Managing Retailing,
Wholesaling, and Logistics 16
• Presented By
Muhammmad Shafiq ur Rehman
What is Retailing?
Retailing includes all the activities
involved in selling goods or services
directly to final consumers...
Major Retailer Types
•
•
•
•

Specialty store
Department store
Supermarket
Convenience store

•
•
•
•

Discount store
Off-...
Levels of Retail Service
Self-service
Self-selection
Limited service
Full service
Figure 16.1 Retail Positioning Map
Nonstore Retailing
Direct
selling

Direct
marketing

Automatic
vending

Buying
service
Major Types of Corporate
Retail Organizations
•
•
•
•
•
•

Corporate chain store
Voluntary chain
Retailer cooperative
Cons...
Corporate Retailing
What is a Franchising System?
A franchising system is a system of
individual franchisees, a tightly knit
group of enterpri...
Characteristics of Franchises
• The franchisor owns a trade or service
mark and licenses it to franchisees in
return for r...
Quiznos is a Franchising System

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

16-11
Changes in the
Retail Environment
• New retail forms and combinations
• Growth of intertype competition
• Competition betw...
Retailers’ Marketing Decisions
Target market
Product assortment
Procurement
Prices
Services
Retailers’ Marketing Decisions
(cont.)
Store atmosphere
Store activities
Communications
Locations
Retail Category Management
Define the category
Figure out its role
Assess performance
Set goals
Choose the audience
Figure...
Direct Product Profitability
Retailer Services Mix
Prepurchase services
Postpurchase services
Ancillary services
Store Atmosphere
•
•
•
•
•
•
•

Walls
Lighting
Signage
Product placement
Floors
Surface space
Music
The Fornarina flagship...
Tips for Increasing Sales
in Retail Space
•
•
•
•

Keep shoppers in the store
Honor the transition zone
Don’t make them hu...
Location Decision
• Central business
districts
• Regional shopping
centers
• Community shopping
centers
• Shopping strips
...
Indicators of Sales Effectiveness
Number of people passing by
% who enter store
% of those who buy
Average amount
spent pe...
Private Labels
Private Label Brands
• Private labels are ubiquitous
• Consumers accepts private labels
• Private-label buyers come from a...
Wholesaling Functions
• Selling and
promoting
• Buying and
assortment building
• Bulk breaking
• Warehousing

•
•
•
•
•

T...
Major Wholesaler Types
Merchant
Full-service
Limited-service
Brokers and agents
Manufacturers
Specialized
Market Logistics Planning
• Deciding on the company’s value
proposition to its customers
• Deciding on the best channel de...
What are
Integrated Logistics Systems?
An integrated logistics system (ILS)
includes materials management, material
flow s...
Market Logistics
• Sales forecasting
• Distribution
scheduling
• Production plans
• Finished-goods
inventory decisions
• P...
Market Logistics Decisions
• How should orders
be handled?
• Where should stock
be located?
• How much stock
should be hel...
Figure 16.2 Determining
Optimal Order Quantity
Transportation Factors
Containerization
Marketing Debate
 Should national brand manufacturers
also supply private label brands?
Take a position:
1. Manufacturers...
Marketing Discussion

 Think of your favorite stores.
 What do they do that encourages
your loyalty?
 What do you like ...
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    1. 1. Managing Retailing, Wholesaling, and Logistics 16 • Presented By Muhammmad Shafiq ur Rehman
    2. 2. What is Retailing? Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, nonbusiness use.
    3. 3. Major Retailer Types • • • • Specialty store Department store Supermarket Convenience store • • • • Discount store Off-price retailer Superstore Catalog showroom
    4. 4. Levels of Retail Service Self-service Self-selection Limited service Full service
    5. 5. Figure 16.1 Retail Positioning Map
    6. 6. Nonstore Retailing Direct selling Direct marketing Automatic vending Buying service
    7. 7. Major Types of Corporate Retail Organizations • • • • • • Corporate chain store Voluntary chain Retailer cooperative Consumer cooperative Franchise organization Merchandising conglomerate
    8. 8. Corporate Retailing
    9. 9. 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.
    10. 10. 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
    11. 11. Quiznos is a Franchising System Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-11
    12. 12. 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
    13. 13. Retailers’ Marketing Decisions Target market Product assortment Procurement Prices Services
    14. 14. Retailers’ Marketing Decisions (cont.) Store atmosphere Store activities Communications Locations
    15. 15. Retail Category Management Define the category Figure out its role Assess performance Set goals Choose the audience Figure out tactics Implement the plan
    16. 16. Direct Product Profitability
    17. 17. Retailer Services Mix Prepurchase services Postpurchase services Ancillary services
    18. 18. Store Atmosphere • • • • • • • Walls Lighting Signage Product placement Floors Surface space Music The Fornarina flagship store features award-winning retail design.
    19. 19. Tips for Increasing Sales in Retail Space • • • • Keep shoppers in the store Honor the transition zone Don’t make them hunt Make merchandise available to the reach and touch • Note that men do not ask questions • Remember women need space • Make checkout easy
    20. 20. Location Decision • Central business districts • Regional shopping centers • Community shopping centers • Shopping strips • Location within a larger store
    21. 21. Indicators of Sales Effectiveness Number of people passing by % who enter store % of those who buy Average amount spent per sale
    22. 22. Private Labels
    23. 23. Private Label Brands • Private labels are ubiquitous • Consumers 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
    24. 24. Wholesaling Functions • Selling and promoting • Buying and assortment building • Bulk breaking • Warehousing • • • • • Transportation Financing Risk bearing Market information Management services and counseling
    25. 25. Major Wholesaler Types Merchant Full-service Limited-service Brokers and agents Manufacturers Specialized
    26. 26. Market Logistics Planning • Deciding on the company’s value proposition to its customers • Deciding on the best channel design and network strategy • Developing operational excellence • Implementing the solution
    27. 27. What are Integrated Logistics Systems? An integrated logistics system (ILS) includes materials management, material flow systems, and physical distribution, aided by information technology.
    28. 28. Market Logistics • Sales forecasting • Distribution scheduling • Production plans • Finished-goods inventory decisions • Packaging • In-plant warehousing • Shipping-room processing • Outbound transportation • Field warehousing • Customer delivery and servicing
    29. 29. Market Logistics Decisions • How should orders be handled? • Where should stock be located? • How much stock should be held? • How should goods be shipped?
    30. 30. Figure 16.2 Determining Optimal Order Quantity
    31. 31. Transportation Factors
    32. 32. Containerization
    33. 33. Marketing Debate  Should national brand manufacturers also supply private label brands? Take a position: 1. Manufacturers should feel free to sell private labels as a source of revenue. or 2. National manufacturers should never get involved with private labels.
    34. 34. Marketing Discussion  Think of your favorite stores.  What do they do that encourages your loyalty?  What do you like about the in-store experience?

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