Retailing-types, levels, retailers marketing decisions. Market logistics- Planning steps, decisions, order processing ,warehousing, inventory management, transportation

1. RETAILING AND MARKET LOGISTICS
Presented by :
urvi gupta - 66MBA16
Vasudha dogra - 67MBA16
Vidhu arora - 68MBA16
Arjit gupta - 69MBA16
Anchal gupta - 70MBA16
Ridham mahajan - 71MBA16

2. Retailing
 Retailing includes all the activities in selling
goods or services directly to final consumers
for personal , non business use
 A retailer is any business enterprise whose
sales volume comes primarily from retailing

3. Types Of RetailerStoreretailers
• Specialty store
• Department
store
• Super market
• Convenience
store
• Drug store
• Discount store
• Off price
retailers
• Super store
• Catalog
showroom
Nonstoreretailers
• Direct
marketing
• Direct
selling
• Automatic
vending
• Buying
service
Corporateretailingandfranchising
• Corporate
chain store
• Voluntary
chain
• Retailer
cooperative
• Consumer
cooperative
• Franchise
organization
• Merchandising
conglomerate

4. Levels of service
 Self service : customers willing to carry out their own “locate-
compare-select” process to save money
 Self selection :customers find their own goods, though they
can ask for assistance
 Limited service : Customers need more information and
assistance.
 Full service : customers need assistance in every phase of “
locate-compare-select” process . Customers who like to be
waited prefer these types of stores

5. Retailers marketing decisions
 Target market
 Channels
 Product assortment
 Procurement
 Prices
 Services
 Store atmosphere
 Store activities and experiences
 Communications
 location

6. Market logistics
 Planning the infrastructure to meet demand, and
then implementing and controlling the physical
flows of materials and final goods from point of
origin to points of use to meet a customer
requirement at a profit.
 Objective : “getting the right goods to the right
places at the right time for the least cost.”
Leads manager to find the most efficient way to deliver value

7. Deciding on the company's value proposition to its customers. (What on-time delivery
standard should we offer? What levels should we attain in ordering and billing accuracy?)
Deciding on the best channel design and network strategy for reaching the
customers. (Should the company serve customers directly or through intermediaries? What
products should we source from which manufacturing facilities? How many warehouses should
we maintain and where should we locate them?)
Developing operational excellence in sales forecasting, warehouse management,
transportation management, and materials management
Implementing the solution with the best information systems, equipment, policies,
and procedures
□ Market logistics planning has 4 steps :

8. MARKET LOGISTICS DECISIONS
 How should orders be handled? – order
processing
 Where should stock be located? –
warehousing
 How much stock should be held? – inventory
 How should goods be shipped? –
transportation

9. Order Processing
 Companies today are trying to shorten the order to payment
cycle i.e., the time between an order's receipt, delivery, and
payment.
 This cycle has many steps:
 Order transmission by sales person
 Order entry and customer credit check
 Inventory and production scheduling
 Order and invoice shipment
 Receipt of payment
Longer this cycle , lower the customer satisfaction, lower the company’s
profit

10. Warehousing
 A storage place wherein finished goods are stored till
they are sold.
 More stocking locations means goods can be
delivered to customers more quickly, but
warehousing and inventory costs are high
 Effectiveness of an organization’s marketing strategy
depends on making the right decision regarding
warehouse.

11. Inventory management
 Management needs to know how much sales & profits would
increase as a result of carrying larger inventories & promising faster
order fulfillment times & then make a decision.
 Determine reorder point, relevant cost comparison, optimal order
quantity.
 Balance between order - processing costs and inventory -carrying
cost
Optimal order
quantity

12. Transportation
 For the movement of goods from supplier to buyer, transportation is
the most fundamental and important component of logistic.
 Transportation affects :
 Product pricing
 On-time delivery performance
 Condition of goods when they arrive
 Two or more modes of transportation are combined for increasing
the speed, frequency, dependability, traceability, availability and
cost :
 Piggyback = rail + truck
 Fishyback = water + truck
 Trainship = water + rail
 Airtruck = air + truck