Class Notes (839,092)
Canada (511,185)
Commerce (1,911)
Lecture

Marketing Chapter 12.docx

5 Pages
132 Views

Department
Commerce
Course Code
COMMERCE 2MA3
Professor
Ambika Badh

This preview shows pages 1 and half of page 2. Sign up to view the full 5 pages of the document.
Description
Chapter 12 – Retailers, Wholesalers and Direct Marketers Retailing o Retailing – selling finished goods to final consumers, usually personal items, final stop in the retailer chain, retailers can be buyers and marketers in the supply chain o Wheel of retailing – as firms move up through their life cycle, they emphasize more on services o To retail, you must identify target market then determine retailing mix Merchandising Strategy o Merchandise – all the products a retailer carries o 3 points to consider o Determine the needs of the target market o Determine what the competition is offering o How much profitability can your goods provide you o Category management is trying to identify and manage each product line, depth and width o Battle for shelf space o Stock keeping unit – offerings within a product line (e.g. each different size of a laundry detergent) o Slotting allowances – fees paid by manufacturer to get the shelf space with the retailer o Failure fees – fees charged by the manufacturers when the sales projections given aren’t met o Annual renewable fees – annual fees paid to renew contracts for acquiring the shelf space o Survey fees – fees paid by manufacturers to retailers to be able to survey their customers Customer Service Strategy o Comfort lounges, restrooms o Childcare services o Special occasion registries Pricing Strategy o Effect consumer perception o Markup o The money charged over the cost of the product by the retailer o Depends on the services the retailer is providing and the turnover rate (high turnover = low mark up) o Markdown o The amount by which a retailer reduces the original selling price Chapter 12 – Retailers, Wholesalers and Direct Marketers Location/Distribution Strategy o Depends on the target market, financial capabilities and the site availability o Planned shopping centres o Neighbourhood shopping centre  5 to 15 stores grouped for targeting 5000-50000 people  Convenience goods o Community shopping centre  10 to 30 stores grouped for targeting 20000-100000 people  Financial institutions and convenience goods o Regional shopping centre  200 small stores, 300000 square feet o Power centre  Number of big box retailers grouped together o Lifestyle centre  Shopping plus entertainment and recreation Promotional Strategy o Print media o Internet o Broadcast media o Through sales persons o Selling up – persuading customers to buy higher priced items than their initial intention o Suggestion selling – broadening a customers initial purchase intention Store Atmospherics o Store atmospherics – combination of the physical attributes and amenities that a retailer provides o Exterior – parking area, colour of the store, store sign o Interior – lighting, restroom facilities, cleanliness Types of Retailers o Classification by form of ownership o Chain stores  Central ownership and management  Handle the same product lines o Independent retailers o Classification by shopping effort o Convenience retailers – located close to neighbourhoods, sell items needed for daily use o Shopping stores – offer chance to compare pricing, assortment and quality levels o Specialty retailers – carefully defined product lines, services and reputations Chapter 12 – Retailers, Wholesalers and Direct Marketers o Classification by services provided o Self service (minimum to no service) o Self-selection (minimum customer services provided when shopping) o Full-service retailers (a lot of assistance (e.g. specialty stores, restaurants)) o Classification by form of product lines o Specialty stores  Handle only part of a single product line that it stocks in considerable depth or variety  E.g. subcategory of bigger product line o Limited-line retailers  Limited line stores – one or more product lines (Ikea)  Category killer – only one product line in extensive depth (Best Buy) o General merchandise retailers  Variety stores – offer extensive range and assortment of low price merchandise  Department stores – series of limited line and specialty stores under one roof  Mass merchandisers – wider line of items than departmental store but not the same depth  Discount houses – charge low prices and offer fewer services
More Less
Unlock Document

Only pages 1 and half of page 2 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit