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MANAGING YOUR
RETAILERS
Advanced Marketing
Management
Marketing 6202
Managing Your Retailers
STRATEGY
 Push vs Pull Strategy
PULL
Manufacturer
Retailer
Consumer
PUSH
 Retailers are the focus of a Push
strategy, bypassed in a Pull strategy
Managing Your Retailers
WHAT RETAILERS DO FOR
YOU
 Distribution
 Shelf Space
 Quantity
 Quality
 Retail Price Discounts
 Cooperative Advertising
 Displays
Managing Your Retailers
RETAILER DIFFERENCES
SMALL
MEDIUM
LARGE
Most Independent Drug
Most Grocery
Most Mass Merch
Most Convenience
Most Chain Drug
Most Wholesale
“Mom and Pop” Grocery
Some Mass Merch
Some Grocery & Drug
Smallest orders
Medium orders
Larger orders
Value merchandising
support
Value turnover and
allowances, some
merchandising
support
Focus on turnover
and allowances
Managing Your Retailers
MARKETING MIX
Your marketing mix decisions affect
retailers’ incentive to “push” your products
Manufacturer
Retailer
 PRICE
Margins
 PROMOTION
Merchandising
 Place
Turnover
 Product
Demand
Managing Your Retailers
PRICE
 Suggested Retail Price – affects
demand and retailer margins
 Volume Discount – affects retailer
margins
 Promotional Allowance – performance
includes price reduction
Managing Your Retailers
TRADE PROMOTIONS
Product Sales
 Promotion Allowance
 Co-op Advertising
 Point of Purchase
Promo Allowance?
Point of Purchase?
Co-op Ad?
Promotional Spending
Managing Your Retailers
SALES FORCE
 Number and distribution of sales people
affects retailer response
 Merchandisers are valued differentially by
Channel Sales
different retailers
 Detailers only affect retailers by stimulating
demand
Merchandisers
Distribution Channel A
Distribution Channel B
Sales Force
Managing Your Retailers
MEASURING SUCCESS
 Trade Rating - Product Promotion
Report
 % Participation - Product Promotion
Report
 Sales - Income Statement and Product
Contribution Reports
 Income - Income Statement
Managing Your Retailers
OTHER INFORMATION
 How are trade promotions affecting my
costs? - Product Contribution Reports
 What are my competitors doing? - Sales
Force Report; Promotion Report;
Operating Statistics
 How are my competitors doing? Operating Statistics; Shelf Space Reports
 What are the distribution trends? Channel Share Report; Marketing Update
Managing Your Retailers
SUMMARY
Marketing mix decisions affect not
only consumers but retailers as well:
Margins
 Turnover
Merchandising
 Demand
Provide retailers with incentives to
“push” your product to consumers