Chapter 17 – Retailing and Multichannel Marketing

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Retailing
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selling to consumers for their personal or family use through stores, catalogs, the Internet, and including services like fast-food restaurants, airlines, and hotels.
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Establishing a Relationship with Retailers
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1) choosing retail partners, 2) identifying types of retail stores, 3) developing a retail strategy using the 4 Ps, 4) managing an effective multi channel strategy
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Distribution intensity
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1) intensive, 2) selective, 3) exclusive
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Intensive distribution
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distribution designed to place products in as many outlets as possible
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Exclusive distribution
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distribution that relies on a somewhat limited number of retailers to sell products
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Selective distribution
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distribution that only allows a few hand-picked retailers to sell products
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Conventional supermarket
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a 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
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Stock Keeping Units
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What SKU stands for; it represents each unique product item at a store
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Supercenters
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very large stores (185,000 square feet) that combine a supermarket with a full-line discount store
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Warehouse clubs
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large retailers (100,000-150,000 square feet) that offer a limited and irregular assortment of food and general merchandise, large package sizes, little service, and low prices to the general public and small businesses
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Convenience Stores
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they provide a limited variety and assortment of merchandise at a convenient location in 3,000- to 5,000-square-foot stores with speedy checkout. They are the modern version of the neighborhood mom-and-pop grocery/general store
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Full-line discount stores
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retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise.
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?
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retailers that offer a broad variety of merchandise, limited service, and low prices
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Specialty Stores
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concentrate on a limited number of complementary merchandise categories and provide a high level of service
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Drug stores
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specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise
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Category specialists
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big box retailers that offer a narrow but deep assortment of merchandise with low prices and a predominantly self-service approach
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??
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category specialists offering equipment and material used by do-it-yourselfers and contractors to make home improvements
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Extreme Value retailers
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small, full-line discount stores that offer a limited merchandise assortment at very low prices
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Off-price retailers
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offer an inconsistent assortment of brand name merchandise at a significant discount from the manufacturer’s suggested retail price (MSRP)
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???
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off-price retailers owned by manufacturers or department or specialty store chains
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Service retailers
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firms that primarily sell services rather than merchandise
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Share of wallet
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the percentage of the customer’s purchases made from that particular retailer
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Benefits of stores for consumers
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1) Browsing, 2) Touching & Feeling Products, 3) Personal Service, 4) Cash and Credit Payment, 5) Entertainment and Social Experience, 6) Immediate Gratification, 7) Risk Reduction
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Benefits of the internet and multichannel retailing
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1) Deeper and Broader Selection, 2) Personalization, 3) Gain Insights into Consumer Shopping Behavior, 4) Increase Customer Satisfaction & Loyalty
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????
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when the customers who formerly made purchases at a retailer’s store or catalog now make the same purchases through the retailer’s Internet channel

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