8_Easy_Managing Retailing
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Questions and Answers

Which function allows wholesalers to efficiently reach numerous small or geographically spread retailers?

  • Assortment and Bulk Breaking
  • Market Information
  • Access and Coverage (correct)
  • Inventory Management

What is the practice of purchasing large quantities of goods and selling them in smaller lots to customers called?

  • Channel Management
  • Inventory Management
  • Bulk Breaking (correct)
  • Assortment

Which of the following is a pressure or challenge that wholesalers face?

  • Reduced need for market data
  • Less demanding suppliers
  • Decreased customer expectations for service
  • Competition from e-commerce platforms (correct)

What do suppliers expect from wholesalers regarding their products?

<p>Strong promotion (A)</p> Signup and view all the answers

Which of the following is a response wholesalers take to remain competitive?

<p>Strategic focus (C)</p> Signup and view all the answers

Which of the following exemplifies a hybrid retail model?

<p>A gas station that also offers groceries. (D)</p> Signup and view all the answers

What advantage do large retail chains typically possess over smaller firms?

<p>Superior logistics and buying power. (A)</p> Signup and view all the answers

What is m-commerce?

<p>Shopping using mobile phones. (D)</p> Signup and view all the answers

What is a key characteristic of omnichannel retailing?

<p>Integrating physical and online stores for a seamless experience. (A)</p> Signup and view all the answers

What does 'fast retailing' primarily emphasize?

<p>Speed to market and quick product turnover. (D)</p> Signup and view all the answers

Which technology helps retailers reduce overstocks and the need for discounts?

<p>Better data analytics. (D)</p> Signup and view all the answers

Which retailers are most affected by the decline of middle-market retail?

<p>Mid-tier retailers. (C)</p> Signup and view all the answers

What should all retail marketing decisions align with?

<p>A well-defined target segment. (D)</p> Signup and view all the answers

What does shopper marketing primarily emphasize?

<p>In-store and point-of-purchase influences (B)</p> Signup and view all the answers

What is a key goal of omnichannel retailing?

<p>Delivering a seamless shopping experience across all channels (A)</p> Signup and view all the answers

Which of the following is an example of integrated brick-and-click operations?

<p>A retailer enabling 'buy online, pick up in-store' services (A)</p> Signup and view all the answers

What is the purpose of loyalty/reward programs?

<p>Engage heavy shoppers with exclusive offers (D)</p> Signup and view all the answers

What should companies avoid in omnichannel retailing?

<p>Duplication or conflicting sales messages across channels (A)</p> Signup and view all the answers

Which of these is a component of omnichannel retailing?

<p>Integrated brick-and-click operations (C)</p> Signup and view all the answers

What do smaller retailers often do for last-mile delivery in omnichannel?

<p>Partner with companies like Instacart or DoorDash (B)</p> Signup and view all the answers

What can loyalty programs leverage for more effective cross- and up-selling?

<p>Personalized data (D)</p> Signup and view all the answers

What should companies offering loyalty programs avoid?

<p>Broad generalization (A)</p> Signup and view all the answers

Which of the following is an example of a non-store channel?

<p>Infomercials (C)</p> Signup and view all the answers

What is a primary reason why continuous coupons and discounts on national brands have inadvertently aided private labels?

<p>They train shoppers to prioritize price, reducing brand loyalty. (C)</p> Signup and view all the answers

Which manufacturer strategy involves focusing resources on specific areas where they excel against private labels?

<p>Fighting Selectively (B)</p> Signup and view all the answers

What is a characteristic of 'merchant wholesalers'?

<p>They own the goods they deal in. (A)</p> Signup and view all the answers

Which type of wholesaler offers extra support services such as delivery and management advice?

<p>Full-Service (C)</p> Signup and view all the answers

What primarily defines wholesaling activities?

<p>Selling goods to those who buy for resale or business use. (B)</p> Signup and view all the answers

What role do agents play in the distribution channel?

<p>They work permanently with clients on commission. (B)</p> Signup and view all the answers

Which of the following is a challenge faced by manufacturers that can lead to private label success?

<p>Weakening brand differentiation (C)</p> Signup and view all the answers

Which strategy helps manufacturers coexist with retailers?

<p>Providing unique or complementary products (D)</p> Signup and view all the answers

What do brokers primarily do?

<p>Arrange sales between buyers and sellers. (B)</p> Signup and view all the answers

Which type of wholesaler is likely to have minimal credit/return policies?

<p>Cash-and-Carry Wholesaler (C)</p> Signup and view all the answers

What is a primary benefit retailers gain from e-commerce data?

<p>Deeper insights into consumer habits (B)</p> Signup and view all the answers

How do private labels differ from generic products?

<p>Private labels offer better perceived quality and features. (C)</p> Signup and view all the answers

What is a key profitability advantage of using private labels?

<p>Lower manufacturing, R&amp;D, and advertising costs (C)</p> Signup and view all the answers

How do private labels provide differentiation for retailers?

<p>By being exclusive to the retailer's stores (D)</p> Signup and view all the answers

What benefit do store brands offer retailers in negotiations with national brand manufacturers?

<p>Increased bargaining power due to appeal to price-sensitive consumers (D)</p> Signup and view all the answers

What is an important strategy for ensuring the success of private labels?

<p>Improving quality to rival national brands (B)</p> Signup and view all the answers

What is the role of strategic assortment in building private labels?

<p>Identifying product categories with the greatest opportunity (D)</p> Signup and view all the answers

In which categories should retailers apply caution when introducing private labels?

<p>Categories where consumers strongly prefer established national brands (C)</p> Signup and view all the answers

What range of product quality can private labels encompass?

<p>From basic generics to premium, upscale lines (C)</p> Signup and view all the answers

What is the impact of price sensitivity on store brand adoption?

<p>Increased adoption of store brands (B)</p> Signup and view all the answers

Flashcards

Hybrid Retail Models

New retail formats blending different businesses to meet consumer needs.

Pop-Up Stores

Temporary stores that create a buzz and interactive brand experiences.

Retailer Consolidation

The trend of fewer, but larger retail companies dominating the market.

m-Commerce

Shopping via smartphones and other mobile devices.

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Omnichannel Retailing

Integrating physical and online stores for a seamless customer experience.

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Fast Retailing

Retailers that rapidly change merchandise to keep up with trends.

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Technology in Retailing

Using data analytics and in-store tech to improve efficiency and customer experience.

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Decline of Middle-Market Retailers

The decline of mid-range retailers as shoppers favor luxury or discount options.

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Shopper Marketing

Marketing that emphasizes in-store and point-of-purchase influences to drive purchase decisions.

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Loyalty / Reward Programs

Programs designed to engage and reward frequent customers through exclusive offers and personalized experiences.

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Integrated Brick-and-Click

Combining brick-and-mortar stores with an e-commerce site.

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Non-Store Channels

Retail channels that don't involve physical storefronts, like direct mail or infomercials.

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Seamless Customer Experience

Ensuring a consistent and easy customer journey across all retail channels.

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Buy Online, Pick Up In-Store

Offer customers the option to buy items online and collect them at a physical store.

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Multiple Return Options

Permitting customers to return items purchased online to a physical retail location.

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Sharing Inventory Information

Inventory information is shared between online and physical store channels, providing customers with real-time stock levels.

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Logistics and Delivery Partners

Collaborating with specialized companies to manage product delivery to customers.

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Wholesaler's Reach

Wholesalers efficiently connect manufacturers to numerous, scattered retailers/customers.

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Assortment in Wholesaling

Combining diverse products to fulfill specific retailer requirements.

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Bulk Breaking

Buying in bulk and selling in smaller quantities to customers.

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Wholesaler's Financing Role

Providing credit to buyers and ensuring timely payments to suppliers.

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Wholesaler's Market Intel

Supplying both suppliers and customers with updates on competition and market trends.

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Private Labels

Brands developed and controlled by retailers or wholesalers; exclusive to the store.

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Generics

Unbranded, simply packaged, and typically less expensive products with minimal features.

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Profitability (Private Labels)

Increased profit margins due to lower costs of manufacturing, R&D, and advertising.

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Differentiation (Private Labels)

Creating an in-store competitive advantage because these brands are exclusive to the retailer.

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Bargaining Power (Private Labels)

Increasing a retailer’s negotiation power with national brand manufacturers by offering appealing alternatives.

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Quality and Image (Private Labels)

Embedding better quality and innovative packaging to compete with national brands.

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Strategic Assortment

Identifying the best product categories for successful store brands (e.g., milk, cereal, paper goods).

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National Brand Preference

Recognize product categories where consumers show a strong preference for established national brands.

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Brand Positioning

Range of products from basic generics to premium, upscale lines. Also to drive foot traffic.

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Price Sensitivity

Consumers being more aware of product prices, accelerating store brand growth.

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Buying on Price

The practice of shoppers being conditioned to prioritize purchases based on price.

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Private Label Quality Catch-Up

When private labels nearly match name brands in consumer perception of quality.

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Brand/Line Extensions

Offering too many variations of a brand, potentially confusing customers and diluting brand strength.

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Fight Selectively

Focus resources on the most successful brands or specific market segments.

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Partner Effectively

Working with retailers to offer distinct or supportive products rather than directly competing.

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Innovate Brilliantly

The constant launch of new or improved Items to maintain a competitive advantage.

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Winning Value Propositions

The mix of symbolic and functional benefits, ensuring the price is appropriate for what the customer receives.

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Wholesaling

All activities related to selling goods/services to those purchasing for resale or business use.

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Merchant Wholesalers

Wholesalers who take ownership of the goods they handle.

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Brokers and Agents

Those that don't take title, acting as intermediaries to arrange sales for a fee or commission.

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Study Notes

  • The document addresses managing and defining modern retailing, marketing decisions, omnichannel strategies, private labels, and wholesaling

Key Changes Defining Modern Retailing

  • New retail forms combine different types of stores to meet convenience demands.
  • Pop-up stores create buzz through temporary, interactive brand experiences.
  • Retailer consolidation sees giant chains using superior logistics and buying power
  • Smaller firms struggle to compete with larger ones which dictate terms to manufacturers.
  • m-Commerce via smartphones is growing for on-the-go research, comparison, and purchasing.
  • In some markets mobile channels are dominant with consumers ordering through interactive "virtual stores".
  • Omnichannel retailing integrates physical and online stores.
  • This provides a seamless experience where customers can order online and pick up/return items in-store.
  • Fast retailing involves constantly changing merchandise and quick product turnover.
  • Fast retailing requires innovations in product development, sourcing, and store operations.
  • Technology is increasingly used for forecasting and inventory control which reduces overstocks and discounts.
  • In-store tech includes electronic shelf labels, interactive screens, and cashier-less technology.
  • Digital integration coordinates websites, social media, and in-store communications to enhance the shopping experience.
  • The middle-market retail sector is declining creating an hourglass market with growth at luxury and discount ends.
  • Consumers trade up for affordable luxury and trade down for basic goods, reducing opportunities in the mid-range.

Marketing Decisions for Retailers

  • Decisions on merchandise, pricing, promotions, and store atmosphere should align with the target segment's needs.
  • A mismatch between retailer's traditional customer base and the new audience can be negative.
  • Retailers must decide between a narrow and shallow product range (few items, small variety), or a broad and deep range.
  • Identifying the destination categories is most challenging in fast changing sectors.
  • Procurement policies involve merchandise managers selecting inventory using advanced forecasting software.
  • RFID tracks real-time inventory and helps with replenishment and cost management.
  • Service level options include self-service (customers handle everything), limited service (some assistance), and full service.
  • Specific services are before purchase and after purchase.
  • Sensory elements of atmosphere include visual, auditory, and olfactory
  • Experiential components of a physical store include interactive product trials.
  • Retailers should fit with shoppers goals whether they are task-orientated or desire entertainment.

Pricing Strategies for Retailers

  • Retailers can position themselves via high markup/low volume (luxury) or low markup/high volume (discounter) pricing.
  • Discount retailers compete with each other, but online channels complicate this.
  • Strategic approaches include loss leaders, markdowns, and price image management.
  • Temporary discounts, BOGO, or mobile/digital coupons promote sales.
  • Volume discounts encourage shoppers to spend more.
  • Everyday Low Pricing (EDLP) vs. High-Low Pricing strategies can be implement for different target markets.
  • Digital offers that target mobile promotions use geofencing or in-store apps

Communications Strategies

  • Communications may include advertising and promotions across multiple channels.
  • Integrated strategies focus on websites, mobile apps, search, and social media campaigns.
  • Shopper emphasizes in-store and point-of-purchase influences because many decisions happen in store

Loyalty Programs

  • Engage heavy spenders with exclusive offers, sales notices, or special events.
  • Leverage personalized data for more cross-sell and up-sell opportunities.

Managing Omnichannel Retailing

  • Omnichannel combines physical and online to deliver a seamless experience.
  • Different channels should complement rather than compete.
  • Key components are integrated brick-and-click operations.
  • Other components are a non-store channels, and providing a seamless customer experience.
  • Logistics and delivery partners may include larger retailers investing in their own networks, or partnerships with other companies.
  • E-commerce data helps retailers tailor assortments and manage promotions.

Building and Managing Private Labels

  • Private labels are proprietary brands developed or controlled by retailers or wholesalers.
  • Generics differ in that they are unbranded, plainly packaged, less expensive, and offer minimal quality or features.
  • Private labels provide profitability, differentiation, and bargaining power.

Keys to Success for Private Labels

  • Improving quality and image, strategic assortment, brand positioning, and price sensitivity.
  • Manufacturer challenges are weakening brand or excessive brand extensions
  • Manufacturer strategies are to fight selectively, partner effectively, innovate brilliantly, and create winning value propositions.

Key Aspects of Wholesaling

  • Wholesaling is activities involved in selling to those who buy for resale or for business use.
  • Wholesalers buy large quantities from producers, store the goods, and resell them to retailers or other business buyers.
  • Merchant wholesalers own the goods.
  • Brokers and agents do not take title to the goods, brokers are temporary agents work more permanently.
  • Key functions include access and coverage, assortment and bulk breaking, warehousing and transportation, and financing.
  • Wholesaling is important because they can supply both suppliers, management services and consulting
  • Wholesalers can perform distribution tasks more efficiently and lower costs.
  • Challenges include competition from e-commerce, demanding customers, suppliers expect strong services.
  • Response involves increased productivity, advanced technology, and strategic focus.

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Explore efficient distribution methods wholesalers use to reach retailers. Understand challenges wholesalers face, supplier expectations, and competitive strategies. Learn about hybrid retail models, m-commerce, omnichannel retailing, and the impact of technology.

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