Chapter 13 – Retailing and Multichannel Marketing

Retailing – the set of business activities that add value to products or services sold to consumers for
their personal or family use; includes products bought at stores, through catalogues and over the
internet, as well as services such as fast-food, restaurants, airlines, and
hotels.
- Sits at the end of the SC
- Marketing meets the consumers
- Fulfilling customer expectations

Omnichannel Strategy – selling in more than 1 channel

Factors for establishing a relationship with retailers

1. Choosing retail partners
- Channel Structure
Vertical integration
Manufacturer strong brand in marketplace
Power of the manufacturer and retailer
- Consumer Expectations
Retailers – who do consumers buy from?
Manufacturers – target market expect to find products & those of competitors
- Channel member characteristics

2. Identifying types of retailers

- Food retailers
Conventional Supermarket (food with limited non-food items)
Big Box Retailer (supercentres, hypermarkets, and warehouse clubs – carry non-food items)
Convenience Store
- General merchandise retailers
Discount Store – broad variety, limited service, low price. No Frills, Giant Tiger
Specialty Store – limited in number of complementary merch in a relatively small store.
Tiffany, Guitar shop, antiques.
Category Store – narrow variety but a deep assortment of merch. Rona
Department Store – broad variety, deep assortment, some customer service, organized in
separate departments. Target.
Drugstore – specialty health store, health & personal grooming products, pharmaceuticals.
Shoppers.
Off-price retailers – inconsistent assortment of merch, low prices. Winners
Extreme-value retailers – general merchandise discount store. Dollarama.
Services Retailer – primarily sell services rather than merch. Financial Advising.

3. Developing a retail strategy

When developing a retail strategy, retailers must:
- Develop market segments
 - Develop the retail mix which includes: product,
pricing, promotion (retailers use a wide variety or
promos, both within their retail environment and
through mass media), place (convenience is a key
ingredient to success), personnel (personal selling
and customer service representatives are also part of
the overall promotional package. Services: easy to
buy & use products. Retail associates provide info,
facilitate the sale. Augmented by technology: in store
kiosks, internet, self-checkout lanes. Provide more
value to their best customers), presentation
(promote & showcase what the store has to offer,
displays are an important type of promotion. Unusual
and exciting store atmospheres. The goal is to improve “shopability”)

4. Managing omnichannel options

- Stores – browsing, touching and feeling, personal service, cash and credit, entertainment and
social interaction, instant gratification, risk reduction
- Internet - broader selection than stores, access to items online unavailable in stores, access to
wish lists and gift registries, access to loyalty program info
- Kiosk – by combining stores with internet enabled kiosks, retailers can dramatically expand the
assortment offered to their customers.
- Catalogue – convenience, information, safety

Effective Omnichannel Retailing

- Integrated CRM
- SC
- Pricing
- Brand Image