The document discusses retailing, wholesaling, and logistics. It covers the major types of retailers like supermarkets, department stores, and discount stores. It also discusses wholesalers, types like merchants and brokers. Key decisions by retailers and wholesalers are discussed around target markets, product assortment, pricing, private label brands, and logistics. Emerging trends are the growth of giant retailers, technology investments, and globalization of major companies.

1. 16
Managing Retailing,
Wholesaling,
and Logistics
1

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-2
Chapter Questions

What major types of marketing intermediaries
occupy this sector?

What marketing decisions do these marketing
intermediaries make?

What are the major trends with marketing
intermediaries?

What does the future hold for private label
brands?

3. Retailing
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4. Table 16.1 Major Retailer Types

Specialty store

Department store

Supermarket

Convenience store

Discount store

Off-price retailer

Superstore

Catalog showroom
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5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-5
Levels of Retail Service

Self service

Self selection

Limited service

Full service

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-6
Nonstore Retailing

Direct selling

Direct marketing

Automatic vending

Buying service

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-7
Table 16.2 Major Types of Corporate
Retail Organizations

Corporate chain store

Voluntary chain

Retailer cooperative

Consumer cooperative

Franchise organization

Merchandising conglomerate

8. Franchising System

The franchisor owns a trade or service mark
and licenses it to franchisees in return for
royalty payments

The franchisee pays for the right to be part of
the system

The franchisor provides its franchisees with a
system for doing business
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9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-9
Changes in the
Retail Environment

New retail forms and combinations

Competition between store-based and non-
store-based retailing

Growth of giant retailers

Decline of middle market retailers

Growing investment in technology

Global profile of major retailers

Growth of shopper marketing

10. Retailers’ Marketing Decisions

Target market

Product assortment

Procurement

Prices

Services

Store atmosphere

Store activities

Store experiences

Communications

Location
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11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-11
Retailer Services Mix

Prepurchase services

Postpurchase services

Ancillary services

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-12
Store Atmosphere
and Experiences

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-13
Tips for Increasing Sales
in Retail Space

Keep shoppers in the store

Honor the transition zone

Don’t make them hunt

Make merchandise available to the reach and
touch

Note that men do not ask questions

Remember women need space

Make checkout easy

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-14
Location Decision

Central business districts

Regional shopping centers

Community shopping centers

Shopping strips

Location within a larger store

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-15
Private Label Brands

Private labels are ubiquitous

Consumer accepts private labels

Private-label buyers come from all
socioeconomic strata

Private labels are not a recessionary
phenomenon

Consumer loyalty shifts from manufacturers to
retailers

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-16
Wholesaling Functions

Selling and
promoting

Buying and
assortment building

Bulk breaking

Warehousing

Transportation

Financing

Risk bearing

Market information

Management
services and
counseling

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-17
Major Wholesaler Types

Merchant

Full-service

Limited-service

Brokers and agents

Manufacturers

Specialized

18. Supply Chain Management
Supply chain management starts before
physical distribution and means strategically
procuring the right inputs (raw materials,
components, and capital equipment);
converting them efficiently into finished
products; and dispatching them to the final
destinations.
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19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-19
Market Logistics Planning

Deciding on the company’s value proposition
to its customers

Deciding on the best channel design and
network strategy

Developing operational excellence

Implementing the solution

20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-20
What are
Integrated Logistics Systems?
An integrated logistics system (ILS)
includes materials management, material
flow systems, and physical distribution,
aided by information technology.

21. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-21
Market Logistics

Sales forecasting

Distribution
scheduling

Production plans

Finished-goods
inventory decisions

Packaging

In-plant
warehousing

Shipping-room
processing

Outbound
transportation

Field warehousing

Customer delivery
and servicing

22. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-22
Market Logistics Decisions

How should orders be handled?

Where should stock be located?

How much stock should be held?

How should goods be shipped?

23. Figure 16.1 Determining Optimal
Order Quantity
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24. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-24
Transportation Factors

25. For Review

What major types of marketing intermediaries
occupy this sector?

What marketing decisions do these marketing
intermediaries make?

What are the major trends with marketing
intermediaries?

What does the future hold for private label
brands?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16-25