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PowerPoint Slides With Teaching Notes
PowerPoint Slide Teaching Notes
16-1: Retailing and Omnichannel
Marketing
16-2: Retailing and Omnichannel
Marketing
These are the learning objectives for this chapter.
16-3: H&M When H&M opened its flagship Times Square
store, it aimed to create not just the most exciting
store in the fashionable chain’s range of locations
but also perhaps the most cutting-edge example
of retail in the world.
Ask students: Do you shop at high-end
department stores like H&M? If so, then why? If
not, then why not?
16-4: Factors for Establishing a
Relationship with Retailers
This is an overview and each stage is presented
on the following slides.
16-5: Choosing Retail Partners
Channel Structure
Ask students to describe what is meant by
“degree of vertical integration.”
This is given in Chapter 15 and refers to a supply
chain where the members act as a unified system.
Ask students how vertical integration affects a
manufacturer who is introducing a new product
and choosing a retail partner.
Students will mention that if the manufacturer
and retailer already have a relationship from
previous products that the retailer will be more
likely to accept the new product.
16-6: Choosing Retail Partners
Customer Expectations
Ask students how manufacturers determine
which retailers would be best for consumers.
Students will likely say focus group and surveys.
They might also mention that sales reps within
the stores can supply information on products that
consumer request.
16-7: Choosing Retail Partners
Channel Member Characteristics
Larger firms often find that by performing the
channel functions themselves, they can gain more
control, be more efficient, and save money.
16-8: Choosing Retail Partners
Distribution Intensity
Product characteristics drive supply chain
structures, in that mass merchandise products use
intensive distribution, whereas luxury goods
employ exclusive distribution.
Group activity: Match the following products to
their likely type of distribution:
Pharmaceuticals (selective)
Clothing (depends on the product type)
Soft drinks (Intensive)
16-9: Distribution Intensity Birkenstocks can only be purchased through
certain retailers—this helps control conflict
between retailers and gives the manufacturer
better control.
Some might argue that for products in the later
stages of the product life cycle, it implies higher
quality to the end consumer.
16-10: Check Yourself 1. When choosing retail partners, manufacturers
must look at the basic channel structure,
where their target customers expect to find
the products, channel member characteristics,
and distribution intensity.
2. An intensive distribution strategy is designed
to get products into as many outlets as
possible. Exclusive distribution policy grants
exclusive geographic territories to one or very
few retail customers so no other customers in
the territory can sell a particular brand.
Selective distribution uses a few selected
customers in a territory.
16-11: Retailer’s Reaction? These kinds of grass roots movements are very
difficult for retailers.
They rarely get a strong enough following to
threaten retailers’ overall sales even if they slow
down a particular day of sales.
16-12: Types of Retailers This slide can be used as an introduction to a
detailed discussion of this topic or as a shortened
version.
16-13: Food Retailers Ask students: In what circumstances do you
shop at each type of food retailer?
How do the price, selection, and quality vary
across each type?
This web link is for peapod, an online grocer
(you might want to set up account in advance of
class).
Ask students if they have ever used this service.
Why or why not?
16-14: General Merchandise Retailers Group activity: Identify a retailer in each of
these categories.
Discuss how that specific retailer creates value
for its target consumers.
16-15: Kmart and Sears This video explores the giants Kmart and Sears
and their quest to gain market share.
It examines the value the retailer brings to the
consumer and how the respective stores see
themselves in the marketplace.
Note: Please make sure that the video file is
located in the same folder as the PowerPoint
slides.
16-16: GNC Private Brands GNC sells many brands including its own
products —private brands.
16-17: Services Retailers Several trends suggest considerable future growth
in services retailing.
For example, the aging population will increase
demand for health care services.
Younger people are also spending more time and
money on health and fitness.
Busy parents in two-income families are willing
to pay to have their homes cleaned, lawns
maintained, clothes washed and pressed, and
meals prepared so they can spend more time with
their families.
