1. chapter retailing and multichannel marketing sixteen Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. 16-2 LEARNING OBJECTIVES LO 16-1Discuss the four factors manufacturers should consider as they develop their strategy for working with retailers. LO 16-2Outline the considerations associated with choosing retail partners. LO 16-3 List the three levels of distribution intensity. LO 16-4 Describe the various types of retailers. LO 16-5 Describe the components of a retail strategy. LO 16-6 Identify the benefits of stores. LO 16-7 Identify the benefits of multichannel retailing. LO 16-8 Detail the challenges of multichannel retailing

3. 16-3 Factors for Establishing a Relationship with Retailers Managing a multichannel strategy Developing a retail strategy Identifying types of Retailers Choosing retailing partners

4. 16-4 Choosing Retail Partners Channel Structure Degree of vertical integration Manufacturers brand Power of manufacturer and retailer ©M Hruby

5. 16-5 Choosing Retail Partners Customer Expectations

6. 16-6 Choosing Retail Partners Channel Member Characteristics Larger firms Less likely to use supply chain intermediaries Can gain more control, be more efficient, and save money.

7. 16-7 Choosing Retail Partners Distribution Intensity IntensiveExclusiveSelective ©Jeff Greenberg/PhotoEdit ©Susan Van Etten/PhotoEdit

8. check yourself 16-8 1.What issues should manufacturers consider when choosing retail partners? 2.What is the difference between intensive, exclusive, and selective levels of distribution intensity?

9. 16-9 Types of Retailers

10. 16-10 Food Retailers Peapod Website

11. 16-11 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

12. 16-12 GNC Private Brands Courtesy GNC Corporation

13. 16-13 Services Retailers Firms that primarily sell services rather than merchandise, are a large and growing part of the retail industry Ryan McVay/Getty Images

14. check yourself 16-14 1.What strategies distinguish the different types of food retailers? 2.What strategies distinguish the different types of general merchandise retailers? 3.Are organizations that provide services to consumers considered to be retailers?

15. 16-15 Developing a Retail Strategy Using the Four P’s: Product Providing the right mix of merchandise and services AP Photo/David Kohl

16. 16-16 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 Courtesy DDB - London Walmart’s Profits Drop

17. 16-17 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 Courtesy Bass Pro Shops AP Photo/MarkHumphrey

18. 16-18 Place Convenience is a key ingredient to success Convenience is a key ingredient to success ©M Hruby The McGraw-Hill Companies, Inc/ Jill Braaten, photographer

19. 16-19 Benefits of Stores for Consumers Browsing Touching and Feeling Personal Service Cash and Credit Entertainment and Social Interaction Instant Gratification Risk Reduction

20. 16-20 Benefits of the Internet and Multichannel Retailing Deeper and Broader Selection Personalization Gain Insights into Consumer Shopping Behavior Increase Customer Satisfaction and Loyalty Expand Market Presence

21. 16-21 Effective Multichannel Marketing Integrated CRM Brand Image Pricing Supply Chain

22. check yourself 16-22 1.What are the components of a retail strategy? 2.What are the advantages of traditional stores versus Internet-only stores? 3.What challenges do retailers face when marketing their products through multiple channels?

23. Return to slide 16-23 Category specialists are discount stores that offer a narrow but deep assortment of merchandise. Glossary

24. Return to slide 16-24 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. Glossary

25. Return to slide 16-25 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. Glossary

26. Return to slide 16-26 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. Glossary

27. Return to slide 16-27 Drugstores are specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise. Glossary

28. Return to slide 16-28 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. Glossary

29. Return to slide 16-29 Extreme value retailers are small, full-line discount stores that offer a limited merchandise assortment at very low prices. Glossary

30. Return to slide 16-30 Full-line discount stores are retailers that offer a broad variety of merchandise, limited service, and low prices. Glossary

31. Return to slide 16-31 An intensive distribution strategy is designed to get products into as many outlets as possible. Glossary

32. Return to slide 16-32 Multichannel retailers are retailers that use some combination of stores, catalogs, and the Internet to sell merchandise. Glossary

33. Return to slide 16-33 Off-price retailers offer an inconsistent assortment of brand name merchandise at low prices. Glossary

34. Return to slide 16-34 Selective distribution uses a few selected customers in a territory. Glossary

35. Return to slide 16-35 Specialty stores concentrate on a limited number of complementary merchandise categories and provide a high level of service in relatively small stores. Glossary

36. Return to slide 16-36 Supercenters are large stores that combine a supermarket with a full-line discount store. Glossary

37. Return to slide 16-37 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. Glossary