* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Chapter 11 slides
Sales process engineering wikipedia , lookup
Pricing science wikipedia , lookup
Price discrimination wikipedia , lookup
Food marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Ambush marketing wikipedia , lookup
Marketing research wikipedia , lookup
Neuromarketing wikipedia , lookup
Service parts pricing wikipedia , lookup
Target audience wikipedia , lookup
Marketplace Fairness Act wikipedia , lookup
Youth marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Pricing strategies wikipedia , lookup
Viral marketing wikipedia , lookup
Black Friday (shopping) wikipedia , lookup
Marketing plan wikipedia , lookup
Grocery store wikipedia , lookup
Product planning wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Montgomery Ward wikipedia , lookup
Digital marketing wikipedia , lookup
Direct marketing wikipedia , lookup
Multicultural marketing wikipedia , lookup
Target market wikipedia , lookup
Marketing strategy wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Green marketing wikipedia , lookup
Street marketing wikipedia , lookup
Global marketing wikipedia , lookup
Online shopping wikipedia , lookup
Services marketing wikipedia , lookup
Sensory branding wikipedia , lookup
Retailing and Wholesaling Chapter 11 Rest Stop: Previewing the Concepts • • • • Explain the roles of retailers in the distribution channel and describe the major types of retailers Describe the major retailer marketing decisions Discuss the major trends and developments in retailing Explain the major types of wholesalers and their marketing decisions 11 - 2 First Stop: Walmart: The World’s Largest Retailer • Dedicated to its long-time, low-price value proposition: “Save money. Live better” • Low costs let the retailer charge lower prices but still reap higher profits • Keeps costs down through: • Superior management and sophisticated technology • Getting the best prices from suppliers 11 - 3 Retailing • All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use Retailer • A business whose sales come primarily from retailing 11 - 4 Shopper Marketing • Using point-of-sale promotions and advertising to extend brand equity to “the last mile” and encourage favorable in-store purchase decisions Shopper marketing: Influencing consumers’ buying decisions as they shop now involves efforts aimed at in-store, online, and mobile shopping 11 - 5 Types of Retailers • The different types of retailers can be classified based on: • • • • Amount of service they offer Breadth and depth of product lines Relative prices charged The way they are organized 11 - 6 Types of Retailers: Amount of Service Serve customers who are willing to Self-service perform their own locate-compare-select retailers process Limitedservice retailers Provide more sales assistance as they carry shopping goods about which details are needed Usually carry more specialty goods for Full-service which customers need or want retailers assistance or advice 11 - 7 Types of Retailers: Product Line Specialty stores A retail store that carries a narrow product line with a deep assortment within that line A retail store that carries a wide variety of Department product lines, each operated as a separate department managed by specialist buyers or stores merchandisers A large, low-cost, low-margin, high-volume, selfSupermarkets service store that carries a wide variety of grocery and household products 11 - 8 Kroger, America’s Largest Grocery-Only Retailer Thanks to customer-focused pricing, Kroger’s sales and market share gains have been the best in the industry despite a sagging economy 11 - 9 Types of Retailers: Product Line Convenience store A small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods Superstore A store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, non-food items, and services Category killer Service retailer A giant specialty store that carries a very deep assortment of a particular line A retailer whose product line is actually a service; examples include hotels, airlines, banks, colleges, and many others 11 - 10 Convenience Stores Sheetz positions itself as more than just a convenience store Driven by its Total Customer Focus mission and the motto, “Feel the Love,” Sheetz aims to provide “convenience without compromise” 11 - 11 Types of Retailers: Relative Prices Discount stores: Sell standard merchandise at lower prices and margins, in return for higher volume Off-price Buy merchandise at less-than-regular retailers: wholesale prices sells at less than retail 11 - 12 Types of Off-Price Retailers Factory outlet • An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer’s surplus, discontinued, or irregular goods Warehouse club • An off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees Marketing at Work • Dollar General aims to save customers time and money • Smaller stores cost less to operate, and locating them in and less glamorous areas keeps real estate costs down Discounter Dollar General, the nation’s largest small-box discount retailer, makes a powerful value promise for the times: “Save time. Save money. Every day” 11 - 14 Types of Retailers: Organizational Approach Corporate chains • Two or more outlets that are commonly owned and controlled Voluntary chains • Wholesaler-sponsored group of independent retailers that engage in group buying and common merchandising 11 - 15 Types of Retailers: Organizational Approach Franchising • A contractual association between a manufacturer, wholesaler, or service organization (a franchisor) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system Franchise These days, it’s nearly impossible to stroll down a city block or drive on a suburban street without seeing an abundance of franchise businesses Figure 11.1 - Retailer Marketing Strategies 11 - 18 Retailer Marketing Decisions • • • • Segmentation Targeting Store differentiation Positioning 11 - 19 Retail Targeting and Positioning By positioning itself strongly away from Wal-Mart and other discounters, Whole Foods has made itself one of the nation’s fastest-growing and more profitable food retailers Whole Foods Market focuses on selling high-quality natural and organic foods 11 - 20 Retailer Marketing Decisions • Retailer marketing mix: • • • • Product and service assortment Retail prices Promotion Distribution (location) • Retail strategy and retail marketing mix must combine to create value for targeted retail customers 11 - 21 Retailer Marketing mis • Retail marketing mix: • Product assortment should differentiate the retailer while matching target shoppers’ expectations • Services mix can help differentiate one retailer from another • Store atmosphere is important as a unique store experience can move customers to buy • Experiential retailing is growing in popularity 11 - 22 Store Atmosphere The Cabella’s “experience” has made it a tourist destination 11 - 23 Price Decisions • Price policy must fit with the target market and positioning, product and service assortment, competition, and economic factors • Price promotions and EDLP • High-low pricing 11 - 24 Pricing for the Target Segment Bergdorf Goodman caters to the upper crust with prices to match 11 - 25 Retailer Marketing Decisions • Promotion decisions: • Retailers can use any or all of the promotion tools—advertising, personal selling, sales promotion, public relations, and direct marketing—to reach consumers 11 - 26 Distributio • Location is the key to success • Retailers can locate in: • Central business districts • Regional shopping centers • Community shopping centers • Strip malls (neighborhood shopping center) • Power centers • Lifestyle centers 11 - 27 Shopping Centers Today Today’s shopping centers are more about creating places to be rather than just places to buy 11 - 28 Retail Trends & Developments • • • • • • New retail forms, shortening retail life cycles, and retail convergence Rise of megaretailers Growth of direct and online retailing Growing importance of retail technology Green retailing Global expansion of major retailers 11 - 29 Online Retailing The Internet has spawned a whole new breed of shoppers – people who just can’t buy anything unless they first look it up online and get the lowdown 11 - 30 Retail Technology Stop & Shop uses technology to make shopping faster and more convenient for customers 11 - 31 Green Retailing McDonald’s new eco-friendly restaurants are designed from the bottom up with a whole new eco-attitude 11 - 32 Fuel for Thought • Many retail stores are becoming “communities” or “hangouts” either in the brick-and-mortar or virtual worlds What can retailers do to make their brick-andmortar stores “community friendly”? Are there circumstances in which it would be undesirable to encourage patrons to “hangout”? Explain. 11 - 33 Wholesaling • All activities involved in selling goods and services to those buying for resale or business use 11 - 34 Wholesaling Many of the nation’s largest and most important wholesalers—like Grainger— are largely unknown to final consumers Grainger offers more than 900,000 maintenance, repair, and operating (MRO) items to over 1.8 million customers Grainger’s value proposition is simple: to make it easier and less costly for buyers to purchase MRO items 11 - 35 Functions Wholesalers Perform • • • • • • • Selling and promoting Buying and assortment building Bulk-breaking Warehousing Transportation Financing Risk bearing 11 - 36 Types of Wholesalers • Merchant wholesaler: An independently owned wholesale business that takes title to the merchandise it handles • Largest group of wholesalers • Account for 50% of wholesaling • Two broad categories: • Full-service wholesalers • Limited-service wholesalers 11 - 37 Types of Wholesalers: Brokers • Brokers and agents: • Do not take title to goods • Perform only a few functions • Specialize by product line or customer type • Brokers bring buyers and sellers together • Agents represent buyers on a more permanent basis • Manufacturers’ agents are the most common type of agent wholesaler 11 - 38 Types of Wholesalers • Manufacturers’ sales branches and offices: • Involves wholesaling by sellers or buyers themselves rather than through independent wholesalers 11 - 39 Figure 11.2 - Wholesaler Marketing Strategies 11 - 40 Wholesaler Marketing Decisions • Wholesaler strategy: • Segmentation, targeting, differentiation, and positioning • Wholesaler marketing mix: • • • • Product assortment and services Price Promotion Distribution (location) 11 - 41 Trends in Wholesaling • Need for ever greater efficiency • Demands for lower prices • Winnowing out of suppliers who are not adding value based on cost and quality • Blurring distinction between large retailers and wholesalers 11 - 42 Trends in Wholesaling • The tight economy and the demand for increased services have put the squeeze on wholesaler profits • Wholesalers have to find efficient ways to deliver value to customers to stay in the race • Increased use of computerized, automated, and Internet-based systems will help wholesalers contain their costs 11 - 43 Marketing in Action Pharmaceutical wholesaler McKesson helps its retail pharmacist customers to be more efficient by offering a wide range of online resources 11 - 44 Rest Stop: Reviewing the Concepts • Explain the roles of retailers in the distribution channel and describe the major types of retailers • Describe the major retailer marketing decisions • Discuss the major trends and developments in retailing • Explain the major types of wholesalers and their marketing decisions 11 - 45 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11 - 46