Retailing

1
Chapter 11

• Retailing Wholesaling

2
Major Types of Retail Formats

• Store-based Retailers operate from a fixed
  location that requires consumers to travel
  Nonstore-based Retailers attempt to reach the
  consumer at home, work,

3
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

4
Retailers Levels of service

• Self-Service
• Convenience
• Limited Service
• Some help needed
• Full Service
• Specialty Goods

5
Types of Retailers

• Specialty Stores
• Department Stores
• Supermarkets

• Convenience Stores
• Superstores
• Category killers
• Super Centers
• Hypermarkets

6
Relative Prices Classification

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

7
Organizational Classification

• Corporate chain stores
• Voluntary chain
• Retailer cooperative
• Franchise
• Merchandising conglomerates

8
Retailer Marketing Decisions

• Retailer Strategy
• Target market
• Define specific customer based on some criteria
• Retail store positioning
• Until retailers define and profile their markets,
  retailers cannot make meaningful decisions
  related to the retailer marketing mix.
• Image we want the customer to have

9
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
• Unusual, exciting shopping environments are
  becoming more common

10
Price and Promotion Decisions

• Pricing
• Must fit its target market
• Promotion
• Can use any or all of the promotion tools to
  reach consumers.
• Place
• Retailers can locate in central business
  districts, various types of shopping centers,
  strip malls, or power centers.
• Location is the key to success.

11
Non-Store Retailers

• Catalog / Mail order
• Personalization
• Vending machines
• Television Home Shopping
• Direct Selling
• Street Peddling
• On-Line shopping

12
The Future of Retailing

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

• 4. Rise of the Megaretailers
• Global Expansion of Major Retailers
• Retail Stores as Communities or Hangouts

13
Definitions

• Wholesaling
• All activities involved in selling goods and
  services to those buying for resale or business
  use.

14
Functions Provided by Wholesalers

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

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

15
Types of Wholesalers

• Merchandise wholesalers
• Full Service
• Limited Service
• Brokers Agents
• Brokers
• Agents
• Manufactures and sales branch offices

16
Merchant Wholesalers

• Full Service
• General Merchandise wholesalers
• Specialty /Limited Line Wholesaler
• Industrial

• Limited Service
• Drop shipper
• Cash Carry
• Truck jobbers
• Rack jobbers
• Mail Order

17
Wholesaler Marketing Decisions

• Wholesaler Strategy
• Target market
• Service positioning
• Wholesaler Marketing Mix
• Product assortment and services
• Price
• Promotion
• Place (location)

18
Trends in Wholesaling

• Watch for better ways to meet the changing needs
  of suppliers and target customers
• Must add value by increasing efficiency and
  effectiveness
• Consolidation within the industry has blurred
  image
• Increase the amount of service provided
• Because of NAFTA, the need to go global