Marketing Exam 3

Data analytics

"new science of retailing" - data now available from the use of wearable tech and the growth of multichannel marketing complement the substantial amounts of data already collected thru scanner and loyalty card systems - benefits retailers in 3 ways: 1. understanding how consumers use multiple channels, info sources, and payment options can help retailers predict shopping behavior 2. detailed customer-specific data allow merchants to provide personalized, real-time messaging and promotions 3. tracking customer needs allows retailers to offer innovative products, maintain optimal inventory levels, and manage prices to remain competitive and profitable

COVID trends in retailing

- 44% of consumers want speed, convenience, touchless tech (stop touching cash and allows contactless delivery), and safety from retailers now - sephora now opening off mall, freesatnding locations, and stores within stores thru partnerships with larger retailers

logistical function

- assorting: creating product assortments from several sources to serve customers - storing: assembling and protecting products at a convenient location to offer better customer service - sorting: purchasing in large quantities and breaking into smaller amounts desired by customers - transporting: physically moving a product to customers - ex: mike was hired to take goods from the distribution center in Jacksonville to the retail stores where the products would be sold - order processing: electronic data interchange (EDI): a process which allows one company to send information to another company electronically rather than with paper (ex: Keep Movin' Co. sells surfboards and skateboards to their customers. In the last month, employees at Keep Movin' Co. have noticed that a few skateboards are missing from the shop. They don't want this to keep happening so they've installed a microchip into each item that tracks when it is purchased and automatically sends the information to their computer system) - inventory management: Just in time (JIT) (small but frequent shipments that contain a variety of products, company has little back-room stock, company efficiently orders new supply automatically when their stocks reach pre-determined levels, helping them avoid stockouts) and vender managed inventory (VMI)

transactional function

- buying: purchasing products for resale or as an agent for supply of a product - selling: contracting potential customers, promoting products, and seeking orders - risk taking: assuming business risks in the ownership of inventory that can become obsolete or deteriorate. the need to stock merchandise in anticipation of sales, though it could become unsaleable - a transactional website is essentially an electronic storefront with the primary purpose of converting an online browser into an online, catalog, or in-store buyer - ex: Attire is an online store that focuses on selling trendy clothing for men, women and children. They try to make shopping very enjoyable for their consumers as they promote their clothing with engaging videos. Attire can be described as a transactional website - ex: However, his manager noticed that Mike was also very talented in determining which products would sell best in each retailer's territory, so he reassigned to a position as a distributor sales rep

Corporate vertical marketing systems

- combination of successive stages of production and distribution under a single ownership - ex: producer might own the intermediary at the next level down in the channel (forward integration - ralph lauren) - ex: a retailer might own a manufacturing operation (backward integration - Kroger, Jewelry retailer Tiffany & Co. manufactures about half of the fine jewelry items for sale in its stores and boutiques worldwide. Tiffany & Co. practices this)

Off-price retailing variations/diffs

- diff from discount store bc off-price merch is bought by the retailer from manufacturers with excess inventory at prices below wholesale prices. discounter buys at full wholesale prices but takes less of a markup than traditional department stores. savings to the consumer at off price retailers are reportedly as high as 70% off the prices of a traditional department store - warehouse club: large stores (75,000 to 190,000 square feet) are rather stark outlets that typically lack elaborate displays, customer service, or home delivery. requires annual membership fee (between $45 to $110) for the privilege of shopping there. walmart stocks 30-60 thousand items while warehouse carry 3.7-8 thousand items and usually stock just one brand of appliance or food product (walmart's sam's club, BJ's wholesale club, costco) - amazon prime is growing form of comp for warehouse clubs - outlet store: factory outlets, such as van heuson factory store, gap factory store etc, offer products for 25 to 75% off the suggested retail price. use the stores to clear excess merch and to reach consumers who focus on value shopping - single-price or extreme value: attract customers who want value and a corner store environment (family dollar, dollar tree)

Dell: a responsive supply chain

- direct marketing strategy primarily targets customers who desire having the most up-to-date computer systems customized to their needs - their customers are willing to 1. wait to have their computer system delivered in a few days, rather than picking out a model at a retail store 2. pay a reasonable, not the lowest, price in the marketplace - efficient supply chain using inexpensive, but slower, modes of transportation, emphasize economies of scale in its production process by reducing the variety of system configurations offered, and limit its assembly and inventory storage facilities to a single location - if dell opted only for efficiency, it would be difficult to satisfy its target customers' desire for rapid delivery and wide variety of customizable products - dell instead opted for responsive supply chain. relies on expensive express transportation for receipt of components from suppliers and delivery of finished products to customers

facilitating function

- financing: extending credit to customers - grading: inspecting, testing, or judging products, and assigning them quality grades - marketing information and research: providing information to customers and suppliers, including competitive conditions and trends

Full service merchant wholesalers types

- general merch (or full line) wholesalers: carry a broad assortment of merch and perform all channel functions. mostly in hardware, drug, and clothing industries. not much depth of assortment within specific product lines - specialty merch (or limited line) wholesalers: offer a relatively narrow range of products but have an extensive assortment within the product lines carried. perform all channel functions and are found in the health foods, automotive parts, and seafood industries

Franchise arrangement types (Contractual vertical marketing system variation)

- in this, an individual or firm contracts with a parent company to set up a business or retail outlet 1. manufacturer-sponsored retail franchise systems: prominent in the automobile industry, where a manufacturer such as Ford licenses dealers to sell its cars subject to various sales and service conditions 2. Manufacturer-sponsored wholesale franchise systems: exist in the soft-drink industry (ex: pepsi-cola licenses wholesalers (bottlers) that purchase concentrate from pepsi-cola and then carbonate, bottle, promote, and distribute its products to retailers and restaurants 3. service-sponsored retail franchise systems: used by firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others (Holiday inn, avis, mcdonald's) 4. service-sponsored franchise systems: exist when franchisors license individuals or firms to dispense a service under a trade name and according to specific guidelines. Don't have a unique approach (Snelling and Snelling Inc employment services and H&R Block tax services)

Walmart: efficient supply chain

- keeps low inventory levels, most of it is stocked in stores available for sale, not in warehouses gathering dust - low inventory arises from cross-docking

Retail pricing

- markup: refers to how much should be added to the cost the retailer paid for a product to reach the final selling price. the % of selling price, not cost of goods (PRICE = COST OF GOODS / ((100-% MARKUP) / 100) - original markup: the difference between retailer cost and initial selling price - maintained markup: retailers decide on og markup, but by the time the product is sold they end up with this - gross margin: the difference between the final selling price and retailer cost is the maintained markup - markdown: discounting a product or taking a markdown occurs when the product does not sell at the og price and an adjustment is necessary - everyday low pricing (EDLP): consistently low prices and eliminate most markdowns - EDLP 2.0: enables consumers to reduce their price through product bundling and payment and shipping options - off-price retailing: involves selling brand-name merch at lower than regular prices

Bullwhip effect

- objective of logistics management in a supply chain is to reduce this - the tendency for supply chain managers at different levels of the supply chain to exaggerate the need to increase or decrease inventory in response to variation or lack of predictability in customer demand

Retail communication

- retail image: often described as the way in which the store is defined in the shopper's mind, partly by its functional qualities and partly by an aura of psychological attributes (functional = mix elements such as price ranges, store layouts, and breadth and depth of merch lines) - shopper marketing: the use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store

clayton act

- specifically prohibits exclusive dealing and tying arrangements when they lessen competition or create monopolies - even though a supplier has a legal right to choose intermediaries to carry and represent its products, a refusal to deal with existing channel members may be illegal under this act

Dependability (supply chain setting)

- the consistency of replenishment - important to all firms in a supply chain and to consumers - can be broken into consistent lead time, safe delivery, and complete delivery

Convenience (supply chain management)

- there should be a min of effort on the part of the buyer in doing business with the seller, is it easy to order? available from many outlets? - vendor-managed inventory (VMI): the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items - supply chain management: the integration and organization of info and logistics activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to customers

Communication (supply chain setting)

- tracking the transformation, movement, and storage of raw materials, component parts, and finished products is time consuming, time sensitive, and suceptible to error. - blockchain technology: a decentralized digital system for recording, documenting , and facilitating transactions across all participants in a supply chain (helpful in updating the "chain of custody"

Manufacturer's sales branch office and sales office

- wholly owned extensions of the producer that perform wholesaling activities - producers assume wholesaling functions when there are no intermediaries to perform these activities, customers are few in number and geographically concentrated, or orders are large or require significant attention - branch office: carries a producer's inventory and performs the functions of a full service wholesaler - sales office: does not carry inventory, typically performs only a sales function, and serves as an alternative to agents and brokers (after selling, the factory direct ships to consumer)

Federal trade commission and justice department monitors channel practices that restrain competition, create monopolies, or otherwise represent unfair methods of competition under the sherman act (1890) and the clayton act (1914)

1. Dual distribution - not illegal but can be viewed as anticompetitive in some situations. most commonly when a manufacturer distributes through its own vertically integrated channel in comp with independent wholesalers and retailers that also sell its products 2. Vertical integration - not illegal but sometimes subject to legal action under the Clayton act if it has the potential to lessen comp or foster monopoly 3. Exclusive dealing: exists when a supplier requires channel members to sell only its products or restricts distributors from selling directly competitive products 4. Tying arrangements: occur when a supplier requires a distributor purchasing some products to buy others from the supplier. Illegal if the tied products could be purchased at fair market values from other suppliers at desired quality standards of the franchisor 5. Full-line forcing: special kind of tying arrangement. involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier's line 6. Resale restrictions: refer to a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold. prosecuted under the sherman act. courts apply "rule of reason" in such cases

Common marketing channels

1. Producer -> consumer 2. Producer -> retailer -> consumer 3. Producer -> wholesaler -> retailer -> consumer 4. Producer -> agent -> wholesaler -> retailer -> consumer

6 forms of nonstore retailing

1. automatic vending 2. direct mail and catalogs 3. television home shopping 4. online retailing 5. telemarketing 6. direct selling

Form of ownerships

1. independent retailer: business owned by an individual. 3.8 million retail establishments in the US and include hardware, convenience, clothing, and electronics stores. Advantage = owner is the boss 2. corporate chain: involves multiple outlets under common ownership (ex: macy's - 570 macy's stores in 43 states and owns 36 bloomingdale's). advantage = dealing with manufacturers as the size of the chain grows because can bargain with manufacturer to obtain good service or volume discounts on order 3. contractual systems: independently owned stores that band together to act like a chain. advantages = members can take advantage of volume discounts commonly available to chains and give the impression of being a large chain which is viewed favorable by consumers

marketers must treat customers as individuals and empower them to...

1. influence the timing and extent of the buyer-seller interaction and 2. have a say in the kind of products and services they buy, the info they receive, and in some cases the prices they pay

Buyer requirements

1. info: important when buyers have limited knowledge or desire specific data about a product or service 2. convenience: multiple meaning for buyers such as proximity or driving time to retail outlet 3. variety: reflects buyers' interest in having numerous competing and complementary items from which to choose. evident in breadth and depth of products and brands carried by intermediaries 4. pre- or postsale service: (provided by intermediaries) important buying requirement for products such as large household appliances that require delivery, installation, service, and credit

Level of service

1. self-service: requires that customers perform many functions during the purchase process (amazon or zipcar) 2. limited service: provide some services, such as credit and merch return, but not others, such as clothing alterations (walmart, kmart, target) 3. full service: provide many services to their customers. include most specialty stores and department stores (neiman marcus, nordstrom, saks fifth avenue)

3 lessons from walmart and dell

1. there is no one best supply chain for every company 2. the best supply chain is the one that is consistent with the needs of the customer segment being served and complements a company's marketing strategy 3. supply chain managers need to be prepared to make trade-offs between efficiency and responsiveness on various elements of a company's supply chain

Aligning a supply chain with marketing strategy

1. understand the customer: company must identify the needs of the customer segment being served 2. understand the supply chain: company must understand what a supply chain is designed to do well 3. harmonize the supply chain with the marketing strategy: a company needs to ensure that what the supply chain is capable of doing well is consistent with the targeted customer's needs and its marketing strategy

3 questions marketing executives consider when choosing a marketing channel and intermediaries

1. which channel and intermediaries will provide the best coverage of the target market? 2. which channel and intermediaries will best satisfy the buying requirements of the target market? 3. which channel and intermediaries will be the most profitable?

Retail positioning matrix

A matrix that positions retail outlets on two dimensions: breadth of product line and value added, such as location, product reliability, or prestige. (ulta beauty) - low value added, high breadth of selection: discounters - low value added, low breadth of selection: some specialty stores - high value added, high breadth of selection: department stores - high value added, low breadth of selection: power retailers, specialty stores

Channel captain

a channel member that coordinates, directs, and supports other channel members - can be producers, wholesalers, or retailers - a firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members with reward, expertise, identification, and legitimate right - COST VS CONTROL: the struggle for channel leadership between manufacturers and retailers - ex: Sports Port uses a variety of channel members (like truckers) to meet consumer demands. Such a diverse channel of distribution often resulted in channel conflict. However, due to his strong consumer following, the owner of Sports Port had the power to resolve disputes between channel members. The owner of Sports Port serves as this

Digital marketspace

a digitally enabled environment characterized by face-to-screen exchange relationships and electronic images and offerings

Intensive distribution (density)

a firm tries to place its products and services in as many outlets as possible - usually chosen for convenience products or services such as candy, fast food, and soft drinks - Fairlife, a brand of unfiltered milk, is trying to expand its sale of their high protein milk shakes on college campuses. Fairlife places their 14 oz bottles in vending machines, dining halls, and in campus convenience stores

Cross docking

a practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto its trucks for a particular store

Reverse logistics

a process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal - effect can be seen in the reduced waste in landfills and lowered operating costs for companies

Administered vertical marketing systems

achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership - ex: chipper is a small logging company based in York, PA. It mostly sells its lumber to DR Horton. Due to the downtrend in the housing market, DR Horton is threatening to stop buying Chipper's lumber unless they significantly reduce their prices. Unfortunately, Chipper has no way of replacing those lost orders, so they comply with DR Horton's demands. - ex: business partners don't like cara's different uses of mailing companies, but since customers are loyal, so business partners have to follow cara anyway - ex: Target is one of the most popular and powerful discount stores across the country. Besides selling their own store brand of many items, they also have agreements with other vendors to sell those vendors' products. Due to Target's size and power, they are able to direct the actions of their channel partners without the need for franchises or other legal agreements.

Manufacturer's agents (aka manufacturers' representatives)

agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory

Retailing

all the activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use

Direct to consumer marketing channels (direct to consumer = D2C)

allow consumers to buy products by interacting with various print or electronic media without a face-to-face meeting with a salesperson - include mail-order selling, direct-mail sales, catalog sales, telemarketing, interactive media (websites), and televised home shopping

Online retailing

allows consumers to search for, evaluate, and order products through the internet - advantages: 24 hour access, ability to comparison shop, in home privacy, and variety - can use a shopping "bot" which searches the internet for a product specified by the consumer and provides a report listing retailers with the best prices - can use online auction where 159 million active buyers from 190 markets bid on more than 1.5 billion listings - can use flash sales which send text messages announcing limited-time offers at big discounts

Category management (merchandise)

an approach to managing the assortment of merch in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category

Dual distribution

an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product - ex: GE large appliances are sold directly to home and apartment builders while retail stores, including Lowe's home centers, sell to consumers - ex: Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market products to large retail chains like Walgreens that distribute them to their stores across the nation. They also sell to drug wholesalers that sell to the remaining independent drugstores in the U.S.

Choiceboard

an interactive, digitally enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options - collects precise information about preferences and behavior of individual buyers. so a company becomes more knowledgeable about a customer and better able to anticipate and fulfill that customer's needs

Channel conflict

arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals 1. vertical conflict: occurs between different levels in a marketing channel - disintermediation: conflict arises when a channel member bypasses another member and sells or buys products direct. reduction in the use of intermediaries between producers and consumers, for example by investing directly in the securities market rather than through a bank 2. horizontal conflict: occurs between intermediaries at the same level in a marketing channel such as between 2 or more retailers (target and kmart) or 2 or more wholesalers that handle the same manufacturer's brands

BOPUS

buy online and pick up in store

Traditional marketplace

buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities (stores and offices) and mostly tangible objects

Digital natives

challenged to continually refine, broaden, and deepen their marketspace presence (amazon, google, ebay, etrade) - must consider waht role the traditional market place will play in their future

Strip mall

clusters of stores to serve people who are within a 5 to 10 minute drive - gas station, hardware, laundry, grocery, and pharmacy outlets are commonly found in a strip mall - composition of these stores is usually unplanned (unlike larger shopping centers)

Regional shopping centers

consist of 50 to 150 stores that typically attract customers who live or work within a 5 to 10 mile range - often contain 2 to 3 anchor stores (well known national or regional stores such as nordstrom, saks 5th ave, and bloomingdales) - largest in north america is west edmonton mall in alberta canada (800 stores, world's largest indoor amusement park, 100+ restaurants, a move complex, 2 hotels, all of which attract 30 million visitors a year)

marketing channel

consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users

BORIS

customers buy online and return purchases in a store

Best coverage of target marketing requires attention to __ and type of intermediaries to be used at the retail level of distribution

density - the number of stores in a geographical area - intensive, exclusive, and selective

Merchandise line (retailing classification)

describes how many different types of products a store carries and in what assortment

Wheel of retailing

describes how new forms of retail outlets enter the market - usually enter as low status, low margin stores (drive in hamburger stand with no indoor seating and a limited menu)

Form of ownership (retailing classification)

distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet

Possession utility

entails efforts by intermediaries to help buyers take possession of a product or service - such as offering easy payment methods or leasing contracts

Total logistics cost

expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling

Exclusive distribution (density)

extreme opposite of intensive distribution because only one retailer in a specific geographic area carries the firm's products - usually chosen for specialty products or services such as some women's fragrances and men's and women's apparel and accessories

Manufacturers' agents national association (MANA)

facilitates the process of matching manufacturers' representatives with logical products and companies

The greatest marketspace opportunity for marketers lies in its potential for creating __________.

form utility - communication capabilities in marketspace invite consumers to tell marketers specifically what their requirements are, making customization to fit their exact needs - 35% of online consumers are interested in customizing product features or in purchasing build-to-order products that use their specifications

Direct mail and catalogs

has been called "the store that comes to the door" - can eliminate the cost of a store and clerks - improve marketing efficiency through segmentation and targeting, and they create customer value by providing a fast and convenient means of making a purchase - many catalogs now serve as an element of a multichannel strategy designed to encourage consumers to visit a website, a social media page, or even a store - 100 million adults make a catalog purchase each year, popular outside of USA too - large retailers influence has been positive as their marketing activities have increased the number and variety of products consumers purchase through direct mail and catalogs - higher paper costs and increases in postage rates, the growing interest in do not mail legislation, the concern for green mailings and catalogs, and the US postal service reducing delivery time to one to five days, have caused direct mail and catalog to search for ways to provide additional customer value

Place utility

having a product or service available where consumers want it - convenience and prestige

Time utility

having a product or service when you want it - speed and convenience

Power center

huge shopping strip with multiple anchor stores (or national) stores such as tj maxx, ulta, ross dress for less, or pier 1 imports - combine the convenience of location provided by strip malls with the power of national stores - often have 2 to 5 anchor stores and contain a supermarket which brings the shopper to the power center on a weekly basis

Automatic vending

includes vending machines, or v-commerce, which make it possible to serve customers when and where stores cannot - machine maintenance, operating costs, and location leases can add to the cost of the products, so prices in vending machines are often higher than those in stores - 3.5 million vending machines currently in use in the US generate more than $22 billion in annual sales

Brokers

independent firms or individuals whose principal function is to bring buyers and sellers together to make sales

Contractual vertical marketing system

independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone - most popular among 3 types (Most of the 1.1 million retail establishments in the United States are considered independent retailers) - wholesaler-sponsored voluntary chains: involve a wholesaler that develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts - retailer-sponsored cooperatives: exist when small, independent retailers form an organization that operates a wholesale facility cooperatively - franchising: (most visible variation) a contractual agreement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules

Merchant wholesalers

independently owned firms that take title to the merchandise they handle - they go by various names, including industrial distributor - purchasing the title of manufactured products, obtaining physical possession of the products, and reselling them to other entities - most firms engaged in wholesaling activities are merchant wholesalers (distributor (ensure products get from the manufacturers to the end consumers), jobber (an intermediary that buys from producers to sell to retailers and offers various services with that function. ex: make large purchases of barley, hops and other raw ingredients, load them onto trucks, and drive them to local breweries trying to sell their goods for the production of craft beer, but provide no other services)) - can be full-service or limited service wholesalers depending on number of functions performed - agents (act as an extension of the original manufacturers and represent the product's producer when trying to make a sale. intermediary between manufacturers and retailers but never receives legal ownership and possession of products) (ex: In order to get ADT security systems' name around they've reached out to an external organization whose task is to sell the ADT products to customers (this external firm does not take physical possession of the ADT products), ex: Julio is working for a company in the clothing industry. His company arranges sales of clothes from various clothing manufacturers to different retailers. His company charges a fixed % of every sale made, but does not actually purchase or own any of the clothes) - manufacturers sales branch vs sales office

Indirect channel

intermediaries are inserted between the producer and consumers and perform numerous channel functions - most indirect the more intermediaries there are - manufacturer -> wholesaler -> retailer -> consumer

Form utility

involves enhancing a product or service to make it more appealing to buyers

Logistics

involves those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost - deals with decisions needed to move a product from the source of raw materials to consumption (FLOW), COST EFFECTIVE, and deliver expected CUSTOMER SERVICE

Telemarketing

involves using the telephone to interact with and sell directly to consumers - compared with direct mail but is viewed as more efficient means of targeting consumers - insurance companies, brokerage firms, and newspapers have often used this form of retailing as a way to cut costs but still maintain access to their customers - according to data and marketing association, more than 40% of businesses use telemarketing as a mean of reaching consumers - issues including consumer privacy, industry standards, and ethical guidelines have encouraged discussion among consumers, congress, the federal trade commission and businesses

company's success in achieving a meaningful marketspace presence hinges on...

its ability to design and execute a marketing program that capitalizes on 1. the unique value-creating and 2. the relationship-building capabilities of digital tech in delivering a favorable customer experience

Selective distribution (density)

lies between these two extremes and means that a firm selects a few retailers in a specific geographic area to carry its products - weds some of the market coverage benefits of intensive distribution to the control over resale evident with exclusive distribution - most common form of distribution intensity

Digital marketing channel

make products and services available for consumption or use by consumers or organizational buyers - combine electronic and traditional intermediaries to create time, place, form, and possession utility for buyers - ex: amazon = book publisher -> book wholesaler -> amazon.com (virtual retailer) -> consumer

Community shopping center

more limited approach. typically has one primary store (usually a department store branch) and often about 20 to 40 smaller outlets. serve a pop of consumers who are within a 10 to 20 minute drive

Strategic channel alliances

one firm's marketing channel is used to sell another firm's products - kraft foods uses distribution system of a major japanese food company, to market its maxwell house coffee in japan

Television home shopping

possible when consumers watch a shopping channel on which products are displayed; orders are then placed over the telephone or the internet - largest channels: QVC, HSN, and ShopHQ - QVC (quality, value, convenience) broadcasts live 24 hours a day 364 days a year and reaches 370 million homes in the US, UK, Germany, Japan, Italy, and China. generates $13.4 billion from its 13 million customers by offering more than 800 products each week - youtube is a new competitor

Direct channel

producer and ultimate consumers deal directly with each other (many insurance companies also Schwan's company of Marshall, minnesota)

Vertical marketing systems

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact - Corporate, contractual, and administered

Time (supply chain setting)

refers to order cycle or replenishment time for an item (the time between the ordering of an item and when it is received and ready for use or sale. typical order cycle includes recognition of the need to order, order transmittal, order processing, documentation, and transportation) - quick response and efficient consumer response delivery systems to make reordering and receiving products as simple as possible (when stock falls below a min level, a replenishment order is automatically produced)

Selling agents

represent a single producer and are responsible for the entire marketing function of that producer - design promo plans, set prices, and determine distribution policies, and make recommendations on product strategy - used by small producers in the textile, apparel, food, and home furnishings industries

Direct selling

sometimes called door-to-door retailing, involves direct sales of products and services to consumers through personal interactions and demonstrations in their home or office. - Direct selling succeeds in part because it provides customers with a social shopping experience

Legacy companies

that trace their origins to the traditional marketplace (walmart, p & g, general motors) are continually challenged to define the nature and scope of their marketspace presence - constantly refine the role of digital tech in attracting, retaining, and building consumer relationships to improve their competitive positions in the traditional marketplace while also bolstering their digital marketspace presence (accelerated by covid)

Customer service

the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience

Retailing mix

the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise

multichannel marketing (omnichannel marketing)

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online

Supply chian management

the integration and organization of info and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers

Demand chain

the network of intermediaries between a manufacturer and the consumers of its product

Central business district (store location)

the oldest retail setting, the community's downtown area - suburban pop has grown at expense of downtown shopping area - less convenient because lack of parking, higher crime rates, and exposure to weather

Logistics management

the performance of these activities - the practice of organizing the cost-effective flow of raw materials, in process inventory, finished goods, and related info from point of origin to point of consumption to satisfy customer requirements

Retail life cycle

the process of growth and decline that retail outlets, like products, experience, consisting of - the early growth: emergence of a retail outlet, with a sharp departure from existing competition - accelerated development: both market share and profit achieve their greatest growth rates - maturity: the battle for market share is fought before this stage. some competitors drop out of the market - decline stages: challenge retailers face is to delay entering the stage. market share and profit fall rapdily

Depth of product line:

the store carries a large assortment of each item, such as a shoe store that offers running shoes, dress shoes, and children's shoes - specialty outlets: limited- and single-line stores - specialty discount outlets: focus on one type of product, such as electronics (best buy), office supplies (staples), or books (barnes and noble) at very competitive prices - category killers: they often dominate the market (best buy)

Breadth of product line

the variety of different items a store carries, such as appliances and books - general merchandise stores: stores that carry a broad product line, with limited depth - scrambled merchandising: offering several unrelated product lines in a single store - hypermarket: large stores (often more than 200,000 square feet) based on a simple concept: offer everything under one roof thus eliminating the need to stop at more than one location (successful in Europe) - supercenter: variation of hypermarket which combines a typical merchandise store with a full-sized grocery store

Supply chain

the various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users - differs from marketing channel in terms of the firms involved (supply chain has suppliers that provide raw material inputs and wholesalers and retailers that deliver finished products to consumers) - Customers currently link to Cisco's website to configure, price, and order its networking equipment. Cisco then sends orders back out across the Internet to producers and assemblers including Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Cisco's standards, sometimes with procedures run remotely by Cisco. Most items are then drop-shipped to buyers, untouched by Cisco's employees

Profitability

third consideration in choosing a channel - determined by the margins earned (revenue minus cost) for each channel member and for the channel as a whole

Interactive marketing

two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller - characterized by sophisticated choiceboard and personalization systems that transform info supplied by customers into responses customized to their individual needs - The Four Seasons chain of luxury hotels has recently been working hard to bring their traditional direct marketing efforts into the digital age. They now provide podcasts and interactive exhibits that help customers plan activities during their stays. They also maintain a database of customers' specific needs and desires which can be used both to market vacation opportunities and to provide superior service to their guests

Level of service (retailing classification)

used to describe the degree of service provided to the customer

Multichannel retailers

utilize and integrate a combination of traditional store formats and non store formats such as catalogs, television, home shopping, and online retailing

"Chain of custody"

who has what, when and where of raw materials, component parts, and finished products