13Retailing/ Wholesaling

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Definitions

Retailing All activities involved

in selling goods or services directly to final consumers for their personal, nonbusiness use.

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Retailers

Types of Retailers

Specialty Stores

Department Stores

Supermarkets

Discount Stores

Convenience Stores

Off-Price Retailers

Superstores

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Retailing

Self-service retailers Customers are willing to

self-serve to save money Discount stores MİGROS

Limited-service retailers Most department stores BOYNER STORES

Full-service retailers Salespeople assist

customers in every way High-end department stores Specialty stores ARÇELİK

Amount of serviceProduct linesRelative pricesOrganizational approach

Retailers are Classified by:

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Retailing

Specialty stores Narrow product lines with

deep assortments

Department stores Wide variety of product

lines

SupermarketsConvenience stores Limited line

Superstores Sell food, nonfood, and

services

Category killers Giant specialty stores

Amount of serviceProduct linesRelative pricesOrganizational approach

Retailers are Classified by:

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Specialty Stores

Department Stores

Supermarkets

Convenience Stores

Superstores

Discount Stores

Narrow Product Line, Deep Assortment i.e.

Deriden, TimberlandWide Variety of Product Lines i.e. Clothing,

Yeni Karamürsel, BoynerWide Variety of Food, Laundry, & Household Products i.e. Canerler

Limited Line of High-Turnover Convenience Goods i.e. Büfeler,

bakkallarLarge Assortment of Routinely Purchased Food & Nonfood Products

i.e. Real, MigrosStandard Merchandise at Lower Prices

i.e. Ulus, Kızılay mağazaları

Off-Price Retailers Changing Collection of Higher-Quality Goods at a Reduced Price i.e. Outlet

Warehouse ClubsLimited Selection of Brand-Name

Grocery Items, Appliances, Etc. i.e. Metro

Classification of Retailing:Product Line

Store Description

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Retailing

Discount stores Low margins are offset

by high volume Ulus, Kızılay

mağazaları

Off-price retailers Independent off-price

retailers Factory outlets

Levi Strauss, Reebok

Warehouse clubs

METRO

Amount of serviceProduct linesRelative pricesOrganizational approach

Retailers are Classified by:

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Retailing

Corporate chain stores Commonly owned/controlled

Voluntary chains Wholesaler-sponsored

groups of independent retailers

Retailer cooperatives Groups of independent

retailers who buy in bulk

Franchise organizations Based on uniqueness

Merchandising conglomerates Diversified retailing lines

under central ownership

Amount of serviceProduct linesRelative pricesOrganizational approach

Retailers are Classified by:

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Retailer Marketing Mix Price

High markup or high volume? Promotion

Public relations, sales promotions, advertising, direct marketing

Place Location, location, location!

Retailing

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Definitions

Wholesaling All activities involved in selling goods

and services to those buying for resale or business use.

Wholesaling A firm engaged

primarily in wholesaling activity.

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Wholesalers add value by performing the following functions: Selling and promoting Buying and assortment

building Bulk-breaking Warehousing Transportation

Wholesaling

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Wholesalers add value by performing the following functions: Financing Risk bearing Marketing information Management services

and advice

Wholesaling

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Wholesaling

Full-service wholesalers Wholesale merchants Industrial distributors

Limited service wholesalers Cash-and-carry

wholesalers Truck wholesalers

(jobbers) Drop shippers Rack jobbers Producer’s cooperatives Mail-order wholesalers

Merchant WholesalersBrokers and Agents Manufacturers’ and retailers’ branches and offices

Types of Wholesalers

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Wholesaling

Brokers Bring buyers

and sellers together and assist in negotiation

Agents Manufacturers’

agents Selling agents Purchasing

agents Commission

merchants

Merchant WholesalersBrokers and Agents Manufacturers’ and retailers’ branches and offices

Types of Wholesalers

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Wholesaling

Sales branches and offices Branches carry inventory:

lumber, auto equipment, parts

Offices do not carry inventory: dry goods

Purchasing officers Perform roles similar to

brokers and agents, however these individuals are employees of the organization

Merchant WholesalersBrokers and Agents Manufacturers’ and retailers’ branches and offices

Types of Wholesalers

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Wholesaler Marketing Decisions Marketing mix decisions

Product and service assortment: inventory, line

Pricing: usual markup on COG is 20% Promotion: largely disorganized and

unplanned Place: location, facilities

Wholesaling