Chapter Sixteen

Marketing 370 with Olson at San Diego State University

About this deck

By: Judy Nguyen
Created: 2011-12-07
Size: 41 flashcards
Views: 3

About StudyBlue

STUDYBLUE makes things that make you better at school. Things like online flashcards with photos and audio. Things like personalized quizzes and friendly reminders about when (and what) to study next. Think of it as a digital backpack™: access to all of your study materials online and on your phone. STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.

“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy

Sign up (free) to study this.

Retailing

the set of business activities that add value to products and services sold to consumers for their personal or family use

Multichannel strategy

selling in more than one channel (e.g., store, catalog, and Internet)

four factors manufacturers consider to establish their strategy for working with retailers

choosing retail partners, identify the types of retailers, develop their strategy, and managing a multichannel strategy

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 geographic 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 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, such as health and beauty aids and general merchandise

stock keeping units (SKUs)

represents a unique inventory item

Limited assortment supermarkets

or extreme value food retailers

limited assortment stores offer one or two brands and sizes, one of which is a store brand

To compete successfully against intrusions by other food retailing formats, conventional supermarkets differentiate their offerings by

(1) emphasizing fresh perishables, (2) targeting health-conscious and ethnic consumers, (3) providing a better in-store experience with a better overall atmosphere and demonstrations, and (4) offering more private-label brands

Supercenters

large stores (185,000 square feet) that combine a supermarket with a full-line discount store

Warehouse clubs

large retailers (100,000–150,000 square feet) 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 in 3,000- to 5,000-square-foot stores 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

To better compete, department stores are

1) attempting to increase the amount of exclusive and private-label merchandise they sell, (2) strengthening their customer loyalty programs, and (3) expanding their online presence

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

or big box retailers or category killers

offer a narrow but deep assortment of merchandise.

home improvement center

a 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 a limited merchandise assortment at very low prices

off price retailer

or close-out retailer

offer an inconsistent assortment of brand name merchandise at a significant discount from the manufacturer's suggested retail price (MSRP)

irregulars

merchandise might be in odd sizes or unpopular colors and styles

outlets stores

off-price retailers owned by manufacturers or department or specialty store chains

factory outlet

outlet stores owned by manufacturer

services retailers

firms that primarily sell services rather than merchandise

mobile commerce (M-commerce)

Communicating with or selling to consumers through wireless handheld devices such as cellular phones.

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 provides identifying information.

cannibalization

Customers who formerly made purchases through one retail channel switch to a different retail channel without increasing the overall sales to the retailer.

considerations for choosing retail partners

Basic channel structure, Distribution intensity, Where the target customers expect to find the products, and Channel member characteristics

components of a retail strategy

To develop a coordinated strategy, both retailers and manufacturers need to consider all the four Ps in conjunction: product, place, promotion, and price.

benefits of stores

Giving shoppers a place to browse. They can touch and feel products, obtain personal services, pay using cash or credit, engage in an entertaining and social experience, receive instant gratification, and reduce their sense of risk.

benefits of multichannel retailing

It can exploit the benefits and mitigate the limitations of each channel in order to expand overall market presence. Offers the chance to gain a greater “share of customers' wallet” and may provide more insight into their buying behaviors.

challenges of multichannel retailing

Retailers must organize their operations carefully to ensure an integrated customer experience. They must have an integrated CRM system and determine how to maintain a consistent brand image across the various channels.

Before opening a retail store, which question(s) do retailers need to address?

Where will customers want the products? When will customers want the products? What prices will customers be willing to pay? What assortment of products will customers want?

Wholesalers sell to

institutions, governments, retailers, and industrial users.

To create an atmosphere that will offer a more pleasant shopping experience, retailers use

lighting, music, scents

Traditional store-based retailers, catalog retailers and some manufacturers have evolved into multichannel retailers for all the following reasons

electronic channels give them opportunities to overcome problems in their traditional channels, they can expand their market reach, they can expand their "share of wallet.", and they gain valuable insights into their customers' shopping behavior.

About this deck

By: Judy Nguyen
Created: 2011-12-07
Size: 41 flashcards
Views: 3

About StudyBlue

“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy