Kotler POM13e Student 13

7/30/2019 Kotler POM13e Student 13

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Chapter 13- slide 1Copyright 2009 Pearson Education, Inc.

Publishing as Prentice Hall

Chapter Thirteen

Retailing and Wholesaling


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Retailing and Wholesaling

Retailing

Retailer Marketing Decisions

The Future of Retailing

Wholesaling

Topic Outline


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Retailing includes all the activities in sellingproducts or services directly to final

consumers for their personal, non-businessuse

Retailers are businesses whose sales comeprimarily from retailing

Retailing


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Retailing

Amount of service

Self-service

Limited service

Full service

Types of Retailers


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Retailing

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


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Retailing

Types of Retailers

Relative Prices

Discountstores

Off-priceretailers

Factoryoutlets Warehouseclubs


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Copyright 2010 Pearson Education, Inc.


Retailing

Types of Retailers

Organizational Approach

Corporatechains

Voluntarychains

Retailercooperatives

Franchiseorganizations Merchandisingconglomerates


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Retailing

Corporate chains are two or more outlets thatare commonly owned and controlled

Size allows them to buy in large quantities atlower prices and gain promotionaleconomies

Sears

CVS

Types of RetailersOrganizational Approach


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Retailing

Voluntary chains are wholesale-sponsored

groups of independent retailers that engagein group buying and common merchandising

IGA

Western Auto

Types of Retailers



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Chapter 13- slide 10Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall

Retailing

Retailer cooperatives is a group of

independent retailers that band together toset up a joint-owned, central wholesaleoperation and conduct joint merchandisingand promotion effort

Ace Hardware

Associated Grocers



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Retailing

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 Holiday Inn



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Retailing

Merchandising conglomerates arecorporations that combine several

retailing forms under central ownership

Limited Brands

Types of Retailers



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Retailing

Segmentation, targeting, differentiation, and

positioning involves the definition andprofile of the market so the other retailmarketing decisions can be made



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Retailing

Product assortment and service decisionsinclude:

Product assortment

Services mix

Store atmosphere


Product Assortment and Service


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Retailing

Price policy must fit the target market andpositioning, product and service assortment,and competition

High markup on lower volume

Low markup on higher volume


Price Decision


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Retailing

High-low pricing involves charging higher

prices on an everyday basis, coupled withfrequent sales and other price promotions

Everyday low price (EDLP) involves charging

constant, everyday low prices with few salesor discounts

Retailer Marketing DecisionsPrice Decision


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Retailing


Promotion Decision

AdvertisingPersonalselling

Salespromotion

Publicrelations

Directmarketing


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Retailing

Central business districts are located in cities andinclude department and specialty stores, banks, andmovie theaters

Shopping center is a group of retail businessesplanned, developed, owned, and managed as a unit

Regional shopping centers

Community shopping centers

Neighborhood shopping centers Power center

Lifestyle centers


Place Decision


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Retailing

Retailers have to choose target segments carefully,position themselves strongly, and consider the

following developments as they plan and executetheir competitive strategies

Non-store retailing

Retail convergence

Megaretailers

Retail technology

Global expansion

Retail stores as communities

The Future of Retailing


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Retailing

Wheel-of-retailing concept states that many

new types of retailing forms begin as low-margin, low-price, low-status operations,

and challenge established retailers. As they

succeed they upgrade their facilities and

offer more services, increasing their costsand forcing them to increase prices,

eventually becoming the retailers they

replaced.

The Future of RetailingNew Retail Forms and Shortening Retail Life Cycles


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Retailing

Growth of non-store retailing includes:

Mail order

Television

Phone

Online

The Future of RetailingNew Retail Forms and Shortening Retail Life

Cycles


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Retailing

Retail convergence involves the merging ofconsumers, producers, prices, and retailers,

creating greater competition for retailers and

greater difficulty differentiating offerings


Cycles


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Retailing

The rise of megaretailers involves the rise of

mass merchandisers and specialtysuperstores, the formation of verticalmarketing systems, and a rash of retailmergers and acquisitions

Superior information systems

Buying power

Large selection


Cycles


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Retailing

Growing importance of retail technologyprovides better forecasts, inventory control,electronic ordering, transfer of information,scanning, online transaction processing,

improved merchandise handling systems,and the ability to connect with customers


Cycles


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Selling and promoting

Buying assortment building

Bulk breaking

Warehousing

Transportation

FinancingRisk bearing

Market information

Management services and advice

Wholesaling

Wholesaling includes all activities involved in selling goodsand services to those buying for resale or business use


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Wholesaling

Selling and promoting involves thewholesalers sales force helping the

manufacturer reach many smaller customersat lower cost

Buying assortment building involves the

selection of items and building ofassortments needed by their customers,saving the customers work

Wholesaling


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Wholesaling

Bulk breaking involves the wholesaler buyingin larger quantity and breaking into smallerlots for its customers

Warehousing involves the wholesaler holding

inventory, reducing its customers inventorycost and risk

Wholesaling


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Wholesaling

Transportation involves the wholesaler

providing quick delivery due to its proximityto the buyer

Financing involves the wholesaler providing

credit and financing suppliers by orderingearlier and paying on time

Wholesaling


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Wholesaling

Risk bearing involves the wholesaler absorbingrisk by taking title and bearing the cost of

theft, damage, spoilage, and obsolescence

Market information involves the wholesalerproviding information to suppliers and

customers about competitors, new products,and price developments

Wholesaling


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Wholesaling

Management services and advice involves

wholesalers helping retailers train their salesclerks, improve store layouts, and set up

accounting and inventory control systems

Wholesaling


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Wholesaling

Types of Wholesalers

Merchant

wholesalers

Agents and

brokers

Manufacturerssales branchesand offices


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Wholesaling

Merchant wholesalers is the largest

group of wholesalers and include:

Full-service wholesalers who provide a

full set of services

Limited service wholesalers whoprovide few services and specialized

functions



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Wholesaling

Brokers and agents do not take title, perform a

few functions, and specialize by product lineor customer type

Brokers bring buyers and sellers together

and assist in negotiations

Agents represent buyers or sellers



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Wholesaling

Manufacturers sales branches and offices is

a form of wholesaling by sellers or buyersthemselves rather than through independent

wholesalers



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Wholesaling

Target market and positioning decisions

Size of customer Type of customer

Need for service

Wholesaler Marketing Decisions


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Wholesaling

Marketing mix decisions

Product Price

Promotion

Place

Wholesaler Marketing Decisions


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Wholesaling

Challenges

Resistance to price increases Lack of suppliers

Changing customer needs

Adding value by increasing efficiency andeffectiveness

Trends in Wholesaling


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Ch t 13 lid 38Copyright 2010 Pearson Education Inc

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

Copyright 2010 Pearson Education, Inc.


Kotler POM13e Student 13

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