Fundamentals of Marketing
Exam 3 – Fall 2015
GUEST LECTURE:
Neil Stern: McMillan | Doolittle
(consultants for retailers on how to run their businesses better and advise on their
investments)
Macro Trends
1.
e-commerce
●
10% of retail sales (doubled in last 10 years)
●
food is slow to move over to online (1%), same with drugs
2.
channels
●
multi-channel
●
omni-channel: any way they want to shop (mobile, computer/internet, store)
●
cross channel
3.
shared economy
●
focusing on access; just providing a service
●
ex] uber doesn’t own any taxis
●
ex] air bnb doesn’t own any real estate
4.creative destructionInnovations in Retail: what will drive the future?
1.
experimental retailing: make interesting/exciting for customer
2.
technology innovation
●
Disney magic band
3.
online/offline mash up
4.
customization
5.
hyper-local
6.
curated collections
7.
retail-vention: reinventing retail model
Chapter 15: Channels and Wholesaling
●
marketing channel
: individuals and firms involved in the process of making a product or service available for
consumption by consumers or industrial users
●
flow of goods:
producer --> intermediary --> buyer
Different types of intermediaries and what each does
●
middleman
: any intermediary between manufacturer and end-user markets
○
staff at Cafe du Monde
●
agent/broker
: any intermediary with legal authority to act on behalf of the manufacturer
○
do not own merchandise and perform fewer channel functions; make profit from commission or fees rather than profits
from sales
○
manufacturer’s agent: work for several producers and carry noncompetitive, complementary merchandise in an exclusive
territory
○
selling agent: represent a single producer and are responsible for entire marketing function (drug reps)
○
broker: independent with the function of bringing buyers and sellers together to make salers (real estate agent)
●
wholesaler
: any intermediary who sells to other intermediaries, usually to retailers; usually applies to consumer markets
○
independently owned firms that take title to own the merchandise they handle
○
full service: perform all channel functions
■
general: carry a broad assortment of merchandise and perform all channel functions
■
specialty: offer a relatively narrow range of products but have an extensive assortment within the product lines carried
○
limited service
■
rack jobbers: furnish the racks
■
cash and carry wholesalers: take title but only sell to those who call, provide transportation, and pay in cash
■
drop shippers: take title but do not physically handle; solicit orders and ship dircetly to buyers
■
truck jobbers: take stock from warehouse and distribute to retailers
○
create value because it is a more efficient form of negotiation between a department store and a wholesaler (wholesaler
deals with manufacturer and distributor)
●
retailer
: any intermediary who sells to consumers
●
distributor
: an imprecise term, usually used to describe intermediaries who perform a variety of distribution functions,
