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All lecture notes from lecture 1-9 for ROM
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Retail & omnichannel marketingLecture 1
Retailing: all activities that companies and organizations engage in that focus on
the direct delivery of goods, services, and information through all available
channels to consumers (end users), where the goods and services are paid for
out of the net income of consumers.
Retail marketing: all the activities the retail organization engages in to increase
the number of customer transactions.
Development of marketing over time:
Product Era Consumer Era Relationship Era
1. Inform: product era. Marketing informs people about products.
2. Seduce: consumer era. Marketing persuades people to buy. only listen
what to buy.
3. Connect: relationship era. Marketing fosters sustainable relationships. a
brand, an authentic connection and a person.
Changing customer needs driven by
1. Demographics
2. Competition
3. Environment (covid, health, be careful)
4. Technology (so much info we can consult before we buy)
5. Etc.
It changed the customer journey
Convergent commerce (buying through every channel available) digital
is the starting point nowadays
Blurring (offering multiple purposes)
Sustainability (our global food and farming systems are a major cause of
nature’s decline. Retailers and their supply chains have a critical role to
play in tackling the climate crisis by reducing emissions and ensuring the
food on our plates doesn’t drive nature loss at home and overseas).
Transaction-cost matrix
T1 = costs of direct distribution from producer to consumer
,T2 = costs of delivery from producer to retailer
T3 = costs of delivery from retailer to consumer
Retail can exist if T1 > T2 + T3
What are the two 2 major differences between the old economy and the new
economy?
Old Economy New Economy
It is time-consuming Time and distance is irrelevant
It is labour-based It is based on knowledge
The time for transaction is very slow Transaction time is very fast
Cost of transaction is high Cost of transaction is low
Retail marketing practices
- The elements with which the retailer responds to consumer needs are
known as the marketing mix
- Hence, a retail concept is a composition of the elements
If the consumer has confidence in the immediate and near future economy and
his/her personal finance, then the consumer will spend more than save.
Guest lecture part:
People – living alone is most expensive way of living. A 50+ population is also not
so good, they were supposed to spent a lot but they don’t, they save more for
their children. The most life changing moments have past already.
Economy – retail sales should keep up with inflation otherwise you have a crisis.
Shoes/clothes is down extremely due to home culture.
Retail – food is growing in numbers of square meters as everyone orders in. the
new retail approach is mobile first and everything at the same time. Also
because infrastructure isn’t as good everywhere.
,The new retail approach is based on mobile first.
5 E’s:
1. Efficiency. Example: face recognition payment, robot tally monitors stocks.
2. Environment. Example: transparency through blockchain. (my personal
favorite, to have all apps in one wechat)
3. Experience.
4. Expertise
5. Ecosystems
, Lecture 2
5 entities:
1. Retailer
2. Supplier
3. Products
4. Customer shopper
5. Store
For a retailer, you also have to first attract the customer to your store. First you
have to get the shopper in your store to make a visitor, once it is in your store
you want them to shop, to buy and in the end become a loyal buyer. Two-fold
consumer buying behavior. Not just (in traditional marketing) choose of a
product. But you also have to get this shopper in your store.
Retailing, then and now
- Farmers, markets, small stores
- Department stores
- Self-service supermarkets
- Electronics, (self)scanning
- Online retailing
- Omnichannel retailing. Multichannel you have 2 channels that exist
alongside of each other.
- Smart retailing. Importance of data is more important due to omnichannel
retailing.
- Platforms
Battle for the shopper!
Smart retailing
- Mobile
- Big data
- Augmented reality
- Virtual reality
- Artificial intelligence
- Internet of things
Battle for the shopper
- Retailer become more powerful
- Retailers also become brands themselves
- Market share increase of private labels
- Market share increase of online channels
- Digitalization of retail and shopper
- “Shopper marketing”
Customer journey
Who is the shopper?
How does she shop in-store (+link with store environment)?
Customer experience creation
- Consumption has experiential aspects
- Constructed through interpretations of all encounters across channels and
time
- Customer experience is widely recognized as the internal and subjective
response customers have to any interaction with a company
Controllable and uncontrollable antecedents
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