Marketing Chapter 16

What advantage does online shopping have over traditional store channels?

Broader selection

Why should businesses carefully consider how they gather data and what they do with it?

Collecting and selling personal data about customers could be unethical.

Actions taken to get a good or service to a customer fall under which one of the Ps of retail strategy?

processes

Factors for Establishing a Relationship with Retailers

- choosing retailing partners - identifying types of retailers - developing a retail strategy (implement retailing's 7 Ps) - managing an omnichannel strategy

Supermarkets

- conventional supermarket - limited-assortment supermarkets/extreme-value food retailers

Three levels of distribution intensity

- intensive distribution - exclusive distribution - selective distribution

Retailers help satisfy customers' needs by providing which of the following?

A mix of services relating to the products they sell Products in the quantities their customers wish to buy An assortment of products geared toward their target market

Drugstores

A specialty store that concentrates on health and personal grooming merchandise, though pharmaceuticalsmay 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 Retailers

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

If a business offers unique, desirable merchandise but has only a few stores, what is most likely the least expensive way to expand its market presence?

Add the Internet channel.

Cooperative (Co-op) Advertising

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

Which of these refers to the controllable characteristics of a store, related to presentation?

Atmospherics

Service

Auto Rental Health Spa Vision Center Bank

Retailer/Store Brands/Private-Label Brands

Brands developed and marketed by a retailer and available only from that retailer.

Why might a business choose to expand its market presence by adding the Internet channel?

Catalogs are expensive to print and mail, and some customers disapprove of their effect on the environment. When customers go to stores, they typically shop only at those that are close to where they live. Adding an Internet channel is attractive to retailers that have strong brand names but limited locations and distribution.

Manufacturers will work with specific retailers depending on where their target consumers expect to find their products. What does this process refer to?

Customer expectations

Big-Box Retailer/Category Killers

Discount store that offers a narrow but deep assortment of merchandise; see also category killer.

A manufacturer of clothing currently sells its products at Neiman Marcus and Dillard's. A survey shows that a majority of its customers expect to find its products at Neiman Marcus, Macy's, and Saks Fifth Avenue, but relatively few customers expect to find the products at Dillard's or Marshalls. If the manufacturer acts on its customers' expectations, what action would it take in regard to its retail partnerships?

Drop Dillard's and add Macy's and Saks Fifth Avenue.

Amazon.com is an Internet channel that consumers use to purchase a wide variety of products. Which of the following aspects of Amazon.com are advantages it has over the store channel?

Greater personalized information Greater ability to collect information about consumer shopping behavior Greater selection of products

What does an integrated CRM facilitate?

Handling customer complaints Targeting future promotions Expediting returns

The competition in food retailing could best be characterized as which of the following?

Highly competitive

Online Chat

Instant messaging or voice conversation with an online sales representative.

Which statement is true of the Internet channel compared to the store and catalog channels?

It helps retailers offer a greater variety of products.

Which statement is true of the supply chain of an omnichannel retailer?

It usually involves a single distribution center.

Warehouse Club

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

Supercenters

Large store that combines a full-line discount store with a supermarket in one place.

Selective Distribution

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

Which of the following are part of the atmosphere of a store?

Music Lighting

If a manufacturer instructs a retailer on how to use a newly released product, this would be an example of the manufacturer getting involved with which of the following six Ps?

Personnel

Full-Line Discount Store

Retailer that offers low prices, limited service, and a broad variety of merchandise.

Limited-Assortment Supermarket/Extreme-Value Food Retailer

Retailer that offers only one or two brands or sizes of most products (usually including a store brand) and attempts to achieve great efficiency to lower costs and prices.

Which of the following is NOT an actual distribution intensity level considered by manufacturers?

Retentive

Exclusive Distribution

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

Food Retailers

Supermarket Supercenter Convenience Warehouse Club

Unlike Estée Lauder, which is a large and established firm with the resources to provide its own sales force to sell its products, what will smaller firms probably need to rely on to help to distribute their products?

Supply chain intermediaries

Why do some consumers feel upset about the fact that businesses are collecting their personal information?

The business might sell the information to other companies or individuals. The consumer cannot control what a business might do with this personal information in the future. The consumer might be bombarded with unwelcome advertisements online or in the mail.

A company that manufactures shampoo has been unable to persuade a large retail outlet to purchase its products, because the retailer makes and sells mostly its own brand of shampoo. What marketing problem has the manufacturer encountered?

The channel is vertically integrated.

Atmospherics

The controllable characteristics within the store that are intended to influence customers' propensity topurchase.

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.

What factors determine how difficult it is for a manufacturer to persuade retailers to purchase its products?

The relative power of the manufacturer and retailer The degree to which the channel is vertically integrated The strength of the 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.

Which statements about service retailers are true?

They include health clubs and dry cleaners. They primarily sell services rather than merchandise. They are a large part of the retail industry.

Which of these are included in the "processes" aspect of retail strategy?

Transmitting credit card sales Ordering merchandise

Conventional Supermarket

Type of retailer that offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise, in a self-service format.

Convenience Store

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

Which of the following is NOT a type of retailer that falls under the general merchandise retailing category?

Wholesalers

Omnichannel strategy/Multichannel Strategy

omnichannel strategy or multichannel strategy Selling in more than one channel (e.g., stores, Internet, catalog).

Brookstone is a retailer known for opening stores in airports, where they have a captive market. This is an example of employing which of the following six Ps to one's competitive advantage?

place

Which of these is important for the manufacturer and retailer to consider when determining how to position a brand and the products that fall under the brand?

price

The Seven (7) Ps

product price place promotion presentation personnel processes

The role of the retailer is to help

the consumer and manufacturer

Factors for Establishing a Relationship with Retailers note -

the steps are not always consecutive/in that exact order above

Ways Supermarkets are Differentiating their Offerings

- emphasizing fresh perishables - improving health and wellness offerings - proving better value with private-label merchandise - adding new value-added services such as online ordering and delivery options - providing a better shopping experience, such as by adding restaurant options or hosting social events

When choosing retail partners, manufacturers look at...

- the basic channel structure - where their target customers except to find the products - channel member characteristics - distribution intensity

Mobile Commerce (M-commerce)

Communicating with or selling to consumers through wireless handheld devices such as cellular telephones.

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 Store

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

Category Specialist

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

Types of Retailers

Food General Merchandise Service

General Merchandise

Full-line Discount Category Specialist Drug Extreme Value Specialty Department Off-Price

Distribution intensity is typically divided into how many levels?

three