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Placement Strategy Chapter 10 & 11 Retailing and Wholeselling

The document discusses various types of major retail stores like department stores, supermarkets, convenience stores, and super stores. It also covers types of store clusters in central business districts and shopping centers. Finally, it examines wholesaling functions, types of wholesalers, wholesaler marketing decisions, and trends in wholesaling.

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Dilum Tharusha
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22 views20 pages

Placement Strategy Chapter 10 & 11 Retailing and Wholeselling

The document discusses various types of major retail stores like department stores, supermarkets, convenience stores, and super stores. It also covers types of store clusters in central business districts and shopping centers. Finally, it examines wholesaling functions, types of wholesalers, wholesaler marketing decisions, and trends in wholesaling.

Uploaded by

Dilum Tharusha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Placement Strategy

Chapter 10 & 11
Retailing and Wholeselling
Lecturer: Ms. Sumudu Kariyawasam
Major store retail types
• Specialty store
• Carry narrow product line

• Department store
• Carry several product lines
Major store retail types
• Supermarkets
• A relatively large, low cost, low – margin, high – volume, self
service operation designed
Major store retail types
• Convenience stores
• Relatively small stores located near residential areas
Major store retail types
• Discount store
• Carry standard merchandise sold at lower price
Major store retail types
• Super stores
• Very large stores, traditionally aimed at meeting consumers total
needs
Type of Store Cluster
• Different stores cluster together to increase their
customer pulling power and give consumers the
convenience of one-stop shopping

• Central business district and shopping centres are the


main types of store cluster

• Big changes happening in Colombo regarding this area

7
Type of Store Cluster
• Central business districts A central business district
(CBD) is the area of business at the heart of a city or
town and consists of department stores, specialty
stores, banks and movies theatres.
• Shopping centres A shopping centre is a group of retail
businesses planned, developed, owned and managed
as a unit.
• Strip shopping centres are usually built along main
roads, they are not centrally managed.

8
Retail marketing decision

Retailer Retailer Marketing


strategy mix

Product and service


Target market assortment
Prices
Retail store
positioning
Promotion

Place (location)

9
Wholesaling
Wholesalers add value by performing channel functions

• Selling and promoting

• Buying assortment building

• Bulk breaking

• Warehousing

• Transportation

• Financing

• Risk bearing

• Market information

• Management services and advice


• Selling and promoting involves the wholesaler’s sales force
helping the manufacturer reach many smaller customers at
lower cost

• Buying and assortment building involves the selection of


items and building of assortments needed by their
customers, saving the customers work

• Bulk breaking involves the wholesaler buying in larger


quantity and breaking into smaller lots for its customers

• Warehousing involves the wholesaler holding inventory,


reducing its customers’ inventory cost and risk
• Transportation involves the wholesaler providing quick
delivery due to its proximity to the buyer

• Financing involves the wholesaler providing credit and


financing suppliers by ordering earlier and paying on
time

• Risk bearing involves the wholesaler absorbing risk by


taking title and bearing the cost of theft, damage,
spoilage, and obsolescence

• Market information involves the wholesaler providing


information to suppliers and customers about
competitors, new products, and price developments
• Management services and advice involves
wholesalers helping retailers train their sales
clerks, improve store layouts, and set up
accounting and inventory control systems
Types of Wholesalers

• Merchant wholesalers
• Agents and brokers
• Manufacturers’ sales branches and offices
Merchant wholesalers is the largest group of
wholesalers and include:
• Full-service wholesalers who provide a full set of
services
• Limited-service wholesalers who provide few
services and specialized functions
Brokers and agents do not take title, perform a few
functions, and specialize by product line or
customer type
• Brokers bring buyers and sellers together and
assist in negotiations
• Agents represent buyers or sellers

Manufacturers’ sales branches and offices is a


form of wholesaling by sellers or buyers themselves
rather than through independent wholesalers
Wholesaler Marketing
Decisions
• Target market and positioning decisions
• Marketing mix decisions
Target market and positioning decisions
• Size of customer
• Type of customer
• Need for service

Marketing mix decisions


• Product
• Price
• Promotion
• Place
Trends in Wholesaling

Challenges
• Resistance to price increases
• Lack of suppliers
• Changing customer needs
• Adding value by increasing efficiency and
effectiveness

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