Chp 13: retailing and omnichannel marketing Flashcards
LO1: define retailing
set of business activities that add value to products/services sold to consumers for their personal or family use
LO1: when are wholesalers actually retailers
Some retailers claim they sell at wholesale prices, but if they sell to customers for their personal use, they are still retailers
LO1: define omnichannel strategy
selling in more than 1 channel (store, catalogue, kiosk, internet)
LO1: 4 factors for choosing a relationship with retailers
1) choosing retail partners
2) identifying types of retailers
3) developing retail strategy
4) managing a multichannel strategy
LO1: 3 considerations in choosing retail partners
1) channel structure
2) customer expectations
3) channel member characteristics
LO1: point to channel structure consideration
Level of difficulty a manufacturer has in getting retailers to purchase its products is determined by the degree to which the channel is vertically integrated; the degree to which the manufacturer has a strong brand or is otherwise desirable in the market; and the relative power of the manufacturer and retailer
LO1: 2 points to customer expectations consideration
1) For retailers, it is important to know which manufacturer its customers want to buy
2) Manufacturers need to know where their target market customers expect to find their products and those of their competitors
LO1: 2 points to channel member characteristics considerations
1) The larger and more sophistical the channel member, the less likely it is to use supply chain intermediaries
2) By performing channel functions themselves, large firms can gain more control, be more efficient and save money
LO2: what do manufacturers need to understand retailers
Manufacturer need to understand the general characteristics of different types of retailers so they can determine the best channels for their products
LO2: 2 types of retailers to distribute products
1) food retailers
2) general merchandise retailers
LO2: 3 types of food retailers
1) conventional supermarket
2) big box food retailer
3) convenience store
LO2: define conventional supermarket
offers groceries, meat and produce with limited sales of nonfood items, such as health and beauty aids and general goods, in a self service format
LO2: example of conventional supermarket
sobeys
LO2: define big box food retailer
larger than a conventional supermarket; carries both food and nonfood items
LO2: 3 types of big box food retailers
supercentre, hypermarket, and warehouse club
LO2: example of big box food retailer and type
costco (warehouse club)
LO2: 2 points to convenience store
1) Characteristics: provides a limited number of items at convenient locations in small stores with speedy checkout
2) Example: 7-eleven
3) Most convenience stores also sell gas
LO2: problem with food retailers
All this competition can be trouble for traditional grocery stores, but they thrive because they offer target customers great value - convenient location, makes shopping easy, have fair prices, find special products/services important to customers
LO2: 7 types of general merchandise retailers
1) discount stores
2) speciality stores
3) category specialists
4) department stores
5) drugstores
6) off price retailers
7) services retailers
LO2: define discount stores
offers broad variety of goods, limited service, and low prices
LO2: example of discount store
walmart
LO2: define speciality store
concentrate on limited number of complementary goods categories in relatively small store
LO2: 2 points to speciality stores
1) Tailor retail strategy to specific market segments by offering deep but narrow assortments and sales associate expertise
2) Example: sephora
LO2: define category specialists
offers narrow variety but deep assortment of goods