《市场营销英语》课程教学课件（PPT讲稿）Unit 11 Retailer Marketing Decisions

Unit 11. RetailerMarketing Decisions

Unit 11. Retailer Marketing Decisions

RetailerMarketingDecisionsRetailers are searching for new marketingstrategies to attract and hold customers. In thepast, retailers attracted customers with uniqueproducts,more or better servicesthan theircompetitors offered, or credit cards. Today,national brand manufacturers,in their drive forvolume,haveplaced theirbranded goodseverywhere.Thus,stores offer more similarassortments-national brands are found not onlyindepartment stores,but also inmass-merchandise and off-price discount stores.As aresult,stores are looking more and more alike;they have become"commoditized".In any city,ashopper can find many stores,but fewassortments

Retailer Marketing Decisions Retailers are searching for new marketing strategies to attract and hold customers. In the past, retailers attracted customers with unique products, more or better services than their competitors offered, or credit cards. Today, national brand manufacturers, in their drive for volume, have placed their branded goods everywhere. Thus, stores offer more similar assortments—national brands are found not only in department stores, but also in mass￾merchandise and off-price discount stores. As a result, stores are looking more and more alike; they have become “commoditized”. In any city, a shopper can find many stores, but few assortments

Service differentiation among retailers hasalsoeroded.Many department stores have trimmedtheir services,whereas discounters haveincreased theirs,Customers have becomesmarter and more price sensitive.They see noreason to pay morefor identical bands,especially when service differences are shrinkingAnd because bank credit cards are now acceptedat most stores,consumers no longer need creditfroma particular store.For all these reasons,many retailerstoday are rethinking theirmarketingstrategies

◼ Service differentiation among retailers has also eroded. Many department stores have trimmed their services, whereas discounters have increased theirs, Customers have become smarter and more price sensitive. They see no reason to pay more for identical bands, especially when service differences are shrinking. And because bank credit cards are now accepted at most stores, consumers no longer need credit from a particular store. For all these reasons, many retailers today are rethinking their marketing strategies

Target MarketandPositioningDecisionRetailerMarketingDecisions(SeeTextonP192)RetailerRetailerMarketing MixStrategyProductandserviceassortmentTarget MarketPricesRetail StorePromotionPositioningPlace(location)Asshown in the figure above,retailers face major marketingdecisionsabout their target marketsand positioning,productassortmentand services,price,promotion,andplace

4 Retailer Marketing Decisions (See Text on P192) Retailer Strategy Target Market Retail Store Positioning Retailer Marketing Mix Product and service assortment Prices Promotion Place (location) Target Market and Positioning Decision As shown in the figure above, retailers face major marketing decisions about their target markets and positioning, product assortment and services, price, promotion, and place

TargetMarketand PositioningDecisionRetailers first must define their target marketsand then decide how they will position themselvesin these markets.Should the store focus onupscale,mid-scale,or downscale shoppers?Dotarget shoppers want variety,depth of assortmentconvenience,or low prices? Until they define andprofile their markets,retailers cannot makeconsistent decisions about product assortment,services,pricing,advertising,store decor,orany ofthe other decisions that must support theirpositions

Target Market and Positioning Decision ◼ Retailers first must define their target markets and then decide how they will position themselves in these markets. Should the store focus on upscale, mid-scale, or downscale shoppers? Do target shoppers want variety, depth of assortment, convenience, or low prices? Until they define and profile their markets, retailers cannot make consistent decisions about product assortment, services, pricing, advertising, store decor, or any of the other decisions that must support their positions

Too many retailers fail to define theirtargetmarkets and positions clearly.They try to have"something for everyone"and end up satisfyingno market well.In contrast, successful retailersdefine their target markets well and positionthemselves strongly.Forexample,in1963,LeslieH.Wexner borrowed $5.00o to create TheLimited,which started as a single storetargetedto young,fashion-conscious women.All aspects ofthe store-clothingassortment,fixtures,music,colors,personnel-were orchestrated to matchthe target consumer.He continued to open morestores,but a decade later his original customerswere no longer in the"young"group.To catchthenew"youngs,"he started the Limited Express

Too many retailers fail to define their target markets and positions clearly. They try to have “something for everyone” and end up satisfying no market well. In contrast, successful retailers define their target markets well and position themselves strongly. For example, in 1963, Leslie H. Wexner borrowed $5.000 to create The Limited, which started as a single store targeted to young, fashion-conscious women. All aspects of the store—clothing assortment, fixtures, music, colors, personnel—were orchestrated to match the target consumer. He continued to open more stores, but a decade later his original customers were no longer in the “young” group. To catch the new “youngs,” he started the Limited Express

Over the years,he started or acquired otherhighly targeted store chains,including LaneBryant,Victoria's Secret,Lerner,and others toreach new segments.Today The Limited,Inc.operates more then 4,000 stores in sevendifferent segmentsof themarket,with sales ofmore then $6.9 billion.EvenlargestoressuchasWal-Mart,Kmart,andSears must define their major target markets inorder to design effective marketing strategies.Infact, in recent years, thanks to strong targetingand positioning,Wal-Mart has explodedpastSears and Kmart to become the nation'slargestretailer

Over the years, he started or acquired other highly targeted store chains, including Lane Bryant, Victoria’s Secret, Lerner, and others to reach new segments. Today The Limited, Inc. operates more then 4,000 stores in seven different segments of the market, with sales of more then $6.9 billion. Even large stores such as Wal-Mart, Kmart, and Sears must define their major target markets in order to design effective marketing strategies. In fact, in recent years, thanks to strong targeting and positioning, Wal-Mart has exploded past Sears and Kmart to become the nation’s largest retailer

ProductAssortmentandServicesDecisionRetailers must decide on three major productvariables:productassortment,servicesmix,and storeatmosphereTheretailer'sproductassortment mustmatchtarget shopper's expectations.The retailer mustdetermine both the product assortment's widthand its depth. Thus, a restaurant can offer anarrow and shallow assortment (small lunchcounter),a narrow and deep assortment(delicatessen),awideandshallow assortmentcafeteria),orawideanddeepassortment(largerestaurant)

Product Assortment and Services Decision ◼ Retailers must decide on three major product variables: product assortment, services mix, and store atmosphere. ◼ The retailer’s product assortment must match target shopper’s expectations. The retailer must determine both the product assortment’s width and its depth. Thus, a restaurant can offer a narrow and shallow assortment (small lunch counter), a narrow and deep assortment (delicatessen), a wide and shallow assortment (cafeteria), or a wide and deep assortment (large restaurant)

Another productassortmentelement isthequality of the goods:The customer is interestednot only in therange of choice but also in thequality of the products available.No matter whatthestore'sproductassortmentandqualitylevel,therealways will be competitorswithsimilarassortments and quality.Therefore,the retailermust search for other ways to differentiate itselffrom similar competitors.It can use any ofseveral product-differentiation strategies.For oneit can offer merchandise that no other competitorcarries-its own private brands or national brandson whichitholdsexclusives

◼ Another product assortment element is the quality of the goods: The customer is interested not only in the range of choice but also in the quality of the products available. No matter what the store’s product assortment and quality level, there always will be competitors with similar assortments and quality. Therefore, the retailer must search for other ways to differentiate itself from similar competitors. It can use any of several product-differentiation strategies. For one, it can offer merchandise that no other competitor carries—its own private brands or national brands on which it holds exclusives

For example,The Limited designs most of theclothes carried by itsstore,andSakegetsexclusive rights to carrya well-known designer'slabels.Second,the retailer can featureblockbustermerchandising events-Bloomingdale'sis known for running spectacularshows featuring goods from a certain country,such as India or China.Or the retailer can offersurprisemerchandise,aswhen Loehmann's offerssurpriseassortmentsofseconds,overstocksand closeouts.Finally,the retailer candifferentiate itself by offering a highly targetedproduct

◼ For example, The Limited designs most of the clothes carried by its store, and Sake gets exclusive rights to carry a well-known designer’s labels. Second, the retailer can feature blockbuster merchandising events— Bloomingdale’s is known for running spectacular shows featuring goods from a certain country, such as India or China. Or the retailer can offer surprise merchandise, as when Loehmann’s offers surprise assortments of seconds, overstocks, and closeouts. Finally, the retailer can differentiate itself by offering a highly targeted product