busi 1210 ch 11
Impact of recession on retailers:
Cost-cutting, price promotions, bankruptcy New value pitches in positioning
What is the overall goal when retailers choose their product assortment?
Differentiate the retailer while matching target shoppers' expectations
Global expansion of major retailers:
Escaping saturated home markets
Impact of recession on consumers: Changed spending patterns
Impact of recession on consumers: Changed spending patterns
Growing importance of retail technology:
Produce better forecast Control inventory costs Interact digitally with suppliers Send information between stores Sell to customers within stores
Retailers must determine three product variables
Product assortment Services mix Store atmosphere
Green retailing:
Promoting more environmentally responsible products Launching programs to help customers be more responsible Working with channel partners to reduce their environmental impact
Retailer co-operative
group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts. Ex. home hardware
Merchant
independently owned businesses that take title to all merchandise handled
Because today's consumers shift seamlessly across channels, many online retailers, including Amazon, are moving _______.
into the physical world
Limited service
offer fewer services
Full-service
provide a full line of services. These include wholesale merchants and industrial distributors
Retail strategy
retail segmentation and targeting, store differentiation and positioning
social media retailing
seamless and integrates multiple types of media
Like retailers, wholesalers must _____________________________.
segment and target carefully, differentiate, and position themselves effectively
Hotels and motels, banks, airlines, restaurants, colleges, hospitals, movie theatres, tennis clubs, bowling alleys, repair services, hair salons, and dry cleaners are all examples of ________.
service retailers
Wholesaler
a firm engaged primarily in wholesaling activities
Shopping centre
a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit
Omni-channel retailing goes beyond just helping in-store customers as they cross-shop on mobile devices and requires _________________________.
carefully integrating the entire range of available shopping channels
Specialty store
carries a narrow product line with a deep assortment. Ex. sunglasses hut, sephora
department stores
carries several product lines. Typically clothing, home furnishing, and household goods. Each line operates as a separate department managed by specialist buyers or merchandisers. Ex. macys
Discount store
carries standard merchandise sold at lower prices, lower margins and higher volumes. Ex. dollarama
limited service retailers
carry more shopping goods about which consumers need information and provide more sales assistance
Full service retailers
carry more specialty goods and assist customers in every phrase of the shopping process
retail strategy and retail marketing mix ...
create value for targeted retail customers
Omni-channel retailing
creating a seamless cross-channel buying experience that integrates in-store, online and mobile shopping. Ex. footlocker
New retail forms continue to emerge. However, different types of retailers are increasingly serving similar customers with the same products and prices (retail convergence), making __________ more difficult.
differentiation
Wholesaling
involves all the activities in selling goods and services to those buying for resale or business use. Involves functions such as selling and promoting, buying and assortment building, bulk breaking, warehousing, transportation, financing, risk bearing, market information, management services and advice
Supermarket
low cost, large, high volume, self service operation designed to serve the consumers total needs for groceries. Ex. sobeys
The three major groups of wholesalers are ________.
merchant wholesalers, brokers and agents, and manufacturers' and retailers' branches and offices
Of product and services assortment, price, promotion, and place, which plays one of the most important roles in aligning target markets and positioning?
place
Retail marketing mix
product and service assortment, retail prices, promotion, distribution (location)
Wholesale marketing mix
product and service assortment, wholesale prices, promotion, distribution (location)
Wholesale merchants
sell primarily to retailers and provide a full range of services
Industrial distributors
sell to manufacturers rather than to retailers. May carry a broad range of merchandise, a general line or a specialty line. Provide several services
By performing the channel function of ________, wholesalers' sales forces help manufacturers reach many small customers at a low cost.
selling and promoting
Off-price retailer
sells merchandise bought at less-than-regular wholesale prices and sold at less than retail. Ex. winners (independent off-price retailer), costco (warehouse clubs), miksa (factory outlet)
Self service retailers
serve customers who are willing to perform their own locate-compare-select process
Price policy must fit the retailer's
target market and positioning, product and service assortment, competition and economic factors
Locations should be accessible to the ...
target market in areas that are consistent with the retailers positioning
Corporate chain
two or more outlets that are commonly owned and controlled. Corporate chains appear in all types of retailing but they are strongest in department stores, food stores, drugstores, and restaurants. Ex. sobeys
Wholesale strategy
wholesale segmentation and targeting, differentiation and service positioning
Voluntary chain
wholesaler-sponsored group of independent retailers engaged in group buying and merchandising. Ex. NAPA, independent grocers alliance
Franchise organization
contractual association between a franchisor and franchisees. Ex. subway
Retailers must either practice
- EDLP (everyday low pricing) - high-low pricing
The name of the game for retailers is to
find the customer value-driven marketing strategy and mix that will let them create value for customers and capture value in return
Shopper marketing
focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale
experimental retailing
a retailing technique of carefully orchestrating the store's layout and displays, background music, colours, and smells.
Superstore
a very large store that meets consumers' total needs for routinely purchased food and nonfood items. Carry a deep assortment in a particular category. Ex. Walmart (discount store), Bed bath & beyond, best buy, staples (category killers)
Retailing
activities involved in selling good or services directly to consumers for the personal use
Retailer
business whose sales come primarily from retailing
Convenience stores
carries a limited line of high-turnover convenience products at slightly higher prices. Relatively small stores near residential areas. Ex. 7-eleven
3 Major groups of wholesalers
-Brokers and agents -Merchant wholesalers -Manufacturers and retailers branches and offices
Rise of megaretailers:
-Offer better merchandise selections, good service, and strong price savings to consumers -Have shifted the balance of power between retailers and producers -Growth of direct, online, mobile, and social media retailing -Availability of a variety of non store alternatives
Retailers use various combos of the five promotion tools
-advertising -personal selling -sales promotion -public relations -direct and social media marketing
Retailer classification is based on
-amount of service -product lines sold -relative prices charged -the way they are organized
Trends in wholesaling
-need for greater efficiency -demands for lower prices -sorting out suppliers who are not adding value based on cost and quality -blurring distinction between large retailers and wholesalers -increased use of technology to contain costs and boost productivity
Retailing trends and developments
-rise of megaretailers -rapid growth of direct, online, mobile and social media retailing -social media retailing. -growing importance of retail technology -surge in green retailing -global expansion of major retailers
Major types of retail organizations
1. Corporate chain 2. Voluntary chain 3. Retailer cooperative 4. Franchise organization
Major store retailer types
1. Specialty store 2. Department store 3. Supermarket 4. Convenience store 5. Discount store 6. Off-price retailer 7. Superstore