978-1259709074 Chapter 17 Lecture Notes

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Chapter 17 - Retailing and Omnichannel Marketing Marketing 6th
Chapter 17
Retailing and Omnichannel Marketing
Tools for Instructors
Brief Chapter Outline
Learning Objectives
Extended Chapter Outline with Teaching Tips
Answers to End of Chapter Learning Aids
Chapter Case Study
Additional Teaching Tips
Connect Activities
Brief Chapter Outline
Choosing Retailing Partners
Identify Types of Retailers
Developing a Retail Strategy Using the Four Ps
Benefits of the Internet and Omnichannel Retailing
Chapter Case Study: Making Macy’s Meaningful: Moves by the Retail Chain to Maintain Its
Competitiveness
Learning Objectives
LO17-1 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 how likely it
is that certain retailers would carry their products and whether target customers expect to find their
LO17-2 Outline the considerations associated with choosing retail partners.
Manufacturers often start by noting the basic channel structure, which includes the level of vertical
LO17-3 List the three levels of distribution intensity.
Intensive distribution intensity means the product is available virtually everywhere, in as many places as
LO17-4 Describe the various types of retailers.
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Chapter 17 - Retailing and Omnichannel Marketing Marketing 6th
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,
LO17-5 Describe the components of a retail strategy.
To develop a coordinated strategy—which represents a key goal for an effective channel partnership
LO17-6 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
Extended Chapter Outline with Teaching Tips
I Choosing Retailing Partners
A Channel Structure
B Customer Expectations
C Channel Member Characteristics
D Distribution Intensity
1 Intensive Distribution
2 Exclusive Distribution
3 Selective Distribution
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What issues should manufacturers consider when choosing retail partners?
2. What are the differences among intensive, exclusive, and selective levels of distribution intensity?
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Chapter 17 - Retailing and Omnichannel Marketing Marketing 6th
II Identify Types of Retailers
A Food Retailers
1 Supermarkets
2 Supercenters
3 Warehouse Clubs
4 Convenience Stores
5 Online Grocery Retailers
B General Merchandise Retailers
1 Department Stores
2 Full-Line Discount Stores
3 Specialty Stores
4 Drugstores
5 Category Specialists
6 Extreme-Value Retailers
7 Off-Price Retailers
C Service Retailers
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What strategies distinguish the different types of food retailers?
Answer: The different types of food retailers include supermarkets, supercenters, warehouse
clubs, convenience stores, and online grocery retailers. Perishables including meat, produce,
2. What strategies distinguish the different types of general merchandise retailers?
Answer: Department stores are retailers that carry a broad variety and deep assortment of
merchandise, offer customer services, and organize their stores into distinct departments for
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education. 3
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Chapter 17 - Retailing and Omnichannel Marketing Marketing 6th
3. Are organizations that provide services to consumers retailers?
III Developing a Retail Strategy Using the Four Ps
A Product
B Price
C Promotion
D Place
IV The Internet and Omnichannel Retailing
A Deeper and Broader Selection
B Personalization
1. Personalized Customer Service
2. Personalized Offering
C Expand Market Presence
D Integrated CRM
E Brand Image
F Pricing
G Supply Chain
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What are the components of a retail strategy?
2. What are the advantages of traditional stores versus Internet-only stores?
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education. 4
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Chapter 17 - Retailing and Omnichannel Marketing Marketing 6th
3. What challenges do retailers face when marketing their products through multiple channels?
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McGraw-Hill Education. 5

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