Chapter 16
Retailing and Omnichannel Marketing
Tools For Instructors
Brief Chapter Outline
Learning Objectives
Extended Chapter Outline with Teaching Tips
PowerPoint Slides with Teaching Notes
Additional Teaching Tips
Brief Chapter Outline
Choosing Retailing Partners
Identify Types of Retailers
Connect Learning Aids
Learning Objectives
LO 16-1 Discuss the four factors manufacturers should consider as they develop their strategy
for working with retailers.
When they initiate the decision process for choosing retail partners, manufacturers determine
determine which elements of an omnichannel strategy will be effective.
LO 16-2 Outline the considerations associated with choosing retail partners.
Manufacturers often start by noting the basic channel structure, which includes the level of
inputs, as is the level of distribution intensity.
LO 16-3 List the three levels of distribution intensity.
Intensive distribution intensity means the product is available virtually everywhere, in as many
the middle ground option; several retailers carry the products, but not all of them.
LO 16-4 Describe the various types of retailers.
Retailers generally fall into one of three categories: food retailers, general merchandise retailers,
retailers span the gambit from universities to automobile oil change shops.
LO 16-5 Describe the components of a retail strategy.
To develop a coordinated strategy, which represents a key goal for an effective channel
LO 16-6 Identify the benefits of stores.
Because consumers often have just a general idea of what they want to purchase, stores’ main
receive instant gratification, and reduce their sense of risk.
LO 16-7 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
omnichannel strategy offers the chance to gain a greater share of customers’ wallets and more
insight into their buying behaviors.
LO 16-8 Detail the challenges of omnichannel retailing.
To function in multiple channels, retailers must organize their operations carefully to ensure an
charge the same or different prices, and how to manage the supply chain.
Extended Chapter Outline With Teaching Tips
I Choosing Retailing Partners (PPT slide 16-4)
A Channel Structure (PPT slide 16-5)
2 Exclusive Distribution
3 Selective Distribution
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 16-10)
1. What issues should manufacturers consider when choosing retail partners?
Answer: When choosing retail partners, manufacturers must look at the basic channel
2. What is the difference between intensive, exclusive, and selective levels of distribution
intensity?
Answer: Intensive distribution strategy is designed to get products into as many outlets as
products. Selective distribution uses a few selected customers in a territory. Retailers still
have a strong incentive to sell the products but not to the same extent as if they had an
exclusive territory.
II Identify Types of Retailers (PPT slide 16-12)
A Food Retailers (PPT slide 16-13)
1 Supermarkets
B General Merchandise Retailers (PPT slide 16-14)
7 Off-Price Retailers
C Service Retailers (PPT slide 16-16)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 16-18)
1. What strategies distinguish the different types of food retailers?
Answer: The different types of food retailers include supermarkets, supercenters,
warehouse clubs, and convenience stores. Perishables like meat and produce account for
50 percent of supermarket sales, and typically have higher margins than packaged goods.
represented the majority of their sales, but now the majority of sales come from gasoline
and cigarettes.
2. What strategies distinguish the different types of general merchandise retailers?
Answer: Full-line discount stores are retailers that offer a broad variety of merchandise,
limited service, and low prices. Specialty stores concentrate on a limited number of
specialists predominantly use a self-service approach, but they offer assistance to
customers in some areas of the stores. Extreme value retailers are small, full-line discount
stores that offer a limited merchandise assortment at very low prices. Off-price retailers
offer an inconsistent assortment of brand name merchandise at low prices.
3. Are organizations that provide services to consumers considered to be retailers?
Answer: Services retailers, or firms that primarily sell services rather than merchandise,
III Facilitating Retail Strategy Using the Four Ps
A Product (PPT slide 16-19)
IV Benefits of Stores for Consumers (PPT slide 16-24)
A Browsing
G Risk Reduction
V Benefits of the Internet and Omnichannel Retailing (PPT slide 16-25)
A Deeper and Broader Selection
E Expand Market Presence
VI Effective Omnichannel Retailing (PPT slide 16-29)
A Integrated CRM
D Supply Chain
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 16-30)
1. What are the components of a retail strategy?
Answer: Like other marketers, retailers perform important functions that increase the
2. What are the advantages of traditional stores versus Internet-only stores?
Answer: The relative advantages of the most traditional retail channels are browsing,
3. What challenges do retailers face when marketing their products through multiple
channels?
Answer: Consumers desire a seamless experience when interacting with omnichannel
operations of the channels.