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Managing Retailing, Wholesaling, and Market Logistics
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Managing Retailing, Wholesaling, and Market Logistics

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Managing Retailing, Wholesaling, and Market Logistics …

Managing Retailing, Wholesaling, and Market Logistics

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  • 1. Chapter 15 Managing Retailing, Wholesaling, and Market Logistics PowerPoint by Karen E. James Louisiana State University - Shreveport
  • 2. Objectives
    • Determine the types of organizations in this sector.
    • Learn what marketing decisions organizations in this sector make.
    • Understand the major trends in this sector.
  • 3. Retailing
    • Retailing Basics
    • Types of retailers
    • Marketing decisions
    • Retailing trends
    • Retail life cycle
    • Wheel-of-retailing
    • Service levels
    • Retail positioning strategies
    • Nonstore retailing
    • Corporate retailing
  • 4. Retailing
    • Specialty store
    • Department store
    • Supermarket
    • Discount store
    • Convenience store
    • Off-price retailer
    • Superstore
    Major Store Retailer Types
  • 5. Retailing
    • Retail-store types pass through the retail life cycle .
    • The wheel-of-retailing describes how new store types emerge.
    • Retailers can offer one of four levels of service:
      • Self-service, self-selection, limited service, and full service
  • 6. Retailing
    • Four broad retail positioning strategies include:
      • Bloomingdale’s
      • Tiffany
      • Sunglass Hut
      • Wal-Mart
    • Non-store retailing has been growing faster than store retailing
  • 7. Retailing
    • Corporate chain store
    • Voluntary chain
    • Retailer cooperative
    • Consumer cooperative
    • Franchise organization
    • Merchandising conglomerate
    Major Types of Retail Organizations
  • 8. Retailing
    • Retailing Basics
    • Types of retailers
    • Marketing decisions
    • Retailing trends
    • Target market
    • Product assortment and placement
    • Services mix and store atmosphere
    • Price
    • Promotion
    • Place
  • 9. Retailing
    • General business district
    • Regional shopping center
    • Community shopping center
    • Strip mall (shopping strip)
    • Location within a larger store or operation
    Location Options for Retailers
  • 10. Retailing
    • Retailing Basics
    • Types of retailers
    • Marketing decisions
    • Retailing trends
    • New retail forms
    • Intertype competition
    • Growth of giant retailers
    • Technology
    • Global expansion
    • Selling experiences
    • Competition between store-based and non-store-based retailing
  • 11. Wholesaling
    • Wholesaling
    • Wholesaling basics
    • Types of wholesalers
    • Marketing decisions
    • Wholesaling trends
    • Wholesaling excludes manufacturers, farmers, and retailers
    • Wholesalers differ from retailers in three key ways
    • Wholesalers handle many functions more efficiently than do manufacturers
  • 12. Wholesaling
    • Selling and promoting
    • Buying and assortment building
    • Bulk breaking
    • Warehousing
    • Transportation
    • Financing
    • Risk bearing
    • Market information
    Wholesaler Functions
  • 13. Wholesaling
    • Wholesaling
    • Wholesaling basics
    • Growth and types of wholesalers
    • Marketing decisions
    • Wholesaling trends
    • Wholesalers vary in type and function
    • Wholesaling has been growing due to two key factors:
      • Many factories are located far from buyers
      • An increasing need to adapt product quantities, features, or packages to meet buyer needs
  • 14. Wholesaling
    • Merchant wholesalers
    • Full-service wholesalers
    • Limited-service wholesalers
    • Brokers & agents
    • Brokers
    • Agents
    • Manufacturers’ and retailers’ branches and offices
    • Miscellaneous wholesalers
    Major Wholesaler Types
  • 15. Wholesaling
    • Wholesaling
    • Wholesaling basics
    • Types of wholesalers
    • Marketing decisions
    • Wholesaling trends
    • Target market
    • Product assortment and placement
    • Price
    • Promotion
    • Place
  • 16. Wholesaling
    • Wholesaling
    • Wholesaling basics
    • Types of wholesalers
    • Marketing decisions
    • Wholesaling trends
    • Direct buying trends initially threatened wholesalers
    • Wholesalers have adapted by:
      • Adding value
      • Reducing costs
      • Strengthening relationships with manufacturers
  • 17. Market Logistics
    • Interrelated Aspects Associated with Market Logistics:
      • Physical distribution
      • Supply chain management (SCM)
      • Value network
      • Demand chain planning
      • Market logistics
      • Integrated logistics systems (ILS)
  • 18. Market Logistics
    • Key Elements
    • Market-logistics objectives
    • Market-logistics decisions
    • Market logistics lessons
    • Logistics involve trade-offs between costs and customer service
    • Maximizing profits, not sales, is key
    • A total system basis should be considered
    • Designing a system that will minimize the cost of achieving objectives should be the outcome
  • 19. Market Logistics
    • M = T + FW + VW + S
    • Where . . .
    • M = total market-logistics cost of proposed system;
    • T = total freight cost of proposed system;
    • FW = total fixed warehouse cost of proposed system;
    • VW = total variable warehouse cost of proposed system
    • S = total cost of lost sales due to average delivery delay
    Calculating the Cost of Market-Logistics Systems
  • 20. Market Logistics
    • Key Elements
    • Market-logistics objectives
    • Market-logistics decisions
    • Market logistics lessons
    • Order processing
    • Warehousing
      • Storage, distribution, automated warehouses
    • Inventory
      • Determine reorder point, relevant cost comparison, optimal order quantity
    • Transportation
      • Containerization
      • Private vs. contract carriers
  • 21. Market Logistics
    • Key Elements
    • Market-logistics objectives
    • Market-logistics decisions
    • Market logistics lessons
    • A senior V.P. is needed as the single contact point for all logistical elements
    • Senior V.P. must maintain close control
    • Software and systems are essential for competitively superior logistics performance