Principles of marketing

1. Chapter 13
Retailing and Wholesaling
1. What is retailing and retailer? Mention the types of retailers.
 Retailing:
Retailing includes all the activities in selling products or services directly to final
consumers for their personal, non-business use.
Retailer:
Retailers are businesses whose sales come primarily from retailing
The types of retailers:
Classified in terms of:
a) Amount of service:
· Self-service
· Limited service
· Full service
b) Product lines:
· Specialty store
· Department store
· Convenience store
· Superstore
· Category killer
· Service retailer
c) Relative price:
· Discount stores
· Office price retailers
· Factory outlets

2. · Warehouse clubs
d) Organizational Approach:
· Corporate chain store
· Voluntary chain
· Retailer cooperative
· Franchise organization
· Merchandising conglomerate
2. Describe the types of retailer according to amount of services.
 The types of retailer according to amount of services:
Self-service retailers: Self-service retailers serve customers who are willing to
perform their own “locate-compare-select” process to save time or money.
Limited service retailers: Limited service retailers provide more sales assistance
because they carry more shopping goods about which customers need more
information.
Full-service retailers: Full-service retailers assist customers in every phase of the
shopping process, resulting in higher costs that are passed on to the customer as
higher prices.
3. Describe the types of retailer according to product line.
 The types of retailer according to product line :
Specialty store: A retail store that carries narrow product lines with deep
assortments within the product lines.
Department store: A retail organization that carries a wide variety of product
lines.

3. Convenience store: A small store located near a residential area, that is open
long hours seven days a week and carries a limited line of high-turnover
convenience goods.
Superstore: A store much larger than supermarket that offers a large assortment
of routinely purchased food products, no food items, and services.
Category killers: A large store that carries a very deep assortment of a particular
line with a knowledgeable staff.
Service retailers: A retailer whose product lines are actually service.
4. Describe the types of retailer according to relative price.
 The types of retailer according to relative price:
Discount store: A retail operation that sells standard merchandise at lower prices
by accepting lower margins and selling higher volume.
Off-price retailer: A retailer that buys at less than regular wholesale prices and
charge customers less than retail.
Factory outlet: An off-price retailing operation that is producer-operated stores.
Warehouse club: An off-price retailer that sells a limited selection of brand name
grocery items.
5. Describe major types of Retail Organizations.
 Major types of Retail Organizations :
Corporate Chain: Corporate Chains are two or more outlets that are commonly
owned and controlled.
Voluntary chain: Voluntary chains are wholesale-sponsored groups of
independent retailers that engage in group buying and common merchandising.
Retailer cooperative: Retailer cooperatives is a group of independent retailers
that band together to set up a joint-owned, central wholesale operation and
conduct joint merchandising and promotion effort.

4. Franchise organization: Franchise organizations 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.
Merchandising conglomerate: Merchandising conglomerates are corporations
that combine several retailing forms under central ownership.
6. Describe the major marketing decisions?
 Retailers are always searching for new marketing strategies to attract and hold
customers. They face major marketing decisions about segmentation and
targeting, store differentiation and positioning, and the retail marketing mix.
Segmentation, targeting, differentiation, and positioning involve the definition and
profile of the market so the other retail marketing decisions can be made.
Retailers must first segment and define their target markets and then decide how
they will differentiate and position themselves in these markets.
Guided by strong targeting and positioning, retailers must decide on retail
marketing mix - product and services assortment, price, promotion, and place.
Retail stores are much more than simply an assortment of goods. A retailer’s
price policy must fit its target market and positioning, products and services
assortment, and competition. Retailers use any or all of the promotion tools
(advertising, personal selling, sales promotion, public relations, and direct
marketing) to reach consumer. Finally, it’s very important that retailers select
locations that are accessible to target market in areas that are consistent with
retailer’s positioning.
Ques: no: 01-What is wholesaling? What are the functions of
wholesaling?
Ans:
All activities involved in selling goods and services to those
buying for resale or business use is wholesaling.

5. The functions of wholesaling are :
Selling and promoting: wholesalers’ sales forces help
manufacturers reach many small customers at a low cost. The
wholesaler has more contacts and is often more trusted by the
buyer than the distant manufacturer.
Buying and assortment building: Wholesalers can select items
and build assortments needed by their customers, thereby saving
the consumer much work.
Bulk breaking: wholesalers save their customer money by buying
in carload lots and breaking bulk (breaking large lots into small
quantities)
Warehousing: Wholesalers hold inventories, thereby reducing the
inventory costs and risk of suppliers and customers.
Transportation: wholesaler can provide quicker delivery to
buyers because they are closer than the producers.
Financing: Wholesaler finances their customers by giving credit
and they finance their suppliers by ordering early and paying bills
on time.
Risk bearing: Wholesaler absorbs risk by taking title and bearing
the cost of their damage, spoilage, and obsolescence.
Market information: Wholesalers give information to suppliers
and customers about competitors, new products, and price
developments.

6. Management service and advice: Wholesaler often help retailers
train their salesclerks, improve stone layouts and display, and set
up accounting and inventory control systems.
Ques: no: 02-Describe the types of wholesalers
Ans: wholesalers fall into three major groups .
Merchant wholesaler, Broker and agent, and
Manufactures sales branches and offices.
Merchant wholesaler: An independently owned business
that takes title to the merchandise it handles.
Broker and Agent: A wholesaler who does not take title to
goods and whose function is to bring buyers and sellers
together and assist in negotiation.
A wholesaler who represents buyers or sellers on a
relatively permanent basis , performes only a few
functions , and does not take title to goods.
Manufacturers sales branches and offices : Wholesaling
by sellers or buyers themselves rather than through
independent wholesalers.

7. Ques. No: 03- What is the Process of marketing Mix?

8. Why does this figure look
so much like this figure .
like retailers ,
wholesalers , must be
developed customer
driven , marketing
staregies and mixes that
create value for customers
and capture value in
return.For
example,Grainnger helps
its business
customer``save time and
money by providing them
with the right products to
keep their facilities up and
running
Wholesale strategy
Wholesale
segmentation and
targeting
Differentiation and
service positioning
Wholesale marketing
mix.
Product and service
assortment
Wholesale price
Promotion
Distribution(location)
Create value for targeted wholesale customers