Marketing unit 8

Retailing

Retailing

Selling products or services directly to consumers for personal use.

Retailers

Businesses whose sales come primarily from retailing.

Shopper Marketing

Focuses on turning shoppers into buyers at the point of sale.

Omni-channel retailing

Creates a seamless cross-channel buying experience.

Digital technologies

Have caused a shift in how and where people buy.

Types of retailers

Include self-service, limited service, and full service.

Product line classifications

Include specialty stores, department stores, convenience stores, superstores, and category killers.

Relative price characteristics

Include discount stores, off-price retailers, factory outlets, and warehouse clubs.

Major types of retail organizations

Include corporate chains, voluntary chains, retailer cooperatives, and franchise organizations.

Corporate chains

Commonly owned and controlled outlets that can buy in large quantities at lower prices.

Voluntary chains

Wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising.

Retailer cooperatives

A group of independent retailers that establish a joint-owned, central wholesale operation.

Franchises

Contractual associations between a franchisor and independent business people who buy the right to operate units in the franchise system.

Omni-channel retailing

Integrates channels for a seamless buying experience.

Retail targeting and positioning

Involves defining and profiling the market.

Major product variables

Include product assortment, services mix, and store atmosphere.

Price policy

Must fit the target market, competition, and economic factors.

Everyday low pricing (EDLP)

Involves charging constant, everyday low prices.

High-low pricing

Involves charging higher prices with frequent sales and promotions.

Promotion decisions

Include advertising, personal selling, sales promotion, public relations, and direct marketing.

Central business districts

Located in cities and include department and specialty stores, banks, and movie theaters.

Shopping center

A group of retail businesses planned, developed, owned, and managed as a unit.

Wholesaling

Includes all activities involved in selling goods and services to those buying for resale or business use.

Merchant wholesalers

Full-service wholesalers that provide a full set of services.

Brokers and agents

Do not take title, perform a few functions, and specialize by product line or customer type.

Manufacturers' and retailers' branches and offices

A form of wholesaling by sellers or buyers themselves, rather than through independent wholesalers.

Wholesaler marketing decisions

Segmentation, targeting, differentiation, positioning decisions.

Marketing mix decisions

Product, price, promotion, place.

Trends in wholesaling

Need for greater efficiency, value-adding customer relationships, increase in customer demand for services, increase in use of technology to boost productivity.

Netflix

Innovated its way to the top in the distribution of video entertainment.

Marketing channels

Set of interdependent organizations that help make a product or service available for use or consumption.

How channel members add value

Transform the assortment of products into assortments wanted by consumers, bridge time, place, and possession gaps.

Number of channel levels

Direct marketing channel, indirect marketing channel.

Channel members are connected by several types of flows

Physical flow of products, flow of ownership, payment flow, information flow, promotion flow.

Channel behavior

Marketing channels consist of firms that have partnered for their common good with each member playing a specialized role.

Channel conflict

Disagreement among channel members over goals, roles, and rewards.

Vertical marketing systems

Provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system.

Corporate vertical marketing systems

Combine successive stages of production and distribution under single ownership.

Contractual vertical marketing systems

Consist of independent firms at different levels of production and distribution who join together through contracts.

Franchise organization

A contractual vertical marketing system in which a channel member links several stages in the production-distribution process.

Administered vertical marketing system

A VMS that coordinates successive stages of production and distribution through the size and power of one of the parties.

Horizontal Marketing Systems

A channel arrangement where two or more companies at the same level join together to pursue a new marketing opportunity.

Multichannel Distribution Systems

Systems in which a single firm sets up two or more marketing channels to reach one or more customer segments.

Disintermediation

The cutting out of marketing channel intermediaries by producers or the displacement of traditional resellers by new intermediaries.

Analyzing Consumer Needs

The process of finding out what target consumers want from the channel, identifying market segments, and determining the best channels to use while minimizing costs.

Setting Channel Objectives

Determining targeted levels of customer service and balancing consumer needs against costs and customer price preferences.

Types of Intermediaries

Refers to the channel members available to carry out channel work, with most companies facing many channel member choices.

Number of Marketing Intermediaries

Refers to the different distribution strategies such as intensive distribution, exclusive distribution, and selective distribution.

Responsibilities of Channel Members

The agreements between producers and intermediaries regarding price policies, conditions of sale, territory rights, and specific services.

Evaluating Major Alternatives

The criteria used to evaluate channel alternatives, including economic criteria, control issues, and adaptability criteria.

Selecting Channel Members

The process of choosing channel members to work with.

Managing Channel Members

The activities involved in overseeing and coordinating the efforts of channel members.

Motivating Channel Members

The strategies used to incentivize and encourage channel members to perform well.

Evaluating Channel Members

The process of assessing the performance and effectiveness of channel members.

Exclusive Distribution

A distribution strategy where a producer gives only a limited number of dealers the exclusive right to distribute its products in their territories.

Exclusive Dealing

A practice where a seller requires exclusive distribution sellers to not handle competitor's products.

Exclusive Territorial Agreements

Agreements where a producer or seller limits the territory in which a product can be distributed.

Tying Agreements

Agreements where a dealer is required to take most or all of the product line.

Marketing Logistics

The planning, implementing, and controlling of the physical flow of goods, services, and related information from points of origin to points of consumption to meet consumer requirements at a profit.

Supply Chain Management

The management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

Major Logistics Functions

The key functions involved in marketing logistics, including warehousing, inventory management, transportation, and logistics information management.

Integrated Logistics Management

The recognition that providing customer service and reducing distribution costs requires teamwork internally and externally.