Marketing Chapter 15 Retailing – Flashcards

-U.S. retailers employ more than 15 million people -Retailers account for 10.8 percent of U.S. employment -Retailing accounts for 10 percent of U.S. businesses -Most retailers are quite small -The industry is dominated by a few giant organizations, such as Walmart

Department stores, convenience stores, specialty stores, discount stores, supermarkets, off-price retailers, drugstores, restaurants.

Shopping without visiting a physical store.

Automatic Vending, direct marketing, direct retailing, online retailing.

1. Define a target market 2. Choose a retailing mix

Step 1: Segment the Market - demographics, geographics, psychographics Step 2: Choose the Retailing Mix - product, price, promotion, presentation, place, personnel

Two common selling techniques - trading up, suggestion selling, anchoring

-Employee type and density -Merchandise type and density -Fixture type and density -Sound -Odors -Visual factors

The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix.

-Advertising -Public Relations -Publicity -Sales Promotion

Choosing a Community: -Economic growth potential -Competition -Geography

Choosing a Specific Site: -Socioeconomic characteristics -Traffic flows -Land costs -Zoning regulations -Public transportation Choosing the Type of Site: -Freestanding store -Shopping center -Lifestyle center

Prioritize customer service by focusing on four areas: -Minimizing wait times -Managing service capacity -Improving service delivery -Establishing channel-wide network coherence

All retailers inevitably disappoint a subset of their customers. The best retailers have plans in place to recover from lapses in service. Actions that might be taken include: -Notifying customers in advance of stockouts -Implementing liberal return policies -Issuing product recalls in conjunction with promotional offers

Shopper marketing is becoming increasingly popular as businesses see the implications of this new method of customer research. These implications include the strategic alignment of customers segments and supply chain adaptation.

Shopper analytics are used to dig deeply into customers' shopping attitudes, perceptions, emotions, and behaviors—and are thereby able to learn how the shopping experience shapes these differences.

Retail Channel Omnification: The reduction of multiple retail channel systems into a single, unified system for the purpose of creating efficiencies or saving costs. Click-and-Collect: The practice of buying something online and then traveling to a physical store location to take delivery of the merchandise.

1. Boomers and millennials will continue to heavily influence retail. 2. Social networks will serve as shopping platforms. 3. Brands will double down on Corporate Social Responsibility. 4. Loyalty-wise, the points-for-purchases model will no longer be effective. 5. Retailers will adopt and experiment with technology. 6. Data will be more accessible and powerful. 7. Companies will find better ways to manage risk and protect customers. 8. More retailers will take control of their value chain and improve order fulfillment. 9. More ecommerce sites will set up shop offline. 10. Retailers that localize their product mix and store formats will win. 11. Mobile will continue to grow in all directions. 12. Stores with omnichannel strategies will continue to thrive.