Part I: THE WORLD OF MARKETING. 1. An Overview of Marketing. 2. Strategic Planning for Competitive Advantage. 3. Ethics and Social Responsibility. 4. The Marketing Environment. 5. Developing a Global Vision. Part II: ANALYZING MARKET OPPORTUNITIES. 6. Consumer Decision Making. 7. Business Marketing. 8. Segmenting and Targeting Markets. 9. Marketing Research. Part III: PRODUCT DECISIONS. 10. Product Concepts. 11. Developing and Managing Products. 12. Services and Nonprofit Organization Marketing. Part IV: DISTRIBUTION DECISIONS. 13. Supply Chain Management. 14. Marketing Channels and Retailing. Part V: PROMOTION AND COMMUNICATION STRATEGIES. 15. Marketing Communications. 16. Advertising, Public Relations, and Sales Promotion. 17. Personal Selling and Sales Management. 18. Social Media and Marketing. Part VI: PRICING DECISIONS. 19. Pricing Concepts. 20. Setting the Right Price.
Marketing Channels and Retailing Chapter 14 Lamb, Hair, McDaniel 2014-2015 © Cengage Learning 2015 All Rights Reserved Explain what marketing channels and channel intermediaries are, and describe their functions and activities Describe common channel structures and strategies, and the factors that influence their choice Discuss channel relationship types and roles, and their unique benefits and drawbacks Explain the importance of the retailer within the channel and within the national economy © 2015 by Cengage Learning Inc All rights reserved List and understand the different classifications and types of retailers, as well as their different operational models Explain the major tasks involved in developing a retail marketing strategy Discuss the roles of CRM and customer data in retailer decision making Describe trends in retail and channel management © 2015 by Cengage Learning Inc All rights reserved Marketing Channels and Channel Intermediaries Explain what marketing channels and channel intermediaries are, and describe their functions and activities © 2015 by Cengage Learning Inc All rights reserved Marketing Channel A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer Channel Members Negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer © 2015 by Cengage Learning Inc All rights reserved Marketing Channel Functions Specialization Specializationand anddivision divisionof oflabor labor Overcoming Overcoming discrepancies discrepancies Providing Providingcontact contactefficiency efficiency © 2015 by Cengage Learning Inc All rights reserved Specialization and Division of Labor Creates greater efficiency Provides lower production costs Create time, place, form, and exchange utility © 2015 by Cengage Learning Inc All rights reserved Contact Efficiency Retailer Firms in the channel that sell directly to customers Retailers simplify distribution by cutting the number of transactions required by consumers, making an assortment of goods available in one location © 2015 by Cengage Learning Inc All rights reserved Exhibit 14.1 How Marketing Channels Reduce the Number of Required Transactions © 2015 by Cengage Learning Inc All rights reserved Channel Intermediaries Merchant Merchant Wholesaler Wholesaler Agents Agents and and Brokers Brokers An An institution institution that that buys buys goods goods from from manufacturers, manufacturers, takes takes title title to to goods, goods, stores stores them, them, and resells ships and resells and and ships them them Wholesaling intermediaries Wholesaling intermediaries who who facilitate facilitate the the sale sale of of aa product product by by representing representing channel channel members members © 2015 by Cengage Learning Inc All rights reserved 10 Choosing the Retailing Mix Product Offering The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix © 2015 by Cengage Learning Inc All rights reserved 52 Retail Promotion Strategy Advertising Advertising Public Public Relations Relations Publicity Publicity Sales Sales Promotion Promotion © 2015 by Cengage Learning Inc All rights reserved 53 The Proper Location Choosing a Community Economic Economic growth growth potential potential Competition Competition Geography Geography © 2015 by Cengage Learning Inc All rights reserved 54 The Proper Location Choosing a Specific Site Socioeconomic Socioeconomic characteristics characteristics Choosing the Type of Site Freestanding Freestanding Store Store Traffic Traffic flows flows Land Land costs costs Zoning Zoning Regulations Regulations Shopping Shopping Center Center Mall Mall Public Public Transportation Transportation © 2015 by Cengage Learning Inc All rights reserved 55 Retail Prices Low Price Good Value Single Price Point High Price Quality Image © 2015 by Cengage Learning Inc All rights reserved 56 Presentation of the Retail Store Employee Employee type type and and density density Merchandise Merchandise type type and and density density Fixture Fixture type type and and density density Sound Sound Odors Odors Visual Visual factors factors © 2015 by Cengage Learning Inc All rights reserved 57 Personnel Two Common Selling Techniques Trading Trading Up Up Suggestion Suggestion Selling Selling © 2015 by Cengage Learning Inc All rights reserved 58 Channel and Retailing Decisions for Services Prioritize customer service by focusing on four areas: •Minimizing wait times •Managing service capacity •Improving service delivery •Establishing channel-wide network coherence © 2015 by Cengage Learning Inc All rights reserved 59 Shopper Marketing Shopper marketing is becoming increasingly popular as businesses see the implications of this new method of customer research These implications include the strategic alignment of customers segments and supply chain adaptation © 2015 by Cengage Learning Inc All rights reserved 60 The Relationship between Retailer Decision Making and Customer Data Discuss the roles of CRM and customer data in retailer decision making 61 © 2015 by Cengage Learning Inc All Rights Reserved Retailing and CRM Data Retailers gain insight to who purchases product CRM Database Build stronger relationships with customers © 2015 by Cengage Learning Inc All Rights Reserved 62 New Developments in Retailing and Channel Management Describe trends in retail and channel management 63 © 2015 by Cengage Learning Inc All rights reserved New Developments in Retailing M-commerce M-commerce Purchasing Purchasinggoods goods through throughmobile mobile devices devices Online retailers offer greater variety of options for delivery, including one-use package delivery boxes © 2015 by Cengage Learning Inc All rights reserved 64 Chapter 14 Video New Balance Hubway New Balance Hubway is a bike sharing system in the Boston area that uses automated stations to provide a bike service to people looking to go short distances In this clip, employees discuss how the retailing model works for Hubway, and how the difference between brick and mortar and ebusiness models allowed them to succeed in the Boston area CLICK TO PLAY VIDEO 65 © 2015 by Cengage Learning Inc All rights reserved Part Video Scripps Networks Interactive Distribution Decisions Scripps Networks Interactive owns the content on popular networks such as Food Network, DIY, and the Cooking Channel Deciding how to best get their content (both digital and solid products) into different locations takes some careful thought, and various decision makers discuss the process in this video clip CLICK TO PLAY VIDEO 66 © 2015 by Cengage Learning Inc All rights reserved [...]... influencethe thebehavior behaviorof ofother otherchannel channel members members A situation that occurs when one marketing A situation that occurs when one marketing Channel Channel channel member intentionally affects another channel member intentionally affects another Control Control member’s member’sbehavior behavior Channel Channel Captain Captain AAmember memberofofaamarketing marketingchannel channelthat... overthe the activities activitiesof ofother othermembers members 3 © 2015 by Cengage Learning Inc All rights reserved 29 Channel Conflict Inequitable channel relationships often lead to channel conflict, which is a clash of goals and methods among the members of a distribution channel 3 © 2015 by Cengage Learning Inc All rights reserved 30 Channel Partnering The joint effort of all channel members to create... ProducerResources Resources Number Number of ofProduct ProductLines Lines Producer Producer Factors Factors That That Affect Affect Channel Channel Choices Choices Desire Desirefor for Channel Channel Control Control 2 © 2015 by Cengage Learning Inc All rights reserved 21 Levels of Distribution Intensity Intensive Intensive Selective Selective Exclusive Exclusive AAform formof ofdistribution distributionaimed... AAform formof ofdistribution distributionachieved achieved by byscreening screeningdealers dealersto toeliminate eliminate all allbut butaafew fewininany anysingle singlearea area AAform formof ofdistribution distributionthat that established establishedone oneor oraafew few dealers within a given dealers within a givenarea area 2 © 2015 by Cengage Learning Inc All rights reserved 22 Levels of Distribution... customer service, and reduce the total costs of the marketing channel 3 © 2015 by Cengage Learning Inc All rights reserved 31 The Role of Retailing Explain the importance of the retailer within in the channel and within the national economy 32 © 2015 by Cengage Learning Inc All rights reserved 4 Retailing All the activities directly related to the sale of goods and services to the ultimate consumer... rights reserved 33 The Role of Retailing U.S retailers employ nearly 15 million people Retailers account for 10.8 percent of U.S employment Retailing accounts for 10 percent of U.S businesses Retailers account for two-thirds of the U.S GDP Industry is dominated by a few giant organizations, such as Walmart 4 © 2015 by Cengage Learning Inc All rights reserved 34 Classes of Retail Operations List... rights reserved 34 Classes of Retail Operations List and understand the different classifications and types of retailers, as well as their different operational models 35 © 2015 by Cengage Learning Inc All rights reserved 5 Classification of Retail Operations Ownership Ownership Level Level of of Service Service Product Product Assortment Assortment Price Price 5 © 2015 by Cengage Learning Inc All rights... technology and communication have led to the emergence of new, experimental distribution methods and channel structures 1 © 2015 by Cengage Learning Inc All rights reserved 24 Types of Channel Relationships Describe channel relationship types and roles, and their unique benefits and drawbacks 25 © 2015 by Cengage Learning Inc All rights reserved 3 Types of Channel Relationships Benefits Hazards Arm’s Length... member © 2015 by Cengage Learning Inc All rights reserved 26 Global Channel Relationships Global Global Channel Channel Development Development Channel Channel policies policies differ differ Gray Graymarketing marketing channels channels 3 © 2015 by Cengage Learning Inc All rights reserved Social Influences in Channels Power Power Control Control Leadership Leadership Conflict Conflict Partnering Partnering... rights reserved 13 Channel Structures Describe common channel structures and strategies, and the factors that influence their choice 14 © 2015 by Cengage Learning Inc All rights reserved 2 Exhibit 14.2 Marketing Channels for Consumer Products © 2015 by Cengage Learning Inc All rights reserved 15 Exhibit 14.3 Channels for Business and Industrial Products © 2015 by Cengage Learning Inc All rights reserved ... Captain AAmember memberofofaamarketing marketingchannel channelthat that exercises exercisesauthority authorityand andpower powerover overthe the activities activitiesof ofother othermembers members... influencethe thebehavior behaviorof ofother otherchannel channel members members A situation that occurs when one marketing A situation that occurs when one marketing Channel Channel channel... formof ofdistribution distributionachieved achieved by byscreening screeningdealers dealersto toeliminate eliminate all allbut butaafew fewininany anysingle singlearea area AAform formof ofdistribution