandise, or overstocks from the parent company

factory outlets

off-price retailers. improve their revenues from irregulars.

service retailers

sell services rather than merchandise. jiffy lube. drive thru at burger king.

Developing a Retail Strategy Using the Four P's:

1. Product

2. Price

3. Promotion

4. Place

Share of Wallet

The percentage of the customer's purchases made from a particular retailer

Benefits of Stores for Consumers

Browsing

Toughing and feeling

Personal service

Cash and credit

Entertainment and social interaction

Instant gratification

Risk reduction

browsing

shoppers have only an idea of what they want. they go to a store to see what is available before making their final decision of what they want to buy.

touching and feeling products

this is the greatest benefit offered by stores which is letting customers use their senses: touch, smell, taste, vision and hearing to examine products

personal service

sales associates that provide meaningful, personalized information. salespeople can be helpful when purchasing a complicated product.

cash and credit payment

stores are the only ones that accept cash, some people prefer it because it doesn't generate interest.

entertainment and social experience

shopping can be stimulating providing a break for people in their daily routine enabling them to interact with friends

immediate gratification

stores have the advantage of allowing customers to get the merchandise immediately after paying for it

risk reduction

physical presence of the store reduces their perceived risk of buying and increases their confidence that any problems with merchandise will be corrected

benefits of the internet and multichannel retailing

offers the potential of a greater selection of products. enables retailers to provide customers with more personalized info about products and services.. offers sellers opportunity to collect info about consumers shopping behavior. increases customer satisfaction and loyalty. allows sellers to enter new markets economically.

effective multichannel retailing

integrated CRM
Brand image
pricing

integrated CRM

this information storehouse allows retailers to efficiently handle complaints, expedite returns, target future promotions and provide a seamless experience for customers when they interact with the retailer through multiple channels

brand image

retailers need to provide a consistent ____ ___ across all channels. each channel emphasizes function, not fashion

pricing

customers expect pricing consistency for the same SKU across channels

About this deck

By: Israel Barajas
Created: 2012-04-30
Size: 46 flashcards
Views: 19

About StudyBlue

“I have used this website for three exams, and I see a huge difference in my test results.”
Naj