copyright © 2005 pearson education inc. retailing and wholesaling chapter 14 powerpoint slides...

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Retailing and Wholesaling

•Chapter 14

•PowerPoint slides

•Express version

•Instructor name

•Course name

•School name

•Date

Principles of Marketing, Sixth Canadian Edition


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Learning Objectives

• After studying this chapter, you should be able to:– Explain the roles of retailers and wholesalers in the

marketing 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


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Retailing

• Retailing: all activities involved in selling goods or services directly to final consumers for their personal, non-business use

– Retailing can take place in stores and non-store environments

– Retailers can be classified based on:

• Amount of service offered

• Depth of products lines

• Relative prices charged

• How they are organized


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Types of Retailers

• Amount of service offered:– Self-service retailers

– Limited-service retailers

– Full-service retailers

• Relative prices charged:– Discount stores

– Off-price retailers:

• Independents

• Factory outlets

• Warehouse clubs

• Products lines:• Specialty stores

• Department stores

• Supermarkets

• Convenience stores

• Discount stores

• Off-price retailers

• Superstores


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Types of Retailers (continued)

• Retail organizations:– Corporate chains

– Voluntary chains

– Retailer cooperatives– Franchise organizations

– Merchandising conglomerates

• Franchises: contractual association between two businesses, having three characteristics:

• The franchiser owns a trade or service mark, and licenses it for use for royalties

• Franchisees must pay to be part of the system

• Franchisers provide a packaged marketing and operations system


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Retailer Marketing Decisions

• Target markets chosen will affect all other decisions

• Markets chosen and positioning need to be clear

• Cannot hope to be “something for everyone”

• Product variables:– Assortment

– Services mix

– Atmospherics

• Price decision:– Markups and volume

are inversely related

Figure 14.1


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Retailer Marketing Decisions (continued)

• Promotion: retailers will use all five tools to promote themselves

– Advertising, personal selling, sales promotion, public relations, and direct marketing

• Place decision:– Location is critical to

attract the target market

– Central business districts

– Shopping centres

• Regional

• Neighbourhood

– Power centres

Figure 14.1


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Future of Retailing

• Wheel of retailing concept:– New types of retailers begin as

low-margin, low-price, and low-status operations, but

– Evolve into higher-priced, higher-service operations,

– Eventually becoming like the conventional retailers they replaced

• Other trends:– Growth of non-store

retailing

– Retailer convergence

– Rise of megaretailers

– Importance of technology

– Global expansion

– Retail stores as communities


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Wholesaling

• Wholesaling: all activities involved in selling goods and services to those buying for resale or business use

– Buy mostly from producers and resell to retailers, industrial consumers and other wholesalers

– Perform some or all of the following functions:

• Selling and promoting

• Buying and assortment building

• Bulk breaking

• Warehousing

• Transportation

• Financing

• Risk bearing

• Market information

• Management services and advice


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Types of Wholesalers

• Merchant wholesalers: – Full-service wholesalers

– Wholesale merchants

– Industrial distributors

– Limited service wholesalers:

• Cash-and-carry wholesalers

• Truck jobbers

• Drop shippers

• Rack jobbers

• Producers’ cooperatives

• Mail-order wholesalers

• Brokers and agents: – Brokers

– Agents:

• Manufacturer’s agents

• Selling agents

• Purchasing agents

• Commission merchants

• Manufacturers’ sales branches and offices

• Purchasing offices


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Wholesaler Marketing Decisions

• Wholesalers are challenged by increased competition, demanding customers, new technologies, and more direct-buying by large customers

• Must choose target markets carefully, looking for more profitable customers to build relationships with

• Product lines carried are chosen for profitability

• Price competition squeezes gross margins to very low

• Not promotion-minded

• Locations are more industrial

Figure 14.2


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Trends in Wholesaling

• Fierce resistance to price increases

• Consolidation of suppliers

• Survival tactics: – Focusing on adding value– Achieving cost efficiencies

– Looking for opportunities to partner with suppliers and customers

– Differentiate by services offered

– Global orientation


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In Conclusion…

• The learning objectives for this chapter were:– Explain the roles of retailers and wholesalers in the

marketing 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

copyright © 2005 pearson education inc. retailing and wholesaling chapter 14 powerpoint slides...

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