Kotl pom 7ce_ppt_bas_13

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  • Advantages for retailer – lower costs through less personnel. Advantages for consumer – can control their speed of checkout, can see prices and change mind. Disadvantages – more work for the consumer, consumers need to learn, no customer interaction, theft.
  • Kotl pom 7ce_ppt_bas_13

    1. 1. Chapter 13 Retailing and WholesalingCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    2. 2. Learning Goals 1. Understand the roles of retailers and wholesalers in the marketing channel. 2. Describe the major types of retailers. 3. Understand the marketing decisions facing retailers and wholesalers. 4. Identify the major types of wholesalers.Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    3. 3. The Forzani Group • Founded by John • Explosive growth in the Forzani, former CFL 1980’s player • Challenged by U.S. big • Corporate segment: 252 box stores, who offer stores (Sport Chek, larger stores, deeper Sports Experts, Coast selection Mountain Sports) • Store designs are flexible, • Franchise segment: 192 able to locate in shopping stores (Athmosphere, malls RnR) • Use service levels and • 2005 sales of $1.2 billion, community involvement has 16.1% market share as a differentiator of Canadian sporting • Focus on keeping costs goods market lowCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    4. 4. Learning Goals 1. Understand the roles of retailers and wholesalers in the marketing channel. 2. Know the major types of retailers. 3. Understand the marketing decisions facing retailers and wholesalers. 4. Know the major types of wholesalers.Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    5. 5. Retailing • 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.Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    6. 6. Learning Goals 1. Understand the roles of retailers and wholesalers in the marketing channel. 2. Know the major types of retailers. 3. Understand the marketing decisions facing retailers and wholesalers. 4. Know the major types of wholesalers.Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    7. 7. Types of Retailers • Amount of service • Self-service retailers • Product lines – Customers are willing to self-serve to save money • Relative prices – Convenience stores and • Organizational approach 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 storesCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    8. 8. Discussion Question Retailer Level of Service • Self service checkout ? scanners are growing in use. • What advantages for retailer? Consumer? • What are the disadvantages?Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    9. 9. Types of Retailers • Amount of service • Specialty stores • Product lines – Narrow product lines with deep assortments • Relative prices • Department stores • Organizational approach – Wide variety of product lines • Supermarkets • Convenience stores – Limited line • Superstores – Food, nonfood, and services • Category killers – Giant specialty storesCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    10. 10. Types of Retailers • Amount of service • Discount stores • Product lines – Low margins are offset by high volume • Relative prices • Off-price retailers • Organizational – Independent off-price approach retailers • TJ Maxx, Marshall’s – Factory outlets • Levi Strauss, Reebok – Warehouse clubs • Sam’s Club, CostcoCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    11. 11. Types of Retailers • Amount of service • Corporate chain • Product lines stores. • Relative prices • Voluntary chains • Organizational • Retailer cooperatives approach • Franchise organizations • Merchandising conglomeratesCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    12. 12. Learning Goals 1. Understand the roles of retailers and wholesalers in the marketing channel. 2. Know the major types of retailers. 3. Understand the marketing decisions facing retailers and wholesalers. 4. Know the major types of wholesalers.Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    13. 13. Retailer Marketing Decisions • Target market and Positioning decision – Define well target market and strong positioning • Product variables – Assortment – Services mix – Store atmosphere • Price decision: – Markups and volume are inversely relatedCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    14. 14. Retailer Marketing Decisions • Promotion – Retailers use any or all five tools to reach consumers • Place decision – Location is critical to attract the target market – Central business districts – Shopping centres • Regional • Neighbourhood – Power centresCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    15. 15. Retailing • The Future of Retailing – New retail forms and shortening retail life cycles • Wheel-of-retailing concept – Growth of non-store retailing • Mail-order, television, phone, online shopping – Retail convergence • The merging of consumers, products, prices, and retailersCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    16. 16. 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”Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    17. 17. Learning Goals 1. Understand the roles of retailers and wholesalers in the marketing channel. 2. Know the major types of retailers. 3. Understand the marketing decisions facing retailers and wholesalers. 4. Know the major types of wholesalers.Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    18. 18. Wholesaling • 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.Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    19. 19. 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 adviceCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    20. 20. Types of Wholesalers • Merchant Wholesalers • Full-service wholesalers • Brokers and Agents – Wholesale merchants – Industrial distributors • Manufacturers’ and retailers’ branches and • Limited-service offices wholesalers – Cash-and-carry wholesalers – Truck wholesalers (jobbers) – Drop shippers – Rack jobbers – Producer’s cooperatives – Mail-order wholesalersCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    21. 21. Types of Wholesalers • Merchant Wholesalers • Brokers and agents do • Brokers and Agents not take title of the goods. • Manufacturers’ and • Brokers retailers’ branches and – Bring buyers and sellers offices together and assist in negotiation • Agents – Manufacturers’ agents – Selling agents – Purchasing agents – Commission merchantsCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    22. 22. Types of Wholesalers • Merchant Wholesalers • Sales branches and offices • Brokers and Agents – Branches carry inventory: lumber, auto equipment, • Manufacturers’ and parts retailers’ branches and – Offices do not carry offices inventory: dry goods • Purchasing officers – Perform roles similar to brokers and agents; however, these individuals are employees of the organizationCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    23. 23. Trends in Wholesaling • Fierce resistance to price increases • 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 globalCopyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
    24. 24. Learning Goals 1. Understand the roles of retailers and wholesalers in the marketing channel. 2. Know the major types of retailers. 3. Know the major types of wholesalers. 4. Understand the marketing decisions facing retailers and wholesalers.Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition

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