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Unformatted text preview: Retailing and Wholesaling
Chapter 11 Road Map: Previewing the Concepts
• Explain the roles of retailers and wholesalers in the distribution channel. • Describe the major types of retailers and give examples of each. • Identify the major types of wholesalers and give examples of each. • Explain the marketing decisions facing retailers and wholesalers.
11 - 2 What is Retailing?
• Retailing includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. 11 - 3 Types of Retailers
• Retailers are classified based on:
Amount of service they offer Breadth & depth of product lines Relative prices charged How they are organized 11 - 4 Amount of Service • SelfService Retailers: • LimitedService Retailers: FullService Retailers: Serve customers who are willing to perform their own “locatecompareselect” process to save money. Provide more sales assistance because they carry more shopping goods about which customers need information. Usually carry more specialty goods for which customers like to be “waited on.”
11 - 5 • Product Line Classification
• • • • • • Specialty stores Department stores Supermarket Convenience stores Superstores Category killers
11 - 6 Relative Prices Classification
• • • • • Discount stores Offprice retailers Factory outlet Independent offprice retailers Warehouse club
11 - 7 Organizational Classification
• • • • • Chain Stores Voluntary chain Retailer cooperative Franchise Merchandising conglomerates
11 - 8 Assortment and Service Decisions
• • • Product assortment Services mix Store atmosphere
11 - 9 Price and Promotion Decisions
• • Price policy must fit its target market and positioning, product and service assortment, and competition. Can use any or all of the promotion tools—advertising, personal selling, sales promotion, public relations, and direct marketing—to reach consumers
11 - 10 Place Decisions
• Retailers can locate in CBDs, various types of shopping centers, strip malls, or power centers. Location is key to success.
11 - 11 • The Future of Retailing
1. New Retail Forms and Shortening Retail Life Cycles Growth of Nonstore Retailing Retail Convergence Rise of the Megaretailers 1. 2. 3. Growing Importance of Retail Technology Global Expansion of Major Retailers Retail Stores as “Communities” or “Hangouts”
11 - 12 2. 3. 4. Wholesaling
• Wholesaling includes all activities involved in selling goods and services to those buying for resale or business use. 11 - 13 Functions Provided by Wholesalers
• • • • • Selling and promoting Buying and assortment building Bulkbreaking Warehousing Transportation 11 - 14 • • • • Financing Risk bearing Market information Management services and advice Types of Wholesalers
• Merchant Wholesalers Largest group of wholesalers Account for 50% of wholesaling Two broad categories:
Fullservice wholesalers Limitedservice wholesalers 11 - 15 Types of Wholesalers
• Brokers and Agents Do not take title to goods Perform fewer functions Brokers bring buyers and sellers together Agents represent buyers on more permanent basis Manufacturers’ agents are most common type of agent wholesaler
11 - 16 Types of Wholesalers
• Manufacturers’ Sales Branches and Offices Wholesaling by sellers or buyers themselves rather than through independent wholesalers. 11 - 17 Trends in Wholesaling
• • • • Must Constantly Improve Services and Reduce Costs Distinction Between Large Retailers & Wholesalers is Blurry Will Continue to Increase the Services Provided to Retailers Wholesalers Are Now Going Global
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- Spring '08