Your SlideShare is downloading. ×
Chap 13 econ 161
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Chap 13 econ 161

3,547
views

Published on

Published in: Business, News & Politics

0 Comments
6 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
3,547
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
6
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Transcript

    • 1. Chapter 13 Retailing and Wholesaling
    • 2. Learning Goals
      • Understand the roles of retailers and wholesalers in the marketing channel.
      • Know the major types of retailers.
      • Know the major types of wholesalers.
      • Understand the marketing decisions facing retailers and wholesalers.
    • 3.
      • Current annual sales approximately $260 billion
      • Value proposition is “Always Low Prices, Always!”
      • Wal-Mart executives spend at least two days a week visiting stores to stay connected with customers
      • The first to call employees “associates” to denote the partnership
      • Wal-Mart maintains low prices by keeping a sharp eye on costs including “tough” buying practices
      • Technological advances in distribution and communications systems help efficiency and lowers costs.
      • Lower advertising as a percentage of sales helps keep costs low
      Case Study Wal-Mart 13 -
    • 4. Learning Goals
      • Understand the roles of retailers and wholesalers in the marketing channel.
      • Know the major types of retailers.
      • Know the major types of wholesalers.
      • Understand the marketing decisions facing retailers and wholesalers.
    • 5. Definitions
      • Retailing
        • All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
      • Retailer
        • Business whose sales come primarily from retailing.
    • 6. Retailer – The Gap
      • Retailers will often use celebrity spokespeople to endorse their brand
      Marketing in Action 13 -
    • 7. Definitions
      • Wholesaling
        • All activities involved in selling goods and services to those buying for resale or business use.
      • Wholesaler
        • A firm engaged primarily in wholesaling activity.
    • 8. Learning Goals
      • Understand the roles of retailers and wholesalers in the marketing channel.
      • Know the major types of retailers.
      • Know the major types of wholesalers.
      • Understand the marketing decisions facing retailers and wholesalers.
    • 9. Retailing
      • Specialty Stores
      • Department Stores
      • Supermarkets
      • Discount Stores
      • Convenience Stores
      • Off-Price Retailers
      Types of Retailers
      • Superstores
    • 10. Retailing
      • Amount of service
      • Product lines
      • Relative prices
      • Organizational approach
      • Self-service retailers
        • Customers are willing to self-serve to save money
        • Convenience stores and fast moving shopping goods
      • Limited-service retailers
        • Most department stores
      • Full-service retailers
        • Salespeople assist customers in every aspect of shopping experience
        • High-end department stores and specialty stores
      Retailers Are Classified By:
    • 11. Discussion Question Retailer Level of Service
      • Self service checkout scanners are growing in use.
      • What advantages for retailer? Consumer?
      • What are the disadvantages?
      Marketing in Action 13 -
    • 12. Retailing
      • Amount of service
      • Product lines
      • Relative prices
      • Organizational approach
      • Specialty stores
        • Narrow product lines with deep assortments
      • Department stores
        • Wide variety of product lines
      • Supermarkets
      • Convenience stores
        • Limited line
      • Superstores
        • Food, nonfood, and services
      • Category killers
        • Giant specialty stores
      Retailers Are Classified By:
    • 13. Online Grocers – Why are they growing so slowly? Marketing in Action Click on screenshot for website 13 -
    • 14. Retailing
      • Amount of service
      • Product lines
      • Relative prices
      • Organizational approach
      • Discount stores
        • Low margins are offset by high volume
      • Off-price retailers
        • Independent off-price retailers
          • TJ Maxx, Marshall’s
        • Factory outlets
          • Levi Strauss, Reebok
        • Warehouse clubs
          • Sam’s Club, Costco
      Retailers Are Classified By:
    • 15. Discount Stores Target Corporation
      • First store opened in 1902
      • Currently has 1,147 stores in 47 states.
      • Builds brand name to heighten barriers to entry in the market.
      • Began a collaboration with Sony in 2002 for Sony to design products specifically for Target.
      • Successful in building defensible niche with middle and upper-end customers with low price but high style.
      Marketing in Action Source: Datamonitor 13 -
    • 16. Target is low price but high style Marketing in Action Source: Business Week 13 -
    • 17. Retailing
      • Amount of service
      • Product lines
      • Relative prices
      • Organizational approach
      • 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 something unique
      • Merchandising conglomerates
        • Diversified retailing lines and forms under central ownership
      Retailers Are Classified By:
    • 18.
      • The UPS Store is an example of a popular franchise. See more franchises by clicking on image.
      Click on screenshot for website with franchises Marketing in Action 13 -
    • 19. Classifying Retailers
      • How would you categorize Best Buy in terms of
        • Amount of service
        • Product lines
        • Relative prices
        • Organizational approach
      Marketing in Action 13 -
    • 20. Learning Goals
      • Understand the roles of retailers and wholesalers in the marketing channel.
      • Know the major types of retailers.
      • Know the major types of wholesalers.
      • Understand the marketing decisions facing retailers and wholesalers.
    • 21. Wholesaling
      • Wholesalers add value by performing the following functions:
        • Selling and promoting
        • Buying and assortment building
        • Bulk-breaking
        • Warehousing
        • Transportation
        • Financing
        • Risk bearing
        • Market information
        • Management services and advice
    • 22. How might the National Beer Wholesalers Association add value to retailers? Marketing in Action Click on screenshot for website 13 -
    • 23. Wholesaling
      • Merchant Wholesalers
      • Brokers and Agents
      • Manufacturers’ and retailers’ branches and offices
      • 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
      Types of Wholesalers
    • 24. Wholesaling
      • Merchant Wholesalers
      • Brokers and Agents
      • Manufacturers’ and retailers’ branches and offices
      • Brokers and agents do not take title of the goods.
      • Brokers
        • Bring buyers and sellers together and assist in negotiation
      • Agents
        • Manufacturers’ agents
        • Selling agents
        • Purchasing agents
        • Commission merchants
      Types of Wholesalers
    • 25. Export trade brokers help manufacturers with overseas distribution and marketing Marketing in Action Click on screenshot for website 13 -
    • 26. Wholesaling
      • Merchant Wholesalers
      • Brokers and Agents
      • Manufacturers’ and retailers’ branches and offices
      • 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
      Types of Wholesalers
    • 27. Learning Goals
      • Understand the roles of retailers and wholesalers in the marketing channel.
      • Know the major types of retailers.
      • Know the major types of wholesalers.
      • Understand the marketing decisions facing retailers and wholesalers.
    • 28. Retailer Marketing Decisions Figure 13.1 13 -
    • 29. A retailer like Brooks Brothers chooses to locate in very high-end shopping districts. Marketing in Action 13 -
    • 30. Retailing
      • The Future of Retailing
        • New retail forms and shortening retail life cycles
          • Wheel-of-retailing concept
        • Growth of nonstore retailing
          • Mail-order, television, phone, online shopping
        • Retail convergence
          • The merging of consumers, products, prices, and retailers
    • 31. QVC Website Shop online while you watch the show Click on screenshot for website Marketing in Action 13 -
    • 32. Retailing
      • The Future of Retailing
        • Rise of mega retailers
        • Growing importance of retail technology
        • Global expansion of major retailers
        • Retail stores as “Communities” or “Hangouts”
    • 33.
      • Mall of America is more than just stores. This major tourist attraction includes stores, events and a 30-ride indoor theme park.
      Click on screenshot for website with information Marketing in Action 13 -
    • 34. Wholesaler Marketing Decisions Figure 13.2 13 -
    • 35. Wholesaling
      • Trends in Wholesaling
        • Price competition is still intense
        • Successful wholesalers must add value by increasing efficiency and effectiveness
        • The distinction between large retailers and wholesalers continues to blur
        • More services will be provided to retailers
        • Many wholesalers are going global
    • 36. Learning Goals
      • Understand the roles of retailers and wholesalers in the marketing channel.
      • Know the major types of retailers.
      • Know the major types of wholesalers.
      • Understand the marketing decisions facing retailers and wholesalers.