18 - The role of retailers Flashcards
What is the generally accepted definition of retailing?
Selling products and services to the ultimate consumer for private consumption.
What are the different selling motions used by retailers?
Stores, catalogues, mail-order, the web, and tele-sales.
What is the core proposition of the store-based retail channel?
Convenience, product choice and comparison, touch and feel, trial, advice, confidence through physical presence, and intangible dimensions of experience.
What is the goal of the retailer in the store-based selling motion?
To select the best location, attract customers, encourage shopping, sell the best mix, and get customers to return.
What strategies do retailers use to attract customers to the store?
Attractive window displays, good visibility of products, and smart layout and merchandising.
Fill in the blank: Retailers group items together in ‘_______’ rather than simply by categories.
[solutions]
What is the primary risk associated with the store-based retail channel?
Errors in site selection may take more than a year to identify and correct.
What are some tools that have made retailing increasingly a science?
Software tools for site selection, ranging, and planograming.
True or False: Retailers have a reputation for being lenient with their suppliers.
False
What are some common demands retailers make of suppliers?
- High margins
- Right to return unsold products
- Listing fees
- Marketing fees
- Fines for late deliveries
What factors can differentiate retailers?
Scale, core proposition, and price positioning.
What type of marketing do national retailers typically use?
Advertising in national media and sponsorships.
What is the key to a retailer’s success in conveying their core proposition?
Consistency across the customer experience.
What is the role of retailers for vendors or suppliers?
To deliver customer traffic and well-defined customer segments predisposed to buy their products.
What advantages do catalogue and online selling motions offer to retailers?
- Unlimited range of products
- Increased convenience
- 24/7 availability
- Global reach
- Product customization
What are some challenges of online retailing?
- Drawing customers to the online store
- Making the shopping experience intuitive
- Up-selling and cross-selling
- Establishing trust
- Competing with direct manufacturers
Fill in the blank: Many online-only retailing propositions failed because they did not create sufficient _______.
[awareness]
What is a notable exception of an online-only retailer that succeeded?
Amazon
What does the term ‘reverse logistics’ refer to in online retailing?
The process of handling returns when products are faulty, not as ordered, or unwanted.
What was the primary reason online-only retailers failed in the early days of the internet?
They did not create sufficient awareness of their offer
Additionally, they failed to engender sufficient trust in customers.
What strategy did major retailers adopt as the online retailing selling motion matured?
Blended their channel proposition allowing customers to browse in one channel, order in another, and select either in-store collection or home delivery
This led to interesting pricing strategies and smart ranging.
How has social media changed marketing strategies for retailers?
It serves as a powerful communication channel, facilitating connection and immediacy
Relevant for both young and older audiences.
What role do smartphones play in retail marketing?
They offer interactive dimensions such as cell location, GPS location, content interest, two-way communication, and peer-to-peer communication
These dimensions enhance customer engagement and marketing effectiveness.
True or False: Silver surfers are less engaged with social media than younger audiences.
False
Silver surfers are increasingly active on social media platforms.
