OSU BUSML 3250 - Chapter 16: Retailing and channel marketing

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Offers a price reduction to channel members if they agree to feature the manufacturer’s product in their advertising and promotional efforts.Slotting AllowanceFees paid to retailers simply to get new products into stores or to gain more or better shelf space for their products.General Agreement on Tariffs and Trade (GATT)Lower trade barriers such as high tariffs on imported goods and restrictions on the number and types of imported products that inhibited the free flow of goods across the boarders.World Trade Organization (WTO)Replaced GATTAn established institution based in Geneva, Switzerland, that deals with the global rules of trade among nations.Main function to ensure trade flows smoothly as possible.International Monetary FundPrimary objective is to promote international monetary cooperation and facilitate the expansion and growth of international trade.World Bank GroupDedicated to fighting poverty and improving the standard of life in developing countries.Analyzing the Data and developing insightsChurn- the number of participants who discontinue their use of a service/ the average number of total participantsAction Plan and ImplementationFINAL BUSML 3250 Chapter 16: Retailing and channel marketing- Intro: Barbie- Mattel created a megastore in Shanghi to change their brand strategy and keep up with the times. Keeps up with the expanding demographics. Floor for different ages. Won retail store of the year.- Retailing= the set of business activities that add value to products and services sold to consumers for their personal or family use. o Multichannel strategy- selling in more than one channel (store, cataloged, internet)- Four factors manufactures consider to establish their strategy for working with retailers1. Choosing retail partners a. Channel structureb. Customer expectationsc. Channel member characteristicsi. The larger the channel member, the less they will use supply chain intermediariesii. Larger firms find that by performing the channel functions themselves they can gain more control, be more efficient and save money.d. Distribution intensity= the number of channel members to use at each level of the marketing channel. Commonly divided into three levelsi. Intensive distribution- place products in as many outlets as possible (Pepsi, P&G, Kraft)ii. Exclusive distribution: estee lauder limits dist to high end retailers. Assures that the most appropriate retailers are representing the products. iii. Selective distribution- between intensive and exclusive. 2. Identify types of retailers a. Food retailersi. Supermarket- conventional supermarket carries about 30,000 SKUs . Two largest limited assortment supermarket chains in US are Save-a-lot and Aldi1. Emphasize fresh perishables2. Target health conscious and ethnic consumers3. Provide better in store experience4. More private label brandsa. Adding Value 16.1- Trader Joes has a unique selection for low prices. Most important key to their success is private label, accounts for 70% of inventory. Has a weekly newsletter and gives out samples and full refunds.ii. Supercenters – one stop shopiii. Warehouse clubs- Costco, Samsiv. Convenience stores- staying in competition by offering full service kiosks, fresh food theatre tickets, gift cardsb. General Merchandise retailersi. Department storesii. Full line discount stores- Walmart accounts for 67% of these in US. iii. Specialty Stores-Sephoraiv. Drugstorev. Category Specialists= Big box retailers of category killers that offer narrow but deep assortment of merch. (Staples, home improvement centers)vi. Extreme Value retailer- Dollar Generalvii. Off-price retailers (close out retailers) offer and inconsistent assortment of brand name merch (TJ Maxx,marshalls, HomeGoods, Outletsviii. Service retailers- banks, hospitals, health spas, 3. Developing a retail strategy using the 4 P’s a. Producti. Providing the right mix of merchandise and services to the customer is one of the most fundamental activities. ii. To distinguish themselves from other retailers they create private label or store brands (I.N.C is Macy’s)b. Pricei. Must keep the retailers price-quantity relationship in mind (JCPenny vs Saks)c. Promotioni. Catelogues generate online sales because they can see pictures and then purchase on webii. CVS.com online couponsiii. M-Commerce (mobile commerce)iv. In store displays- look and feel is influenced by the music, color, scent, aisle size, lighting. Better mood= better experiencev. Share of wallet- the percentage of the customers purchases made from that particular retailer. d. Place4. Examining the circumstances in which sellers may prefer to adopt a particular strategya. Benefits of stores for consumers i. Browsingii. Touching and feeling productsiii. Personal serviceiv. Cash and credit paymentv. Entertainment and social experiencevi. Immediate gratificationvii. Risk reductionb. Benefits of the Internet and Multichannel retailingi. Deeper and breader selectionii. Personalization1. Personalized customer service, online chat, personalized offeringa. SUPERIOR SERVICE- Amazon sells Merchandise, but excels because of serviceiii. Gain insights into consumer shopping behavior1. Cookies- collects data on how customers navigate though a website2. Increase customer satisfaction and loyaltya. Cannibalization- former purchases in store are now made online. They appreciate the options and spend more3. Expand Market Presence c. Effective Multichannel retailingi. Integrated CRM 1. Effective multichannel operations require an integrated CRM system with a centralized customer data warehouse with complete historyii. Brand Image1. Consistent brand image across all channelsiii. Pricing 1. Retailers with stores in multiple markets will set different pricesiv. Supply chain1. Multi channel retailers can struggle to provide anintegrated shopping experience across their channels because unique skills and resources areneeded to manage the channel.CHP 14- STRATEGIC PRICING METHODSINTRO: groupon.com Discounts- minimum number of people must sign up before the discount takeeffect. Motivates people to spread word thru social mediao CONSIDERATIONS FOR SETTING PRICE STRATEGIESo Cost Based Methods Assumes that costs will not vary much between different levelsof the market Cost-plus price= fixed, variable and overhead costs + profit / demando Competitor based methods Price similar to competitor shows that they are similar Price wars happen- can be very damaging to


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OSU BUSML 3250 - Chapter 16: Retailing and channel marketing

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