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CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

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Page 1: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

CHAPTER

RETAILING AND MULTICHANNEL MARKETING

16

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Page 2: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-2

LEARNING OBJECTIVES

Retailing and Multichannel Marketing

LO1 Discuss the four factors manufacturers should consider as they develop their strategy for working with retailers.

LO2 Outline the considerations associated with choosing retail partners.

LO3 List the three levels of distribution intensity. LO4 Describe the various types of retailers.LO5 Describe the components of a retail strategy.LO6 Identify the benefits of stores. LO7 Identify the benefits of multichannel retailing. LO8 Detail the challenges of multichannel retailing.

Page 3: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-3

Barbie Megastore

Imaginechina via AP Images

Page 4: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-4

Factors for Establishing a Relationship with Retailers

Page 5: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-5

Choosing Retail PartnersChannel Structure

©M Hruby

Page 6: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-6

Choosing Retail PartnersCustomer Expectations

Page 7: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-7

Choosing Retail PartnersChannel Member Characteristics

Page 8: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-8

Choosing Retail PartnersDistribution Intensity

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Page 9: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-9

Distribution Intensity

Courtesy Birkenstock USA

Page 10: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-10

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?

Page 11: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-11

Retailer’s Reaction?C

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Page 12: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-12

Types of Retailers

Page 13: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-13

Food Retailers

Peapod Website

Page 14: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-14

General Merchandise Retailers

Page 15: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-15

Kmart and Sears

Page 16: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-16

GNC Private Brands

Courtesy GNC Corporation Courtesy GNC Corporation

Page 17: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-17

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?

Check Yourself

Page 18: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-18

Developing a Retail Strategy Using the Four P’s: Product

Providing the right mix of merchandise and servicesProviding the right mix of merchandise and services

AP Photo/David Kohl

Page 19: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-19

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

Courtesy DDB - London

Page 20: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-20

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 mediaC

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Page 21: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-21

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

Page 22: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-22

Wal-Mart Faces Biggest Civil Rights Suits

Page 23: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-23

Benefits of Stores for Consumers

Page 24: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-24

Benefits of the Internet and Multichannel Retailing

Page 25: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-25

How does the Internet Improve Multichannel Shopping?

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Page 26: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-26

Retailers can do more online…

Zafu Website

Page 27: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-27

Perceived Risk in Internet Shopping

Courtesy Zafu

Page 28: CHAPTER RETAILING AND MULTICHANNEL MARKETING 16 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved

16-28

Effective Multichannel Marketing


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