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8 views

Topic 4

Uploaded by

Marina Ivannikova
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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TOPIC .

Retailing
and Wholesaling
PLAN
1. Retailing: principles and types
2. Retailer Marketing Decisions
3. Principles and Types of Wholesaling
1. Retailing: principles and types
Retailing
 Retailing:
 All activities involved in selling goods or services
directly to final consumers for their personal,
nonbusiness use.
 Most retailing is done by retailers, but
nonstore retailing has recently grown by leaps
and bounds.
 Nonstore retailing includes sales made via the
internet, direct mail, catalogs, telephone, and
other direct sales methods.
Types of Retailers
 The different types of retailers can be
classified based on:
 The amount of service they offer.
 The breadth and depth of product lines.
 The relative prices charged.
 How they are organized.
Types of Retailers
 Classification by the amount of service:
 Self-service retailers:
 Serve customers who are willing to perform their own
“locate-compare-select” process to save money.
 Limited-service retailers:
 Provide more sales assistance as they carry more
shopping goods about which details are needed.
 Full-service retailers:
 Usually carry more specialty goods for which customers
need or want assistance or advice.
Types of Retailers
 Classification by length and breadth of their
product assortments:
 Specialty stores:
 Feature narrow product lines, with deep assortments
 Department stores:
 Offer a wide variety of product lines of clothing, home
furnishings, household goods
 Supermarkets:
 Usually carry a relatively large variety of low-cost, low-
margin groceries and consumables
Types of Retailers
• Classification by length and breadth of their
product assortments:
– Convenience stores:
• Carry a limited line of high turnover convenience goods
– Superstores:
• Much larger than regular supermarkets, superstores
offer a large assortment of routinely purchased food
goods, nonfood items, and services
• Category killers are really giant specialty stores.
Types of Retailers
 Relative prices classification:
 Discount stores:
 Sell standard merchandise at lower prices and margins,
in return for higher volume.
 Off-price retailers:
 Buy merchandise at less-than-regular wholesale prices
which are sold at less than retail. Goods include
overruns, irregulars, and leftovers.
 Includes independent off-price retailers, factory outlets
and warehouse/wholesale clubs.
Types of Retailers
 Major types of retail organizations include:
 Corporate chain stores:
 Two or more outlets that are commonly owned and
controlled.
 Voluntary chain:
 Wholesaler-sponsored group of independent retailers
engaged in group buying and merchandising.
Types of Retailers
 Major types of retail organizations include:
 Retailer cooperative:
 Group of independent retailers who set up a central
buying organization and conduct joint promotion efforts.
 Franchise organization:
 Contractual association between a franchisor and
franchisees.
2. Retailer Marketing Decisions
Retailer Marketing Decisions
 Major marketing decisions:
 Segmentation and targeting.
 Store differentiation and positioning.
 Retail marketing mix.
 Marketing decisions should create value for
targeted retail customers.
Retailer Marketing Decisions
 Retail strategy:
 Segmentation and targeting.
 Store differentiation and positioning.
 Retailers cannot make meaningful decisions
related to the retail marketing mix until they
first define and profile their target market and
then decide how they will differentiate and
position themselves in these markets.
Retailer Marketing Decisions
 Retailer marketing mix:
 Product and service assortment
 Retail prices
 Promotion
 Distribution (location)
Retailer Marketing Decisions
 Retail marketing mix:
 Product assortment should differentiate the
retailer while matching target shoppers’
expectations.
 Services mix can help differentiate one retailer
from another.
 Store atmosphere is important as a unique store
experience can move customers to buy.
 Experiential retailing.
Retailer Marketing Decisions
 Price decisions:
 The price policy must fit with the target market
and positioning, the product and service
assortment, and the competition.
 Price promotions
 “High-low” pricing
Retailer Marketing Decisions
 Promotion decisions:
 Retailers can use any or all of the promotion tools
—advertising, personal selling, sales promotion,
public relations, and direct marketing—to reach
consumers.
Retailer Marketing Decisions

 Place (distribution) decisions:


 Location is the key to success.
 Retailers can locate in:
 Central business districts.
 Regional shopping centers.
 Community shopping centers.
 Strip malls (neighborhood shopping center).
 Power centers.
 Lifestyle centers.
Retail Trends & Developments

1. New retail forms 5. Rise of the


and shortening megaretailers.
retail life cycles. 6. Growing
2. Slowed economy importance of
and tightened retail technology.
consumer 7. Global expansion
spending. of major retailers.
3. Growth of 8. Retail stores as
nonstore “communities” or
retailing. “hangouts.”
4. Retail
convergence.
3. Principles and Types of Wholesaling
Wholesaling
 Wholesaling:
 Includes all activities involved in selling goods and
services to those buying for resale or business
use.
 Wholesalers add value for producers by
performing one or more channel functions.
Wholesaling

Functions performed by wholesalers:

 Selling and promoting  Financing


 Buying and  Risk bearing
assortment building  Market
 Bulk-breaking information
 Warehousing  Management
 Transportation services and
advice
Types of Wholesalers
 Merchant Wholesaler: an independently
owned wholesaler business that takes title to
the merchandise it handles.
 Largest group of wholesalers.
 Account for 50% of wholesaling.
 Two broad categories:
 Full-servicewholesalers.
 Limited-service wholesalers.
Types of Wholesalers
 Brokers and agents:
 Do not take title to goods.
 Perform only a few functions.
 Specialize by product line or customer type.
 Brokers bring buyers and sellers together.
 Agents represent buyers on a more
permanent basis.
 Manufacturers’ agents are the most common type
of agent wholesaler.
Types of Wholesalers
 Manufacturers’ sales branches
and offices:
 Involves wholesaling by sellers or buyers
themselves rather than through
independent wholesalers.
Wholesaler Marketing Decisions
 Wholesaler strategy:
 Segmentation, targeting, differentiation,
and positioning.
 Wholesaler marketing mix:
 Product assortment and services.
 Price.
 Promotion.
 Distribution (location).
Trends in Wholesaling
• Need for ever greater efficiency.
• Demands for lower prices.
• Winnowing out of suppliers who are not
adding value based on cost and quality.
• Distinction between large retailers and
wholesalers continues to blur.
• Wholesalers will continue to increase the
services provided to retailers.
• Wholesalers are now going global.

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