Chp-13 Retailing and Wholeseeling.pptx

Chp-13 Retailing and Wholeseeling.pptx

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  Retailing & Wholesaling Chapter 13 PhilipKotler & Gari Amstrong
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  Retailing & Retailer •We all know that Wal-Mart, Home Depo, Harrods, and Carrefour are retailer, but so amazon.com, avon representatives and a doctor seeing patients. • Retailing plays a very important role in most marketing channels. Each year, retailers account for more than $5.5 trillion of sales to final consumers.
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  • Retailing isall activities involved in selling goods or services directly to final consumers for their personal, non business use. • Retailer is a business whose sales come primarily from retailing. • Although most retailing is done in retail stores, in recent years non-store retailing has been growing much faster than store retailing. Non-store retailing includes selling to final consumers via the Internet, direct mail, catalogs, the telephone, and other direct-selling approaches.
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  • Self-service retailers: serve customers who are willing to perform their own “locate- compare-select”), process to save time or money. Self service is the basis of all discount operations and is typically used by retailing selling convenience good (such as supermarket) and nationally branded, fast- moving shopping goods (such as Wal-Mart). • Limited service retailer : provide more sales assistance because they carry more shopping goods about which customer need information. • Full-service-retailer : usually carry more specialty goods for which customer need or want assistance or advice. Types of Retailers Amount of service
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  Types of Retailers ProductLine • Specialty Store is a retail store that carries a narrow product line with a deep assortment within that line. • Department Store is a retail organization that carries a wide variety of product line – each line is operated as a separate department managed by specialist buyers or merchandisers • Supermarket is a large, low–cost, low–margin, high–volume, self– service store that carries a wide variety of grocery and household products.
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  • Convenience storeis a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high – turn over convenience goods. • Superstore is a store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services. • Service retailer is a retailer whose product line is actually a service, including hotels, airlines, banks, colleges, and many others.
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  Types of Retailers Relativeprices • Discount store is a retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume. • Off – price retailer is a retailer that buys at less – than – regular wholesale prices and sells at less than retail. Examples are factory outlets, independents, and warehouse clubs. • Independent off – price retailer is an off – price retailer that is either independently owned and run or is a division of a large retail corporation.
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  • Factory outletis an off – price retailing operation that is owned and operated by a manufacturer and that normally carries the manufacturer’s surplus, discontinued, or irregular goods. • Warehouse club is an off – price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and a hodgepodge of other goods at deep discounts to members who pay annual membership fees.
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  Types of Retailers OrganizationalApproach • Chain stores is two or more outlets that are commonly owned and controller • Franchise is a contractual association between a manufacturer, wholesaler, of services organization (a franchisor) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise systems.
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  Retailer Marketing Decision •Segmentation, targeting, differentiation, and positioning decision Retail Strategy Retail segmentation and Targeting Store diffrentiation and positioning Retail Marketing MIX Product & service assortment Retail Prices Promotion Distribution Create Value for targeted retail customers
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  The Future ofRetailing • Wheel–of–retailing concept is a concept that states that new types of retailers usually begin as low – margin, low – price, low – status operations but later evolve into higher – priced, higher – services operations, eventually becoming like the conventional retailers they replaced. • Growth of Non-store retailing • Retail Convergence • The Rise of mega-retailer
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  Wholesaling • Wholesaling isall activities involved in selling goods and services to those buying for resale or business use. • Wholesaler is a firm engaged primarily in wholesaling activities. • Wholesaler buy mostly from producers and sell mostly to retailer, industrial consumer, and other wholesalers. As a result, many of the largest and most important wholesalers are largely unknown to final customers. For example : Grainger, its more than 1,8 million business and institutional customers across North America. It’s a $6.4 billion business that offer more than 800.000 product.
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  Types of Wholesalers •Merchant wholesaler is an independently owned business that takes title to the merchandise it handles. • Broker is a wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation. • Agent is a wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title goods. • Manufacturer’s sales branches and offices : is wholesaling by sellers or buyers themselves rather than through independent wholesalers.
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  Wholesaler Marketing Decision •Segmentation, targeting, differentiation, and positioning decision Wholesale Strategy Wholesale segmentation and Targeting Store diffrentiation and positioning Wholesale Marketing MIX Product & service assortment Wholesale Prices Promotion Distribution Create Value for targeted Wholesale customers