Chapter 16: Managing Retailing, Wholesaling, and Logistics

Jerold I. SaddiMay 10, 2012

TOP 10 Learning Concepts

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Outline:Top 10 Concepts of Managing Retailing, Wholesaling, and

Logistics

1. Major Retailer Types2. Levels of Retail Service3. Retail Positioning Map4. Nonstore Retailing5. Retailer’s Marketing Decision

To manage effectively, one should

know the following:

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Plus..

6. Retailer Services Mix7. Location Decision8. Major Wholesaler Types9. Market Logistic Decisions10. Transportation Factors

Outline:Top 10 Concepts of Managing Retailing, Wholesaling, and

Logistics

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Concept 1:

Major Retailer TypesTo demonstrate I will use banks as

example…

Specialty Store

Department Store

Supermarket

Convenience Store

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Also…

Discount Store

Off-price retailer

Superstore

Catalog Showroom

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Concept 2:

Retailers can offer one of the four levels of service..

Self – Selection

In opening a bank account you may choose your preferential bank…

Where

begins…

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Concept 2:You may either choose some of the banks service

features..

Self-Service

If you’re always on the go, choose BDO for you can find BDO ATMs anywhere…

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Concept 2:

If you want extra mile of service, choose BPI..

FULL SERVICE

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Concept 2:

If you often sends Telegraphic transfers abroad, choose HSBC but with

LIMITED SERVICE

DUE TO ITS Limited Branches in the country…

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Concept 3:

Retail Positioning Map

Value Added

Bre

adth

of

Pro

duct

Lin

ebroad

HighNarrow Low

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Concept 4:Nonstore Retailing

Direct Selling

Direct Marketing

To market clients, Banks would do the following:

Managers will convince you to get a credit card..

Put posters in their branches..

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Concept 4: Non Store Retailing

Automatic Vending

Buying Service

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Concept 5: Retailer’s Marketing Decision

TARGET MARKET

PRODUCT ASSORTMENT

Bank’s position their branches based on their..

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Concept 5: Retailer’s Marketing Decision

PROCUREMENT PRICES

SERVICES

Determine rates..

Determine the manpower needed…

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Concept 5: Retailer’s Marketing Decision

Store Atmosphere Store Activities Communications

Locations

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Concept 6:Retailer Services Mix

Prepurchase services

Postpurchase Services

To convince you to open an account, managers may invite you for a coffee break..

Managers will deliver your passbook to your doorsteps..

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Concept 6:Retailer Services Mix

Ancillary Services

If you incur overdraft on your checking account, they will waive it the charges…

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Concept 7:Location Decisions

Banks will strategize to position their branches to get a substantial market share on the deposits…

Central Business Districts

Regional Shopping Centers

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Concept 7:Location Decisions

Community Shopping Centers

Shopping Strips

Location within a larger store

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Concept 8:

Major Wholesaler Types

Merchant

Full-Service

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Concept 8:

Major Wholesaler Types

Limited Service

Brokers and Agents

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Concept 8:

Major Wholesaler Types

Manufacturers

Specialized

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Concept 9Market Logistics Decisions

How should orders be handled? Where should stock be

located? How much stock should be

held? How should goods be shipped?

In making a decision, he should answer the following:

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Concept 10Transportation Factors

Speed Dependability Capability Availability

Frequency Traceability Cost

In transporting stocks, he must think of the capabilities of an “Eagle”…

Chapter 16: Managing Retailing, Wholesaling, and Logistics

Jerold I. SaddiMay 10, 2012

TOP 10 Learning Concepts

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Managing Retailing, Wholesaling, and Logistics

Mary Antonette B. VirayMay 10, 2012

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• What is retailing?• What are the 8 major types of retailer?• What are the 8 steps in retail category

management?• What is franchising?• What is wholesaling?• What is Market logistics?

Outline

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Activities

Retailing are all activities

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Activities

Goods and services

of selling of goods and services

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www.yourwebsite.com

Activities

Goods and services

Final consumer

Individual non business

to final consumers for personal or non business use

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Activities

Goods and services

Final consumer

Individual non business

Retailing includes all activities in selling goods and services directly to final consumers for personal, non business use

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www.yourwebsite.com

Specialty Store

Department Store

Supermarket

Convenience

There are 8 Major Types of Retailer and these are:

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www.yourwebsite.com

Discount Store

Off-Price Retailer

Superstore

Catalog Showroom

And..

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Step 1

Step 2

There are 8 steps in Retail Category Management

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Define the category

Figure out its Role

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Step 3

Step 4

Next steps in Retail Category Management

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Assess Performance

Set Goals

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Step 5

Step 6

Followed by

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Choose the Audience

Figure out Tactics

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Step 7

And Lastly to..

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Implement the Plan

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Step 1Step 2

Step 3Step 4

Step 5Step 6

Step 7

These are the Retail Category Management Steps

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Franchises is when there is

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Franchisor Franchisee

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Franchisor owns the trade mark and gives licenses to franchisees

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Franchisor Franchisee

gives licenses

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In return for royalty payment

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Franchisor Franchisee

gives licenses

royalty fee

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The Franchisor provides its franchisees with a system and the franchisee pays the royalty fee

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Franchisor Franchisee

gives licenses

royalty fee

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Wholesaling are all activities

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Activities

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Wholesaling are all activities in selling goods or services

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Activities

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Wholesaling are all activities in selling goods or services for resale or business use

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Activities

Goods services

Resale business use

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To meet customer to meet customer requirements at a

profit demand

to meet customer requirements at a profit

Market Logistics includes

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planning implementing controlling

Chapter 16: Managing Retailing,Wholesaling and Logistics

Levels of Service

Self-Service

Limited Service

Self-Selection

Full Service

Non-Store Retailing

Direct Selling

Direct Marketing

Automatic Vending

Buying Service

Major Retailing Types

Department Store Specialty Store

SupermarketConvenience Store

Characteristics of Franchises• Franchisor owns a trade or service• Franchisor provides system for doing business

Franchisee pays for the right to be part of the system

Retailer’s Marketing Decisions

Target Market

Product Assortment

Procurement

Price

Services

Location Decision

Central Business District Shopping Center

Community Shopping Center

Store Atmosphere

Walls Lighting

Floors Signage

Market Logistics Decisions

Ordering

Warehousing

Inventory

Wholesaling Functions

Selling & Promotions Warehousing Transportation

Financing Risk Bearing Market Information

Market Logistics Decisions

How should orders be handled?

Where should Stock be located?

How much stock be held?

How should goods be shipped?

Managing Retailing, Wholesaling, and LogisticsChapter 16

Maynard Anthony A. Cruz

Group 5

Types of Major Retailers

Specialty Store

Types of Major Retailers

Supermarket

Types of Major Retailers

Convenience Store

Types of Major Retailers

Discount Store

Types of Major Retailers

Department Store

Types of Major Retailers

Off-price Retailer

Types of Major Retailers

Superstore

Types of Major Retailers

Catalog Showroom

Levels of Retail Service

Full service

Levels of Retail Service

Self-selection

Levels of Retail Service

Limited service

Levels of Retail Service

Self service

Retail Positioning Map

Rustan’s SM

Broad

Narrow

High Low

Retail Positioning Map

Broad

High

Retail Positioning Map

Broad

Low

Retail Positioning Map

Narrow

High

Retail Positioning Map

Narrow

Low

Nonstore Retailing

Direct marketing

Nonstore Retailing

Vending

Nonstore Retailing

Direct selling

Nonstore Retailing

Buying Service

Characteristics of Franchises

Franchisor owns a trade or service

Characteristics of Franchises

In return for royalty payments the trade or service is licensed to Franchisees

Characteristics of Franchises

Franchisees pay for the right to be part of the system

Characteristics of Franchises

Franchisor provides its Franchisees with a system for the business

Location Decision

Central Business District

Community Shopping Centers

Shopping Strips

Regional Shopping Centers

Location within a larger store

Location Decision

Central Business District

Location Decision

Community Shopping Centers

Location Decision

Shopping Strips

Location Decision

Regional Shopping Centers

Location Decision

Location within a larger store

Types of Wholesalers

Merchant

Specialized

Full-service

Limited-service

Brokers & Agents

Manufacturers

Retailer’s Marketing Decisions

Target market

Product assortment

Procurement

Prices

Services

Store atmosphere

Store activities

Communication

Locations

Wholesaling Functions

Selling & Promoting

Warehousing

Transportation

Financing

Risk bearing

Buying

Bulk breaking

Market information

Management services & counseling

Transportation Factors

Cost

Speed

Frequency

Capability

Dependability

Traceability

Availability

Managing Retailing, Wholesaling, and LogisticsChapter 16

Maynard Anthony A. Cruz

Group 5