Chapter 16 Marketing: Retailing and Multichannel Marketing

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 (e.g., stores, internet, catalog).
4 factors for establishing a relationship with retailers
1. Choosing retail partners
2. identifying types of retailers
3. facilitating retail strategy
4. managing a multichannel strategy
Distribution Intensity
The number of supply chain members to use at each level of the supply chain.
Intensive Distribution
A strategy designed to get products into as many outlets as possible.
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
Conventional Supermarket
type of retailer that offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise, in a self-service format.
Limited Assortment Supermarkets
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.
Extreme Value Food Retailer
(limited assortment supermarket)
Large stores combining full-line discount stores with supermarkets in one place.
4 types of food retailers
1. Supermarket
2. Supercenter
3. Convenience
4. Warehouse club
7 types of general merchandise retailers
1. Full-line discount
2. Specialty
3. Category Specialist
4. Department
5. Drug
6. Off-Price
7. Extreme Value
Warehouse Club
Large retailers with an irregular assortment, low service levels, and low prices that often require membership for shoppers (ex – Costco)
Convenience Store
Type of retailer that provides a limited number of items at a convenient location in a small store with speedy checkout.
Department Store
A retailer that 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 its merchandise.
Full-Line Discount Stores
Retailers that offer low prices, limited service, and a broad variety of merchandise. (target, walmart, kmart)
Specialty Store
A type of retailer that concentrates on a limited number of complementary merchandise categories in a relatively small store.
A specialty store that concentrates on health and personal grooming merchandise, though pharmaceuticals may represent more than 60 percent of its sales.
Category Specialist
a retailer that offers a narrow variety but a deep assortment of merchandise
Big Box Retailer
Discount Stores that offer a narrow but deep assortment of merchandise (category killer)
Category Killer
A specialist that offers an extensive assortment in a particular category, so overwhelming the category that other retailers have difficulty competing.
Home Improvement Center
Category specialist that offers home improvement tools for contractors and do-it-yourselfers.
Extreme Value Retailers
A general merchandise discount store found in lower-income urban or rural areas.
Off-Price Retailer
A type of retailer that offers an inconsistent assortment of merchandise at relatively low prices.
Close-Out Retailers
Stores that offer an inconsistent assortment of low priced, brand name merchandise. (marshell’s, tj-max)
Merchandise with minor construction errors, usually sold in close-out stores.
Outlet Stores
Off-price retailers that often stock irregulars, out of season merchandise or overstocks from the parent company.
Factory Outlets
outlet stores owned by manufacturers.
Cooperative (Co-Op) 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.
Virtual Community
Online networks of people who communicate about specific topics
Social Shoppers
Consumers who seek emotional connections through shopping
Online Chat
instant messaging or voice conversation with an online sales representative
computer program, installed on hard drives, that provides identifying information
Conversion Rates
Percentage of consumers who buy a product after viewing it.
Multichannel retailers
retailers that sell merchandise in more that one retail channel (store, catalog, internet)
A manufacturer sells directly to consumers and bypasses retailers.

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