Chapter 11 Flashcards
Retailer
Business whose sales come primary from retailing
Retailing
Activities involves in selling goods or services directly to consumers for their personal use
Shopper marketing
Focusing the entire marketing process toward turning shoppers into buyers as they approach point of sale
First moment of truth
3-7 seconds after a shopper first encounters a product on a store shelf
Consumers buying journey
How consumers go through the process of identifying needs, alt evaluation and purchase
Omni-channel retailing
Creates seamless cross channel buying experience that integrates in-store, online, and mobile shopping
Retailer classification
Based on:
- amount of service offered
- breadth and depth of product lines
- relative prices charged
- way they are organized
Self service retailers
Serve customers who are willing to perform their own locate-compare-select process
Limited service retailers
Carry more shopping goods about which customer which customers need information and provides more sales assistance
Full service retailers
Carry more specialty goods and assists customers in every phase of the shopping process
Specialty stores
Carry narrow lines of product line with a deep assortment within that line
Ex.) Sunglass Hut
Department stores
Carry a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers
Supermarkets
Large, low cost, low margin, high volume, self service stores that carry a wide carrier of grocery and household products
Convenience stores
Small stores located near residential areas that are open long hours seven days a week and carry limited line of high turnover convenience goods
Discount stores
Sell standard merchandise at lower prices by accepting lower margins and selling at higher volume
Off price retailers
Buyer less than regular wholesale prices and sell at less than retail; includes factory outlets owned by manufacturers and independent off price retailers run by division of larger retail corporation
Warehouse clubs
Sell limited selection of brand name grocery items, appliances, clothing and other goods at deep discounts to members who pay annual membership fees
Superstores
Much larger than regular supermarkets and offer a large assortment of routinely purchased food profits, non food items, and services
Supercenters
Combined supermarket and discount stores
Category killers
Carry deep assortment of a particular line
Service retailers in United States are growing faster than product retailers
For many retailers the product line is actually a service
Corporate chains
Two or more outlets that are commonly owned and controlled, their size allows them to buy in large quantities at lower prices and gain promotional economies
Voluntary chain
Wholesaler sponsored chain of independent retailers that engages in group buying and common merchandising
Retailer cooperative
Group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conducts joint merchandising and promotion efforts
Franchise
Refers to contractual associations between a manufacturer, wholesaler, or service organization and independent business people who buy the right it own and operate one or more units in the franchise system
Segmentation, targeting, differentiation, and positioning decisions
Target markets must be segmented and defined. Retailers then decide how to differentiate and position themselves in those markets.
Three product variables
Product assortment- should differentiate while matching target shoppers’ expectations
Services mix- can help set one retailer apart from another
Store atmosphere- want to create unique store experience that suits target market and moves customers to buy
Price decision
Price policy must fit retailers’ target market and positioning, product and service assortment, competitor, economic factors
Retailers practice either EDLP or high-low pricing
Promotion decision
Advertising- may be supported by newspaper inserts and catalogs
Personal selling- salespeople greeting customers, meeting their needs, and building relationships
Sales promo- in store demonstrations, displays, sales, loyalty programs
Public relations- new store openings, special events, newsletters and blogs, store magazines, and public service activities
Direct and social media marketing
Place decision
Locations should be accessible to target market
Shopping center- group of retail businesses built in site that is planned developed owned and managed as a unit
Tighter consumer spending
Impact of Great Recession on consumers
-changed spending patterns; frugality
Impact of the Great Recession on retailers
- cost cutting, price promotions, bankruptcy
- new value pitches in positioning
New retail forms, shortening retail life cycles, and retail convergence; pop ups
Rise of mega retailers
Offer better merchandise selections, good service, and strong price savings to consumers and have shifted the balance of powers between retailers and producers
Growth of direct, online, mobile, and social media retailing
Green retailing
Promoting more environmentally responsible products, launching programs to help customers be more responsible, working with channel partners it reduce their environmental impact
Global expansion of major retailers- escaping saturated home markets
Wholesaling
Involves all the activities in selling goods and services to those buying for resale or business use
Wholesaler
Firm engaged primarily in wholesaling activities
Channel functions performed by wholesalers
- selling and promoting- wholesalers hell to reach smaller consumers with sales force at lower cost
- buying and assortment building- build assortments for retailers
- bulk breaking- breaking lots into smaller questions
- warehousing- holding inventory and reduce inventory cost of retailers
- transportation- quicker delivery bc of proximity to retailers
- financing- give credit
- risk bearing- risk of theft, damage, spoilage, obsolescence
- market info- info about market, competitors, pricing
- management services and advice- training clerks, store layouts and displays, etc.
Trends in wholesaling
- need for greater efficiency
- demands for lower prices
- sorting out suppliers who are not adding value based on cost and quality
- blurring distinction between large retailers and wholesalers
- increased use of tech to contain costs and boost productivity
