Presentation is loading. Please wait.

Presentation is loading. Please wait.

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Similar presentations


Presentation on theme: "© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin."— Presentation transcript:

1 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2 16-2 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin LEARNING 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?

3 16-3 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Apple Store What makes the Apple store so successful?

4 16-4 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Factors for Establishing a Relationship with Retailers

5 16-5 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Choosing Retail Partners Channel Structure Degree of vertical integration Manufacturers brand Power of manufacturer and retailer

6 16-6 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Choosing Retail Partners Customer Expectations

7 16-7 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Choosing Retail Partners Distribution Intensity SelectiveExclusiveIntensive

8 16-8 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Limited Distribution Why might Birkenstock choose a limited distribution intensity?

9 16-9 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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?

10 16-10 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Retailer’s Reaction? How do you expect retailers would respond to this?

11 16-11 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Types of Retailers

12 16-12 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Food Retailers Peapod Website

13 16-13 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin General Merchandise Retailers Broad variety and deep assortment Department Stores Broad variety at low prices Full-line Discount Limited merchandise with service in small store Specialty Specialty for pharmaceutical and heath Drugstores Discount with narrow but deep assortment Category Specialist Full line, limited, very low prices Extreme value Inconsistent assortment of brand name at low prices Off-Price

14 16-14 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin GNC Private Brands

15 16-15 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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

16 16-16 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Facilitating Retail Strategy Using the Four P’s: Product Providing the right mix of merchandise and services Providing the right mix of merchandise and services

17 16-17 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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

18 16-18 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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

19 16-19 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Place Convenience is a key ingredient to success Convenience is a key ingredient to success

20 16-20 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Exploring Multiple Channel Options: Benefits of Different Channels

21 16-21 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Internet Channel Global Broader Selection Virtual communities More information Customer service Personalized offerings Personalization Brands Technology Gifts Services Touch and Feel

22 16-22 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin How does the Internet Improve Multichannel Shopping?

23 16-23 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Retailers can do more online… Lands End Website H&M’s (CSR) Website

24 16-24 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Perceived Risk in Internet Shopping

25 16-25 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Evolution toward Multichannel Marketing Overcome the limitations of an existing format Expanding market presence Increasing share of wallet Insights into customer’s shopping behaviors Goals for Retailers

26 16-26 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Capabilities for Multichannel RetailingMultichannel Retailing Disintermediation

27 16-27 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Category specialists are discount stores that offer a narrow but deep assortment of merchandise. Return to slide

28 16-28 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Convenience stores provide a limited variety and assortment of merchandise at a convenient location in 2,000-3,000 square foot stores with speedy checkout. Return to slide

29 16-29 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A conventional supermarket is a self-service food store offering groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise. Return to slide

30 16-30 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Department stores are retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise. Return to slide

31 16-31 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Disintermediation occurs when a manufacturer sells directly to consumers, bypassing retailers. Return to slide

32 16-32 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Drugstores are specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise. Return to slide

33 16-33 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary An exclusive distribution policy is when manufacturers grant exclusive geographic territories to one or very few retail customers so no other customers in the territory can sell a particular brand. Return to slide

34 16-34 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Extreme value retailers are small, full-line discount stores that offer a limited merchandise assortment at very low prices. Return to slide

35 16-35 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Full-line discount stores are retailers that offer a broad variety of merchandise, limited service, and low prices. Return to slide

36 16-36 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary An intensive distribution strategy is designed to get products into as many outlets as possible. Return to slide

37 16-37 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Multichannel retailers are retailers that use some combination of stores, catalogs, and the Internet to sell merchandise. Return to slide

38 16-38 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Off-price retailers offer an inconsistent assortment of brand name merchandise at low prices. Return to slide

39 16-39 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Selective distribution uses a few selected customers in a territory. Return to slide

40 16-40 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Specialty stores concentrate on a limited number of complementary merchandise categories and provide a high level of service in relatively small stores. Return to slide

41 16-41 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Supercenters are large stores that combine a supermarket with a full-line discount store. Return to slide

42 16-42 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Warehouse clubs are large retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses. Return to slide


Download ppt "© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin."

Similar presentations


Ads by Google