Download 12-4 Marketing: An Introduction Types of Retailers

Marketing: An Introduction
Retailing and Wholesaling
•Chapter Twelve
•Lecture Slides
–Express Version
•Course
•Professor
•Date
Marketing: An Introduction
Looking Ahead
• After studying this chapter you should
be able to:
• 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
12-2
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Types of Retailers
• Amount of service
– Self-service retailers
– Limited-service retailers
– Full-service retailers
• Product line
– Specialty stores
• Narrow product line, deep assortment
– Department stores
• Wide variety of product lines
– Supermarkets
• Wide variety of food, laundry, household products
– Convenience stores
• Limited line of high-turnover goods
– Superstores
• Large assortment of food and non-food items
12-3
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Types of Retailers (continued)
– Category killer
• Big box specialty store
– Service retailers
• Provide services rather than tangible goods
• Relative prices
– Discount stores
– Off-price retailers
• Independents
• Factory outlets
• Warehouse clubs
• Retail organization
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12-4
Corporate chains
Voluntary chain
Retailer cooperative
Franchise organizations
Merchandising conglomerates
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Franchising Systems
• Characteristics of a franchise system
– The franchiser owns the trademark and licenses it for
a fee to franchisees
– The franchisee pays to belong to the system
– The franchiser provides a packaged system for
marketing and operations
• Pro:
– Turn-key system for entrepreneur
– National support for promotions
– Rapid expansion for franchiser using other people’s
money and risk
– Recognized name equals instant business
• Con:
– You get what you pay for
– Owner has less freedom in decision making
– Contracts can be one-sided and difficult to break
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©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Retailer Marketing Decisions
Retailer
Strategy
Target
market
Retailer
marketing mix
Product/service
assortment
Prices
Retail store
positioning
Promotion
Place (location)
12-6
©Copyright 2004, Pearson Education Canada Inc.
Figure 12-1
Marketing: An Introduction
Future of Retailing
• Wheel of retailing concept
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New retailers begin as low margin, low price
Become popular by offering alternative
Later evolve by adding service and better goods
Become the higher priced, higher margin retailers they
first replaced
• Growth of non-store retailing
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Direct mail
Catalogues
Telephone shopping
TV Shopping shows
E-commerce via the Internet
Home and office parties
Door-to-door personal selling
• Importance of technology
12-7
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Functions of Wholesalers
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Selling and promoting
Buying and assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management services and advice
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Types of Wholesalers
• Merchant wholesalers
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Full-service wholesalers
Wholesale merchants
Industrial distributors
Limited-service wholesalers
Cash and carry wholesalers
Truck wholesalers (truck jobbers)
Drop shippers
Rack jobbers
Producers’ cooperatives
Mail-order wholesalers
• Agents and brokers
– Brokers
– Agents
– Manufacturers’ agents
12-9
©Copyright 2004, Pearson Education Canada Inc.
continued
Marketing: An Introduction
Types of Wholesalers (continued)
– Selling agents
– Purchasing agents
– Commission merchants
• Manufacturer’s sales branches & offices
– Sales branches
– Sales offices
– Purchasing offices
Wholesaler Strategy
Wholesaler
marketing mix
Target market
Product/service
assortment
Prices
Promotion
Place (location)
Service positioning
12-10
©Copyright 2004, Pearson Education Canada Inc.
Figure 12-2
Marketing: An Introduction
Looking Back
• Retailer and wholesaler
roles in distribution
channel
• Types of retailers
• Types of wholesalers
• Marketing decisions
required by retailers
and wholesalers
12-11
©Copyright 2004, Pearson Education Canada Inc.