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Marketing Intermediaries
Learning Objectives
 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 is Retailing?
Retailing includes all the activities
involved in selling goods or services
directly to final consumers for
personal, non-business use
Major Retailer Types
 Specialty store
 Department store
 Supermarket
 Convenience
store
 Discount Store
Levels of Retail Service
Self-service
Self-selection
Limited service
Full service
Retailing in India and Pakistan
• Retailing in South Asia is changing
• The share of modern organized retailing
is increasing
• The growth is driven by economic
growth, rising income levels, and
consumption
• Entry and growth of organized retail is
causing economic, political, and social
tension
Nonstore Retailing
Direct
Selling
(multi-level like Amway)
Automatic
vending
Direct
Marketing
(like Amazon)
What is a Franchising
System?
A franchising system is a system of
individual franchisees, a tightly knit
group of enterprises whose systematic
operations are planned, directed, and
controlled by the operation’s franchisor
Characteristics of Franchises
 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
Retailers’ Marketing
Decisions
Target market
Product assortment
Procurement
Prices
Services
Retailers’ Marketing Decisions
(cont.)
Store atmosphere
Store activities
Communications
Locations
Store Atmosphere
 Walls
 Lighting
 Signage
 Product placement
 Floors
 Music
The Fornarina flagship store
features award-winning retail
design.
Location Decision
 Central business
districts
 Regional
shopping centers
 Community
shopping centers
 Shopping strips
 Location within a
larger store
Indicators of Sales Effectiveness
Number of people passing by
% who enter store
% of those who buy
Average amount
spent per sale
Private Labels
Wholesaling Functions
 Selling and
promoting
 Buying and
assortment building
 Bulk breaking
 Warehousing
 Transportation
 Financing
 Risk bearing
 Market information
 Management
services and
counseling

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Marketing intermediaries

  • 2. Learning Objectives  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?
  • 3. What is Retailing? Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, non-business use
  • 4. Major Retailer Types  Specialty store  Department store  Supermarket  Convenience store  Discount Store
  • 5. Levels of Retail Service Self-service Self-selection Limited service Full service
  • 6. Retailing in India and Pakistan • Retailing in South Asia is changing • The share of modern organized retailing is increasing • The growth is driven by economic growth, rising income levels, and consumption • Entry and growth of organized retail is causing economic, political, and social tension
  • 7. Nonstore Retailing Direct Selling (multi-level like Amway) Automatic vending Direct Marketing (like Amazon)
  • 8. What is a Franchising System? A franchising system is a system of individual franchisees, a tightly knit group of enterprises whose systematic operations are planned, directed, and controlled by the operation’s franchisor
  • 9. Characteristics of Franchises  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
  • 10. Retailers’ Marketing Decisions Target market Product assortment Procurement Prices Services
  • 11. Retailers’ Marketing Decisions (cont.) Store atmosphere Store activities Communications Locations
  • 12. Store Atmosphere  Walls  Lighting  Signage  Product placement  Floors  Music The Fornarina flagship store features award-winning retail design.
  • 13. Location Decision  Central business districts  Regional shopping centers  Community shopping centers  Shopping strips  Location within a larger store
  • 14. Indicators of Sales Effectiveness Number of people passing by % who enter store % of those who buy Average amount spent per sale
  • 16. Wholesaling Functions  Selling and promoting  Buying and assortment building  Bulk breaking  Warehousing  Transportation  Financing  Risk bearing  Market information  Management services and counseling