Managing Retailing, Wholesaling, and Logistics
Marketing Management, 13th ed
16
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-2
Chapter Questions
What major types of marketing intermediaries occupy this sector?
What marketing decisions do these marketing intermediaries make?
What are the major trends with marketing intermediaries?
a. Farmer sells his vegetable crops to Rustans Supermarket.
b. Vcoach Bong buys his favorite rootbeer without ice from Jollibee.
c. Mang Inasal chicken is supplied by an undisclosed farm somewhere in Bulacan.
d. Planet Cable hired the services of XXXgroup for their cable and internet installation.
e. Veco paper supplies paper products to National Bookstore
Q#1Which activity defines retailing?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-4
What is Retailing?
Retailing includes all the activities involved in selling goods or services directly to final consumers for
personal, nonbusiness use.
a. Farmer sells his vegetable crops to Rustans Supermarket.
b. Vcoach Bong buys his favorite rootbeer without ice from Jollibee.
c. Mang Inasal chicken is supplied by an undisclosed farm somewhere in Bulacan.
d. Planet Cable hired the services of XXXgroup for their cable and internet installation.
e. Veco paper supplies paper products to National Bookstore
Q#1Which activity defines retailing?
a. SM Department storesb. Starbucksc. Mini stopd. Mercury Druge. Nescafe Coffee Vendo Machine
Q#2ALL are types of store retailer except…
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-7
Table 16.1 Major STORE Retailer Types
Specialty store--starbucks Department store-- sm department
store Supermarket Convenience
store--mini stop
Discount store Off-price retailer Superstore Catalog
showroom Drugstore-- mercury drug
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-8
Types of Nonstore Retailing
Direct selling – AVON , NATASHA Direct marketing – HOME TV
SHOPPING, ONLINE SHOPPINE Automatic vending – NESCAFE
COFFEE VENDO MACHINE Buying service – SM ADVANTAGE
CARD, ATENEO BLUE CARD
a. SM Department storesb. Starbucksc. Mini stopd. Mercury Druge. Nescafe Coffee Vendo Machine
Q#2ALL are types of store retailer except…
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-10
Table 16.2 Major Types of Corporate
Retail Organizations
Corporate chain store Voluntary chain Retailer cooperative Consumer cooperative Franchise organization Merchandising conglomerate
a. a tightly knit group of enterprises whose systematic operations are planned, directed, and controlled by the operation’s franchisor.
b. The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments
c. The franchisee pays for the right to be part of the system
d. The franchisor provides its franchisees with a system for doing business
e. None of the above
Q#3 Which of the following is not true? Franchising is .
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-12
What is a Franchising System?
A franchising system is a system of individual franchisees, a tightly knit
group of enterprises whose systematic operations are planned, directed, and
controlled by the operation’s franchisor.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-13
Characteristics of Franchises
The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments
The franchisee pays for the right to be part of the system
The franchisor provides its franchisees with a system for doing business
a. a tightly knit group of enterprises whose systematic operations are planned, directed, and controlled by the operation’s franchisor.
b. The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments
c. The franchisee pays for the right to be part of the system
d. The franchisor provides its franchisees with a system for doing business
e. None of the above
Q#3 Which of the following is not true? Franchising is..
a. Bookstore + coffee shopb. Gas station + food storesc. Supermarket + fitness clubd. Mall and buss station with peddler
carts on the aislee. All of the above
Identify samples of new retail forms and combinations
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-16
Changes in the Retail Environment
New retail forms and combinations Growth of intertype competition Competition between store-based and
non-store-based retailing Growth of giant retailers Decline of middle market retailers Growing investment in technology Global profile of major retailers
a. Bookstore + coffee shopb. Gas station + food storesc. Supermarket + fitness clubd. Mall and buss station with peddler
carts on the aislee. All of the above
Identify samples of new retail forms and combinations
a. Procurementb. Pricesc. Services d. Target markete. Product assortment
Q#4 Which of the following is the most important aspect of retailers marketing decisions.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-19
Retailers’ Marketing Decisions
Target market – until it defines and profiles the target market, the retailer cannot make consistent decisions about product assortment, store décor, advertising and media, price and service levels.
Product assortment Procurement Prices Services
a. Procurementb. Pricesc. Services d. Target markete. Product assortment
Q#4 Which of the following is the most important aspect of retailers marketing decisions.
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Retailers’ Marketing Decisions (cont.)
Store atmosphere Store activities Communications Locations
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Private Label Brands
Private labels are ubiquitous Consumer accepts private labels Private-label buyers come from all
socioeconomic strata Private labels are not a recessionary
phenomenon Consumer loyalty shifts from
manufacturers to retailers
a. Goods & services, personal or non-business use
b. Goods & services, resale or business use
c. Foods & merchandise, resale or business use
d. Merchandise & service, personal and business use.
e. Non of the above
Q#5 Wholesaling includes all activities in selling ___ & ____, to those who buy for ___ or ____.
Wholesaling includes all activities in selling GOODS & SERVICES, to those who buy for RESALE or BUSINESS USE.
Wholesaling is….
a. Goods & services, personal or non-business use
b. Goods & services, resale or business use
c. Foods & merchandise, resale or business use
d. Merchandise & service, personal and business use.
e. Non of the above
Q#5 Wholesaling includes all activities in selling ___ & ____, to those who buy for ___ or ____.
a. Farmer sells his vegetable crops to Rustans Supermarket.
b. Vcoach Bong buys his favorite rootbeer without ice from Jollibee.
c. Mang Inasal chicken is supplied by an undisclosed farm somewhere in Bulacan.
d. Planet Cable hired the services of XXXgroup for their cable and internet installation.
e. Veco paper supplies paper products to National Bookstore
Q#6 Which is not a wholesaling activity?
Wholesaling includes all activities in selling GOODS & SERVICES, to those who buy for RESALE or BUSINESS USE.
Wholesaling is….
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-28
Wholesaling Functions
Selling and promoting
Buying and assortment building
Bulk breaking Warehousing
Transportation Financing Risk bearing Market
information Management
services and counseling
a. Farmer sells his vegetable crops to Rustans Supermarket.
b. Vcoach Bong buys his favorite rootbeer without ice from Jollibee.
c. Mang Inasal chicken is supplied by an undisclosed farm somewhere in Bulacan.
d. Planet Cable hired the services of XXXgroup for their cable and internet installation.
e. Veco paper supplies paper products to National Bookstore
Q#6 Which is not a wholesaling activity?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-30
What are Integrated Logistics Systems?
An integrated logistics system (ILS) includes materials management,
material flow systems, and physical distribution, aided by information
technology.
a. Inside your houseb. In the walk in chillerc. In the warehoused. Inside the delivery trucke. None of the above
Q#7 When an order is processed where do you store finished goods until they are sold?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-32
Market Logistics Decisions
How should orders be handled? – order processing
Where should stock be located? - warehousing
How much stock should be held? - inventory
How should goods be shipped? - transportation
a. Inside your houseb. In the walk in chillerc. In the warehoused. Inside the delivery trucke. None of the above
Q#7 When an order is processed where do you store finished goods until they are sold?