GOOD GOVERNANCE & SOCIAL RESPONSIBILITY: RETAILERS AND WHOLESALERS

1. Good governance & Social
Responsibility:
Understanding Retailing
and wholesaling
BY: GROUP 4
PROFESSOR: HOLDEN ALCARAZEN

2. What is Retailing & Retailer?
RETAILING
 All activities involved in selling goods or services directly to final consumers for
their personal, non-business use.
RETAILER
 is a business whole sales come primarily from retailing.

3. 2 TYPES OF RETAILING:
STORE RETAILING
Supermarkets, Department Stores, Restaurants..

4. NON-STORE RETAILING:
via Internet, door-to-door sales, vending machines, mail-order business.

5. CLASSIFICATIONS:
 1. AMOUNT OF SERVICE
SERVICE LEVEL CUSTOMER SERVICE PRICE EFFECT TYPE OF GOODS
SELF-SERVICE
RETAILERS
“locate-compare-
select”
LOWER (DISCOUNTS) CONVENIENCE AND
BRANDED SHOPPING
GOODS
LIMITED-SERVICE
RETAILERS
SALES ASSISTANCE
AND INFORMATION
HIGHER (INCREASED
OPERATING COSTS)
SHOPPING GOODS
FULL-SERVICE
RETAILERS
FULL ASSISTANCE HIGHER (HIGHER
OPERATING COSTS)
SPECIALTY GOODS

6. 2. PRODUCT LINE SOLD
 SPECIALTY STORE
Carries a narrow product line with a deep assortment within that line.

7. DEPARTMENT STORE
Carries a wide variety of product lines-typically clothing, home furnishing,
and household goods; each line is operated as a separate department.

8. SUPERMARKETS
Large, low-cost, low-margin, high-volume, self-service store
that carries a wide variety of food, laundry, and household
products.

9. CONVENIENCE STORE
Small, located near a residential area, that is open long hours
days a week and carries limited line of high-turnover
convenience goods.

10. 3. RELATIVE PRICES
 DISCOUNT STORE
A retail institution that sells standard merchandize at lower prices by accepting
lower margins and selling at higher volumes.
 OFF-PRICE RETAILER
Buys at less-than-regular wholesale prices and sells at less than a retail examples
ae factory outlets, independent and warehouse clubs.

11. 4. ORGANIZATIONAL APPROACH
 CHAIN STORES
Two or more outlets that are owned and controlled in common have centrals
buying and merchandizing, and sells similar lines of merchandise.

12.  FRANCHISE
A contractual association between a manufacturer, wholesale, or service
organization (a franchiser) and independent business people (franchises) who buy
right to own and operate one o more franchise.

13. RETAILER MARKETING DECISIONS
RETAILER STRATEGY RETAILER MARKETING MIX
TARGET MARKET
RETAIL STORE
POSITIONING
PRODUCT AND SERVICE
ASSORTMENT
PRICES
PROMOTION
PLACE (LOCATION)

14. PRODUCT ASSORTMENT AND SERVICES
DECIOSIONS
 3 MAJOR PRODUCT VARIABLES
1. Product Assortment
2. Service Mix
3. Store Atmosphere

15. TARGET MARKET AND POSITIONING
DECISION
 Retailers first must define the markets and then
decide how will position themselves in these
markets

16. PRODUCT ASSORTMENT AND SERVICES
DECISION
 The retailer’s product assortment should differentiate the retailer while matching
target expectations.
 The service mix can also help set one retailer apart from another.
 The store must plan an atmosphere that suits the target market and moves
customer to buy.

17.  Price decision :
Price decision A retail’s price policy must fit its target market and positioning,
product and service assortment, and competition.
 Promotion decision :
Promotion decision Retailers use any or all of the promotion tools-advertising,
personal selling, sales promotion, public relations and direct marketing to reach
consumers.
 Place Decision :
Place Decision Retailers often point three critical factors in retailing success: location,
location, location

18. FUTURE OF RETAILING
 Retailers operate in a harsh and fast changing environment,
which offers threats as well as opportunities.
 Growth of non-store retailing.
 Retail convergence
 Rise of Megaretailers

19. 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.
 Merchant wholesaler
Independently owned business that take title in the merchandise it handles.

20. FUNCTIONS OF WHOLESALING
 Selling and promotion
 Buying and assortment building
 Bulk-breaking
 Warehousing
 Transportation
 Financing
 Risk bearing
 Market information
 Management Services and advices

21. TYPES OF WHOLESALER
 Full-service wholesaler
 Wholesale merchants
 Industrial distributors
 Limited-service wholesalers
 Cash-and-carry wholesalers
 Truck wholesalers (or truck
jobbers)
 Drop shippers
 Rack jobbers
 Producers’ cooperatives
 Mail-order wholesalers
 Brokers and agents
 Brokers
 Agents
 Manufacturers’ agents
 Selling agents
 Purchasing agents
 Commission merchants
 Manufacturers’ and retailers’
branches and offices

22. WHOLESALER MARKETING DECISIONS
WHOLESALER STRATEGY WHOLESALER MARKETING
MIX
TARGET MARKET
SERVICE POSITIONING
PRODUCT AND SERVICE ASSORTMENT
PRICES
PROMOTION
PLACE (LOCATION)

23. TRENDS IN WHOLESALING
 AS THE WHOLESALING INDUSTRY MOVES INTO THE
TWENTY-FIRST CENTURY, IT FACES CONSIDERABLE
CHALLENGES.