Mktg 361 Chapter 3 - Lecture notes 3 PDF

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Summary

Spring 2019; taken in person with Kathleen Wachter...

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Retail Channels Retail channel o The opportunity to complete a transaction o Stores, internet, mobile, social media, catalogs Single-channel retailing o Sell and deliver through only one channel Multichannel o Cross-channel retailing o Omnichannel retailing Relative Strengths of Retail Channels In-Store Retailing o Touch and smell products o Personal service o Risk reduction o Immediate gratification o Entertainment and social experience o Cash payment Internet Retailing o Mobile retailing, mobile commerce, m-commerce  Deeper and broader selection  More information for evaluating merchandise  Personalization  Live chats  Expanded market presence  Information to improve shopping experience across channels  Perceived risks in Internet shopping Mobile Retailing o Customers access retail sites from anywhere o Location sensitive o Biggest disadvantage is smaller viewing screen o Some retailers design distinct websites and apps for different devices Social Retailing o S-retailing involves conducting purchase transactions through social media sites Catalog and Other Nonstore Channels o Catalog Channel  Place an order from anywhere  Can access catalog anytime  Can be easier to browse than website o Direct Selling  Face-to-face interaction with customer at home or work o Automated Retailing  Vending machines Opportunities Facing Multichannel and Omnichannel Retailers Multiple channels to build competitive advantage Consumers want to be recognized

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Retailer must facilitate finding, picking-up merchandise Various channels need to be consistent Retailers can use channels to stimulate store visits Multichannel and Omnichannel Supply Chains and Information Systems o Struggle to provide an integrated experience Consistent Brand Image Across Channels o All channels should present a consistent image and each channel reinforces the image Merchandise Assortment o Internet channel offers broader, deeper merchandise assortment o Store channel better suited for "touch-and-feel" products Pricing o Retailers adjust prices based on competition in different channels Reduction of Channel Migration o Showrooming can be reduced by:  Providing better customer service  Offering unique relevant information based on customer data  Promoting private-label merchandise Key Terms Automated retailing: a retail channel that stores merchandise or services in a machine, then dispenses them to customers who provide cash or a credit card Catalog channel: a nonstore retailer that communicates directly with customers using catalogs sent through the mail Channel migration: a customer practice in which customers search for information from a retailer's channel, then purchase in a different channel maintained by a competitor Cross-channel retailing: a type of marketing channel in which customers use multiple channels to make purchases, such as when they receive an emailed coupon, download it onto their smartphone, and then go to a store to redeem the coupon and buy the product Direct selling: a retail format in which a salesperson, frequently an independent distributor, contacts a customer directly in a convenient location (either at a customer's home or work), demonstrates merchandise benefits, takes an order, and delivers the merchandise to the customer Internet retailing: a retail format in which retailers communicate with customers and offer products and services for sale over the internet Live chat: technology that enables online customers to access an instant messaging or voice conversation with a sales representative in real time M-commerce: internet channel accessed through tablets, smartphones, or other handheld devices Multichannel retailing: selling merchandise or services through more that one channel Omnichannel retailing: coordinated multichannel retail offering that ensures a seamless customer experience across all the retailer's channels Retail channel: the means by which a retailer sells and delivers merchandise to customers Showrooming: a practice in which customers visit stores to interact with a physical product and receive sales assistance, then purchase it through a less expensive channel, such as online Single-channel retailing: selling merchandise or services through only one channel Social retailing: conducting purchase transactions through a social media site Vending machine: a nonstore format in which merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use a credit card...