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Chapter 13

Management and Organizational Studies 2320A/B Chapter 13: Chapter 13


Department
Management and Organizational Studies
Course Code
MOS 2320A/B
Professor
Ben Marcus
Chapter
13

This preview shows pages 1-2. to view the full 6 pages of the document.
RETAILING AND MULTICHANNEL MARKETING
See exhibit 13.1
-
Retailing - the set of business activities that add value to products and services sold to
consumers for their personal or family use
Wholesalers - firms engaged in buying, taking title to, storing, and physically handling
goods in large quantities and then reselling them to retailers or industrial users
Manufacturer's strategy depends on its overall market power and on how
consistent a new product or product line is with its current offerings
-
First factor to choosing retailers is how likely to is that certain retailers would
carry their product
-
Also consider where target customers are expecting to find their product
-
Size of manufacturer, functions it performs, availability of product, and image
will all determine how many retailers the product will be sent to
-
Multichannel strategy - selling in more than one channel
CHOOSING RETAIL PARTNERS
Need to look at basic channel structure, where their target customers expect to
find the products, and channel member characteristics
-
Channel Structure
Degree of vertical integration
-
If they own the whole line, its going to go automatically to all stores
-
But with less power in the market place you'll have to push to get it on certain
shelves
-
Customer Expectations
Important to know where they expect to find the product and those of the
competitors
-
Pay attention to changes in this
-
Channel Member Characteristics
Large companies will use its own sales force
-
IDENTIFYING TYPES OF RETAILERS
Food Retailers
Changing dramatically
-
Conventional supermarket - offers groceries, meats, and produce with limited sales of
non-food items, in a selfserve format
Big-box food retailers - come in three types: supercentre, hypermarket, and
warehouse club
Larger than a conventional supermarket, carries both food and non-food items
-
General Merchandise Retailers
May be discount stores, specialty stores, category specialists, department
stores, drugstores, off-price retailers, or extreme value retailers
-
May sell through multiple channels such as internet and catalogue
-
Discount store - offers a broad variety of merchandise, limited service, and low prices
Walmart & Target
-
Specialty stores - concentrate on a limited number of complementary merchandise
categories in a relatively small store
Tailor their retail strategy toward very specific market segments by offering
deep but narrow assortments and sales associate expertise
-
Category specialists - offers a narrow variety but a deep assortment of merchandise
Overwhelm the category with so much variety that its difficult for people to
compete - call them category killers
-
Department stores - carry many different types of merchandise
Broad variety and a deep assortment
-
Some customer service
-
Organized into different departments
-
Drugstores - a specialty store that concentrates on health and personal grooming
merchandise
Pharmaceuticals make up 60% of sales
-
Off-price retailers - a type of retailer that offers an inconsistent assortment of
merchandise at relatively low prices
Winners
-
Buy from manufacturers or other retailers with excess inventory at the end of
season
-
Extreme-value retailer - a general merchandise discount store found in lower-income
urban or rural areas
Dollar store
-
Services retailers - firms that primarily sell services rather than merchandise
DEVELOPING A RETAIL STRATEGY
Retail mix
Product/merchandise assortment
-
Pricing
-
Promotion
-
Place
-
Personnel
-
Presentation
-
Must be closely coordinated so that they portray a consistent and clear position
-
Product/Merchandise Assortment
Provide the right mix of merchandise that satisfies the needs of the target
market
-
Offering assortments
-
Retailers provide value to manufacturers and consumers by storing products
-
Hard for retailers to distinguish from competitors if they carry the same
product - create private-label brands
-
Price
Defines the value of the merchandise and service
-
General price range of the store defines image
-
Prices must be aligned with the other elements of retail mix
-
Promotion
Traditional and online media use to get customers into store
-
Displays and signs in-store
-
Coordinated effort between manufacturer and retailer creates a cohesive
message to consumer
-
Cooperative advertising - an agreement between a manufacturer and retailer in which
the manufacturer agrees to pay some advertising costs
Presentation/Store Design and Display
Use overall retail environment as a means to promote and showcase what the
store has to offer
-
Try to distinguish themselves with exciting atmospheres to add value to the
shopping experience
-
Improving "shopability" making shopping faster, easier, and more exciting
-
*See exhibit 13.3 for the Wheel of Retailing
Variety of factors influencing whether customers will actually buy once they are
in the store
-
Perceptions of value and subsequent patronage heavily influenced by store look
and feel
-
Personnel
Personal selling and customer service representatives
-
Need to provide services that make it easier to buy and use products
-
Provide info about product availability and characteristics
-
Most successful retailers concentrate on providing more value to their best
customers
Through CRM
-
Share of wallet - the % of the customer's purchases made from a particular retailer
Place
Convenience is key
-
Many customers choose stores based on where they are located
-
Good location is a huge competitive advantage
-
Hours of operation
-
BENEFITS OF MULTICHANNEL OPTIONS
Omnichannel - strategy that creates a consistent experience for consumers across all
distribution channels
Stores
Browsing
-
Touching and feeling
-
Personal service
-
Cash and credit payment
-
Entertainment and social interaction
-
Instant gratification
-
Risk reduction
-
Kiosks
Enabling stores with internet kiosks??
-
Broader selection than stores
-
Access to items online that are out of stock in stores
-
Access to wish lists and gift registries
-
Access to loyalty program information
-
Catalogues
Convenience
-
Information
-
Safety
-
Online
Deeper and broader selection
-
More information
-
Personalization
-
Expanded market presence
-
EFFECTIVE MULTICHANNEL RETAILING
Role of Brands
Provide a consistent experience for customers that helps overcome the
difficulty of not being able to touch and feel merchandise
-
Builds trust
-
Using Technology
Convert touch and feel info to look and see info
-
Increasing Share of Wallet
Make more purchases with the company
-
Can stimulate store visits
-
Gaining Insight into Customers' Shopping Behaviours
Difficult to do in-store
-
Chapter 13
Sunday, March 18, 2018
2:28 PM

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

RETAILING AND MULTICHANNEL MARKETING
See exhibit 13.1
-
Retailing - the set of business activities that add value to products and services sold to
consumers for their personal or family use
Wholesalers - firms engaged in buying, taking title to, storing, and physically handling
goods in large quantities and then reselling them to retailers or industrial users
Manufacturer's strategy depends on its overall market power and on how
consistent a new product or product line is with its current offerings
-
First factor to choosing retailers is how likely to is that certain retailers would
carry their product
-
Also consider where target customers are expecting to find their product
-
Size of manufacturer, functions it performs, availability of product, and image
will all determine how many retailers the product will be sent to
-
Multichannel strategy - selling in more than one channel
CHOOSING RETAIL PARTNERS
Need to look at basic channel structure, where their target customers expect to
find the products, and channel member characteristics
-
Channel Structure
Degree of vertical integration
-
If they own the whole line, its going to go automatically to all stores
-
But with less power in the market place you'll have to push to get it on certain
shelves
-
Customer Expectations
Important to know where they expect to find the product and those of the
competitors
-
Pay attention to changes in this
-
Channel Member Characteristics
Large companies will use its own sales force
-
IDENTIFYING TYPES OF RETAILERS
Food Retailers
Changing dramatically
-
Conventional supermarket - offers groceries, meats, and produce with limited sales of
non-food items, in a selfserve format
Big-box food retailers - come in three types: supercentre, hypermarket, and
warehouse club
Larger than a conventional supermarket, carries both food and non-food items
-
General Merchandise Retailers
May be discount stores, specialty stores, category specialists, department
stores, drugstores, off-price retailers, or extreme value retailers
-
May sell through multiple channels such as internet and catalogue
-
Discount store - offers a broad variety of merchandise, limited service, and low prices
Walmart & Target
-
Specialty stores - concentrate on a limited number of complementary merchandise
categories in a relatively small store
Tailor their retail strategy toward very specific market segments by offering
deep but narrow assortments and sales associate expertise
-
Category specialists - offers a narrow variety but a deep assortment of merchandise
Overwhelm the category with so much variety that its difficult for people to
compete - call them category killers
-
Department stores - carry many different types of merchandise
Broad variety and a deep assortment
-
Some customer service
-
Organized into different departments
-
Drugstores - a specialty store that concentrates on health and personal grooming
merchandise
Pharmaceuticals make up 60% of sales
-
Off-price retailers - a type of retailer that offers an inconsistent assortment of
merchandise at relatively low prices
Winners
-
Buy from manufacturers or other retailers with excess inventory at the end of
season
-
Extreme-value retailer - a general merchandise discount store found in lower-income
urban or rural areas
Dollar store
-
Services retailers - firms that primarily sell services rather than merchandise
DEVELOPING A RETAIL STRATEGY
Retail mix
Product/merchandise assortment
-
Pricing
-
Promotion
-
Place
-
Personnel
-
Presentation
-
Must be closely coordinated so that they portray a consistent and clear position
-
Product/Merchandise Assortment
Provide the right mix of merchandise that satisfies the needs of the target
market
-
Offering assortments
-
Retailers provide value to manufacturers and consumers by storing products
-
Hard for retailers to distinguish from competitors if they carry the same
product - create private-label brands
-
Price
Defines the value of the merchandise and service
-
General price range of the store defines image
-
Prices must be aligned with the other elements of retail mix
-
Promotion
Traditional and online media use to get customers into store
-
Displays and signs in-store
-
Coordinated effort between manufacturer and retailer creates a cohesive
message to consumer
-
Cooperative advertising - an agreement between a manufacturer and retailer in which
the manufacturer agrees to pay some advertising costs
Presentation/Store Design and Display
Use overall retail environment as a means to promote and showcase what the
store has to offer
-
Try to distinguish themselves with exciting atmospheres to add value to the
shopping experience
-
Improving "shopability" making shopping faster, easier, and more exciting
-
*See exhibit 13.3 for the Wheel of Retailing
Variety of factors influencing whether customers will actually buy once they are
in the store
-
Perceptions of value and subsequent patronage heavily influenced by store look
and feel
-
Personnel
Personal selling and customer service representatives
-
Need to provide services that make it easier to buy and use products
-
Provide info about product availability and characteristics
-
Most successful retailers concentrate on providing more value to their best
customers
Through CRM
-
Share of wallet - the % of the customer's purchases made from a particular retailer
Place
Convenience is key
-
Many customers choose stores based on where they are located
-
Good location is a huge competitive advantage
-
Hours of operation
-
BENEFITS OF MULTICHANNEL OPTIONS
Omnichannel - strategy that creates a consistent experience for consumers across all
distribution channels
Stores
Browsing
-
Touching and feeling
-
Personal service
-
Cash and credit payment
-
Entertainment and social interaction
-
Instant gratification
-
Risk reduction
-
Kiosks
Enabling stores with internet kiosks??
-
Broader selection than stores
-
Access to items online that are out of stock in stores
-
Access to wish lists and gift registries
-
Access to loyalty program information
-
Catalogues
Convenience
-
Information
-
Safety
-
Online
Deeper and broader selection
-
More information
-
Personalization
-
Expanded market presence
-
EFFECTIVE MULTICHANNEL RETAILING
Role of Brands
Provide a consistent experience for customers that helps overcome the
difficulty of not being able to touch and feel merchandise
-
Builds trust
-
Using Technology
Convert touch and feel info to look and see info
-
Increasing Share of Wallet
Make more purchases with the company
-
Can stimulate store visits
-
Gaining Insight into Customers' Shopping Behaviours
Difficult to do in-store
-
Chapter 13
Sunday, March 18, 2018 2:28 PM
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