BMGT350 - Chapter 11
4 major classifications of retail organizations
Corporate chains voluntary chains retailer cooperatives franchise organizations
The purpose of retail strategy and retail marketing mix is to:
Crate value for targeted retail customers
The purpose of wholesale strategy and wholesale marketing mix is to:
Create value for targeted wholesale customers
retail convergence
Different types of retailers now sell the same products at the same prices to the same consumers
What is true about omni-channel buyer
They shift easily across online and in-store channels throughout the buying process. They will cause a massive shift in how store retailers operate. They readily research products and prices online, shopping digitally from home, from work, in stores, or anywhere in between. Omni-channel buying calls for omni-channel retailing.
warehouse clubs
an off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees Examples include Costco, Sam's Club, etc.
broker
brings buyers and sellers together and assists in negotiation
department stores
carry a wide variety of product lines
speciality stores
carry narrow product lines with deep assortments within those lines
Omni-channel retailing
creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping requires integrating the entire range of available shopping centers
After segmenting and defining their target markets, what should retailers do next?
decide how they will differentiate and position themselves
shopper marketing
focusing the entire marketing process—from product and brand development to logistics, promotion, and merchandising—toward turning shoppers into buyers as they move along toward the point of sale
major retail trends
major retailers are expanding globally There is a continued rise of mega retailers Retailers have now adjusted to the new economic realities Differentiation is now more difficult
3 major group of wholesalers
merchant wholesalers Brokers and agents manufacturers' and retailers' branches and offices
factory outlets
off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods
retail marketing mix
product and service assortment retail prices promotion distribution (location)
agents
represent buyers or sellers on a more permanent basis
major decisions for retailers trying to attract and hold customers
retail marketing mix decisions Decisions about targeting Decisions regarding segmentation Store differentiation and positioning decisions
retail strategy
retail segmentation and targeting store differentiation and positioning
convenience stores
small stores that carry a limited line of high-turnover convenience goods
Successful retailers of the future must adopt which type of buying experience that is both seamless and integrates multiple types of media
social shopping retailing
Characteristics of retail stores
the amount of service they offer the breadth and depth of their product lines the relative prices they charge how they are organized
corporate chain
two or more outlets that are commonly owned and controlled
Wholesale strategy
wholesale segmentation and targeting differentiation and service positioning
Manufacturers' and retailers' branches and offices
wholesaling by sellers or buyers themselves rather than through independent wholesalers
supermarkets
A large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products
Differences between retail and wholesale
Buying in small quantity vs buying in a bulk Selling to final consumer vs selling to business for further sale
wholesalers
Firms engaged primarily in wholesaling activities
Wholesale marketing mix
Product and service assortment Wholesale prices Promotion Distribution (location)
Wholesalers add value by performing one or more of the following channel functions
Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and advice
Retailers
a business whose sales come primarily from retailing
category killers
a giant specialty store that carries a very deep assortment of a particular line
shopping center
a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit
discount store
a retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume
off-price retailers
a retailer that buys at less-than-regular wholesale prices and sells at less than retail
Service retailers
a retailer whose product line is actually a service examples include hotels, airlines, banks, colleges, and many others
experimental retailing
a retailing technique of carefully orchestrating the store's layout and displays, background music, colors, and smells
superstores
a store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services
The only reason for a wholesaler to exist is to:
add value by increasing the efficiency and effectiveness of the entire marketing channel
place
aligning target markets and positioning
wholesaling
all the activities involved in selling goods and services to those buying them for resale or business use
Retailing
all the activities involved in selling products or services directly to final consumers for their personal, non business use
Merchant wholesalers
an independently owned wholesale business that takes title to the merchandise it handles
Independent off-price retailer
an off-price retailer that is independently owned and operated or a division of a larger retail corporation
