BK_Chapter014_Expanded

BK_Chapter014_Expanded - CHAPTER 14 Retailers, Wholesalers,...

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Explain the concepts of retail convergence and scrambled merchandising. Identify the functions performed by wholesaling intermediaries. Outline the major types of independent wholesaling intermediaries and the appropriate situations for using each. Chapter Objectives Retailers, Wholesalers, and Direct Marketers CHAPTER 14 1 2 4 7 8 Explain the wheel of retailing. Discuss how retailers select target markets. Show how the elements of the marketing mix apply to retailing strategy. Compare the basic types of direct marketing and nonstore retailing. Describe how much the Internet has altered the wholesaling, retailing, and direct marketing environments. 5 3 6 0
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CHAPTER 14 Retailers, Wholesalers, and Direct Marketers RETAILING Retailing Activities involved in selling merchandise to ultimate consumers. • Retailers are the contact point between channel members and the ultimate customers. • Retailers act as both customers and marketers in their channels. EVOLUTION OF RETAILING • Began with general stores that stocked a wide variety of merchandise. • Rise of supermarkets in the early 1930s. • Discount stores in the 1950s, convenience stores in the 1960s, and off- price retailers in the 1980s and 1990s. Wheel of retailing Hypothesis that each new type of retailer gains a competitive foothold by offering lower prices than current suppliers charge; the result of reducing or eliminating services. 0
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CHAPTER 14 Retailers, Wholesalers, and Direct Marketers RETAILING STRATEGY • Retailers base key decision on two fundamental steps in the marketing strategy process: • Selecting a target market. • Developing a retailing mix to satisfy the chosen market. 0
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CHAPTER 14 Retailers, Wholesalers, and Direct Marketers SELECTING A TARGET MARKET • Consider size and profit potential of the market and the level of competition. • Example: Target draws customers away from traditional department stores with trendy but affordable lines of clothing. MERCHANDISING STRATEGY • Must decide on general merchandise categories, product lines, items within the product lines, and the depth and width of its assortments. • Must consider the needs and preferences of its target market. • Must also consider the overall profitability of each product line and category. 0
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CHAPTER 14 Retailers, Wholesalers, and Direct Marketers Category Management • Category manager oversees an entire product line for both vendors and retailers and is responsible for the profitability of the product group. • Categories that underperform are at risk of being dropped regardless of the strength of individual brands. The Battle for Shelf Space • Retailers are increasingly taking on the role of channel captain and have more power over how products are made available to customers. • Proliferation of new products increases the competition for shelf space.
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This note was uploaded on 05/24/2011 for the course MKT 327 taught by Professor Forest during the Spring '09 term at Michigan State University.

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BK_Chapter014_Expanded - CHAPTER 14 Retailers, Wholesalers,...

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