1、Marketing:An Introduction Thirteenth Edition Chapter 11 Retailing and WholesalingLearning Objectives(1 of 2)11-1.Explain the role of retailers in the distribution channel and describe the major types of retailers.11-2.Describe the major retailer marketing decisions.11-3.Discuss the major trends and
2、developments in retailing.11-4.Explain the major types of wholesalers and their marketing decisions.First Stop:Walmart The Worlds Largest Retailer-the Worlds Largest Company“Save money.Live better.”Says Walmarts CEO,“Were obsessed with delivering value to customers.”Learning Objective 11-1Explain th
3、e role of retailers in the distribution channel and describe the major types of retailers.Retailing(1 of 2)Activities involved in selling goods or services directly to consumers for their personal use Retailer:Business whose sales come primarily from retailingRetailing(2 of 2)Shopper marketing:Focus
4、ing the entire marketing process toward turning shoppers into buyers as they approach the point of sale Omni-channel retailing:Creating a seam-less cross-channel buying experience that integrates in-store,online,and mobile shoppingTypes of Retailers Retailer classification can be based on Amount of
5、service offered Breadth and depth of the product lines Relative prices charged Way they are organizedAmount of ServiceSelf-service retailersServe customers who are willing to perform their own locate-compare-select process Limited-service retailersCarry more shopping goods about which customers need
6、 informationProvide more sales assistanceFull-service retailersCarry more specialty goodsAssist customers in every phase of the shopping processMajor Store Retailer Types(1 of 2)TypeType descriptionSpecialty store Carries a narrow product line with a deep assortmentDepartment store Carries several p
7、roduct lines Each line is operated as a separate departmentSupermarket Large,low-cost,low-margin,high-volume,self-service operation Convenience store Carries a limited line of high-turnover convenience products at slightly higher pricesDiscount store Sells goods at lower prices with lower margins an
8、d higher volumesOff-price retailer Sells merchandise bought at less-than-regular wholesale prices and sold at less than retailSuperstore Very large store for routinely purchased itemsMajor Store Retailer Types(2 of 2)Discounter Dollar General is the nations largest small-box discount retailer.Major
9、Types of Retail OrganizationsTypeDescriptionCorporate chain Two or more outlets that are commonly owned and controlledVoluntary chain Wholesaler sponsored independent retailers engaged in group buying and merchandisingRetailer cooperative Group of independent retailers who jointly establish a centra
10、l buying organization and conduct joint promotion effortsFranchise organization Contractual association between a franchisor and franchiseesLearning Objective 11-1 Summary Retailing-selling goods or services directly to final consumers Shopper marketing-turning shoppers into buyers Omni-channel reta
11、iling-integrates in-store,online,and mobile shopping Retailers classified by amount of service,product line sold,and relative prices Corporate and contractual retail organizationsLearning Objective 11-2Describe the major retailer marketing decisions.Figure 11.1-Retailer Marketing StrategiesSegmentat
12、ion,Targeting,Differentiation,and Positioning Decisions(1 of 2)Target markets must be segmented and defined.Retailers then decide how to differentiate and position themselves in those markets.Segmentation,Targeting,Differentiation,and Positioning Decisions(2 of 2)Which Wich Superior Sandwiches succe
13、eds by positioning itself strongly away from larger competitors.Product Assortment and Services Decision Retailers must determine three product variables.Product assortment Services mix Store atmospherePrice Decision Price policy must fit the retailers Target market and positioning Product and servi
14、ce assortment Competition Economic factors Retailers practice either Everyday low pricing(EDLP)High-low pricingPromotion Decision Retailers use various combinations of the five promotion tools:Advertising Personal selling Sales promotion Public relations(PR)Direct and social media marketingPlace Dec
15、ision Locations should be accessible to the target market in areas that are consistent with the retailers positioning.Shopping center:Group of retail businesses built on a site that is planned,developed,owned,and managed as a unitTypes of Shopping Centers Regional Shopping Center Community Shopping
16、Center Neighborhood Shopping Center Power Center Lifestyle CenterLearning Objective 11-2 Summary Major retailer marketing decisions Segmentation and targeting Store differentiation and positioning Retail marketing mix decisions Product and services assortment Price,promotion,and placeLearning Object
17、ive 11-3Discuss the major trends and developments in retailing.Retailing Trends and Developments(1 of 5)Tighter consumer spending Impact of the Great Recession on consumers Changed spending patterns Impact of the Great Recession on retailers Cost-cutting,price promotions,bankruptcy New value pitches
18、 in positioning New retail forms,shortening retail life cycles,and retail convergenceRetailing Trends and Developments(2 of 5)Rise of megaretailers Offer better merchandise selections,good service,and strong price savings to consumers Have shifted the balance of power between retailers and producers
19、 Growth of direct,online,mobile,and social media retailing Availability of a variety of nonstore alternativesRetailing Trends and Developments(3 of 5)Showrooming is the now common practice of viewing products in stores but buying them online.Retailing Trends and Developments(4 of 5)Growing importanc
20、e of retail technology Produce better forecasts Control inventory costs Interact electronically with suppliers Send information between stores Sell to customers within storesRetailing Trends and Developments(5 of 5)Green retailing Promoting more environmentally responsible products Launching program
21、s to help customers be more responsible Working with channel partners to reduce their environmental impact Global expansion of major retailers Escaping saturated home marketsLearning Objective 11-3 Summary Major trends and developments in retailing New economic realities thrift-minded consumers New
22、retail forms and retail convergence Rise of mega retailers Growth of direct,online,mobile,and social media retailing and retail technology Green retailing and global expansion of major retailersLearning Objective 11-4Explain the major types of wholesalers and their marketing decisions.Wholesaling(1
23、of 2)Involves all the activities in selling goods and services to those buying for resale or business use Wholesaler:A firm engaged primarily in wholesaling activitiesWholesaling(2 of 2)Many of the nations largest and most important wholesalers like Graingerare largely unknown to final consumers.Cha
24、nnel Functions Performed by Wholesalers Selling and Promoting Buying and Assortment Building Bulk Breaking Warehousing Transportation Financing Risk Bearing Market Information Management Services and AdviceTypes of Wholesalers(1 of 2)TypeDescriptionMerchant wholesalers Independently owned wholesale
25、businesses that take title to all merchandise handled Full-service wholesalers Limited-service wholesalersBrokers Do not take title to goods Facilitate buying and selling Earn a commission based on selling priceTypes of Wholesalers(2 of 2)TypeDescriptionAgents Represent buyers or sellers on a relati
26、vely permanent basis Perform only a few functions Do not take title to goodsManufacturers and retailers branches and offices Wholesaling by sellers or buyers themselves rather than through independent wholesalersTypes of Full-Service WholesalersWholesale merchants Sell primarily to retailers Provide
27、 a full range of services TypesGeneral merchandise wholesalersGeneral line wholesalersSpecialty wholesalersIndustrial distributors Sell to manufacturers Carry stock Offer credit Provide delivery May carry a broad range of merchandise,a general line,or a specialty lineTypes of Limited-Service Wholesa
28、lersTypesDescriptionCash-and-carry wholesalers Carry a limited line of fast-moving goods Sell to small retailers for cashTruck wholesalers Perform primarily a selling and delivery functionDrop shippers Do not carry inventory or handle the productRack jobbers Price the goods Keep goods fresh Set up p
29、oint-of-purchase displays Keep inventory recordsProducers cooperatives Farmer-owned members Assemble farm produce for sale in local marketsMail-order or Web wholesalers Send catalogs to or maintain Web sites for retail,industrial,and institutional customersTypes of AgentsManufacturers agents Represe
30、nt two or more manufacturers of complementary lines Selling agentsHave contractual authority to sell a manufacturers entire output Purchasing agentsHave a long-term relationship with buyers and make purchases for themCommission merchantsTake physical possession of products and negotiate salesTypes o
31、f Manufacturers and Retailers Branches and Offices Sales branches and offices Set up by manufacturers to improve inventory control,selling,and promotion Sales branches carry inventory.Sales offices do not carry inventory.Purchasing offices Role similar to that of brokers or agents Part of the buyers
32、 organizationFigure 11.2 Wholesaler Marketing StrategiesTrends in Wholesaling Need for greater efficiency Demands for lower prices Sorting out suppliers who are not adding value based on cost and quality Blurring distinction between large retailers and wholesalers Increased use of technology to cont
33、ain costs and boost productivityLearning Objective 11-4 Summary Wholesaling-selling goods or services to those buying for the purpose of resale or business use Wholesalers fall into three groups:Merchant wholesalers Brokers and agents Manufacturers and retailers branches and officesLearning Objectiv
34、es(2 of 2)11-1.Explain the role of retailers in the distribution channel and describe the major types of retailers.11-2.Describe the major retailer marketing decisions.11-3.Discuss the major trends and developments in retailing.11-4.Explain the major types of wholesalers and their marketing decisions.
