chapter 18kisi.deu.edu.tr/sumeyra.duman/mba 5011 str.mrk.man/ppt/kotler_mm15e... · market...

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Copyright © 2016 Pearson Education Ltd. 18-1

Chapter

18

Managing

Retailing,

Wholesaling,

and Logistics


Learning Objectives

1. What major types of marketing intermediaries occupy

this sector?

2. What major changes are occurring in the modern retail

marketing environment with respect to competitive

market structure and technology?

3. What marketing decisions do marketing intermediaries

make?

4. What does the future hold for private label brands?

5. What are some of the important issues in wholesaling??

6. What are some important issues in logistics?

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Retailing

• Retailing

– All the activities in selling

goods or services directly to

final consumers for personal,

nonbusiness use

• Retailer/retail store

– Any business enterprise

whose sales volume comes

primarily from retailing


Types of retailers

• Store retailers, nonstore retailers, and

retail organizations

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Types of retailers

• Store retailers:

• Specialty store

• Department store

• Supermarket

• Convenience store

• Drug store

• Discount store

• Extreme value or hard-

discount store

• Off-price retailer

• Superstore

• Catalog showroom


Types of retailers

• Levels of service for store retailers

Self-service

Self-selection

Limited service

Full service

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Types of retailers

• Nonstore retailing

– Direct marketing

– Direct selling

– Automatic vending

– Buying services


Types of retailers

• Corporate retailing and franchising

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Corporate Retailing and

Franchising• Franchises are distinguished by three

characteristics:

– The franchisor owns a trade or service mark

and licenses it to franchisees in return for

royalty payments

– The franchisee pays for the right to be part of

the system

– The franchisor provides its franchisees with a

system for doing business


The Modern Retail Marketing

Environment• Competitive retail market structure

New retail forms and combinations

Growth of giant retailers

Growth of intertype competition

Emergence of fast retailing

Decline of middle-market retailers

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The Modern Retail Marketing

Environment

• Role of technology

– Retailers use

technology for

business operations,

to enhance the

consumer shopping

experience inside the

store, and

Internet/social media

strategies


Marketing Decisions

• Target market

• Channels

• Product assortment

• Procurement

• Prices

• Services

• Store atmosphere

• Store activities and

experiences

• Communications

• Location

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Product Assortment

• Develop product differentiation

Feature exclusive national brands

Feature private-label merchandise

Feature distinctive-merchandise events

Feature ever-changing merchandise

Feature the latest merchandise first

Offer merchandise-customizing services

Offer a highly targeted assortment


Services

• Retailers must decide on the services mix

to offer customers:

Prepurchase services

Postpurchase services

Ancillary services

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Location

Central

business

districts

Regional

shopping

centers

Community

shopping

centers

Shopping

strips

Location within

a larger store

Stand-alone

stores


Private Labels

• A private-label brand is a brand that

retailers and wholesalers develop

– Role of private labels

– Private-label success factors

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Wholesaling

• Wholesaling

includes all the

activities in selling

goods or services

to those who buy

for resale or

business use


Major wholesaler types

Merchant

wholesalers

Full-service

wholesalers

Limited-

service

wholesalers

Brokers and

agents

Manufacturers’/

retailers’

branches/offices

Specialized

wholesalers

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Wholesaler functions

• Selling and

promoting

• Buying and

assortment building

• Bulk breaking

• Warehousing

• Transportation

• Financing

• Risk bearing

• Market information

• Management

services and

counseling


Market Logistics

• Supply chain

management (SCM)

• Market logistics

• Integrated logistics

systems (ILS)

• Lean manufacturing

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Market logistics planning

1. Deciding on company’s value

proposition

2. Selecting best channel design

and network strategy

3. Developing operational

excellence

4. Implementing solution


Market-Logistics Decisions

• Order processing: how should we handle

orders?

• Warehousing: where should we locate our

stock?

• Inventory: how much stock should we

hold?

• Transportation: how should we ship

goods?

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Figure 18.1

Optimal Ordering Quantity


Transportation

• Containerization

– Piggyback,

fishyback,

trainship, and

airtruck

• Private vs.

contract vs.

common carriers

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chapter 18kisi.deu.edu.tr/sumeyra.duman/mba 5011 str.mrk.man/ppt/kotler_mm15e... · market...

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