Chapter 13: Marketing: PLACE Retailing and Wholesaling Flashcards
Retailing def
Retailing includes all the activities in selling products or
services directly to final consumers for their personal,
nonbusiness use.
Retailers are businesses whose sales come primarily from
retailing.
Shopper Marketing
Shopper Marketing focuses the entire marketing process
on turning shoppers into buyers as they approach the point
of sale, whether during in-store, online, or mobile shopping.
Omni-channel retailing
Omni-channel retailing creates a seamless cross-channel
buying experience that integrates in-store, online, and mobile
shopping, creating a single shopping experience.
The new retailing model: Digital technologies have caused a
massive shift in how and where people buy. Today’s retailers must adopt omni-channel retailing that integrates in-store, online, and mobile shopping.
Flagships
A flagship store showcase for the brand:
* Normally located it top spot in global (trending) cities
(New York, Tokyo, London, etc…)
* It’s often unique and innovative
* All about customer experience and interaction
* At the forefront of technology and design
* The store that best embodies the retailer’s brand
→ For some brands it’s just the biggest or best-selling store in a chain…
Amount of Service Classifications
- Self-service
– Customers perform their own locatecompare-select-buy process - Limited service
– Provide more sales assistance because they carry more shopping goods - Full service
– Assist customers in every phase of the shopping process
Types of Retailers
slide 12-15
Retailer Marketing Decisions
Segmentation targeting, differentiation, and positioning
Segmentation targeting, differentiation, and positioning involve the definition and profile of the market so the other retail marketing decisions can be made.
Retail targeting and positioning: Lush Fresh Handmade Cosmetics succeeds by carefully positioning itself away from its larger competitors. It makes premium beauty products made by hand from the freshest possible natural ingredients.
Retailer Marketing Decisions
Price policy
Price policy must fit the target market and positioning,
product and service assortment, competition, and economic
factors.
* High markup on lower volume
* Low markup on higher volume
Retailer Marketing Decisions
Everyday low pricing (E D L P) +High-low pricing
Everyday low pricing (E D L P) involves charging constant,
everyday low prices and offering few sales or discounts.
High-low pricing involves charging higher prices on an
everyday basis, coupled with frequent sales and other price
promotions.
Retailer Marketing Decisions
Promotion Decision
- Advertising
- Personal selling
- Sales promotion
- Public relations
- Direct marketing
Retailer Marketing Decisions
Place Decision
Central business districts are located in cities and include
department and specialty stores, banks, and movie theaters.
A shopping center is a group of retail businesses planned,
developed, owned, and managed as a unit.
Increased Uncertainty and Disruption
Tighter Consumer spending
- Changed consumer spending patterns
- Some retailers benefit
- Other retailers have tough times
Retail convergence
Retail convergence involves the merging of consumers, producers, prices, and retailers, creating greater competition for retailers and greater difficulty differentiating offerings.
The Rise of Megaretailers
The rise of megaretailers involves the rise of mass
merchandisers and specialty superstores, the formation of vertical marketing systems, and a rash of retail mergers and acquisitions.
* Superior information systems
* Buying power
* Large selection
Growing Importance of Retail Technology
Retail technology provides better forecasts, inventory control,
electronic ordering, transfer of information, scanning, online
transaction processing, improved merchandise handling systems, and the ability to connect with customers.
