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