Chapter 13 - Retailing and Omnichannel Marketing

Question 1

Retailing Position in supply chain

Answer 1

Is at the end of the supply chain where marketing meets the consumer, ensures that the consumers expectations are fulfilled

Question 2

Retailing

Answer 2

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

Question 3

Factors for establishing a relationship with retailers

Answer 3

choosing retail partners, identifying types of retailers, developing a retail mix strategy, managing a multichannel strategy

Question 4

Multichannel strategy

Answer 4

selling in more than one channel (store, catalog, kiosk, internet)

Question 5

Choosing Retail Partners

Answer 5

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

Question 6

Channel structure

Answer 6

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

Question 7

Customer Expectations

Answer 7

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

Question 8

Channel Member Characteristics -

Answer 8

The larger and more sophisticated the channel member, the less likely it is to use supply chain intermediaries

Question 9

Food Retailers
Conventional supermarket -

Answer 9

offers groceries, and limited sales of nonfood items, such as health and beauty aids and general merchandise, in a self-service format

Question 10

Big-box food retailer

Answer 10

comes in three types: supercentre, hypermarket, and warehouse club; larger than a conventional supermarket; carries both food and nonfood items

Question 11

Convenience store

Answer 11

provides a limited number of items at convenient locations in small stores with speedy checkout

Question 12

General Merchandise Retailers

Answer 12

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

Question 13

Discount stores

Answer 13

offers a broad variety of merchandise, limited service, and low prices
Walmart and giant tiger

Question 14

Speciality stores -

Answer 14

• concentrate on a limited number of complementary merchandise categories in a relatively small store

Question 15

Category specialists

Answer 15

• offers a narrow variety but a deep assortment of merchandise
  Chapters, best buy

Question 16

Category killer

Answer 16

• offers an extensive assortment in a particular category, so overwhelming the category that other retailers have difficulty competing

Question 17

Department stores -

Answer 17

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

Question 17

Drugstores

Answer 17

a speciality store that concentrates on health and personal grooming merchandise, through pharmaceuticals
Shoppers

Question 18

Off-price Retailers -

Answer 18

winners, marshalls, and homesense - offers an inconsistent assortment of merchandise at relativity low prices

Question 18

Extreme-value retailer

Answer 18

a general merchandise discount store found in a lower-income urban or rural area - dollar store

Question 19

Service retailer

Answer 19

primarily sell services rather than merchandise, are a large and growing part of the retail industry

Question 20

Retail mix

Answer 20

• 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

Question 21

Product (Merchandise Assortment)

Answer 21

Retailers most fundamental activities is providing the right mix of merchandise and services that satisfies the needs of the target market

Question 22

Price

Answer 22

• 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

Question 23

Promotion

Answer 23

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

Question 24

Promotion -Cooperative (co-op) advertising -

Answer 24

• an agreement between a manufacturer retailer in which the manufacturer agrees to defray some advertising costs

Question 25

Presentation (store design and display)

Answer 25

• 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

Question 26

Planogram

Answer 26

a diagram that reflects how all brand products are organized on shelves

Question 27

Personnel

Answer 27

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

Question 28

Share of wallet

Answer 28

the percentage of customers purchases made from that particular retailer

Question 29

Place

Answer 29

• 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

Question 30

Live Streaming -

Answer 30

pairing an online event with an e-commerce site that allows viewers to simultaneously watch and stop

Question 31

Omnichannel

Answer 31

a strategy that creates consistent experience for consumer across all distribution channels

Question 32

Deeper and broader selection

Answer 32

vast number of alternatives available to consumers without stores having to grow their aisles to increase their square footage

Question 33

More information to evaluate merchandise

Answer 33

provides as much information as each consumer wants and more information than they could get through store of catalog channel

Question 34

Personalization

Answer 34

personalized customer service - FAQ, online chats,
Personal offerings - using cookies on Amazon enhances shopping experiences, find shopping habits

Question 35

Expand market presence

Answer 35

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

Question 36

Effective Omnichannel Retailing

Answer 36

They want to be recognized as a retailer, whether they interact with a sales associate the realtors website, or retailers call centre by telephone

Question 37

Integrated CRM

Answer 37

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

Question 38

Brand image

Answer 38

need to provide a consistent brand image across all channels

Question 39

Pricing

Answer 39

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

Question 40

Supply chain

Answer 40

retailers struggle to provide an integrated shopping experience across all their channels because unique skills and resources are needed to manage each channel