Mktg 350 1st Edition Lecture 18 Retailing and Multichannel Marketing Retailing is unique because- It is breaking bulk - Provides assortment Controllable- Products and services that you offer - Location- Price - How we are going to market the products Uncontrollable - Customer- Competition - Economy - Seasonality Factors for establishing a relationship with retailor 1. Choosing retailing partnersa. Degree of vertical integrationb. Manufacturers brand- reputation (might be easier or difficult) – a huge challenge is getting places to carry a new product c. Power of manufacture and retailer – some retailers have such a big reputation (Wal-Mart) will probably work with them if they want to carry their product or retailer really wants a good brand (JC Penny wanting Ralph Lauren) d. Customer Expectations- where does the customer expect to see the product e. Channel member characteristics- large retailers are less likely to use supply chain intermediaries f. Intensive- product in as many outlets as possible – product is a convenience product g. Exclusive- select one location in a given geographic area- people like your product so much they will drive out of their way for it- Rolex, and high end car places – specialty h. Selective- going to select certain retailers (some will be a good fit and some wont)- usually for shopping products some degree of control over the retailers 2. Identifying types of retailersa. Food retailers- i. Supermarket-1. limited nonfood These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.2. Differentiate different types od foods ii. Super center- fastest growing 1. Includes discount store2. Wal-Mart, Meijer, k-mart, target iii. Warehouse club1. Limited assortment2. Little services – Costco, Sam’s , BJ’s3. Same size packages – bulk iv. Convenience store1. Limited variety – necessities 2. Good locations b. General Merchandise Retailers i. Department store- broad variety and deep assortmentii. Full-line discount- broad variety- broad variety at low processiii. Specialty- limited merchandise with service in small storeiv. Drugstores- specialty for pharmaceutical and health (scrambled merchandising) v. Category specialist- (category killer, big box store) discount with narrow but deep assortment- cover everything in one particular category (DSW, Lowes, Barns and Noble, Babies R Us)- competition cant really compete vi. Extreme value- full line, limited, very low prices (dollar stores- say dollar in them but not necessarily all products are a dollar- might even sell national brands but in smaller packages) vii. Off price- inconsistent assortment of brand name at low prices (TJ Max, Marshals) price is discount from regular retail price but not crazy – they buy opportunistic items (factory outlet store- buy owned by actual retailer) c. Service retailers- firms that primarily sell services rather than merchandise, are a large and growing part of the retail 3. Developing a retail strategy- using the 4 P’s a. Product  providing the right of mix of merchandise and services b. Place location is critical, its very difficult to copy c. P supply chain managementd. Promotion Wal-Mart ( a little on TV) e. Benefits of stores for consumers i. Browsingii. Touching and feelingiii. Personal serviceiv. Cash and creditv. Entertainment and social interactionvi. Instant gratificationvii. Risk reduction f. Benefits of internet and multichannel retailing i. Deeper and broader selectionii. Personalizationiii. Gain insights into consumer shopping behavioriv. Increase customer satisfaction and loyalty (share of wallet- in store and online = more money at that particular store) v. Expand market presents g.4. Managing multichannel strategya. Integrated CRMb. Brand imagec. Pricing – touchiest area – different in store and online prices d. Supply chain - can be similar and can be different Retailing- all of the business activities that add value to all of the products and services sold to consumers for their personal non-business