1. RETAILING
AND MULTICHANNEL
MARKETING
M marketing 15
GREWAL / LEVY
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives
LEARNING OBJECTIVES
 What are the issues manufacturers consider when choosing
retail partners?
 What types of retailers are available for distributing
products?
 How do manufacturers and retailers work together to
develop a strategy?
 Why is multichannel marketing becoming such a prevalent
channel strategy?
15-2

3. Factors for Establishing a
Relationship with Retailers
15-3

4. Choosing Retail Partners
Channel Structure
15-4

5. Choosing Retail Partners
Distribution Intensity
15-5

6. Limited Distribution
15-6

7. Types of Retailers
15-7

8. Food Retailers
Peapod Website
15-8

9. General Merchandise Retailers
15-9

10. Facilitating Retail Strategy
Using the Four P’s: Product
Providing the right mix of
merchandise and services
15-10

11. Price
Price defines the value of both the
merchandise and the service provided
Build-a-Bear Workshop Commercial
15-11

12. Promotion
Retailers use a wide variety
of promotions, both within
their retail environment and
through mass media
15-12

13. Place
Convenience is a key
ingredient to success
15-13

14. Exploring Multiple Channel Options:
Benefits of Different Channels
15-14

15. Internet Channel
15-15

16. Apple Store
15-16

17. Which of the following is NOT a factor to consider
when establishing a relationship with retailers?
A. Choosing retail partners
B. Facilitating retail strategy
C. Managing a multichannel strategy
D. Identifying types of retailers
E. All of the above
15-17

18. Choosing Retail Partners
Customer Expectations
15-18

19. Red Bull is sold at convenience stores,
supermarkets and warehouse clubs. Red Bull has
_________ distribution
A. selective
B. exclusive
C. intermediate
D. intensive
E. limited
15-19

20. Check Yourself
1. What issues should manufacturers
consider when choosing retail partners?
2. What is the difference between intensive,
exclusive, and selective levels of
distribution intensity?
15-20

21. Retailer’s Reaction?
15-21

22. A ________ is a retailer with such an extensive assortment in a particular
category that would-be competitors do not bother carrying that category of
products and instead, simply refer customers to the other firm.
A. specialty retailer
B. house breaker
C. market mammoth
D. revolutionary
E. category killer
15-22

23. GNC Private Brands
15-23

24. Check Yourself
1. What are the different types of food
retailers? What differences mark their
strategies?
2. What are the different types of general
merchandise retailers? What differences
mark their strategies?
15-24

25. Coupons, rebates, and online discounts are
types of ________ used by retailers.
A. pricing promotions
B. specialty product displays
C. in-store promotions
D. off-price wholesaling
E. mass media advertising
15-25

26. How does the Internet Improve
Multichannel Shopping?
15-26

27. Retailers can do more online…
H&M’s (CSR) Website
Lands End Website
15-27

28. Evolution toward
Multichannel Marketing
15-28

29. Capabilities for
Multichannel Retailing
Disintermediation
15-29

30. Glossary
Category specialists are discount stores that offer a
narrow but deep assortment of merchandise.
Return to slide
15-30

31. Glossary
Convenience stores provide a limited variety and
assortment of merchandise at a convenient
location in 2,000-3,000 square foot stores with
speedy checkout.
Return to slide
15-31

32. Glossary
A conventional supermarket is a self-service food
store offering groceries, meat, and produce with
limited sales of nonfood items, such as health and
beauty aids and general merchandise.
Return to slide
15-32

33. Glossary
Department stores are retailers that carry a broad
variety and deep assortment, offer customer
services, and organize their stores into distinct
departments for displaying merchandise.
Return to slide
15-33

34. Glossary
Disintermediation occurs when a manufacturer
sells directly to consumers, bypassing retailers.
Return to slide
15-34

35. Glossary
Drugstores are specialty stores that concentrate on
pharmaceuticals and health and personal
grooming merchandise.
Return to slide
15-35

36. Glossary
An exclusive distribution policy is when
manufacturers grant exclusive geographic
territories to one or very few retail customers so
no other customers in the territory can sell a
particular brand.
Return to slide
15-36

37. Glossary
Extreme value retailers are small, full-line discount
stores that offer a limited merchandise
assortment at very low prices.
Return to slide
15-37

38. Glossary
Full-line discount stores are retailers that offer a
broad variety of merchandise, limited service, and
low prices.
Return to slide
15-38

39. Glossary
An intensive distribution strategy is designed to get
products into as many outlets as possible.
Return to slide
15-39

40. Glossary
Multichannel retailers are retailers that use some
combination of stores, catalogs, and the Internet
to sell merchandise.
Return to slide
15-40

41. Glossary
Off-price retailers offer an inconsistent assortment
of brand name merchandise at low prices.
Return to slide
15-41

42. Glossary
Selective distribution uses a few selected
customers in a territory.
Return to slide
15-42

43. Glossary
Specialty stores concentrate on a limited number of
complementary merchandise categories and
provide a high level of service in relatively small
stores.
Return to slide
15-43

44. Glossary
Supercenters are large stores that combine a
supermarket with a full-line discount store.
Return to slide
15-44

45. Glossary
Warehouse clubs are large retailers that offer a
limited and irregular assortment of food and
general merchandise with little service at low
prices for ultimate consumers and small
businesses.
Return to slide
15-45