12-1 chapter 12 retailing and wholesaling. 12-2 road map: previewing the concepts explain the roles...
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12-2
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.
12-3
What is Retailing?
Includes all the Activities Involved in Selling Goods or Services Directly to Final Consumers for Their Personal, Nonbusiness Use.
12-4
RetailingRetailing can be done in stores (store retailing) or out of a store (nonstore retailing) such as:
Direct mail,Catalogs,Telephone,Home shopping shows, Internet.
12-5
Amount of Service
Self-Service, Limited-Service andFull-Service Retailer
Amount of Service
Self-Service, Limited-Service andFull-Service Retailer
Product LineLength and Breadth of the Product
Assortment
Product LineLength and Breadth of the Product
Assortment
Relative PricesPricing Structure that is Used
by the Retailer
Relative PricesPricing Structure that is Used
by the Retailer
Retail OrganizationsIndependent, Corporate, or
ContractualOwnership Organization
Classification of Retailing
12-6
Self-Service Self-Service RetailersRetailers
Provide Few or No Services to Shoppers
i.e. Best Buy
Limited-ServiceLimited-ServiceRetailersRetailers
Provide Only a Limited Number of Services
to Shoppers i.e. SearsFull-ServiceFull-Service
RetailersRetailers
Retailers that Provide a Full Range of Services
to Shoppersi.e. Neiman Marcus
Classification of Retailing:Amount of Service
12-7
Specialty Stores
Department Stores
Supermarkets
Convenience Stores
Superstores
Discount Stores
Narrow Product Line, Deep Assortment i.e. The Limited or
Athlete’s FootWide Variety of Product Lines i.e. Clothing, Home Furnishings i.e. Saks
Fifth AvenueWide Variety of Food, Laundry, & Household Products i.e. KrogerLimited Line of High-Turnover
Convenience Goods i.e. 7-ElevenLarge Assortment of Routinely
Purchased Food, Nonfood Products i.e. Target
Standard Merchandise at Lower Pricesi.e. Wal-Mart
Off-Price RetailersChanging Collection of Higher-Quality
Goods at a Reduced Price i.e. T.J. Maxx
Classification of Retailing:Product Line (Tab. 12-1)
Store Description
12-8
Giant superstores called category killers are an emerging trend. Answer the following questions:
How is a category killer different from other types of retailers? Why has this form of retailing grown so rapidly?
12-9
Voluntary Chain
Franchise Organizations
RetailerCooperatives
Merchandising Conglomerates
Classification of Retailing:Retail Organization
Corporate Chain
12-11
Consider the following thought question, format an answer, pair with the student on your right, share your thoughts with one another, and respond to questions from the instructor.
How do retailers establish a position in the marketplace?
12-12
Product Assortment• Brand of Merchandise• Merchandising Events• Product Differentiation StrategiesServices Mix
Key Tool of Nonprice Competition
for Setting One Store Apart From
AnotherStore’s Atmosphere• Physical Layout• “Feel” That Suits the Target Market and Moves Customers to Buy
Product Assortment and Services Decisions
12-13
Price Decisions
Target Market,
Product & Service
Assortment,Competition
Place Decisions
Shopping Centers, Central
Business Districts, Power
Centers, or Online
Shopping
Promotion Decisions
Using Advertising,
Personal Selling, Sales Promotion,
Public Relations, &
Direct Marketing to
Reach Customers
Retailer’s Price, Promotion, and Place Decisions
12-14
Mall of AmericaThe Mall of America “megamall” contains more than:
520 specialty stores,49 restaurants, 7-acre indoor theme park, Underwater World featuring hundreds of marine specimens,And a two-story miniature golf course.
12-15
The Future of RetailingNew Retail Forms and Shortening Retail Life-CyclesGrowth of Nonstore RetailingIncreasing Intertype CompetitionRise of the Megaretailers
Growing Importance of Retail TechnologyGlobal Expansion of Major RetailersRetail Stores as “Communities” or “Hangouts”
12-16
What is Wholesaling?
Includes all the activities Involved in Selling Goods and Services to Those Buying for Resale or Business Use.
12-17
WholesalerFunctions
ManagementServices & Advice
ManagementServices & Advice Selling & PromotingSelling & Promoting
MarketInformation
MarketInformation
Buying &Assortment Building
Buying &Assortment Building
Risk BearingRisk Bearing Bulk-BreakingBulk-Breaking
TransportationTransportation
FinancingFinancing WarehousingWarehousing
Wholesalers are Often Better at Performing One or More of the Following Channel Functions:
Why are Wholesalers Used?
12-18
Types of Wholesalers
Manufacturers’ Sales Branches and OfficesWholesaling by Sellers or
Buyers Themselves Rather Than Through
Independent Wholesalers.
Merchant WholesalerIndependently Owned
Business that Takes Title to the
Merchandise it Handles.
Agents & BrokersThey Don’t Take Title
to the Goods, and TheyPerform Only a Few
Functions.
12-20
Must Constantly Improve Their Services and Reduce CostsMust Constantly Improve Their Services and Reduce Costs
Distinction Between Large Retailers and Wholesalers BlursDistinction Between Large Retailers and Wholesalers Blurs
Wholesalers Will Continue to Increase the Services ProvidedWholesalers Will Continue to Increase the Services Provided
Wholesalers Are Beginning to Go GlobalWholesalers Are Beginning to Go Global
Trends in Wholesaling
12-21
Rest Stop: Reviewing 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.