Chapter 12-Retailers, Wholesalers, and Their Strategy Planning

Chapter 12-Retailers, Wholesalers, and Their Strategy Planning

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Chapter 12-Retailers, Wholesalers, and Their Strategy Planning Monday, April 11, 2011 4:39 PM 1. Retailers and Wholesalers Plan Their Own Strategies 1.a. Understand how retailing and wholesaling are evolving 1.a.i. Understanding the how and why of past changes in retailing and wholesaling will help you know what to expect in the future 1. The Nature of Retailing 1.a. Retailing: covers all of the activities involved in the sale of products to final consumers 1.a. Crucial to consumers in every macro-marketing system 1.a. Nature of retailing and its rate of change are generally related to the stage and speed of a country's economic development 1. Planning a Retailer's Strategy 1.a. Producers and wholesalers will still make their sale regardless of which retailer sells the product 1.a. Consumers have reasons for buying from particular retailers 1.a.i. In the US, about 3/4ths of new retailing ventures fail during the first year 1.a. Retailer's whole offering is its Product 1.a.i. The retailer's whole offering-assortment of goods and services, advice from salesclerks, convenience, and the like-is its "Product" 1.a. Features of offering relate to needs 1.a.i. Convenience 1.a.ii. Product selection 1.a.i. Special services 1.a.i. Fairness in dealings 1.a.i. Helpful information 1.a.ii. Prices 1.a.i. Social image 1.a.i. Shopping atmosphere 1.a. Strategy requires carefully set policies 1.a.i. Features in combination differentiate one retailer's offering and strategy from another 1.a.i. If the retailer doesn’t provide superior value to some target market, the retailer will fail 1.a. Consumer needs relate to segmentation and positioning 1.a.i. Ignoring either economic or social and emotional needs in those decisions can lead to serious errors in a retailer's strategy planning 1.a. Different types of retailers emphasize different strategies 1. Conventional Retailers-Try to Avoid Price Competition 1.a. Single-line, limited-line retailers specialize by product 1.a.i. General stores: carried anything they could sell in reasonable volume 1.a.i.1. Were main retailers in US about 150 years ago 1.a.i.1. After Civil War, some stores began specializing in dry goods, apparel, furniture, or groceries
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1.a.i. Single-line or limited-line stores: stores that specialize in certain lines of related products rather than a wide assortment 1.a.i.1. Now most conventional retailers 1.a. Single-line, limited-line stores are being squeezed 1.a.i. They build a relationship with their customers and earn a position as the place to shop for a certain type of product 1. Expand Assortment and Service-to Compete at a High Price 1.a. Specialty shops usually sell shopping products 1.a.i. Specialty shop: a type of conventional limited-line store; usually small and has a distinct personality 1.a.i.1. Aim at a clearly defined target market by offering 1.a. Department stores combine many limited-line stores and specialty shops 1.a.i. Department stores: larger stores that are organized into many separate
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This note was uploaded on 03/05/2012 for the course BUSI 406 taught by Professor Perreault during the Fall '11 term at UNC.

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Chapter 12-Retailers, Wholesalers, and Their Strategy Planning

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