MKTG 3000 Lecture Notes - Lecture 22: Chain Store, Customer Experience, Customer Service
Marketing
I. Retailers
a. All the activities directly related to the sale of goods and services to the ultimate
consumer for personal, non-business use
i. Last step in supply chain
ii. Very fast moving part of marketing channel experience
iii. Retailing can be very interesting
b. Retailer functions in the supply chain
i. Break bulk
ii. Provide assortment
iii. Hold inventory
iv. Perform/add service
c. Facts and trends in retail
i. Closest to consumer- quickest data/CRM analytics
ii. Motivated to get you to buy HERE-NOW
iii. Brand loyalty/switching issues/loyalty programs
iv. Growth in E/M commerce- over 85% still sold via brick and mortar
1. Food in brick and mortar
2. gas
v. Overbuilt-America, 20 sq ft per person, Sweden second with 3.1
1. Way too much space for retail
2. Competition is very fierce US
vi. Retailers are closest to consumers, they have the research info more than
manufcaturers
vii. Apps, apps, apps/beacons?
1. Alibaba→ more and more mobile purchases
viii. Huge players dominate categories with multi-unit chains
1. Huge players with well developed infrastructures
2. Lots of large players and multi unit retail is a trend that will continue
ix. Independent retail still key small business opportunity, entrepreneurship
x. Customer experience is the new black
xi. Want you to get there and buy there—need to close the sale
d. Types of ownership
i. Independent retailer
1. Ownedy by a single personor partnership and not part of a larger retail
instution
ii. Chain store
1. Owned by one company
iii. Franchises
1. The right to operate a business or to sell a product
e. Franchisor/franchisee
i. Franchisor benefits:
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1. Rapid growth, shared risk, other peoples money, entreprenuers work
for yOU, fees and royalties, income streams
ii. Franchisee benefits
1. Proven concept, -help at low cost, known brand, training, help with site
selection, only operate (not create), shared risk, more successful than
independents
iii. Franchisor challenges
1. Some poor operators, disputes, large franchisees, development
compliance
iv. Franchisee challenges
1. Poor leadership, disputes, eessive fees, a’t ustoize, ol a
operator, development compliance
2. Development compliance: you want to grow it
a. DQ example
b. Who gets what territory?
f. Level of service
i. Full service
ii. Self service
iii. Retailing relies heavily on people we pay with low wages in order to be a
friendly face
g. Retail strategy elements
i. Building sustainable competitive advantage
ii. Target arket…ustoer eeds
iii. Retail forat…ethod for satisfig eeds
h. Retail format mix
i. Product, pricing, presentation, promotion, place/distribution, customer service
and personal selling, merchandise wide depth
ii. Place: where are we located, what hours are we open, do we do schedules, how
do we promote
iii. Goal of retail promotion is to build sight, and to build retail traffic
iv. Personell: what type of customer service do we have?
v. Product: how do we present merchandise
vi. Pricing:
i. Retailer sources of competitive advantages
i. Customer loyalty
ii. Location
iii. Human resources..committed employees
iv. Unique/exclusive merchandise
v. Distribution/information systems
vi. Buying power/vdendor relations
vii. Customer service
Singles day: 30% increase—singles market is getting more saturated.
Shopping being done on smartphones (80%)
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Document Summary
Independent retail still key small business opportunity, entrepreneurship: customer experience is the new black xi. Singles day: 30% increase singles market is getting more saturated. Trader joes: trader joes differentiates its store experience via the following elemetns, small, easy to navigate store, edited assortment featured new and different itelms, whimsical d cor, superior levels of customer service, competitive basket level pricing. Merchandise offering: ma(cid:374)uf(cid:272)aturer"s or private la(cid:271)le, private lablel, higher margin, more risk, need to create brand, channel conflict, manufacturer, lower margin, consumer preferred, manufacturer advertises, les risk, channel conflict. Private lable growth: growing at nearly 8x that of national brands, power of retailers, emotional attraction to retail brands, retailer royalty, unqieu offeriengs, vertailcally integrated companies and processes, seamless scm. Types of retailers: hard and soft goods, department stores, specialty stores, super market stores, discount stores, drug stores, concenience stores, auto dealers, services, restaurants, hotels, banks, gyms, thearters/enterainment venues, educators.
