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PoM 6th ed. chapter 13

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Retailing and wholesaling

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PoM 6th ed. chapter 13

  1. 1. it’s good and good for you Slide 13.1 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Chapter 13 Retailing and wholesaling
  2. 2. Slide 13.2 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing and wholesaling • Retailing • Retailer marketing decisions • Retailing trends and developments • Wholesaling Topic outline
  3. 3. Slide 13.3 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing includes all the activities in selling products or services directly to final consumers for their personal, non- business use. Retailers are businesses whose sales come primarily from retailing. Retailing
  4. 4. Slide 13.4 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) • Amount of service • Self-service • Limited service • Full service Types of retailers
  5. 5. Slide 13.5 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Product line Specialty stores • Narrow product line with deep assortment Department stores • Wide variety of product lines Convenience stores • Limited line of high-turnover goods Superstores • Non-food goods Category killers • Deep in category with sales staff
  6. 6. Slide 13.6 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Types of retailers Relative prices Discount stores Off-price retailers Factory outlets Warehouse clubs
  7. 7. Slide 13.7 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Types of retailers Organisational approach Corporate chains Voluntary chains Retailer cooperatives Franchise organisations Merchandising conglomerates
  8. 8. Slide 13.8 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Corporate Chains are two or more outlets that are commonly owned and controlled. • Size allows them to buy in large quantities at lower prices and gain promotional economies. Types of retailers Organisational approach
  9. 9. Slide 13.9 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Voluntary chains are wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising. Types of retailers Organisational approach
  10. 10. Slide 13.10 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Retailer cooperatives are groups of independent retailers that band together to set up a joint-owned, central wholesale operation and conduct joint merchandising and promotion effort. Types of retailers Organisational approach
  11. 11. Slide 13.11 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Types of retailers Organisational approach Franchise organisations are based on some unique product or service; on a method of doing business; or on the trade name, good will or patent that the franchisor has developed.
  12. 12. Slide 13.12 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Retailer marketing decisions Figure 13.1 Retailer marketing strategy
  13. 13. Slide 13.13 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Segmentation targeting, differentiation and positioning involve the definition and profile of the market so the other retail marketing decisions can be made. Retailer marketing decisions
  14. 14. Slide 13.14 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Product assortment and service decisions include: • Product assortment • Services mix • Store atmosphere Retailer marketing decisions Product assortment and service
  15. 15. Slide 13.15 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Price policy must fit the target market and positioning, product and service assortment and competition. • High markup on lower volume. • Low markup on higher volume. Retailer marketing decisions Price decision
  16. 16. Slide 13.16 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) High–low pricing involves charging higher prices on an everyday basis, coupled with frequent sales and other price promotions. Everyday low price (EDLP) involves charging constant, everyday low prices with few sales or discounts. Retailer marketing decisions Price decision
  17. 17. Slide 13.17 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Retailer marketing decisions Promotion decision Advertising Personal selling Sales promotion Public relations Direct marketing
  18. 18. Slide 13.18 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Central business districts are located in cities and include department and speciality stores, banks and cinemas. Shopping center is a group of retail businesses planned, developed, owned and managed as a unit. Retailer marketing decisions—place decision
  19. 19. Slide 13.19 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Wheel-of-retailing concept states that many new types of retailing forms begin as low-margin, low- price, low-status operations but later evolve into higher priced, higher service operations, eventually becoming like the conventional retailers they replaced. Retailing trends and developments New retail forms and shortening retail life cycles
  20. 20. Slide 13.20 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) The rise of mega retailers involves the rise of mass merchandisers and speciality superstores, the formation of vertical marketing systems and a rash of retail mergers and acquisitions. • Superior information systems • Buying power • Large selection The future of retailing New retail forms and shortening retail life cycles
  21. 21. Slide 13.21 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Growth of non-store retailing includes: • Mail order • Television • Phone • Online Retailing trends and developments New retail forms and shortening retail life cycles
  22. 22. Slide 13.22 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Retailing (Continued) Growing importance of retail technology provides better forecasts, inventory control, electronic ordering, transfer of information, scanning, online transaction processing, improved merchandise handling systems and the ability to connect with customers. Retailing trends and developments New retail forms and shortening retail life cycles
  23. 23. Slide 13.23 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Selling and promoting Buying assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and advice Wholesaling Wholesaling includes all activities involved in selling goods and services to those buying for resale or business use.
  24. 24. Slide 13.24 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Selling and promoting involves the wholesaler’s sales force helping the manufacturer reach many smaller customers at lower cost. Buying assortment building involves the selection of items and building of assortments needed by their customers, saving the customers work.
  25. 25. Slide 13.25 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Bulk breaking involves the wholesaler buying in larger quantity and breaking into smaller lots for its customers. Warehousing involves the wholesaler holding inventory, reducing its customers’ inventory cost and risk.
  26. 26. Slide 13.26 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Transportation involves the wholesaler providing quick delivery due to its proximity to the buyer. Financing involves the wholesaler providing credit and financing suppliers by ordering earlier and paying on time.
  27. 27. Slide 13.27 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Risk bearing involves the wholesaler absorbing risk by taking title and bearing the cost of theft, damage, spoilage and obsolescence. Market information involves the wholesaler providing information to suppliers and customers about competitors, new products and price developments.
  28. 28. Slide 13.28 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Management services and advice involves wholesalers helping retailers train their sales clerks, improve store layouts and set up accounting and inventory control systems.
  29. 29. Slide 13.29 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Types of wholesalers Merchant wholesalers Agents and brokers Manufacturers’ sales branches and offices
  30. 30. Slide 13.30 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Merchant wholesalers is the largest group of wholesalers and include: • Full-service wholesalers who provide a full set of services. • Limited service wholesalers who provide few services and specialised functions. Types of wholesalers
  31. 31. Slide 13.31 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Brokers and agents do not take title, perform a few functions and specialise by product line or customer type. • Brokers bring buyers and sellers together and assist in negotiations. • Agents represent buyers or sellers. Types of wholesalers
  32. 32. Slide 13.32 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Manufacturers’ sales branches and offices are a form of wholesaling by sellers or buyers themselves rather than through independent wholesalers. Types of wholesalers
  33. 33. Slide 13.33 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Target market and positioning decisions • Size of customer • Type of customer • Need for service Wholesaler marketing decisions
  34. 34. Slide 13.34 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Marketing mix decisions • Product • Price • Promotion • Place Wholesaler marketing decisions
  35. 35. Slide 13.35 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Wholesaler marketing strategy Figure 13.2 Wholesaler marketing strategy
  36. 36. Slide 13.36 Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013 Wholesaling (Continued) Challenges • Resistance to price increases • Fewer suppliers • Changing customer needs • Adding value by increasing efficiency and effectiveness. Trends in wholesaling

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