BA320

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Retailing Wholesaling

• BA320
• Summer 2006

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Agenda for Today

• Explain the roles of retailers and wholesalers in
  the distribution channel.
• Describe the major types of retailers and give
  examples of each.
• Identify the major types of wholesalers and give
  examples of each.
• Explain the marketing decisions facing retailers
  and wholesalers.

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What Is Retailing?

• Retailing
• includes all the activities involved in selling
  products or services directly to final consumers
  for their personal, non-business use.
• Most retailing is done by retailers, but nonstore
  retailing has recently grown by leaps and bounds.

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Types of Retailers

• Retailers are classified based on
• Amount of service they offer
• Breadth and depth of product lines
• Relative prices charged
• How they are organized

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Amount of Service

• Self-Service Retailers
• Serve customers who are willing to perform their
  own locate-compare-select process to save
  money.
• Limited-Service Retailers
• Provide more sales assistance because they carry
  more shopping goods about which customers need
  information.
• Full-Service Retailers
• Usually carry more specialty goods for which
  customers like to be waited on.

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Major Store Retailer Types

• Specialty stores
• Department stores
• Supermarkets
• Category Killers
• Convenience stores
• Discount stores
• Off-price retailers
• Superstores

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Marketing in Action

• The Gaps product lines are limited to clothing
  and accessories for men, women, kids, and babies.
  In addition to regular sizes, petite and tall
  sizes are available in a variety of clothing
  items.

http//www.gap.com/browse/home.do
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Lets Talk!
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Relative Prices Classification

• Discount stores
• Off-price retailers
• Independent off-price retailers
• Factory outlets
• Factory outlet malls
• Value-retail centers
• Warehouse club

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Figure 11-1Retailer Marketing Decisions
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Assortment and Service Decisions

• Product assortment
• Should differentiate the retailer while matching
  target shoppers expectations
• Services mix
• Store atmosphere
• Physical layout can help/hinder shopping
• Experiential retailing helps sell goods
• Unusual, exciting shopping environments are
  becoming more common

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Experiential Retailing
Marketing in Action

• Mall of America pioneered the experiential
  retailing concept and remains the 1 retail
  tourist attraction in the nation.

www.mallofamerica.com
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Price and Promotion Decisions

• Price policy must fit its target market and
  positioning, product and service assortment, and
  competition.
• Can use any or all of the promotion
  toolsadvertising, personal selling, sales
  promotion, public relations, and direct
  marketingto reach consumers.

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Place Decisions

• Retailers can locate in central business
  districts, various types of shopping centers,
  strip malls, or power centers.
• Location is key to success.

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The Future of Retailing

• New Retail Forms and Shortening Retail Life
  Cycles
• Growth of Nonstore Retailing
• Retail Convergence
• Rise of the Megaretailers

• Growing Importance of Retail Technology
• Global Expansion of Major Retailers
• Retail Stores as Communities or Hangouts

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Wholesaling

• Wholesaling
• includes all activities involved in selling goods
  and services to those buying for resale or
  business use.
• Wholesalers add value for producers by performing
  one or more channel functions.

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Functions Provided by Wholesalers

• Financing
• Risk bearing
• Market information
• Management services and advice

• Selling and promoting
• Buying and assortment building
• Bulk-breaking
• Warehousing
• Transportation

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Trends in Wholesaling

• Fierce resistance to price increases.
• Winnowing out of suppliers who are not adding
  value based on cost and quality.
• Distinction between large retailers and
  wholesalers is blurry.
• Will continue to increase the services provided
  to retailers.
• Wholesalers are now going global.

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Rest Stop Reviewing the Concepts

• Explain the roles of retailers and wholesalers in
  the distribution channel.
• Describe the major types of retailers and give
  examples of each.
• Identify the major types of wholesalers and give
  examples of each.
• Explain the marketing decisions facing retailers
  and wholesalers.