Chapter
retailing and
omnichannel
marketing
Retailing and Omnichannel Marketing
LO 16-1 Discuss the four factors manufacturers should
consider as they develop their strategy for
working with retailers.
LO 16-2 Outline the considerations associated with
choosing retail partners.
LO 16-3 List the three levels of distribution intensity.
LO 16-4 Describe the various types of retailers.
LO 16-5 Describe the components of a retail strategy.
LO 16-6 Identify the benefits of stores.
LO 16-7 Identify the benefits of omnichannel retailing.
LO 16-8 Detail the challenges of omnichannel retailing
Factors for Establishing
a Relationship with Retailers
Managing a
omnichannel
strategy
Developing
a retail
strategy
Identifying
types of
Retailers
Choosing
retailing
partners
Choosing Retail Partners
Channel Structure
Degree of vertical
integration
Manufacturers brand
Power of
manufacturer and
retailer
©M HrubyChoosing Retail Partners
Choosing Retail Partners
Channel Member Characteristics
Larger firms
Less likely to use
supply chain
intermediaries
Can gain more
control, be more
efficient, and
save money.
Choosing Retail Partners
Distribution Intensity
Intensive
Exclusive
Selective
© J e ff G re e n b e rg /Ph o to Ed it © Su s a n Va n Ett e n /Ph o to Ed itDistribution Intensity
Why might Birkenstock
choose an exclusive
distribution intensity?
1. What issues should manufacturers
consider when choosing retail partners?
2. What is the difference between intensive,
exclusive, and selective levels of
distribution intensity?
Food Retailers
Supermarket
Supercenter
Warehouse
Club
Convenience
Store
Limited nonfood
Includes discount
store
Limited
assortment
Limited variety
Differentiates
different types of
foods
Walmart, Meijer,
K-Mart, Target
Little service
Includes:
Costco, Sams,
BJ’s
Good locations
General Merchandise Retailers
• Broad variety and deep assortment
Department Stores
• Broad variety at low prices
Full-line Discount
• Limited merchandise with service in small store
Specialty
• Specialty for pharmaceutical and heath
Drugstores
• Discount with narrow but deep assortment
Category Specialist
• Full line, limited, very low prices
Extreme value
• Inconsistent assortment of brand name at low prices
Services Retailers
Firms that primarily sell
services rather than
merchandise are a
large and growing part
of the retail industry
1. What strategies distinguish the different
types of food retailers?
2. What strategies distinguish the different
types of general merchandise retailers?
3. Are organizations that provide services to
consumers retailers?
Developing a Retail Strategy
Using the Four Ps: Product
Providing the right mix of merchandise and services
Price
Price defines the
value of both the
merchandise and the
service provided
Promotion
Cou rte s y Ba s s Pro Sh o p s AP Ph o to /M a rk Hum p h re yRetailers use a wide variety
of promotions, both within
their retail environment and
Place
Convenience is a key
ingredient to success
©M Hruby
The McGraw-Hill Companies, Inc/ Jill Braaten, photographer
