Lecture Principles of Marketing - Chapter 11: Retailing and wholesaling

This chapter explain the roles of retailers and wholesalers in the distribution channel, describe the major types of retailers and give examples of each, identify the major types of wholesalers and give examples of each, explain the marketing decisions facing retailers and wholesalers.

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.

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

 Both in-store and online shopping is a customer experience.

 Cares about employees,

What Is Retailing?

– includes all the activities involved in

selling products or services directly to

final consumers for their personal, business use.

nonstore retailing has recently grown

Types of Retailers

– Amount of service they offer

– Breadth and depth of product lines– Relative prices charged

– How they are organized

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.”

Major Store Retailer Types

Relative Prices Classification

Retailer Marketing Decisions

– Target market

– Retail store positioning

• Until retailers define and profile their

markets, retailers cannot make meaningful decisions related to the retailer marketing mix.

Retailer Marketing Decisions

– Product assortment and services

– Price

– Promotion

– Place (location)

Assortment and Service Decisions

– Should differentiate the retailer while

matching target shoppers’ expectations

Price and Promotion Decisions

and positioning, product and service assortment, and competition.

tools—advertising, personal selling,

sales promotion, public relations, and direct marketing—to reach consumers.

Place Decisions

districts, various types of shopping

centers, strip malls, or power centers.

The Future of Retailing

1 New Retail Forms

– includes all activities involved in selling

goods and services to those buying for resale or business use.

by performing one or more channel functions.

Functions Provided by Wholesalers

Types of Wholesalers

– Largest group of wholesalers

– Account for 50% of wholesaling

– Two broad categories:

• Full-service wholesalers

• Limited-service wholesalers

Types of Wholesalers

– 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

Types of Wholesalers

Offices

– Wholesaling by sellers or buyers

themselves rather than through

independent wholesalers.

Wholesaler Marketing Decisions

– Target market

– Service positioning

– Product assortment and services – Price

– Promotion

– Place (location)

Trends in Wholesaling

not adding value based on cost and

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.