Marketing Grewal/Levy : Chapter 17

4 Factors for Establishing a Relationship with Retailers
1. Choosing Retailing Partners
2. Identifying Types of Retailers
3. Developing a Retail Strategy
4. Managing a Multichannel Strategy
Intensive Distribution Strategy
Put the product in as many outlets as possible!
Exclusive Distribution Strategy
Manufactures sell products to only one retailer. This ensures that their products are only at the most appropriate outlets and the products image is not diluted.
Selective Distribution Strategy
Manufactures sell products to only a few retailers.
3 Types of Retailers
1. Food
2. General Merchandise
3. Services
A self-service food retail store offering groceries, meat, and produce with limited sales of non-food items. (Aldi)
Combines a supermarket with a full-line discount store. (Walmart)
Warehouse Club
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)
Convenience Stores
Provide a limited variety and assortment of merchandise at a convenient location with speedy checkout. (Walgreens)
Department Stores
Retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise. (Sears, Macy’s, Kohl’s)
Full-Line Discount Stores
Offer a broad variety of merchandise, limited service, and low prices. (Walmart, Target)
Specialty Stores
Concentrate on a limited number of complementary merchandise categories targeted toward very specific market segments by offering deep but narrow assortments and sales associate expertise.
Specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise.
Category Specialists/”Category Killers”
Offer a complete assortment in a category at somewhat lower prices than their competition. (Staples)
Extreme Value Retailers
Small, full-line discount stores that offer a limited merchandise assortment at very low prices.
Off-Price Retailers
Offer an inconsistent assortment of brand name merchandise at a significant discount from the manufacturer’s suggested retail price (TJ Maxx, Marshalls)
The 4 Ps of Retailing Strategy
1. Product
2. Price
3. Promotion
4. Place
Benefits of Stores for Consumers
Browsing, Touching & Feeling, Personal Service, Cash & Credit Payment, Entertainment & Social Experience, Immediate Gratification, Risk Reduction
3. Benefits of the Internet and Multichannel Retailing
1. Deeper and Broader Selection
2. Personalization
3. Expand Market Presence
4 Challenges Facing Multi-Channel Retailers
1. Integrating Customer Relations Management (CRM)
2. Consistent Brand Image
3. Consistent Pricing
4. Complicated Supply Chain

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