Chapter 15 MKT120 Retail

marketingGREWAL / LEVYM 15

RETAILING AND MULTICHANNEL MARKETING

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

LEARNING OBJECTIVESLEARNING OBJECTIVES

Learning Objectives

What are the issues manufacturers consider when choosing retail partners?

What types of retailers are available for distributing products?

How do manufacturers and retailers work together to develop a strategy?

Why is multichannel marketing becoming such a prevalent channel strategy?

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Factors for Establishing a Relationship with Retailers

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Choosing Retail PartnersChannel Structure

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Choosing Retail PartnersDistribution Intensity

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Limited Distribution

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Types of Retailers

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Food Retailers

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Peapod Website

General Merchandise Retailers

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Facilitating Retail Strategy Using the Four P’s: Product

Providing the right mix of merchandise and servicesProviding the right mix of merchandise and services

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Price

Price defines the value of both the merchandise and the service

provided

Price defines the value of both the merchandise and the service

provided Build-a-Bear Workshop Commercial

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Promotion

Retailers use a wide variety of promotions, both within their retail

environment and through mass media

Retailers use a wide variety of promotions, both within their retail

environment and through mass media

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Place

Convenience is a key ingredient to

success

Convenience is a key ingredient to

success15-13

Exploring Multiple Channel Options:

Benefits of Different Channels

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Internet Channel

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Apple Store

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Which of the following is NOT a factor to consider when establishing a relationship with retailers?

A. Choosing retail partners

B. Facilitating retail strategy

C. Managing a multichannel strategy

D. Identifying types of retailers

E. All of the above

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Choosing Retail PartnersCustomer Expectations

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Red Bull is sold at convenience stores, supermarkets and warehouse clubs. Red Bull

has _________ distribution

A. selective

B. exclusive

C. intermediate

D. intensive

E. limited

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Check Yourself

1. What issues should manufacturers consider when choosing retail partners?

2. What is the difference between intensive, exclusive, and selective levels of distribution intensity?

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Retailer’s Reaction?

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A ________ is a retailer with such an extensive assortment in a particular category that would-be competitors do not bother carrying that category of

products and instead, simply refer customers to the other firm.

A. specialty retailer

B. house breaker

C. market mammoth

D. revolutionary

E. category killer

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GNC Private Brands

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1. What are the different types of food retailers? What differences mark their strategies?

2. What are the different types of general merchandise retailers? What differences mark their strategies?

Check Yourself

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Coupons, rebates, and online discounts are types of ________ used by retailers.

A. pricing promotions

B. specialty product displays

C. in-store promotions

D. off-price wholesaling

E. mass media advertising

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How does the Internet Improve Multichannel Shopping?

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Retailers can do more online…

Lands End Website

H&M’s (CSR) Website

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Evolution toward Multichannel Marketing

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Capabilities for Multichannel Retailing

Disintermediation

Disintermediation

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