Ch,13 Flashcards
What is retailing
Retailing includes everything sold to the consumer for personal or family use. (ex: e-commerce, store, supermarket, airline, hotels, etc)
- Sits at the end of the supply chain
What are the 4 factors for establishing a relationship with retailers
- choosing retail partners
- Identifying types of retailers
- developing a retail strategy
- managing a multichannel strategy
Explain first factor: choosing retail partners
When choosing retail partners, manufacturers consider :
the basic channel structure
- vertical integration (the level of difficulty on getting the retailer to carry your brand)
- whether the manufacturer has a strong brand in the marketplace
- the relative power of the manufacturer and the retailer
customer expectations
- retailers should know consumer’s preferences regarding manufacturers
- manufacturers need to know where the target market expects to find their products
What is a multichannel strategy?
Selling in more than one channel
Regarding channel member characteristics:
generally, the larger the channel member, the less likely it is to supply chain intermediaries.
True or false
true
Larger firms find that by performing the channel functions themselves, they can gain more control, be more efficient and save money.
Explain the 2nd factor: Identifying types of Retailers
There are two categories: Food retailers and general merchandise retailers
What are the 3 types of food retailers and explain.
Conventional supermarket: offers groceries, meat, and produce with limited sales of non-food items.
Big Box retailer: larger than conventional supermarkets, they carry food and non-food items. 3 types: supercentres, hypermarkets, and warehouse clubs.
Convenience store: a limited number of items at convenient locations, so higher prices.
What are the 8 types of General merchandise retailers?
Discount: broad variety, limited service, low price (value village)
Specialty: a limited number of complementary merchandise in a relatively small store (small clothing store)
Category: narrow variety, but lots of products (Indigo)
Department store: broad variety, deep assortment (Hudson Bay)
Drugstore: health and personal grooming products (Shoppers)
Off-price retailer: inconsistent assortment of merchandise, low prices (marshall)
Extreme-value retailer: general merchandise discount ( Dollarama)
Services retailer: sell services rather than merchandise
When developing a retail strategy, retailers must:
develop market segments
develop the retail mix (product, pricing, place, promotion, personnel, presentation)
Explain product (merchandise assortment) from the retail mix
Providing the right mix of merchandise and services that satisfy the needs of the target market. The assortment of the merchandise attracts the customers (ex: Ikea)
Explain the Price
The general price range of a particular store helps define its image. Usually regular prices are at the front and sales are at the back of stores
Explain Promotion
Retailers and manufacturers know that good promotion, both within their retail environment and in the media, can make the difference between flat sales and growing consumer base.
Explain presentation
More retailers are devoting more resources to their overall retail environment as means to promote and showcase what the store has to offer. Displays of merchandise both in-store and in windows are important
Describe the wheel of retailing
As stores ass services and improvements, expand the mix of merchandise carried and upgrade their facilities, costs are generally added to the day-to-day operations, which result in higher prices.
1. Outlets start with low prices, low margins, low-status
time passes + more services
2. Outlet now has higher prices, higher margins, higher status.
time passes + more services
3. Outlet has still higher prices, higher margins, higher status
4. New form of outlet enters a retailing environment with characteristic so outlet box 1.
Explain personnel
The most successful retailers concentrate on providing more value to their best consumers. The knowledge retailers gain from their store personnel, the internet browsing, etc can be used in costumer relationship management.
