Marketing ch 16 Retailing and Multichannel Marketing – Flashcards

set of business activities that add value to products and services sold to consumers for their personal or family use (products bought at stores, catalogs, internet, etc)

involves selling in more than one channel

4 factors for establishing a relationship with retailers

number of channel members to use at each level of the marketing channel

3 levels of distribution intensity

designed to place products in as many outlets as possible

granting exclusive geographic territories to one or very few retail customers so no other retailers in the territory can sell that particular brand

few selected retail customers in a territory to sell products

self-service retail food store offering groceries, meat, and produce with limited sales of nonfood items, stocks 30,000 SKU

unique inventory item stock keeping limits: individual items within each product category; the smallest unit available for inventory control

only stock 2,000 SKU

large stores that combine a supermarket with a full-line discount store (Walmart)

large retailers that offer a limited and irregular assortment of food and general merchandise, little service, and low prices to the general public and small businesses (Sam's Club), lower levels of service

provide a limited variety and assortment of merchandise at a convenient location with speedy checkout

retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments Macy's, JCPenny

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

concentrate on a limited number of complementary merchandise categories and provide a high level of service (mac)

specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise (walgreens, cvs)

offer a narrow but deep assortment of merchandise, can kill a category of merchandise for other retailers because of low prices (staples)

small, full-line discount stores that offer limited merchandise assortment at very low prices (Dollar General)

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

firms that primarily sell services rather than merchandise (dry cleaners, health care services, lawn, meal prep, cleaning)

brand developed by a national brand vendor, often with a retailer, and is sold exclusively by the retailer. (lagerfeld collection at Macy's) cons- has to share things pros- recognizable

product and service purchases through mobile devices

an agreement between a manufacturer and retailer in which the manufacturer agrees to defray some advertising cost

1) Browsing 2) Touching and feeling products 3) Personal service 4) Cash and credit payment 5) Entertainment and social experience 6) Immediate gratification 7) Risk reduction

provides customers with the opportunity to click a button at any time and have an instant messaging email or voice conversation with a customer service representative

deeper and broader selection personalization (customer service and offerings)

integrated CRM (customer relationship management) Brand Image Pricing Supply Chain

mass media advertising

products that are complicated or expensive

Extreme value retailers are small, full-line discount stores that offer a limited merchandise assortment at a very low price. The correct answer is: extreme value retailers

Extreme value retailers are small, full-line discount stores that offer a limited merchandise assortment at very low prices. The correct answer is: Extreme value retailers

they sell to customers for their personal use.

Retail distribution centers (DCs) supporting a store channel are designed to ship many cartons of merchandise to stores. In contrast, the DCs supporting a catalog and Internet channel are designed to ship a few items to individual customers. The correct answer is: in quantity of items shipped

A high-end manufacturer would not want to sell in a warehouse club under normal circumstances because it is not consistent with the image and service level expected for high-end products. But for overstocks or returns, a warehouse club might be a good place to sell these extra products. The correct answer is: The manufacturer overestimated demand or has a great deal of returned merchandise from other retailers

In addition to traditional forms of promotion, many retailers are devoting more resources to their overall retail environment as a means to promote and showcase what the store has to offer. The correct answer is: promotion.

Convenience stores carry limited inventory and would not be a good choice for a manufacturer with a full range of products. The correct answer is: convenience stores