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Chapter 15 MKT120 Retail

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Chapter 15 MKT120 Retail

  1. 1. RETAILING AND MULTICHANNEL MARKETING M marketing 15 GREWAL / LEVYMcGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Learning Objectives LEARNING OBJECTIVES What are the issues manufacturers consider when choosing retail partners? What types of retailers are available for distributing products? How do manufacturers and retailers work together to develop a strategy? Why is multichannel marketing becoming such a prevalent channel strategy? 15-2
  3. 3. Factors for Establishing aRelationship with Retailers 15-3
  4. 4. Choosing Retail Partners Channel Structure 15-4
  5. 5. Choosing Retail Partners Distribution Intensity 15-5
  6. 6. Limited Distribution 15-6
  7. 7. Types of Retailers 15-7
  8. 8. Food Retailers Peapod Website 15-8
  9. 9. General Merchandise Retailers 15-9
  10. 10. Facilitating Retail StrategyUsing the Four P’s: Product Providing the right mix of merchandise and services 15-10
  11. 11. Price Price defines the value of both themerchandise and the service provided Build-a-Bear Workshop Commercial 15-11
  12. 12. Promotion Retailers use a wide variety of promotions, both within their retail environment and through mass media 15-12
  13. 13. Place Convenience is a keyingredient to success 15-13
  14. 14. Exploring Multiple Channel Options: Benefits of Different Channels 15-14
  15. 15. Internet Channel 15-15
  16. 16. Apple Store 15-16
  17. 17. Which of the following is NOT a factor to consider when establishing a relationship with retailers?A. Choosing retail partnersB. Facilitating retail strategyC. Managing a multichannel strategyD. Identifying types of retailersE. All of the above 15-17
  18. 18. Choosing Retail PartnersCustomer Expectations 15-18
  19. 19. Red Bull is sold at convenience stores,supermarkets and warehouse clubs. Red Bull has _________ distribution A. selective B. exclusive C. intermediate D. intensive E. limited 15-19
  20. 20. Check Yourself1. What issues should manufacturers consider when choosing retail partners?2. What is the difference between intensive, exclusive, and selective levels of distribution intensity? 15-20
  21. 21. Retailer’s Reaction? 15-21
  22. 22. A ________ is a retailer with such an extensive assortment in a particularcategory that would-be competitors do not bother carrying that category of products and instead, simply refer customers to the other firm. A. specialty retailer B. house breaker C. market mammoth D. revolutionary E. category killer 15-22
  23. 23. GNC Private Brands 15-23
  24. 24. Check Yourself1. What are the different types of food retailers? What differences mark their strategies?2. What are the different types of general merchandise retailers? What differences mark their strategies? 15-24
  25. 25. Coupons, rebates, and online discounts are types of ________ used by retailers. A. pricing promotions B. specialty product displays C. in-store promotions D. off-price wholesaling E. mass media advertising 15-25
  26. 26. How does the Internet Improve Multichannel Shopping? 15-26
  27. 27. Retailers can do more online… H&M’s (CSR) Website Lands End Website 15-27
  28. 28. Evolution towardMultichannel Marketing 15-28
  29. 29. Capabilities for Multichannel RetailingDisintermediation 15-29
  30. 30. GlossaryCategory specialists are discount stores that offer a narrow but deep assortment of merchandise. Return to slide 15-30
  31. 31. GlossaryConvenience stores provide a limited variety and assortment of merchandise at a convenient location in 2,000-3,000 square foot stores with speedy checkout. Return to slide 15-31
  32. 32. GlossaryA conventional supermarket is a self-service food store offering groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise. Return to slide 15-32
  33. 33. GlossaryDepartment stores are retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise. Return to slide 15-33
  34. 34. GlossaryDisintermediation occurs when a manufacturer sells directly to consumers, bypassing retailers. Return to slide 15-34
  35. 35. GlossaryDrugstores are specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise. Return to slide 15-35
  36. 36. GlossaryAn exclusive distribution policy is when manufacturers grant exclusive geographic territories to one or very few retail customers so no other customers in the territory can sell a particular brand. Return to slide 15-36
  37. 37. GlossaryExtreme value retailers are small, full-line discount stores that offer a limited merchandise assortment at very low prices. Return to slide 15-37
  38. 38. GlossaryFull-line discount stores are retailers that offer a broad variety of merchandise, limited service, and low prices. Return to slide 15-38
  39. 39. GlossaryAn intensive distribution strategy is designed to get products into as many outlets as possible. Return to slide 15-39
  40. 40. GlossaryMultichannel retailers are retailers that use some combination of stores, catalogs, and the Internet to sell merchandise. Return to slide 15-40
  41. 41. GlossaryOff-price retailers offer an inconsistent assortment of brand name merchandise at low prices. Return to slide 15-41
  42. 42. GlossarySelective distribution uses a few selected customers in a territory. Return to slide 15-42
  43. 43. GlossarySpecialty stores concentrate on a limited number of complementary merchandise categories and provide a high level of service in relatively small stores. Return to slide 15-43
  44. 44. GlossarySupercenters are large stores that combine a supermarket with a full-line discount store. Return to slide 15-44
  45. 45. GlossaryWarehouse clubs are large retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses. Return to slide 15-45

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