Marketing: An Introduction Retailing and Wholesaling Chapter Twelve Lecture Slides –Express...

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nRetailing and Wholesaling

•Chapter Twelve•Lecture Slides

–Express Version

•Course•Professor•Date

©Copyright 2004, Pearson Education Canada Inc.12-2

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nLooking Ahead

• After studying this chapter you should be able to:

• Explain the roles of retailers and wholesalers in the distribution channel

• Describe the major types of retailers and give examples of each

• Identify the major types of wholesalers and give examples of each

• Explain the marketing decisions facing retailers and wholesalers


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nTypes of Retailers

• Amount of service– Self-service retailers– Limited-service retailers– Full-service retailers

• Product line– Specialty stores

• Narrow product line, deep assortment– Department stores

• Wide variety of product lines– Supermarkets

• Wide variety of food, laundry, household products– Convenience stores

• Limited line of high-turnover goods– Superstores

• Large assortment of food and non-food items


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nTypes of Retailers (continued)

– Category killer• Big box specialty store

– Service retailers• Provide services rather than tangible goods

• Relative prices– Discount stores– Off-price retailers

• Independents• Factory outlets• Warehouse clubs

• Retail organization– Corporate chains– Voluntary chain– Retailer cooperative– Franchise organizations– Merchandising conglomerates


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nFranchising Systems

• Characteristics of a franchise system– The franchiser owns the trademark and licenses it for

a fee to franchisees– The franchisee pays to belong to the system – The franchiser provides a packaged system for

marketing and operations• Pro:

– Turn-key system for entrepreneur– National support for promotions– Rapid expansion for franchiser using other people’s

money and risk– Recognized name equals instant business

• Con:– You get what you pay for– Owner has less freedom in decision making– Contracts can be one-sided and difficult to break


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nRetailer Marketing Decisions

Retailer Strategy

Targetmarket

Retail storepositioning

Retailer marketing mix

Product/serviceassortment

Prices

Promotion

Place (location)

Figure 12-1


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nFuture of Retailing

• Wheel of retailing concept– New retailers begin as low margin, low price– Become popular by offering alternative– Later evolve by adding service and better goods– Become the higher priced, higher margin retailers they

first replaced• Growth of non-store retailing

– Direct mail– Catalogues– Telephone shopping– TV Shopping shows– E-commerce via the Internet– Home and office parties– Door-to-door personal selling

• Importance of technology


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nFunctions of Wholesalers

• Selling and promoting• Buying and assortment building• Bulk breaking• Warehousing• Transportation• Financing• Risk bearing• Market information• Management services and advice


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nTypes of Wholesalers

• Merchant wholesalers– Full-service wholesalers– Wholesale merchants– Industrial distributors– Limited-service wholesalers– Cash and carry wholesalers– Truck wholesalers (truck jobbers)– Drop shippers– Rack jobbers– Producers’ cooperatives– Mail-order wholesalers

• Agents and brokers– Brokers– Agents– Manufacturers’ agents

continued


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nTypes of Wholesalers (continued)

– Selling agents– Purchasing agents– Commission merchants

• Manufacturer’s sales branches & offices– Sales branches– Sales offices– Purchasing offices

Wholesaler Strategy

Target market

Service positioning

Wholesaler marketing mix

Product/serviceassortment

PricesPromotion

Place (location)

Figure 12-2


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nLooking Back

• Retailer and wholesaler roles in distribution channel

• Types of retailers• Types of wholesalers• Marketing decisions

required by retailers and wholesalers

Marketing: An Introduction Retailing and Wholesaling Chapter Twelve Lecture Slides –Express...

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Transcript of Marketing: An Introduction Retailing and Wholesaling Chapter Twelve Lecture Slides –Express...