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Managing Retailing,

Wholesaling, and Logistics

UmaUma Pricilda.JPricilda.JVIT Business SchoolVIT Business School

VIT UniversityVIT University

Chapter QuestionsChapter Questions

What major types of marketingWhat major types of marketing

intermediaries occupy this sector?intermediaries occupy this sector?

What marketing decisions do theseWhat marketing decisions do these

marketing intermediaries make?marketing intermediaries make?

What are the major trends with marketingWhat are the major trends with marketing

intermediaries?intermediaries?

RetailingRetailing

Includes all the activities involved in

selling goods or services directlyto final consumers for personal,

Non-business use.

Major Retailer TypesMajor Retailer Types

Specialty storeSpecialty storeDepartment storeDepartment store

SupermarketSupermarket

Convenience storeConvenience store

Discount storeDiscount storeOffOff--price retailerprice retailer

SuperstoreSuperstore

Catalog showroomCatalog showroom

Levels of Retail ServiceLevels of Retail Service

SelfSelf--serviceservice

SelfSelf--selectionselection

Limited serviceLimited service

Full serviceFull service

NonNon--store Retailingstore Retailing

Direct sellingDirect selling

Direct marketingDirect marketing

Automatic vendingAutomatic vending

Buying serviceBuying service

Major Types of Corporate RetailMajor Types of Corporate Retail

OrganizationsOrganizations

Corporate chain storeCorporate chain store

Voluntary chainVoluntary chain

Retailer cooperativeRetailer cooperative

Consumer cooperativeConsumer cooperative

Franchise organizationFranchise organization

Merchandising conglomerateMerchandising conglomerate

RetailersRetailers’’ Marketing DecisionsMarketing Decisions

Target marketTarget market

Product assortmentProduct assortment

Service/store atmosphereService/store atmosphere

PricePrice

CommunicationCommunication

LocationLocation

Retail Category ManagementRetail Category Management

Define the category

Figure out its role

Set goals

Choose the audience

Implement the plan

Figure out tactics

Assess performance

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Retailer Services MixRetailer Services Mix

PrePre--purchase servicespurchase services

PostPost--purchase servicespurchase services

Ancillary servicesAncillary services

Location DecisionLocation Decision

General business districtsGeneral business districts

Regional shopping centersRegional shopping centers

Community shopping centersCommunity shopping centers

Strip mallsStrip malls

Location within a larger storeLocation within a larger store

Indicators of SalesIndicators of Sales

EffectivenessEffectiveness

Number of people passing by locationNumber of people passing by location

Percentage who enter storePercentage who enter store

Percentage of those who enter who alsoPercentage of those who enter who also

buybuy

Average amount spent per saleAverage amount spent per sale

Trends in RetailingTrends in Retailing

New retail forms and combinationsNew retail forms and combinations

Growth of intertype competitionGrowth of intertype competition

Competition between storeCompetition between store--based andbased and

nonnon--storestore--based retailingbased retailing

Growth of giant retailersGrowth of giant retailers

Decline of middle market retailersDecline of middle market retailers

Growing investment in technologyGrowing investment in technology

Global presence of major retailersGlobal presence of major retailers

Wholesaling FunctionsWholesaling Functions

Selling and promotingSelling and promoting

Buying andBuying andassortment buildingassortment building

Bulk breakingBulk breaking

WarehousingWarehousing

TransportationTransportation

FinancingFinancing

Risk bearingRisk bearing

Market informationMarket information

Management servicesManagement servicesand counselingand counseling

Major Wholesaler TypesMajor Wholesaler Types

MerchantMerchant

Full serviceFull service

Limited serviceLimited service

Brokers and agentsBrokers and agents

ManufacturersManufacturers

SpecializedSpecialized

WholesalersWholesalers’’ MarketingMarketing

DecisionsDecisions

Target marketTarget market

Product assortmentProduct assortment

PricePrice

PromotionPromotion

PlacePlace

Market Logistics PlanningMarket Logistics Planning

Deciding on the companyDeciding on the company’’s values value

proposition to its customersproposition to its customers

Deciding on the best channel design andDeciding on the best channel design and

network strategynetwork strategy

Developing operational excellenceDeveloping operational excellence

Implementing the solutionImplementing the solution

Market Logistics DecisionsMarket Logistics Decisions

How should orders be handled?How should orders be handled?

Where should stock be located?Where should stock be located?

How much stock should be held?How much stock should be held?

How should goods be shipped?How should goods be shipped?

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Transportation FactorsTransportation Factors

SpeedSpeed

FrequencyFrequency

DependabilityDependability

CapabilityCapability

AvailabilityAvailability

TraceabilityTraceability

CostCost