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R etail Category M anage m ent
Define the category
Fig u re ou t its role
Set goals
Choose the a u dience
Im ple m ent the plan
Fig u re ou t tactics
A ssess perfor m ance
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H ot T opic offers m erchandise first
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Direct P rod u ct P rofitability
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R etailer Services M ix
P rep u rchase services
P ostp u rchase services
A ncillary services
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Location Decision
G eneral bu siness districtsR egional shopping
centers Commu nity shopping centers
Strip m alls Location w ithin a larger store
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Indicators of Sales E ffectiveness
Num ber of people passing by
% w ho enter store
% of those w ho bu y
A verage a m ou nt spent per sale
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T rends in R etailing
N e w retail for m s and co m binationsG row th of intertype co m petition
Com petition bet w een store-based and non-store-based retailingG row th of giant retailers
Decline of m iddle m arket retailersG row ing invest m ent in technologyG lobal presence of m ajor retailers
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P rivate Labels
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Wholesaling Fu nctions
Selling and pro m oting Bu ying and assort m ent bu ilding
Bu lk breaking Wareho u sing
T ransportation Financing
R isk bearingM arket infor m ationM anage m ent services and co u nseling
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M ajor Wholesaler T ypes
M erchant
Fu ll-service
Lim ited-service
Brokers and agents
M an u fact u rers
Specialized
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Wholesalers M arketing Decisions
Target m arket
Prod
uct
assort
ment
P rice
Pro
motion
P lace
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M arket Logistics P lanning
Deciding on the co m panys val u e proposition to its cu sto m ers
Deciding on the best channel design and net w ork strategy
Developing operational excellenceIm ple m enting the sol u tion
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M arket Logistics Decisions
H ow sho u ld orders be handled?
Where sho u ld stock be located?H ow mu ch stock sho u ld be held?
H ow sho u ld goods be shipped?
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Fig u re 16.2 Deter m ining Opti m al Order Qu antity
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T ransportation Factors
Speed Frequ ency
Dependability Capability A vailabilityT raceability
Cost
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Containerization
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M arketing Debate
Sho u ld national brand m an u fact u rersalso s u pply private label brands?
Take a position:1. M an u fact u rers sho u ld feel free to sell
private labels
as
a
so
urce
of
reven
ue.2. N ational m an u fact u rers sho u ld never get
involved w ith private labels.
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M arketing Disc u ssion
T hink of you r favorite stores. Whatdo they do that enco u rages
you r loyalty? What do you like abo u t
the in-store experience?