Retailers generally fall into one of three categories: food retailers, general merchandise retailers, or
service retailers. Each of the categories consists of various formats, including supermarkets,
supercenters, warehouse clubs, convenience stores, department stores, discount stores, specialty
retailers, drugstores, category specialists, extreme value retailers, and off-price stores. Although service
retailers primarily sell services, if they sell to consumers, they are still retailers. Service retailers span
the gambit from universities to automobile oil change shops.
LO5 Describe the components of a retail strategy.
To develop a coordinated strategy—which represents a key goal for an effective channel partnership
between retailers and manufacturers—both retailers and manufacturers need to consider all of the four
Ps in conjunction: product, place, promotion, and price.
LO6 Identify the benefits of stores.
Because consumers often have just a general idea of what they want to purchase, stores’ main benefits
come from giving shoppers a place to browse. They can touch and feel products, obtain personal
services, pay using cash or credit, engage in an entertaining and social experience, receive instant
gratification, and reduce their sense of risk.
LO7 Identify the benefits of omnichannel retailing.
The various types of retail channels—stores, catalogs, and the Internet—all offer their own benefits and
limitations, including those related to availability, convenience, and safety, among others. If a retailer
adopts an omnichannel ¬strategy, it can exploit the benefits and mitigate the limitations of each channel
and help expand its overall market presence. Furthermore, an omnichannel strategy offers the chance to
gain a greater share of customers’ wallets and more insight into their buying behaviors.
LO8 Detail the challenges of omnichannel retailing.
To function in multiple channels, retailers must organize their operations carefully to ensure an
integrated customer experience. In particular, they have to have an integrated CRM system, and
determine how to maintain a consistent brand image across the various channels, whether to charge the
same or different prices, and how best to deliver
Extended Chapter Outline With Teaching Tips