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Kotler_pom18_ppt_13.ppt2.pdf
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Kotler_pom18_ppt_13.ppt2.pdf

Principles of Marketing Eighteenth Edition

Chapter 13 Retailing and Wholesaling

WALMART: A Battle between Titans in the New World of Retail Walmart is the world’s largest retailer and the world’s largest company. Walmart has faced challenges as it tries to maintain its rapid growth. In particular, massive shifts toward digital and mobile buying have changed how Walmart delivers on its “Save money. Live better.” promise. Walmart has invested heavily to

build its omni-channel capabilities to better serve today’s mobile-first, omni- channel consumers.

Learning Objectives 13.1 Explain the role of retailers in the distribution channel

and describe the major types of retailers.

13.2 Discuss how retailers are using omni-channel retailing to meet the cross-channel shopping behavior of today’s digitally connected consumers.

13.3 Describe the major retailer marketing decisions.

13.4 Discuss the major trends and developments in retailing.

13.5 Explain the major types of wholesalers and their marketing decisions.

Learning Objective 1 Explain the role of retailers in the distribution channel and describe the major types of retailers.

Retailing (1 of 2)

Retailing includes all the activities in selling products or services directly to final consumers for their personal, nonbusiness use.

Retailers are businesses whose sales come primarily from retailing.

Shopper Marketing focuses the entire marketing process on turning shoppers into buyers as they approach the point of sale, whether during in-store, online, or mobile shopping.

Retailing (2 of 2)

Omni-channel retailing creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping, creating a single shopping experience.

The new retailing model: Digital technologies have caused a massive shift in how and where people buy. Today’s retailers must adopt omni-channel retailing that integrates in-store, online, and mobile shopping.

Types of Retailers (1 of 8)

Amount of Service Classifications

• Self-service • Limited service • Full service

Types of Retailers (2 of 8)

Product Line Classifications

• Specialty stores • Department stores • Convenience stores • Superstores • Category killers

Types of Retailers (3 of 8)

Relative Price Characteristics

• Discount stores • Off-price retailers • Factory outlets • Warehouse clubs

Types of Retailers (4 of 8)

Table 13.2 Major Types of Retail Organizations

Type Description Examples

Corporate chain

Two or more outlets that are commonly owned and controlled. Corporate chains appear in all types of retailing but they are strongest in department stores, discount stores, food stores, drugstores, and restaurants.

Macy’s (department stores), Target (discount stores), Kroger (grocery stores), CVS (drugstores)

Voluntary chain

Wholesaler-sponsored group of independent retailers engaged in group buying and merchandising.

Independent Grocers Alliance (IGA), Western Auto (auto supply), True Value (hardware)

Retailer cooperative

Group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

Associated Grocers (groceries), Ace Hardware (hardware)

Franchise organization

Contractual association between a franchisor (a manufacturer, wholesaler, or service organization) and franchisees (-independent businesspeople who buy the right to own and operate one or more units in the franchise system).

McDonald’s, Subway, Pizza Hut, Jiffy Lube, Meineke Mufflers, 7-Eleven

Types of Retailers (5 of 8)

Organizational Approach

Corporate chains are two or more outlets that are commonly owned and controlled.

• Size allows them to buy in large quantities at lower prices and gain promotional economies

– Macy’s – C V S

Types of Retailers (6 of 8)

Organizational Approach

Voluntary chains are wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising. • IGA • Western Auto • True Value

Types of Retailers (7 of 8)

Organizational Approach

Retailer cooperatives are a group of independent retailers that band together to set up a joint-owned, central wholesale operation and conduct joint merchandising and promotion efforts. • Ace Hardware • Associated Grocers

Types of Retailers (8 of 8)

Organizational Approach

Franchises are contractual associations between a manufacturer, wholesaler, or service organization (a franchisor) and independent business people (franchisees) who buy the right to own and operate one or more units in the franchise system.

Franchising covers a lot more than just burger joints and fitness centers. Century 21 consists of over 127,000 independent agents working in more than 9,400 franchise offices in 80 countries.

Learning Objective 2 Discuss how retailers are using omni-channel retailing to meet the cross-channel shopping behavior of today’s digitally connected consumers.

Omni-Channel Retailing The key to omni-channel retailing is to integrate channels for a seamless buying experience.

Omni-channel retailing: Used-car giant CarMax makes the entire used-car buying experience simple and seamless across its digital and store shopping channels.

Learning Objective 3 Describe the major retailer marketing decisions.

Retailer Marketing Decisions (1 of 7)

Figure 13.1 Retailer Marketing Strategies

Retailer Marketing Decisions (2 of 7)

Segmentation targeting, differentiation, and positioning involve the definition and profile of the market so the other retail marketing decisions can be made. Retail targeting and positioning: Lush Fresh Handmade Cosmetics succeeds by carefully positioning itself away from its larger competitors. It makes premium beauty products made by hand from the freshest possible natural ingredients.

Retailer Marketing Decisions (3 of 7)

Major product variables: • Product assortment • Services mix • Store atmosphere

Experiential retailing: adidas’s stadium- like flagship store on Fifth Avenue in New York City carries about every product that adidas offers. But the store focuses as much on offering customer experiences as on selling products.

Retailer Marketing Decisions (4 of 7)

Price Decision

Price policy must fit the target market and positioning, product and service assortment, competition, and economic factors. • High markup on lower volume • Low markup on higher volume

Retailer Marketing Decisions (5 of 7)

Price Decision

Everyday low pricing (E D L P) involves charging constant, everyday low prices and offering few sales or discounts.

High-low pricing involves charging higher prices on an everyday basis, coupled with frequent sales and other price promotions.

Retailer Marketing Decisions (6 of 7)

Promotion Decision

• Advertising • Personal selling • Sales promotion • Public relations • Direct marketing

Retailer Marketing Decisions (7 of 7)

Place Decision

Central business districts are located in cities and include department and specialty stores, banks, and movie theaters. A shopping center is a group of retail businesses planned, developed, owned, and managed as a unit.

Learning Objective 4 Discuss the major trends and developments in retailing.

Retailing Trends and Developments (1 of 6) Tighter Consumer spending

• Changed consumer spending patterns

• Some retailers benefit • Other retailers have tough times

Value positioning: To attract today’s more value-oriented consumers, T G I Friday offers Fridays 5, “a selection of delicious drinks and appetizers, all for $5 each… whenever you want.”.

Retailing Trends and Developments (2 of 6)

New Retail Forms, Shortening Retail Life Cycles, and Retail Convergence

Retail convergence involves the merging of consumers, producers, prices, and retailers, creating greater competition for retailers and greater difficulty differentiating offerings.

Retailing Trends and Developments (3 of 6)

The Rise of Megaretailers

The rise of megaretailers involves the rise of mass merchandisers and specialty superstores, the formation of vertical marketing systems, and a rash of retail mergers and acquisitions.

• Superior information systems

• Buying power

• Large selection

Retailing Trends and Developments (4 of 6) Growing Importance of Retail Technology

Retail technology provides better forecasts, inventory control, electronic ordering, transfer of information, scanning, online transaction processing, improved merchandise handling systems, and the ability to connect with customers.

Retail technology: “If you want to glimpse the future of retail, check out an Amazon Go store.”

Retailing Trends and Developments (5 of 6) Green Retailing

Environmentally Sustainable Practices • Store design, construction, operations • Product assortment • Recycling made easier • Package and distribution

Retailing Trends and Developments (6 of 6) Global Expansion of Major Retailers

• Retailers with unique formats and strong brands in other countries

• U.S. behind Asian and European companies in global expansion

• Challenges in meeting needs of local markets

Learning Objective 5 Explain the major types of wholesalers and their marketing decisions.

Wholesaling (1 of 15)

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

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

Wholesaling (2 of 15)

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

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

Wholesaling (3 of 15)

Selling and promoting involves the wholesaler’s sales force helping the manufacturer reach many small customers at a low cost.

Buying and assortment building involves the selection of items and building of assortments needed by customers, saving the customers work.

Wholesaling (4 of 15)

Bulk breaking involves the wholesaler buying in large quantities and breaking into smaller lots for customers.

Warehousing involves the wholesaler holding inventory, reducing its customers’ inventory cost and risk.

Wholesaling (5 of 15)

Transportation involves the wholesaler providing quick delivery due to its proximity to the buyer.

Financing involves the wholesaler providing credit and financing suppliers by ordering early and paying on time.

Wholesaling (6 of 15)

Risk bearing involves the wholesaler absorbing risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.

Market information involves the wholesaler providing information to suppliers and customers about competitors, new products, and price developments.

Wholesaling (7 of 15)

Management services and advice involves wholesalers helping retailers train their sales clerks, improve store layouts, and set up accounting and inventory control systems.

Wholesaling: Many of the nation’s largest and most important wholesalers—like Grainger—are largely unknown to final consumers. But they are very well known and much valued by the business customers they serve.

Wholesaling (8 of 15)

Types of Wholesalers

• Merchant wholesalers

• Brokers and agents

• Manufacturers’ and retailers’ branches and offices

Wholesaling (9 of 15)

Types of Wholesalers

Merchant wholesalers are the largest group of wholesalers and include:

• Full-service wholesalers that provide a full set of services

• Limited service wholesalers that provide few services and specialized functions

Wholesaling (10 of 15)

Types of Wholesalers

Brokers and agents do not take title, perform a few functions, and specialize by product line or customer type.

• Brokers bring buyers and sellers together and assist in negotiations.

• Agents represent buyers or sellers.

Wholesaling (11 of 15)

Types of Wholesalers

Manufacturers’ and retailers’ branches and offices are a form of wholesaling by sellers or buyers themselves, rather than through independent wholesalers.

Wholesaling (12 of 15)

Figure 13.2 Wholesaler Marketing Strategies

Wholesaling (13 of 15)

Wholesaler Marketing Decisions

Segmentation, targeting, differentiation, positioning decisions: • Size of customer • Type of customer • Need for service

Wholesaling (14 of 15)

Wholesaler Marketing Decisions

Marketing mix decisions • Product • Price • Promotion • Place

Wholesaling (15 of 15)

Trends In Wholesaling

• Need for greater efficiency • Value-adding customer relationships • Increase in customer demand for services • Increase in use of technology to boost productivity

This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials.

Kotler_pom18_ppt_13.ppt2.pdf

Principles of Marketing Eighteenth Edition

Chapter 13 Retailing and Wholesaling

build its omni-channel capabilities to better serve today’s mobile-first, omni- channel consumers.

Learning Objectives 13.1 Explain the role of retailers in the distribution channel

and describe the major types of retailers.

13.2 Discuss how retailers are using omni-channel retailing to meet the cross-channel shopping behavior of today’s digitally connected consumers.

13.3 Describe the major retailer marketing decisions.

13.4 Discuss the major trends and developments in retailing.

13.5 Explain the major types of wholesalers and their marketing decisions.

Learning Objective 1 Explain the role of retailers in the distribution channel and describe the major types of retailers.

Retailing (1 of 2)

Retailing includes all the activities in selling products or services directly to final consumers for their personal, nonbusiness use.

Retailers are businesses whose sales come primarily from retailing.

Shopper Marketing focuses the entire marketing process on turning shoppers into buyers as they approach the point of sale, whether during in-store, online, or mobile shopping.

Retailing (2 of 2)

Omni-channel retailing creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping, creating a single shopping experience.

Types of Retailers (1 of 8)

Amount of Service Classifications

• Self-service • Limited service • Full service

Types of Retailers (2 of 8)

Product Line Classifications

• Specialty stores • Department stores • Convenience stores • Superstores • Category killers

Types of Retailers (3 of 8)

Relative Price Characteristics

• Discount stores • Off-price retailers • Factory outlets • Warehouse clubs

Types of Retailers (4 of 8)

Table 13.2 Major Types of Retail Organizations

Type Description Examples

Corporate chain

Macy’s (department stores), Target (discount stores), Kroger (grocery stores), CVS (drugstores)

Voluntary chain

Wholesaler-sponsored group of independent retailers engaged in group buying and merchandising.

Independent Grocers Alliance (IGA), Western Auto (auto supply), True Value (hardware)

Retailer cooperative

Group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

Associated Grocers (groceries), Ace Hardware (hardware)

Franchise organization

McDonald’s, Subway, Pizza Hut, Jiffy Lube, Meineke Mufflers, 7-Eleven

Types of Retailers (5 of 8)

Organizational Approach

Corporate chains are two or more outlets that are commonly owned and controlled.

• Size allows them to buy in large quantities at lower prices and gain promotional economies

– Macy’s – C V S

Types of Retailers (6 of 8)

Organizational Approach

Voluntary chains are wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising. • IGA • Western Auto • True Value

Types of Retailers (7 of 8)

Organizational Approach

Types of Retailers (8 of 8)

Organizational Approach

Franchising covers a lot more than just burger joints and fitness centers. Century 21 consists of over 127,000 independent agents working in more than 9,400 franchise offices in 80 countries.

Learning Objective 2 Discuss how retailers are using omni-channel retailing to meet the cross-channel shopping behavior of today’s digitally connected consumers.

Omni-Channel Retailing The key to omni-channel retailing is to integrate channels for a seamless buying experience.

Omni-channel retailing: Used-car giant CarMax makes the entire used-car buying experience simple and seamless across its digital and store shopping channels.

Learning Objective 3 Describe the major retailer marketing decisions.

Retailer Marketing Decisions (1 of 7)

Figure 13.1 Retailer Marketing Strategies

Retailer Marketing Decisions (2 of 7)

Retailer Marketing Decisions (3 of 7)

Major product variables: • Product assortment • Services mix • Store atmosphere

Retailer Marketing Decisions (4 of 7)

Price Decision

Price policy must fit the target market and positioning, product and service assortment, competition, and economic factors. • High markup on lower volume • Low markup on higher volume

Retailer Marketing Decisions (5 of 7)

Price Decision

Everyday low pricing (E D L P) involves charging constant, everyday low prices and offering few sales or discounts.

High-low pricing involves charging higher prices on an everyday basis, coupled with frequent sales and other price promotions.

Retailer Marketing Decisions (6 of 7)

Promotion Decision

• Advertising • Personal selling • Sales promotion • Public relations • Direct marketing

Retailer Marketing Decisions (7 of 7)

Place Decision

Learning Objective 4 Discuss the major trends and developments in retailing.

Retailing Trends and Developments (1 of 6) Tighter Consumer spending

• Changed consumer spending patterns

• Some retailers benefit • Other retailers have tough times

Value positioning: To attract today’s more value-oriented consumers, T G I Friday offers Fridays 5, “a selection of delicious drinks and appetizers, all for $5 each… whenever you want.”.

Retailing Trends and Developments (2 of 6)

New Retail Forms, Shortening Retail Life Cycles, and Retail Convergence

Retail convergence involves the merging of consumers, producers, prices, and retailers, creating greater competition for retailers and greater difficulty differentiating offerings.

Retailing Trends and Developments (3 of 6)

The Rise of Megaretailers

The rise of megaretailers involves the rise of mass merchandisers and specialty superstores, the formation of vertical marketing systems, and a rash of retail mergers and acquisitions.

• Superior information systems

• Buying power

• Large selection

Retailing Trends and Developments (4 of 6) Growing Importance of Retail Technology

Retail technology: “If you want to glimpse the future of retail, check out an Amazon Go store.”

Retailing Trends and Developments (5 of 6) Green Retailing

Environmentally Sustainable Practices • Store design, construction, operations • Product assortment • Recycling made easier • Package and distribution

Retailing Trends and Developments (6 of 6) Global Expansion of Major Retailers

• Retailers with unique formats and strong brands in other countries

• U.S. behind Asian and European companies in global expansion

• Challenges in meeting needs of local markets

Learning Objective 5 Explain the major types of wholesalers and their marketing decisions.

Wholesaling (1 of 15)

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

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

Wholesaling (2 of 15)

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

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

Wholesaling (3 of 15)

Selling and promoting involves the wholesaler’s sales force helping the manufacturer reach many small customers at a low cost.

Buying and assortment building involves the selection of items and building of assortments needed by customers, saving the customers work.

Wholesaling (4 of 15)

Bulk breaking involves the wholesaler buying in large quantities and breaking into smaller lots for customers.

Warehousing involves the wholesaler holding inventory, reducing its customers’ inventory cost and risk.

Wholesaling (5 of 15)

Transportation involves the wholesaler providing quick delivery due to its proximity to the buyer.

Financing involves the wholesaler providing credit and financing suppliers by ordering early and paying on time.

Wholesaling (6 of 15)

Risk bearing involves the wholesaler absorbing risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.

Market information involves the wholesaler providing information to suppliers and customers about competitors, new products, and price developments.

Wholesaling (7 of 15)

Management services and advice involves wholesalers helping retailers train their sales clerks, improve store layouts, and set up accounting and inventory control systems.

Wholesaling (8 of 15)

Types of Wholesalers

• Merchant wholesalers

• Brokers and agents

• Manufacturers’ and retailers’ branches and offices

Wholesaling (9 of 15)

Types of Wholesalers

Merchant wholesalers are the largest group of wholesalers and include:

• Full-service wholesalers that provide a full set of services

• Limited service wholesalers that provide few services and specialized functions

Wholesaling (10 of 15)

Types of Wholesalers

Brokers and agents do not take title, perform a few functions, and specialize by product line or customer type.

• Brokers bring buyers and sellers together and assist in negotiations.

• Agents represent buyers or sellers.

Wholesaling (11 of 15)

Types of Wholesalers

Manufacturers’ and retailers’ branches and offices are a form of wholesaling by sellers or buyers themselves, rather than through independent wholesalers.

Wholesaling (12 of 15)

Figure 13.2 Wholesaler Marketing Strategies

Wholesaling (13 of 15)

Wholesaler Marketing Decisions

Segmentation, targeting, differentiation, positioning decisions: • Size of customer • Type of customer • Need for service

Wholesaling (14 of 15)

Wholesaler Marketing Decisions

Marketing mix decisions • Product • Price • Promotion • Place

Wholesaling (15 of 15)

Trends In Wholesaling

• Need for greater efficiency • Value-adding customer relationships • Increase in customer demand for services • Increase in use of technology to boost productivity

Kotler_pom18_ppt_13.ppt2.pdf

Principles of Marketing Eighteenth Edition

Chapter 13 Retailing and Wholesaling

build its omni-channel capabilities to better serve today’s mobile-first, omni- channel consumers.

Learning Objectives 13.1 Explain the role of retailers in the distribution channel

and describe the major types of retailers.

13.2 Discuss how retailers are using omni-channel retailing to meet the cross-channel shopping behavior of today’s digitally connected consumers.

13.3 Describe the major retailer marketing decisions.

13.4 Discuss the major trends and developments in retailing.

13.5 Explain the major types of wholesalers and their marketing decisions.

Learning Objective 1 Explain the role of retailers in the distribution channel and describe the major types of retailers.

Retailing (1 of 2)

Retailing includes all the activities in selling products or services directly to final consumers for their personal, nonbusiness use.

Retailers are businesses whose sales come primarily from retailing.

Shopper Marketing focuses the entire marketing process on turning shoppers into buyers as they approach the point of sale, whether during in-store, online, or mobile shopping.

Retailing (2 of 2)

Omni-channel retailing creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping, creating a single shopping experience.

Types of Retailers (1 of 8)

Amount of Service Classifications

• Self-service • Limited service • Full service

Types of Retailers (2 of 8)

Product Line Classifications

• Specialty stores • Department stores • Convenience stores • Superstores • Category killers

Types of Retailers (3 of 8)

Relative Price Characteristics

• Discount stores • Off-price retailers • Factory outlets • Warehouse clubs

Types of Retailers (4 of 8)

Table 13.2 Major Types of Retail Organizations

Type Description Examples

Corporate chain

Macy’s (department stores), Target (discount stores), Kroger (grocery stores), CVS (drugstores)

Voluntary chain

Wholesaler-sponsored group of independent retailers engaged in group buying and merchandising.

Independent Grocers Alliance (IGA), Western Auto (auto supply), True Value (hardware)

Retailer cooperative

Group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

Associated Grocers (groceries), Ace Hardware (hardware)

Franchise organization

McDonald’s, Subway, Pizza Hut, Jiffy Lube, Meineke Mufflers, 7-Eleven

Types of Retailers (5 of 8)

Organizational Approach

Corporate chains are two or more outlets that are commonly owned and controlled.

• Size allows them to buy in large quantities at lower prices and gain promotional economies

– Macy’s – C V S

Types of Retailers (6 of 8)

Organizational Approach

Voluntary chains are wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising. • IGA • Western Auto • True Value

Types of Retailers (7 of 8)

Organizational Approach

Types of Retailers (8 of 8)

Organizational Approach

Franchising covers a lot more than just burger joints and fitness centers. Century 21 consists of over 127,000 independent agents working in more than 9,400 franchise offices in 80 countries.

Learning Objective 2 Discuss how retailers are using omni-channel retailing to meet the cross-channel shopping behavior of today’s digitally connected consumers.

Omni-Channel Retailing The key to omni-channel retailing is to integrate channels for a seamless buying experience.

Omni-channel retailing: Used-car giant CarMax makes the entire used-car buying experience simple and seamless across its digital and store shopping channels.

Learning Objective 3 Describe the major retailer marketing decisions.

Retailer Marketing Decisions (1 of 7)

Figure 13.1 Retailer Marketing Strategies

Retailer Marketing Decisions (2 of 7)

Retailer Marketing Decisions (3 of 7)

Major product variables: • Product assortment • Services mix • Store atmosphere

Retailer Marketing Decisions (4 of 7)

Price Decision

Price policy must fit the target market and positioning, product and service assortment, competition, and economic factors. • High markup on lower volume • Low markup on higher volume

Retailer Marketing Decisions (5 of 7)

Price Decision

Everyday low pricing (E D L P) involves charging constant, everyday low prices and offering few sales or discounts.

High-low pricing involves charging higher prices on an everyday basis, coupled with frequent sales and other price promotions.

Retailer Marketing Decisions (6 of 7)

Promotion Decision

• Advertising • Personal selling • Sales promotion • Public relations • Direct marketing

Retailer Marketing Decisions (7 of 7)

Place Decision

Learning Objective 4 Discuss the major trends and developments in retailing.

Retailing Trends and Developments (1 of 6) Tighter Consumer spending

• Changed consumer spending patterns

• Some retailers benefit • Other retailers have tough times

Value positioning: To attract today’s more value-oriented consumers, T G I Friday offers Fridays 5, “a selection of delicious drinks and appetizers, all for $5 each… whenever you want.”.

Retailing Trends and Developments (2 of 6)

New Retail Forms, Shortening Retail Life Cycles, and Retail Convergence

Retail convergence involves the merging of consumers, producers, prices, and retailers, creating greater competition for retailers and greater difficulty differentiating offerings.

Retailing Trends and Developments (3 of 6)

The Rise of Megaretailers

The rise of megaretailers involves the rise of mass merchandisers and specialty superstores, the formation of vertical marketing systems, and a rash of retail mergers and acquisitions.

• Superior information systems

• Buying power

• Large selection

Retailing Trends and Developments (4 of 6) Growing Importance of Retail Technology

Retail technology: “If you want to glimpse the future of retail, check out an Amazon Go store.”

Retailing Trends and Developments (5 of 6) Green Retailing

Environmentally Sustainable Practices • Store design, construction, operations • Product assortment • Recycling made easier • Package and distribution

Retailing Trends and Developments (6 of 6) Global Expansion of Major Retailers

• Retailers with unique formats and strong brands in other countries

• U.S. behind Asian and European companies in global expansion

• Challenges in meeting needs of local markets

Learning Objective 5 Explain the major types of wholesalers and their marketing decisions.

Wholesaling (1 of 15)

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

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

Wholesaling (2 of 15)

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

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

Wholesaling (3 of 15)

Selling and promoting involves the wholesaler’s sales force helping the manufacturer reach many small customers at a low cost.

Buying and assortment building involves the selection of items and building of assortments needed by customers, saving the customers work.

Wholesaling (4 of 15)

Bulk breaking involves the wholesaler buying in large quantities and breaking into smaller lots for customers.

Warehousing involves the wholesaler holding inventory, reducing its customers’ inventory cost and risk.

Wholesaling (5 of 15)

Transportation involves the wholesaler providing quick delivery due to its proximity to the buyer.

Financing involves the wholesaler providing credit and financing suppliers by ordering early and paying on time.

Wholesaling (6 of 15)

Risk bearing involves the wholesaler absorbing risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.

Market information involves the wholesaler providing information to suppliers and customers about competitors, new products, and price developments.

Wholesaling (7 of 15)

Management services and advice involves wholesalers helping retailers train their sales clerks, improve store layouts, and set up accounting and inventory control systems.

Wholesaling (8 of 15)

Types of Wholesalers

• Merchant wholesalers

• Brokers and agents

• Manufacturers’ and retailers’ branches and offices

Wholesaling (9 of 15)

Types of Wholesalers

Merchant wholesalers are the largest group of wholesalers and include:

• Full-service wholesalers that provide a full set of services

• Limited service wholesalers that provide few services and specialized functions

Wholesaling (10 of 15)

Types of Wholesalers

Brokers and agents do not take title, perform a few functions, and specialize by product line or customer type.

• Brokers bring buyers and sellers together and assist in negotiations.

• Agents represent buyers or sellers.

Wholesaling (11 of 15)

Types of Wholesalers

Manufacturers’ and retailers’ branches and offices are a form of wholesaling by sellers or buyers themselves, rather than through independent wholesalers.

Wholesaling (12 of 15)

Figure 13.2 Wholesaler Marketing Strategies

Wholesaling (13 of 15)

Wholesaler Marketing Decisions

Segmentation, targeting, differentiation, positioning decisions: • Size of customer • Type of customer • Need for service

Wholesaling (14 of 15)

Wholesaler Marketing Decisions

Marketing mix decisions • Product • Price • Promotion • Place

Wholesaling (15 of 15)

Trends In Wholesaling

• Need for greater efficiency • Value-adding customer relationships • Increase in customer demand for services • Increase in use of technology to boost productivity

other Questions(10)