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