This chapter 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.
Nội dung Text: Lecture Principles of Marketing - Chapter 11: Retailing and wholesaling
Chapter Eleven
Retailing and Wholesaling
Roadmap: Previewing the Concepts
1. Explain the roles of retailers and
wholesalers in the distribution channel.
2. Describe the major types of retailers and
give examples of each.
3. Identify the major types of wholesalers and
give examples of each.
4. Explain the marketing decisions facing
retailers and wholesalers.
Copyright 2007, Prentice Hall, Inc. 11-2
Case Study
Whole Foods Market – Finding Its Niche
Whole Foods Market Marketing Efforts
Has 170 stores worldwide Web site reinforces the
with $4 billion in sales vs. company’s positioning.
5000 stores and sales of Caters to health conscious,
$285 billion for Wal-Mart. affluent, liberal, educated
Offers organic, natural, consumer base.
and gourmet foods. Both in-store and online
Positions itself AWAY shopping is a customer
from Wal-Mart: experience.
“Whole Foods, Whole Cares about employees,
People, Whole Planet.” customers, & community.
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.
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
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.”
Major Store Retailer Types
Specialty stores
Department stores
Supermarkets
– Category Killers
Convenience stores
Discount stores
Off-price retailers
Superstores
Retailer Marketing Decisions
Retailer Strategy:
– Target market
– Retail store positioning
• Until retailers define and profile their
markets, retailers cannot make
meaningful decisions related to the
retailer marketing mix.
Retailer Marketing Decisions
Retailer Marketing Mix:
– Product assortment and services
– Price
– Promotion
– Place (location)
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
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
tools—advertising, personal selling,
sales promotion, public relations, and
direct marketing—to reach consumers.
Place Decisions
Retailers can locate in central business
districts, various types of shopping
centers, strip malls, or power centers.
Location is key to success.
The Future of Retailing
1. New Retail Forms 5. Growing
and Shortening Importance of
Retail Life Cycles Retail Technology
2. Growth of 6. Global Expansion
Nonstore Retailing of Major Retailers
3. Retail 7. Retail Stores as
Convergence “Communities” or
4. Rise of the “Hangouts”
Megaretailers
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.
Functions Provided by
Wholesalers
Selling and Financing
promoting Risk bearing
Buying and Market
assortment information
building Management
Bulk-breaking services and
Warehousing advice
Transportation
Types of Wholesalers
Merchant Wholesalers
– Largest group of wholesalers
– Account for 50% of wholesaling
– Two broad categories:
• Full-service wholesalers
• Limited-service wholesalers
Types of Wholesalers
Brokers and Agents
– Do not take title to goods
– Perform fewer functions
– Brokers bring buyers and sellers together
– Agents represent buyers on more
permanent basis
– Manufacturers’ agents are most common
type of agent wholesaler
Types of Wholesalers
Manufacturers’ Sales Branches and
Offices
– Wholesaling by sellers or buyers
themselves rather than through
independent wholesalers.
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