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Managing Retailing, Wholesaling, and Logistics Key Concepts Managing Retailing, Wholesaling, and Logistics Key Concepts

Marketing Management at Zara controls all aspects of its supply chain. 2 Marketing Management at Zara controls all aspects of its supply chain. 2

Retailing All of the activities involved in selling goods or services directly to final Retailing All of the activities involved in selling goods or services directly to final consumers for personal, non-business use. 3

Types of Retailers Specialty store Discount store Department store Off-price retailer Supermarket Superstore Convenience Types of Retailers Specialty store Discount store Department store Off-price retailer Supermarket Superstore Convenience store Catalog showroom . 4

Retail Concepts Retail life-cycle Stages of growth and decline. Wheel-of-retailing hypothesis New stores emerge Retail Concepts Retail life-cycle Stages of growth and decline. Wheel-of-retailing hypothesis New stores emerge after conventional stores increase services and raise prices to cover the cost. 5

Levels of Service Self-selection Limited service Full service 6 Levels of Service Self-selection Limited service Full service 6

Retail Positioning Strategies Bloomingdale’s Tiffany Sunglass Hut Wal-Mart 7 Retail Positioning Strategies Bloomingdale’s Tiffany Sunglass Hut Wal-Mart 7

Nonstore Retailing Direct selling Direct marketing Automatic vending Buying service 8 Nonstore Retailing Direct selling Direct marketing Automatic vending Buying service 8

The New Retail Environment Assortments have grown more alike Differentiation has eroded Limited-time-only “pop-up” The New Retail Environment Assortments have grown more alike Differentiation has eroded Limited-time-only “pop-up” outlets Adding specialty products and customer-focused services Growth in global competition 9

Corporate Retail Organizations Corporate chain store Voluntary chain Retailer cooperative Consumer cooperative Franchise organization Corporate Retail Organizations Corporate chain store Voluntary chain Retailer cooperative Consumer cooperative Franchise organization Merchandising conglomerate 10

Retailer Marketing Decisions Target market Product assortment and procurement Price High-markup, lower- volume Low-markup, Retailer Marketing Decisions Target market Product assortment and procurement Price High-markup, lower- volume Low-markup, highervolume Services and store atmosphere Store activities and experiences Communications Location 11

Breakthrough Marketing: TARGET “Upscale discounter ” image = $59 billion in annual sales! 12 Breakthrough Marketing: TARGET “Upscale discounter ” image = $59 billion in annual sales! 12

Marketing Skills: Experience Marketing Enhance the sensory experience (feel, look, sound, smell, or taste). Marketing Skills: Experience Marketing Enhance the sensory experience (feel, look, sound, smell, or taste). 13

Private Labels Private label brand One developed by retailers and wholesalers. Generics Unbranded, plainly Private Labels Private label brand One developed by retailers and wholesalers. Generics Unbranded, plainly packaged, less expensive versions of common products. 14

Wholesaling All the activities in selling goods or services to those who buy for Wholesaling All the activities in selling goods or services to those who buy for resale or business use. 15

Major Wholesaler Types Merchant wholesaler Full-service wholesaler Limited-service wholesaler Brokers and agents Manufacturers’ and Major Wholesaler Types Merchant wholesaler Full-service wholesaler Limited-service wholesaler Brokers and agents Manufacturers’ and retailers’ branches and offices Specialized wholesalers 16

How Wholesalers Differ From Retailers Pay less attention to promotion, atmosphere, and location Transactions How Wholesalers Differ From Retailers Pay less attention to promotion, atmosphere, and location Transactions are usually larger and cover a larger trade area Different legal regulations and taxes 17

What Wholesalers do Selling and Transportation promoting Financing Buying and Risk bearing assortment building What Wholesalers do Selling and Transportation promoting Financing Buying and Risk bearing assortment building Market information Bulk breaking Management Warehousing services and counseling 18

Trends in Wholesaling Facing mounting pressures from: New sources of competition Demanding customers New Trends in Wholesaling Facing mounting pressures from: New sources of competition Demanding customers New technologies More direct-buying programs by large buyers Manufacturers Responses: Revisiting decisions Cutting costs 19

Market Logistics Supply chain management (SCM) Starts before physical distribution, covering procurement of inputs, Market Logistics Supply chain management (SCM) Starts before physical distribution, covering procurement of inputs, conversion into finished products, and product movement to final destinations. Market logistics Planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer needs at a profit. 20

Steps in Market Logistics Planning 21 Steps in Market Logistics Planning 21

Integrated Logistics Systems (ILS) Include materials management, material flow systems, and physical distribution, aided Integrated Logistics Systems (ILS) Include materials management, material flow systems, and physical distribution, aided by information technology. 22

Market-Logistics Decisions Order processing Warehousing Inventory Transportation 23 Market-Logistics Decisions Order processing Warehousing Inventory Transportation 23

Determining Optimal Order Quantity 24 Determining Optimal Order Quantity 24