16-1
Chapter Questions
• What major types of marketing intermediaries occupy this sector?
• What marketing decisions do these marketing intermediaries make?
• What are the major trends with marketing intermediaries?
16-2
Retailing
Includes all the activities involved inselling goods or services directlyto final consumers for personal,
nonbusiness use.
16-3
Levels of Retail Service
Self-service
Self-selection
Limited service
Full service
16-4
Retail Positioning Map
16-5
Nonstore Retailing
Direct
selling
Buying
service
Automatic
vending
Direct
marketing
16-7
Department Store Model: The Showcase Store
16-8
Retailers’ Marketing Decisions
Target market
Product assortment
Service/store atmosphere
Price
Communication
Location
16-9
Direct Product Profitability
16-10
Retailer Services Mix
Prepurchase services
Postpurchase services
Ancillary services
16-11
Location Decision
• General business districts
• Regional shopping centers
• Community shopping centers
• Strip malls• Location within a larger
store
16-12
Indicators of Sales Effectiveness
Number of people passing by
% who enter store
% of those who buy
Average amount
spent per sale
16-13
Trends in Retailing
• New retail forms and combinations
• Growth of intertype competition
• Competition between store-based and non-store-based retailing
• Growth of giant retailers
• Decline of middle market retailers
• Growing investment in technology
• Global presence of major retailers
16-14
Wholesaling Functions
• Selling and promoting• Buying and
assortment building• Bulk breaking• Warehousing
• Transportation• Financing• Risk bearing• Market information• Management services
and counseling
16-15
Major Wholesaler Types
Merchant
Full-service
Limited-service
Brokers and agents
Manufacturers
Specialized
16-16
Wholesalers’ Marketing Decisions
Target market
Product assortment
Price
Promotion
Place
16-17
Market Logistics Planning
• Deciding on the company’s value proposition to its customers
• Deciding on the best channel design and network strategy
• Developing operational excellence
• Implementing the solution
16-18
Transportation Factors
• Speed• Frequency• Dependability• Capability• Availability• Traceability• Cost
16-19
Marketing Discussion
Think of your favorite stores.
What encourages your loyalty?
What do you like about the
in-store experience?