Chapter 13 - Retailing and Omnichannel Marketing Flashcards
Retailing Position in supply chain
Is at the end of the supply chain where marketing meets the consumer, ensures that the consumers expectations are fulfilled
Retailing
the set of business activities that add value to products and services sold to consumers for their personal or family use - walmart, costco, home depot
Aggregaterating disparate products from different vendors to convince consumers
Factors for establishing a relationship with retailers
choosing retail partners, identifying types of retailers, developing a retail mix strategy, managing a multichannel strategy
Multichannel strategy
selling in more than one channel (store, catalog, kiosk, internet)
Choosing Retail Partners
manufacturers consider the basic channel structure, where their target customers expect to find their products, and channel member characteristics - a manufacturers strategy depends on its overall market power, and how consistent a new product line is with current offerings
Channel structure
The 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
Customer Expectations
Retailers should know customer preferences regarding manufactures
- Manufacturers need to know where their target market customers expect to find their products and those of their competitors
Channel Member Characteristics -
The larger and more sophisticated the channel member, the less likely it is to use supply chain intermediaries
Food Retailers
Conventional supermarket -
offers groceries, and limited sales of nonfood items, such as health and beauty aids and general merchandise, in a self-service format
Big-box food retailer
comes in three types: supercentre, hypermarket, and warehouse club; larger than a conventional supermarket; carries both food and nonfood items
Convenience store
provides a limited number of items at convenient locations in small stores with speedy checkout
General Merchandise Retailers
May be discount stores, speciality stores, category specialists, department stores, drug stores, off-price retailers, or extreme-value retailers; may sell through multiple channels, such as the internet and catalogues
Discount stores
offers a broad variety of merchandise, limited service, and low prices
Walmart and giant tiger
Speciality stores -
- concentrate on a limited number of complementary merchandise categories in a relatively small store
Category specialists
- offers a narrow variety but a deep assortment of merchandise
Chapters, best buy
Category killer
- offers an extensive assortment in a particular category, so overwhelming the category that other retailers have difficulty competing
Department stores -
carry many different types of merchandise (broad variety) and lots of items within each type (deep assortment), offer some customer services, and are organized into separate departments to display their merchandise
The bay
Drugstores
a speciality store that concentrates on health and personal grooming merchandise, through pharmaceuticals
Shoppers
Off-price Retailers -
winners, marshalls, and homesense - offers an inconsistent assortment of merchandise at relativity low prices
Extreme-value retailer
a general merchandise discount store found in a lower-income urban or rural area - dollar store
Service retailer
primarily sell services rather than merchandise, are a large and growing part of the retail industry
Retail mix
- product (merchandise assortment), pricing, promotion, place, personnel, and presentation (store design and display) strategies to reach and serve customers
- All 6 elements must be closely coordinated so that they portray a consistent and clear positioning such that consumers know what type of customers the retailer is targeting and how it wants to serve them
Product (Merchandise Assortment)
Retailers most fundamental activities is providing the right mix of merchandise and services that satisfies the needs of the target market
Price
- Price helps define the value of both the merchandise and the service, and the general price range of particular store helps define its image
- Manufacturers must consider at what price they will sell the product to retailers so that both the manufacturers and the retailers can make a reasonable profit
Promotion
Retailers and manufacturers know that good promotion, both within their retail environments and in the media can mean difference between flat sales and a growing consumer base
Promotion -Cooperative (co-op) advertising -
- an agreement between a manufacturer retailer in which the manufacturer agrees to defray some advertising costs
Presentation (store design and display)
- In addition to more traditional forms of promotion, many retailers are devoting more resources to their overall retail environment as a means to promote and showcase what the store has to offer
- Retailers continue to
improve their shopability by providing more convenient store layouts and shopping experiences that make the task faster, easier, or more interesting
Planogram
a diagram that reflects how all brand products are organized on shelves
Personnel
Personal selling and customer service representatives are also part of the overall promotional package
- Well-trained personnel can influence the sale at the point of purchase by educating consumers about product attributes, pointing out the advantages of one item over another, and encouraging multiple purchases
Share of wallet
the percentage of customers purchases made from that particular retailer
Place
- Realtiers already have realized that convenience is a key ingredient to success and an important aspect of this success is convenient locations
- Great locations provide a competitive advantage that few rivals can duplicate
Live Streaming -
pairing an online event with an e-commerce site that allows viewers to simultaneously watch and stop
Omnichannel
a strategy that creates consistent experience for consumer across all distribution channels
Deeper and broader selection
vast number of alternatives available to consumers without stores having to grow their aisles to increase their square footage
More information to evaluate merchandise
provides as much information as each consumer wants and more information than they could get through store of catalog channel
Personalization
personalized customer service - FAQ, online chats,
Personal offerings - using cookies on Amazon enhances shopping experiences, find shopping habits
Expand market presence
internets low entry costs and constantly improving search engines and shopping bots, smaller niche sources for hard-to-find products, collectibles, and hobbies can expand their trade area - the geographical are that contains the potential customers of a particular realier of shopping centre
Effective Omnichannel Retailing
They want to be recognized as a retailer, whether they interact with a sales associate the realtors website, or retailers call centre by telephone
Integrated CRM
system has a centralized customer data warehouse that houses a complete history of each customers interaction with the retailers, regardless of whether the sale occurred in a store, on the internet, or on the phone - information allows retailers to efficiently handle complaints, expedite returns, target future promotions and provide a seamless experience for customers
Brand image
need to provide a consistent brand image across all channels
Pricing
customers expect pricing consistency for the same SKUS across channels (excluding shipping charges and sales tax) - in some cases, retailers adjust their pricing strategy because of the competition they face in different channels
Supply chain
retailers struggle to provide an integrated shopping experience across all their channels because unique skills and resources are needed to manage each channel
