BUA370 Chapter 17: Retailing and Multichannel Marketing
|Multichannel strategy||Selling in more than one channel (e.g., stores, Internet, catalog).|
|What are the factors manufacturers should consider when developing strategies for working with retailers?||1. Choosing retail partners|
2. Identifying types of retailers
3. Developing a retail strategy
4. Managing a multichannel strategy
|Considerations associated with choosing retail partners||1. Channel structure; the degree to which the channel is vertically integrated.|
2. Customer expectations; retailers should know consumer preferences regarding manufacturers. They should also know where their target consumers expect to find their products and those of their competitors.
3. Channel member characteristics; generally larger, sophisticated channel members are less likely to use supply chain intermediaries
|Distribution Intensity||The number of channel members to use at each level of the marketing channel. distribution intensity is commonly divided into three levels: intensive, exclusive, and selective|
|Intensive distribution||A level of distribution intensity whereby a firm tries to place its products and services in as many outlets as possible.|
|Exclusive distribution||Granting exclusive geographic territories to one or very few retail customers so no other retailers in the territory can sell a particular brand. This can benefit manufactures by assuring them that the most appropriate retailers represent their products.|
|Selective distribution||This relies on a few selected retail customers in a territory to sell products. Like exclusive distribution, this helps a seller maintain a particular image and control the flow of merchandise into an area.|
|Retail strategy using 4 P’s||Product: offering assortments give customers choice.|
Price: price helps define the value and the service, sometimes image.
Promotion: this can mean the difference between flat sales and a growing consumer base.
Place: convenience is the key to success; an aspect being location.
|What are the benefits of stores for consumers?||Browsing, touching and feeling products, personal service, cash & credit payment, entertainment and social experience, immediate gratification, and risk reduction.|
|What are the benefits of internet and multichannel retailing?||Deeper and broader selections, personalization in customer service and offerings, and expanded market presence.|
|Challenges of mutlichannel retailing||An effective multichannel operation requires an integrated CRM system, a consistent brand image across all channels, consistent pricing in various channels, and a supply chain that efficiently delivers merchandise to multiple channels.|