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Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
Ch 14 retailing and wholsaling
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Ch 14 retailing and wholsaling

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  1. Retailing and Wholesaling <ul><li>Chapter 14 </li></ul><ul><li>PowerPoint slides </li></ul><ul><li>Express version </li></ul><ul><li>Instructor name </li></ul><ul><li>Course name </li></ul><ul><li>School name </li></ul><ul><li>Date </li></ul>Principles of Marketing, Sixth Canadian Edition
  2. Learning Objectives <ul><li>After studying this chapter, you should be able to: </li></ul><ul><ul><li>Explain the roles of retailers and wholesalers in the marketing channel </li></ul></ul><ul><ul><li>Describe the major types of retailers and give examples of each </li></ul></ul><ul><ul><li>Identify the major types of wholesalers and give examples of each </li></ul></ul><ul><ul><li>Explain the marketing decisions facing retailers and wholesalers </li></ul></ul>
  3. Retailing <ul><li>Retailing: all activities involved in selling goods or services directly to final consumers for their personal, non-business use </li></ul><ul><ul><li>Retailing can take place in stores and non-store environments </li></ul></ul><ul><ul><li>Retailers can be classified based on: </li></ul></ul><ul><ul><ul><li>Amount of service offered </li></ul></ul></ul><ul><ul><ul><li>Depth of products lines </li></ul></ul></ul><ul><ul><ul><li>Relative prices charged </li></ul></ul></ul><ul><ul><ul><li>How they are organized </li></ul></ul></ul>
  4. Types of Retailers <ul><li>Amount of service offered: </li></ul><ul><ul><li>Self-service retailers </li></ul></ul><ul><ul><li>Limited-service retailers </li></ul></ul><ul><ul><li>Full-service retailers </li></ul></ul><ul><li>Relative prices charged: </li></ul><ul><ul><li>Discount stores </li></ul></ul><ul><ul><li>Off-price retailers: </li></ul></ul><ul><ul><ul><li>Independents </li></ul></ul></ul><ul><ul><ul><li>Factory outlets </li></ul></ul></ul><ul><ul><ul><li>Warehouse clubs </li></ul></ul></ul><ul><li>Products lines: </li></ul><ul><ul><li>Specialty stores </li></ul></ul><ul><ul><li>Department stores </li></ul></ul><ul><ul><li>Supermarkets </li></ul></ul><ul><ul><li>Convenience stores </li></ul></ul><ul><ul><li>Discount stores </li></ul></ul><ul><ul><li>Off-price retailers </li></ul></ul><ul><ul><li>Superstores </li></ul></ul>
  5. Types of Retailers (continued) <ul><li>Retail organizations: </li></ul><ul><ul><li>Corporate chains </li></ul></ul><ul><ul><li>Voluntary chains </li></ul></ul><ul><ul><li>Retailer cooperatives </li></ul></ul><ul><ul><li>Franchise organizations </li></ul></ul><ul><ul><li>Merchandising conglomerates </li></ul></ul><ul><li>Franchises: contractual association between two businesses, having three characteristics: </li></ul><ul><ul><li>The franchiser owns a trade or service mark, and licenses it for use for royalties </li></ul></ul><ul><ul><li>Franchisees must pay to be part of the system </li></ul></ul><ul><ul><li>Franchisers provide a packaged marketing and operations system </li></ul></ul>
  6. Retailer Marketing Decisions <ul><li>Target markets chosen will affect all other decisions </li></ul><ul><li>Markets chosen and positioning need to be clear </li></ul><ul><li>Cannot hope to be “something for everyone” </li></ul><ul><li>Product variables: </li></ul><ul><ul><li>Assortment </li></ul></ul><ul><ul><li>Services mix </li></ul></ul><ul><ul><li>Atmospherics </li></ul></ul><ul><li>Price decision: </li></ul><ul><ul><li>Markups and volume are inversely related </li></ul></ul>Figure 14.1
  7. Retailer Marketing Decisions (continued) <ul><li>Promotion: retailers will use all five tools to promote themselves </li></ul><ul><ul><li>Advertising, personal selling, sales promotion, public relations, and direct marketing </li></ul></ul><ul><li>Place decision: </li></ul><ul><ul><li>Location is critical to attract the target market </li></ul></ul><ul><ul><li>Central business districts </li></ul></ul><ul><ul><li>Shopping centres </li></ul></ul><ul><ul><ul><li>Regional </li></ul></ul></ul><ul><ul><ul><li>Neighbourhood </li></ul></ul></ul><ul><ul><li>Power centres </li></ul></ul>Figure 14.1
  8. Future of Retailing <ul><li>Wheel of retailing concept: </li></ul><ul><ul><li>New types of retailers begin as low-margin, low-price, and low-status operations, but </li></ul></ul><ul><ul><li>Evolve into higher-priced, higher-service operations, </li></ul></ul><ul><ul><li>Eventually becoming like the conventional retailers they replaced </li></ul></ul><ul><li>Other trends: </li></ul><ul><ul><li>Growth of non-store retailing </li></ul></ul><ul><ul><li>Retailer convergence </li></ul></ul><ul><ul><li>Rise of megaretailers </li></ul></ul><ul><ul><li>Importance of technology </li></ul></ul><ul><ul><li>Global expansion </li></ul></ul><ul><ul><li>Retail stores as communities </li></ul></ul>
  9. Wholesaling <ul><li>Wholesaling: all activities involved in selling goods and services to those buying for resale or business use </li></ul><ul><ul><li>Buy mostly from producers and resell to retailers, industrial consumers and other wholesalers </li></ul></ul><ul><ul><li>Perform some or all of the following functions: </li></ul></ul><ul><ul><ul><li>Selling and promoting </li></ul></ul></ul><ul><ul><ul><li>Buying and assortment building </li></ul></ul></ul><ul><ul><ul><li>Bulk breaking </li></ul></ul></ul><ul><ul><ul><li>Warehousing </li></ul></ul></ul><ul><ul><ul><li>Transportation </li></ul></ul></ul><ul><ul><ul><li>Financing </li></ul></ul></ul><ul><ul><ul><li>Risk bearing </li></ul></ul></ul><ul><ul><ul><li>Market information </li></ul></ul></ul><ul><ul><ul><li>Management services and advice </li></ul></ul></ul>
  10. Types of Wholesalers <ul><li>Merchant wholesalers: </li></ul><ul><ul><li>Full-service wholesalers </li></ul></ul><ul><ul><li>Wholesale merchants </li></ul></ul><ul><ul><li>Industrial distributors </li></ul></ul><ul><ul><li>Limited service wholesalers: </li></ul></ul><ul><ul><ul><li>Cash-and-carry wholesalers </li></ul></ul></ul><ul><ul><ul><li>Truck jobbers </li></ul></ul></ul><ul><ul><ul><li>Drop shippers </li></ul></ul></ul><ul><ul><ul><li>Rack jobbers </li></ul></ul></ul><ul><ul><ul><li>Producers’ cooperatives </li></ul></ul></ul><ul><ul><ul><li>Mail-order wholesalers </li></ul></ul></ul><ul><li>Brokers and agents: </li></ul><ul><ul><li>Brokers </li></ul></ul><ul><ul><li>Agents: </li></ul></ul><ul><ul><ul><li>Manufacturer’s agents </li></ul></ul></ul><ul><ul><ul><li>Selling agents </li></ul></ul></ul><ul><ul><ul><li>Purchasing agents </li></ul></ul></ul><ul><ul><ul><li>Commission merchants </li></ul></ul></ul><ul><li>Manufacturers’ sales branches and offices </li></ul><ul><li>Purchasing offices </li></ul>
  11. Wholesaler Marketing Decisions <ul><li>Wholesalers are challenged by increased competition, demanding customers, new technologies, and more direct-buying by large customers </li></ul><ul><li>Must choose target markets carefully, looking for more profitable customers to build relationships with </li></ul><ul><li>Product lines carried are chosen for profitability </li></ul><ul><li>Price competition squeezes gross margins to very low </li></ul><ul><li>Not promotion -minded </li></ul><ul><li>Locations are more industrial </li></ul>Figure 14.2
  12. Trends in Wholesaling <ul><li>Fierce resistance to price increases </li></ul><ul><li>Consolidation of suppliers </li></ul><ul><li>Survival tactics: </li></ul><ul><ul><li>Focusing on adding value </li></ul></ul><ul><ul><li>Achieving cost efficiencies </li></ul></ul><ul><ul><li>Looking for opportunities to partner with suppliers and customers </li></ul></ul><ul><ul><li>Differentiate by services offered </li></ul></ul><ul><ul><li>Global orientation </li></ul></ul>
  13. In Conclusion… <ul><li>The learning objectives for this chapter were: </li></ul><ul><ul><li>Explain the roles of retailers and wholesalers in the marketing channel </li></ul></ul><ul><ul><li>Describe the major types of retailers and give examples of each </li></ul></ul><ul><ul><li>Identify the major types of wholesalers and give examples of each </li></ul></ul><ul><ul><li>Explain the marketing decisions facing retailers and wholesalers </li></ul></ul>

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