Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
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 with $4 billion in sales vs. 5000 stores and sales of $285 billion for Wal-Mart. Offers organic, natural, and gourmet foods. Positions itself AWAY from Wal-Mart: “Whole Foods, Whole People, Whole Planet.” Web site reinforces the company’s positioning. Caters to health conscious, affluent, liberal, educated consumer base. Both in-store and online shopping is a customer experience. Cares about employees, customers, & community. Copyright 2007, Prentice Hall, Inc. 11-3 What Is Retailing? Retailing: – includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. Most retailing is done by retailers, but nonstore retailing has recently grown by leaps and bounds. Copyright 2007, Prentice Hall, Inc. 11-4 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 Copyright 2007, Prentice Hall, Inc. 11-5 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.” Copyright 2007, Prentice Hall, Inc. 11-6 Major Store Retailer Types Specialty stores Department stores Supermarkets – Category Killers Convenience stores Discount stores Off-price retailers Superstores Copyright 2007, Prentice Hall, Inc. 11-7 Relative Prices Classification Discount stores Off-price retailers – Independent off-price retailers – Factory outlets • Factory outlet malls • Value-retail centers – Warehouse club Copyright 2007, Prentice Hall, Inc. 11-8 Organizational Classification Corporate chain stores Voluntary chain Retailer cooperative Franchise Merchandising conglomerates Copyright 2007, Prentice Hall, Inc. 11-9 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. Copyright 2007, Prentice Hall, Inc. 11-10 Retailer Marketing Decisions Retailer Marketing Mix: – Product assortment and services – Price – Promotion – Place (location) Copyright 2007, Prentice Hall, Inc. 11-11 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 Copyright 2007, Prentice Hall, Inc. 11-12 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. Copyright 2007, Prentice Hall, Inc. 11-13 Place Decisions Retailers can locate in central business districts, various types of shopping centers, strip malls, or power centers. Location is key to success. Copyright 2007, Prentice Hall, Inc. 11-14 The Future of Retailing 1. 2. 3. 4. New Retail Forms and Shortening Retail Life Cycles Growth of Nonstore Retailing Retail Convergence Rise of the Megaretailers Copyright 2007, Prentice Hall, Inc. 5. Growing Importance of Retail Technology 6. Global Expansion of Major Retailers 7. Retail Stores as “Communities” or “Hangouts” 11-15 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. Copyright 2007, Prentice Hall, Inc. 11-16 Functions Provided by Wholesalers Selling and promoting Buying and assortment building Bulk-breaking Warehousing Transportation Copyright 2007, Prentice Hall, Inc. Financing Risk bearing Market information Management services and advice 11-17 Types of Wholesalers Merchant Wholesalers – Largest group of wholesalers – Account for 50% of wholesaling – Two broad categories: • Full-service wholesalers • Limited-service wholesalers Copyright 2007, Prentice Hall, Inc. 11-18 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 Copyright 2007, Prentice Hall, Inc. 11-19 Types of Wholesalers Manufacturers’ Sales Branches and Offices – Wholesaling by sellers or buyers themselves rather than through independent wholesalers. Copyright 2007, Prentice Hall, Inc. 11-20 Wholesaler Marketing Decisions Wholesaler Strategy: – Target market – Service positioning Wholesaler Marketing Mix: – Product assortment and services – Price – Promotion – Place (location) Copyright 2007, Prentice Hall, Inc. 11-21 Trends in Wholesaling Fierce resistance to price increases. Winnowing out of suppliers who are not adding value based on cost and quality. Distinction between large retailers and wholesalers is blurry. Will continue to increase the services provided to retailers. Wholesalers are now going global. Copyright 2007, Prentice Hall, Inc. 11-22 Rest Stop: Reviewing 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. 11-23