Chapter 16 - Retailing and Omnichannel Marketing

Distribution Intensity

The number of supply chain members to use at each level of the supply chain.

Share of Wallet

The percentage of the customer's purchases made from a particular retailer.

Factors for Establishing a Relationship with Retailers

1) Choose Retailing Partners 2) Identifying Types of Retailers 3) Develop a Retail Strategy 4) Managing an Omnichannel Strategy

Service Retailer

A firm that primarily sells services rather than merchandise.

Extreme-Value Retailer

A general merchandise discount store found in lower-income urban or rural areas.

Department Stores

A retailer that carries many different types of merchandise (bread variety) and lots of items within each type (deep assortment); offers some customer services; and its organized into separate departments to display its merchandise.

Category Specialists

A retailer that offers a narrow variety but a deep assortment of merchandise.

Category Killer

A specialist that offers an extensive assortment in a particular category, so overwhelming that category that other retailers have difficulty competing.

Drugstore

A specialty store that concentrates on health and personal grooming merchandise, though pharmaceuticals may represent almost 70 percent of its sales.

Intensive Distribution

A strategy designed to get products into as many outlets as possible.

Specialty Store

A type of retailer that concentrates on a limited number of complementary merchandise categories in a relatively small store.

Off-price Retailer

A type of retailer that offers an inconsistent assortment of merchandise at relatively low prices.

Cooperative (co-op) Advertising

An agreement between a manufacturer and retailer in which the manufacturer agrees to defray some advertising costs.

Private-Label Brands

Brands developed and marketed by a retailer and available only from that retailer; also called store brands.

Mobile Commerce (M-commerce)

Communicating with or selling to consumers through wireless handheld device such as cellular phones.

Exclusive Brand

Developed by national brand vendor and retailer and sold only by that retailer.

Big Box Retailers

Discount stores that offer a narrow but deep assortment of merchandise; see also category killer.

Full-line Discount Stores

Retailers that offer low prices, limited services, and a broad variety of merchandise.

Limited-assortment Supermarkets

Retailers that offer only one or two brands or sizes of most products (usually including a store brand) and attempt to achieve great efficiency to lower cost and prices. Also called Extreme-Value Food Retailers.

Online Chats

Instant messaging or voice conversations with an online sales representative.

Supercenter

Large Stores combining full-line discount stores with supermarkets in one place.

Warehouse Clubs

Large retailers with an irregular assortment, low service levels, and low prices that often require membership for shoppers.

Selective Distribution

Lies between the intensive and exclusive distributed strategies; uses a few selected customers in a territory.

Omnichannel (Multichannel) Strategy

Selling in more than one channel (e.g., stores, Internet, catalog).

Exclusive Distribution

Strategy in which only selected retailers can sell a manufacturer's brand.

Retailing

The set of business activities that add value to products and services sold to consumers for their personal or family use; includes products bought at stores, through catalogs, and over the Internet, as well as services like fast-food restaurants, airlines, and hotels.

Convenience Store

Type of retailer that provides a limited number of items at a convenient location in a small store with speedy checkout.