kotler14_exs - Retailing and Wholesaling Wholesaling Cha...

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Unformatted text preview: Retailing and Wholesaling Wholesaling Cha pte r 14 Objectives • Unde rs ta nd the role s of re ta ile rs a nd Unde whole s a le rs in the ma rke ting cha nne l. whole • Know the ma jor type s of re ta ile rs . • Know the ma jor type s of whole s a le rs . • Unde rs ta nd the ma rke ting de cis ions Unde fa cing re ta ile rs a nd whole s a le rs . fa Case Study Ho me De po t • Hug e pro duc t Hug a s s o rtme nt • P ric e s are 20% – 30% Pric b e lo w hardware s to re s • Obs e s s e d with Obs o ffe ring hig h quality c us to me r s e rvic e • Life time value o f Life c us to me rs : $25,000 • We ll-traine d, hig hly We m o tivate d s ale s pe o ple e arn abo ve ave rag e s alarie s • Cus to me r pro ble m Cus s o lving is e nc o urag e d • Inte rne t s ite o ffe rs many Inte ho me impro ve me nt tips ho • One o f to day’s mo s t One s uc c e s s ful re taile rs Definitions • Re ta iling All a ctivitie s involve d in s e lling All g oods or s e rvice s dire ctly to fina l c ons ume rs for the ir pe rs ona l, nonbus ine s s us e . n onbus • Re ta ile r Bus ine s s whos e s a le s come Bus prim arily from re ta iling. p rim Retailing Type s o f Re taile rs Type • S pe cia lty S tore s • De pa rtme nt De S tore s • S upe rma rke ts • Dis count S tore s • C onve nie nce Conve S tore s • O ff-P rice Off-P Re ta ile rs Re • S upe rs tore s Retailing Re taile rs Are Re Clas s ifie d By: • Am ount of s e rvice • Product line s • R e lative price s • O rganiz ational Organiz approach a pproach • S e lf-s e rvice re ta ile rs C us tome rs a re willing to Cus s e lf-s e rve to s a ve mone y Dis count s tore s • Limite d-s e rvice re ta ile rs Mos t de pa rtme nt s tore s • Full-s e rvice re ta ile rs S a le s pe ople a s s is t c us tome rs in e ve ry a s pe ct of s hopping e xpe rie nce of High-e nd de pa rtme nt High-e s tore s S pe cia lty s tore s Retailing Re taile rs Are Re Clas s ifie d By: • Am ount of s e rvice • Product line s • R e lative price s • O rganiz ational Organiz approach a pproach • S pe cia lty s tore s Na rrow product line s with Na de e p a s s ortme nts de • De pa rtme nt s tore s Wide va rie ty of product line s • • S upe rma rke ts Conve nie nce s tore s Limite d line • S upe rs tore s Food, nonfood, a nd se rvice s • Ca te gory kille rs Gia nt s pe cia lty store s Retailing Re taile rs Are Re Clas s ifie d By: • Am ount of s e rvice • Product line s • R e lative price s • O rganiz ational Organiz approach a pproach • Dis count s tore s Low ma rgins a re offs e t by Low high volume h igh • Off-price re ta ile rs Inde pe nde nt off-price Inde re ta ile rs re TJ Maxx, Mars hall’s Fa ctory outle ts Le vi S traus s , R e e bok Wa re hous e clubs S am ’s Club, Cos tco Retailing Re taile rs Are Re Clas s ifie d By: • Am ount of s e rvice • Product line s • R e lative price s • O rganiz ational Organiz approach a pproach • Corpora te cha in s tore s Commonly owne d / controlle d • Volunta ry cha ins Whole sa le r-s pons ore d Whole g roups of inde pe nde nt re ta ile rs re • Re ta ile r coope ra tive s G roups of inde pe nde nt Groups re ta ile rs who buy in bulk re • Fra nchis e orga niza tions Ba s e d on s ome thing unique • Me rcha ndis ing conglome ra te s Dive rs ifie d re ta iling line s a nd Dive forms unde r ce ntra l owne rs hip o wne Retailing • Re ta ile r Ma rke ting De cis ions Ta rge t ma rke ting a nd pos itioning P roduct a s s ortme nt, s e rvice mix, s tore ’s a tmos phe re P rice P romotion P la ce (loca tion) Retailing • The Future of Re ta iling Ne w re ta il forms a nd s horte ning re ta il Ne life cycle s life W he e l-of-re tailing conce pt Growth of nons tore re ta iling Mail-orde r, te le vis ion, phone , online s hopping Re ta il conve rge nce Retailing • The Future of Re ta iling Ris e of me ga re ta ile rs G rowing importa nce of re ta il Growing te chnology te Globa l e xpa ns ion of ma jor re ta ile rs R e ta il s tore s a s “Communitie s ” or Re “Ha ngouts ” “Ha Definitions • Whole s a ling All a ctivitie s involve d in s e lling All g oods a nd s e rvice s to thos e buying for re s a le or bus ine s s us e . for • Whole s a ling A firm e nga ge d prima rily in firm whole s a ling a ctivity. whole Wholesaling • Whole s a le rs a dd va lue by Whole pe rforming the following functions : pe S e lling a nd promoting Buying a nd a s s ortme nt building Bulk-bre a king Wa re hous ing Tra ns porta tion Wholesaling • Whole s a le rs a dd va lue by Whole pe rforming the following functions : pe Fina ncing Ris k be a ring Ma rke ting informa tion Ma na ge me nt s e rvice s a nd a dvice Wholesaling Type s o f Type Who le s ale rs Who • Me rchant Me W hole s ale rs • B roke rs and Age nts Broke • Manufacture rs ’ and Manufacture re taile rs ’ branche s and office s a nd • Full-s e rvice whole s a le rs Whole s a le me rcha nts Indus tria l dis tributors • Limite d-s e rvice Limite whole s a le rs whole C a s h-a nd-ca rry Ca whole s a le rs whole Truck whole s a le rs Truck (jobbe rs ) (jobbe Drop s hippe rs Ra ck jobbe rs P roduce r’s coope ra tive s Ma il-orde r whole s a le rs Wholesaling Type s o f Type Who le s ale rs Who • Me rchant Me W hole s ale rs • B roke rs and Age nts Broke • Manufacture rs ’ and Manufacture re taile rs ’ branche s and office s a nd • Broke rs Bring buye rs a nd s e lle rs Bring toge the r a nd a s s is t in ne gotia tion ne • Age nts Ma nufa cture rs ’ a ge nts S e lling a ge nts P urcha s ing a ge nts Commis s ion me rcha nts Wholesaling Type s o f Type Who le s ale rs Who • Me rchant Me W hole s ale rs • Broke rs and Age nts • Manufacture rs ’ and Manufacture re taile rs ’ branche s and office s a nd • S a le s bra nche s a nd office s o ffice Bra nche s ca rry inve ntory: Bra lumbe r, a uto e quipme nt, pa rts pa O ffice s do not ca rry Office inve ntory: dry goods inve • P urcha s ing office rs P e rform role s s imila r to b roke rs a nd a ge nts , h owe ve r the s e individua ls a re e mploye e s of the orga niza tion o rga Wholesaling • Whole s a le r Ma rke ting De cis ions Ta rge t ma rke t a nd pos itioning T arge ting Targe m ay be m ade on the bas is of s iz e of cus tom e r, type of re taile r, ne e d for s e rvice . c us Ma rke ting mix de cis ions Product and s e rvice as s ortm e nt: inve ntory, line Pricing: us ual m arkup on COG is 20% Prom otion: large ly dis organiz e d and unplanne d Place : location, facilitie s Wholesaling • Tre nds in Whole s a ling P rice compe tition is s till inte ns e S ucce s s ful whole s a le rs mus t a dd va lue by incre a s ing e fficie ncy a nd e ffe ctive ne s s incre The dis tinction be twe e n la rge re ta ile rs a nd The whole s a le rs continue s to blur whole More s e rvice s will be provide d to re ta ile rs Ma ny whole s a le rs a re going globa l ...
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