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A FRAMEWORK for

MARKETING MANAGEMENT

Kotler Keller Cunningham

Chapter 14Chapter 14

Managing

Retailing,

Wholesaling,

and Logistics

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14-2

Chapter Questions

What are the major types of marketing

intermediaries?

What marketing decisions do thesemarketing intermediaries make?

What are the major trends in retailing,

wholesaling, and logistics?

Copyright 2008 Pearson Education Canada

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14-3

Profile: Canadian Marketing Excellence

RUNNING ROOM LTD

Founded by John Stanton, the

Running Room aimed to

provide good running advice

and products, at the sametime serving as a place where

runners could meet and form a

community

The Running Room maintains

close relationships with itscustomers through clinics,

while treating its customers as

individuals

By 2006, it had over 80

locations in Canada and the

United States


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Retailing

Retailing includes all the activities involved

in selling goods or services directly

to final consumers for personal,

non-business use


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14-5

Levels of Retail Service

Self-service

Self-selection

Limited service

Full service


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Table 14.1 Major Retailer Types

Specialty store

Department store

Supermarket

Convenience store

Discount store

Off-price retailer

Superstore

Catalog showroom


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14-7

Nonstore Retailing

Direct

selling

Automaticvending

Direct

marketing

Buying

service


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Table 14.2 Major Types of

Corporate Retail Organizations

Corporate chain store

Voluntary chain

Retailer cooperative

Consumer cooperative

Franchise organization

Merchandising conglomerate Copyright 2008 Pearson Education Canada

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Retailers Marketing Decisions

Target market

Product assortment

Service/store atmosphere

Price

Communication

Location


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Liquor Control Board of Ontario

In the 1990s, the Liquor Control Board of Ontario

(LCBO) embarked on a campaign to renew its image

Wanted to head off competition from small wine stores,

cross-border shopping, and the illegal market Transformed its stores into inviting and attractive

boutiques

14-10

Design awards followed,

and the LCBO expandedits product range to other

gift items (CDs,

glassware)


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Location Decision

General business

districts

Regional shopping

centres

Community shopping

centres

Strip malls Location within a larger

store


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14-12

Trends in Retailing

New retail forms and combinations

Growth of intertype competition

Competition between store-based andnon-store-based retailing

Growth of giant retailers

Decline of middle market retailers Growing investment in technology

Global presence of major retailers


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Private Labels


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14-14

Wholesaling Functions

Selling and promoting

Buying and

assortment building

Bulk breaking

Warehousing

Transportation

Financing

Risk bearing

Market information

Management

services andcounselling


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Major Wholesaler Types

Merchant

Full-service

Limited-service

Brokers and agents

Manufacturers

Specialized


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Wholesalers Marketing Decisions

Target market

Product assortment

Price

Promotion

Place


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Figure 14.1 Market Logistics Planning

Decide on the companys value

proposition to its customers

Decide on the best channel design andnetwork strategy

Develop operational excellence

Implement the solution


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Market Logistics Decisions

How should orders be

handled?

Where should stocksbe located?

How much stock

should be held?

How should goods beshipped?


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Figure 14.2 Determining Optimal

Order Quantity


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Transportation Factors

Speed

Frequency

Dependability

Capability

Availability

Traceability Cost


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Containerization


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For Discussion

How might delays at Canadian ports

affect the retail industry?

Is this a threat for all retailers or just

for specific product categories?


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