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    Managing Retailing, Wholesaling, and Logistics

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    Asma

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    Managing Retailing, Wholesaling, and Logistics

    Uploaded by

    Asma
    255 views25 pages

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    Kotler_mm15e_inppt_18

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    Download as ppt, pdf, or txt
    255 views25 pages

    Managing Retailing, Wholesaling, and Logistics

    Uploaded by

    Asma

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    Chapter

    18
    Managing Retailing,
    Wholesaling,
    and Logistics

    Copyright © 2016 Pearson Education Ltd. 18-1


    Learning Objectives
    1. What major types of marketing intermediaries occupy this
    sector?
    2. What major changes are occurring in the modern retail
    marketing environment with respect to competitive market
    structure and technology?
    3. What marketing decisions do marketing intermediaries make?
    4. What does the future hold for private label brands?
    5. What are some of the important issues in wholesaling??
    6. What are some important issues in logistics?

    Copyright © 2016 Pearson Education Ltd. 18-2


    Retailing
    • Retailing
    – All the activities in selling
    goods or services directly to
    final consumers for personal,
    nonbusiness use
    • Retailer/retail store
    – Any business enterprise
    whose sales volume comes
    primarily from retailing

    Copyright © 2016 Pearson Education Ltd. 18-3


    Types of retailers
    • Store retailers, nonstore retailers, and retail
    organizations

    Copyright © 2016 Pearson Education Ltd. 18-4


    Types of retailers
    • Store retailers:

    • Specialty store • Discount store


    • Department store • Extreme value or hard-
    • Supermarket discount store
    • Convenience store • Off-price retailer
    • Drug store • Superstore
    • Catalog showroom

    Copyright © 2016 Pearson Education Ltd. 18-5


    Types of retailers
    • Levels of service for store retailers

     Self-service
     Self-selection
     Limited service
     Full service

    Copyright © 2016 Pearson Education Ltd. 18-6


    Types of retailers
    • Nonstore retailing
    – Direct marketing
    – Direct selling
    – Automatic vending
    – Buying services

    Copyright © 2016 Pearson Education Ltd. 18-7


    Types of retailers
    • Corporate retailing and franchising

    Copyright © 2016 Pearson Education Ltd. 18-8


    Corporate Retailing and
    Franchising
    • Franchises are distinguished by three
    characteristics:
    – The franchisor owns a trade or service mark
    and licenses it to franchisees in return for
    royalty payments
    – The franchisee pays for the right to be part of
    the system
    – The franchisor provides its franchisees with a
    system for doing business

    Copyright © 2016 Pearson Education Ltd. 18-9


    The Modern Retail Marketing
    Environment
    • Competitive retail market structure

     New retail forms and combinations


     Growth of giant retailers
     Growth of intertype competition
     Emergence of fast retailing
     Decline of middle-market retailers

    Copyright © 2016 Pearson Education Ltd. 18-10


    The Modern Retail Marketing
    Environment
    • Role of technology
    – Retailers use
    technology for
    business operations,
    to enhance the
    consumer shopping
    experience inside the
    store, and
    Internet/social media
    strategies

    Copyright © 2016 Pearson Education Ltd. 18-11


    Marketing Decisions

    • Target market • Services


    • Channels • Store atmosphere
    • Product assortment • Store activities and
    • Procurement experiences
    • Prices • Communications
    • Location

    Copyright © 2016 Pearson Education Ltd. 18-12


    Product Assortment
    • Develop product differentiation

     Feature exclusive national brands


     Feature private-label merchandise
     Feature distinctive-merchandise events
     Feature ever-changing merchandise
     Feature the latest merchandise first
     Offer merchandise-customizing services
     Offer a highly targeted assortment

    Copyright © 2016 Pearson Education Ltd. 18-13


    Services
    • Retailers must decide on the services mix to
    offer customers:

    Prepurchase services

    Postpurchase services

    Ancillary services

    Copyright © 2016 Pearson Education Ltd. 18-14


    Location

    Central Regional
    business shopping
    districts centers

    Community
    Stand-alone shopping
    stores centers

    Location within Shopping


    a larger store strips

    Copyright © 2016 Pearson Education Ltd. 18-15


    Private Labels
    • A private-label brand is a brand that retailers
    and wholesalers develop
    – Role of private labels
    – Private-label success factors

    Copyright © 2016 Pearson Education Ltd. 18-16


    Wholesaling
    • Wholesaling
    includes all the
    activities in selling
    goods or services to
    those who buy for
    resale or business
    use

    Copyright © 2016 Pearson Education Ltd. 18-17


    Major wholesaler types

    Merchant Full-service
    wholesalers wholesalers

    Limited-
    Specialized
    service
    wholesalers
    wholesalers

    Manufacturers’/
    Brokers and
    retailers’
    agents
    branches/offices

    Copyright © 2016 Pearson Education Ltd. 18-18


    Wholesaler functions

    • Selling and promoting • Transportation


    • Buying and • Financing
    assortment building • Risk bearing
    • Bulk breaking • Market information
    • Warehousing • Management services
    and counseling

    Copyright © 2016 Pearson Education Ltd. 18-19


    Market Logistics
    • Supply chain
    management (SCM)
    • Market logistics
    • Integrated logistics
    systems (ILS)
    • Lean manufacturing

    Copyright © 2016 Pearson Education Ltd. 18-20


    Market logistics planning
    1. Deciding on company’s value
    proposition
    2. Selecting best channel design and
    network strategy
    3. Developing operational excellence
    4. Implementing solution

    Copyright © 2016 Pearson Education Ltd. 18-21


    Market-Logistics Decisions
    • Order processing: how should we handle
    orders?
    • Warehousing: where should we locate our
    stock?
    • Inventory: how much stock should we hold?
    • Transportation: how should we ship goods?

    Copyright © 2016 Pearson Education Ltd. 18-22


    Figure 18.1
    Optimal Ordering Quantity

    Copyright © 2016 Pearson Education Ltd. 18-23


    Transportation
    • Containerization
    – Piggyback,
    fishyback,
    trainship, and
    airtruck
    • Private vs. contract
    vs. common carriers

    Copyright © 2016 Pearson Education Ltd. 18-24


    Copyright © 2016 Pearson Education Ltd. 18-25

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