basic11_ppt.ppt 194KB Sep 05 2010 10:45:20 PM

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Chapter Eleven

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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.

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Whole Foods Market

 _{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

Whole Foods Market – Finding Its

Niche

Case Study

Marketing Efforts

 _{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.

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What Is Retailing?

 _Retailing:

– includes all the activities involved in selling products or services directly to final consumers for their personal, non-business use.

 _{Most retailing is done by}_retailers_{, but}

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Types of Retailers

 _{Retailers are classified based on:}

– Amount of service they offer

– Breadth and depth of product lines

– Relative prices charged

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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:}

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Major Store Retailer Types

 _{Specialty stores}

 _{Department stores}  _Supermarkets

– Category Killers

 _{Convenience stores}  _{Discount stores}

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Relative Prices Classification

 _{Discount stores}  _{Off-price retailers}

– Independent off-price retailers

– Factory outlets

• Factory outlet malls

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Organizational Classification

 _{Corporate chain stores}  _{Voluntary chain}

 _{Retailer cooperative}  _Franchise

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Retailer Marketing Decisions

 _{Retailer Strategy:}

– Target market

– Retail store positioning

• Until retailers define and profile their markets, retailers cannot make

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Retailer Marketing Decisions

 _{Retailer Marketing Mix:}

– Product assortment and services

– Price

– Promotion

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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

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Price and Promotion

Decisions

 _{Price policy must fit its target market} and positioning, product and service assortment, and competition.

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Place Decisions

 _{Retailers can locate in central business} districts, various types of shopping

centers, strip malls, or power centers.

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The Future of Retailing

1. New Retail Forms and Shortening Retail Life Cycles

2. Growth of

Importance of

Retail Technology

6. Global Expansion of Major Retailers

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Wholesaling

 _Wholesaling:

– includes all activities involved in selling goods and services to those buying for resale or business use.

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Functions Provided by

Wholesalers

 _Financing

 _{Risk bearing}  _Market

information  _Management

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Types of Wholesalers

 _{Merchant Wholesalers}

– Largest group of wholesalers

– Account for 50% of wholesaling

– Two broad categories:

• Full-service wholesalers

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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}

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Types of Wholesalers

 _{Manufacturers’ Sales Branches and} Offices

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Wholesaler Marketing

Decisions

 _{Wholesaler Strategy:}

– Target market

– Service positioning

 _{Wholesaler Marketing Mix:}

– Product assortment and services

– Price

– Promotion

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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.

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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.