Notes on Retailing and Distribution in B2C Marketing

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Retailing and distribution management
Introducing Retailing
Retailing is the set of business activities that adds value to products and services sold to consumers. Retailers are the final business in a supply chain that links manufactures to consumers. A supply chain is a set of firms that makes and delivers goods to the final consumer. Manufacturer: Typically makes products and sells them to retailers or wholesalers. Wholesaler: Buys, store and physically handles goods in large quantities. Then resells the goods to retailers. * Most large retailers, such as Wal-Mart in US and ICA here in Sweden, engage in both wholesaling and retailing activities. * They buy directly from manufacturers

* Have merchandise shipped to their warehouses for storage * They do the distribution of merchandise to the stores by their own. Retailer: Sells products or services to consumers for their personal use. Retail marketing mix

In order to become the retailer which consumers choose, the retailer need to develop a marketing mix that satisfies the target market better than its competitors. The marketing mix must consist of variables that are necessary for meeting consumer needs and influence their behavior. The most important components in this marketing mix are:

* Location
* Price
* Assortment
* Advertising
* Consumer service
* Store design and display
Location is most important in retailing.
* That’s because it is one of the most influential aspects when a consumer choose a store visit. * We simply go the store closest to us.
* It is also important because it can be a sustainable competitive advantage. * A competitor can’t copy a great location.
Price is always in focus and is an important tool trying to attract consumers. * When you ask consumers, they often say that the price is the most important aspect when they makes buying decisions. * But in fact, there are other things that actually have more impact. * I will give you examples of that during this lecture

Assortment is important because it is the products or services retailers actually sell. It is the business.
Without a competitive assortment, with products that consumers want to buy, it becomes difficult to survive on the market. It is also important to remember that the composition and variation of the assortment could be used as a competitive advantage. Advertising is important because that is how retailers communicate with the market and hopefully makes an impact. By advertising they can:

* Attract new consumers
* Increase store traffic
* Increase sales
* Develop the store image
Consumer service is important because it can generate a special competitive advantage in addition to the products or services they sell. * A well-developed and unique consumer service is difficult for competitors to copy. Store design and display are important because it is in the store retailers can generate the greatest impact on the consumer. * That is where the action takes place.

The store design and use of displays are elements of a retailer's communication in the same way as the advertising. It therefore plays an important role in creating a retailer's brand. Today's lecture will focus on this area, store design and how to use displays. Store design

The primary objectives of a store design are to:
Implement the retailer's strategy:
* The design must be consistent with and highlight the retailer's strategy by: * Meeting the needs of the target market
* Building a competitive advantage.
Influence consumer-buying behavior.
* Retailers want the store design to:
* Attract consumers to the store.
* Enable them to easily locate merchandise of interest. * Motivate the consumers to make unplanned, impulse purchases. * Provide them with a satisfying shopping experience.

The design must, at the same time, be flexible and efficient in terms of...
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