13 retailing/ wholesaling. 13- 1 definitions retailing all activities involved in selling goods or...
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13Retailing/ Wholesaling
13- 2
Definitions
Retailing All activities involved
in selling goods or services directly to final consumers for their personal, nonbusiness use.
13- 3
Retailers
Types of Retailers
Specialty Stores
Department Stores
Supermarkets
Discount Stores
Convenience Stores
Off-Price Retailers
Superstores
13- 4
Retailing
Self-service retailers Customers are willing to
self-serve to save money Discount stores MİGROS
Limited-service retailers Most department stores BOYNER STORES
Full-service retailers Salespeople assist
customers in every way High-end department stores Specialty stores ARÇELİK
Amount of serviceProduct linesRelative pricesOrganizational approach
Retailers are Classified by:
13- 5
Retailing
Specialty stores Narrow product lines with
deep assortments
Department stores Wide variety of product
lines
SupermarketsConvenience stores Limited line
Superstores Sell food, nonfood, and
services
Category killers Giant specialty stores
Amount of serviceProduct linesRelative pricesOrganizational approach
Retailers are Classified by:
13- 6
Specialty Stores
Department Stores
Supermarkets
Convenience Stores
Superstores
Discount Stores
Narrow Product Line, Deep Assortment i.e.
Deriden, TimberlandWide Variety of Product Lines i.e. Clothing,
Yeni Karamürsel, BoynerWide Variety of Food, Laundry, & Household Products i.e. Canerler
Limited Line of High-Turnover Convenience Goods i.e. Büfeler,
bakkallarLarge Assortment of Routinely Purchased Food & Nonfood Products
i.e. Real, MigrosStandard Merchandise at Lower Prices
i.e. Ulus, Kızılay mağazaları
Off-Price Retailers Changing Collection of Higher-Quality Goods at a Reduced Price i.e. Outlet
Warehouse ClubsLimited Selection of Brand-Name
Grocery Items, Appliances, Etc. i.e. Metro
Classification of Retailing:Product Line
Store Description
13- 7
Retailing
Discount stores Low margins are offset
by high volume Ulus, Kızılay
mağazaları
Off-price retailers Independent off-price
retailers Factory outlets
Levi Strauss, Reebok
Warehouse clubs
METRO
Amount of serviceProduct linesRelative pricesOrganizational approach
Retailers are Classified by:
13- 8
Retailing
Corporate chain stores Commonly owned/controlled
Voluntary chains Wholesaler-sponsored
groups of independent retailers
Retailer cooperatives Groups of independent
retailers who buy in bulk
Franchise organizations Based on uniqueness
Merchandising conglomerates Diversified retailing lines
under central ownership
Amount of serviceProduct linesRelative pricesOrganizational approach
Retailers are Classified by:
13- 9
Retailer Marketing Mix Price
High markup or high volume? Promotion
Public relations, sales promotions, advertising, direct marketing
Place Location, location, location!
Retailing
13- 10
Definitions
Wholesaling All activities involved in selling goods
and services to those buying for resale or business use.
Wholesaling A firm engaged
primarily in wholesaling activity.
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Wholesalers add value by performing the following functions: Selling and promoting Buying and assortment
building Bulk-breaking Warehousing Transportation
Wholesaling
13- 12
Wholesalers add value by performing the following functions: Financing Risk bearing Marketing information Management services
and advice
Wholesaling
13- 13
Wholesaling
Full-service wholesalers Wholesale merchants Industrial distributors
Limited service wholesalers Cash-and-carry
wholesalers Truck wholesalers
(jobbers) Drop shippers Rack jobbers Producer’s cooperatives Mail-order wholesalers
Merchant WholesalersBrokers and Agents Manufacturers’ and retailers’ branches and offices
Types of Wholesalers
13- 14
Wholesaling
Brokers Bring buyers
and sellers together and assist in negotiation
Agents Manufacturers’
agents Selling agents Purchasing
agents Commission
merchants
Merchant WholesalersBrokers and Agents Manufacturers’ and retailers’ branches and offices
Types of Wholesalers
13- 15
Wholesaling
Sales branches and offices Branches carry inventory:
lumber, auto equipment, parts
Offices do not carry inventory: dry goods
Purchasing officers Perform roles similar to
brokers and agents, however these individuals are employees of the organization
Merchant WholesalersBrokers and Agents Manufacturers’ and retailers’ branches and offices
Types of Wholesalers
13- 16
Wholesaler Marketing Decisions Marketing mix decisions
Product and service assortment: inventory, line
Pricing: usual markup on COG is 20% Promotion: largely disorganized and
unplanned Place: location, facilities
Wholesaling