ADM 2320 Lecture Notes - Lecture 13: Convenience Store, Vertical Integration, Personalization
3 May 2018
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Chapter 13
Retailing
• Retailing: set of business activities that add value to products & services sold to
consumers for their personal or family use
• Sits at the end of the supply chain
• Marketing meets the consumer
• Fulfilling customer expectations
• Set of business activities that add value
• Stores, catalogues, internet
Factors for Establishing a Relationship with Retailers
• Choosing retail partners
o Chanel structure: degree of vertical integration, manufacturer’s brand, power of
manufacture and retailer
▪ Vertical integration
▪ Manufacturer strong brand in marketplace
▪ Power of the manufacture & retailer
o Customer expectations: how manufacturers determine which retailers would be
best for consumers and were consumers expect to find certain products
▪ Retailer: who do customers buy from?
▪ Manufacturers: target market expect to find products & those of
competitors
o Channel member characteristics
▪ Larger firms
▪ Less likely to use supply chain intermediaries
▪ Can gain more control, be more efficient, and save money
▪ Distribution channels are difficult to manage
▪ Channel members will benefit by working together to develop &
implement their channel strategy
• Identifying types of retailers
o Understand the general characteristics of different types of retailers so they can
determine the best channel for their product
o Examples:
▪ Food retailers
▪ Supermarket: offer groceries
▪ Big box retailer: super centres, hypermarkets, and warehouse clubs
▪ Convenience store: limited number of items
▪ General merchandise retailers
▪ Discount store: broad variety, limited service, low prices
▪ Specialty store: limited number of complementary merchandise,
small store
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