MARKETING MANAGEMENT
Networks and Channels:
Retailing
10-1
Chapter Questions
• What decisions do companies face in
managing their channels?
• What is the role and responsibilities of the
retail environment as a distribution
channel?
• What “value” can retailing add for a
consumer?
• What is a good function for e-commerce?
15-2
Retailing
…includes all the activities involved in
selling goods or services directly
to final consumers for personal,
non-business use.
16-3
Number of Intermediaries
Exclusive
Selective
Intensive
15-4
The Value Versus Costs of Channels
15-5
Retail Positioning Map
16-6
Levels of Retail Service
Self-service
Self-selection
Limited service
Full service
16-7
Retailers’ Marketing Decisions
Target market
Product assortment
Service/store atmosphere
Price
Communication
Location
16-8
Department Store Model:
The Showcase Store
16-9
Japanese “depato”s
16-10
Japanese “depato”s
16-11
“Depato”s product assortment
16-12
“Depato”s product assortment
16-13
“Depato”s product assortment
16-14
“Depato”s product assortment
16-15
Product Assortment
16-16
Retailer Services Mix
Prepurchase services
Postpurchase services
Ancillary services
16-17
Location Decision
• General business
districts
• Regional shopping
centers
• Community shopping
centers
• Strip malls
• Location within a larger
store
16-18
Indicators of Sales Effectiveness
Number of people passing by
% who enter store
% of those who buy
Average amount
spent per sale
16-19
Trends in Retailing
• New retail forms and combinations
• Growth of intertype competition
• Competition between store-based and nonstore-based retailing
• Growth of giant retailers
• Decline of middle market retailers
• Global presence of major retailers
16-20
Nonstore Retailing
Direct
selling
Direct
marketing
Automatic
vending
Buying
service
16-21
The Hybrid Grid
15-22
e-Commerce Marketing Practices
• Pure-click
• Brick-andclick
• Brick-andmortar
15-23
Buyer Expectations for e-commerce
• Ability to order a product
online and pick it up at a
convenient retail
location
• Ability to return an
online-ordered product
to a nearby store
• Right to receive
discounts based on total
online and offline
purchases
15-24