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Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
Chap 13 econ 161
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Chap 13 econ 161

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    • 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.

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