Hey there!Smart Shopper.

Ever wondered how the products you buy reach you?

Well, there is a process..

There are a no. of sub-steps, that are called

Major Marketing

IntermediariesA presentation by Shalvi Rathi,MNNIT Allahabad under

Prof.Sameer Mathur,IIM Lucknow,Marketing internship 2015

Intermediaries

RETAILING

WHOLESALING LOGISTICS

Retailing

What is retailing?Retailing includes all the activities in selling goods or services directly to final consumers for personal, non-business use.

Types of retailers

StoreNon-Store

Retail Organization

1.Store retailers

1.1 SPECIALITY SHOPS(NARROW PRODUCT LINE)

1.2Department store(Several product lines)

1.3 Supermarket(Large, low-cost, low-margin, high-volume, self-service store)

1.4Convenience Store(Small store in residential area,

often open 24/7)

1.5 Drug Store(Prescription and pharmacies)

1.6 Discount Store(Standard or specialty merchandise)

1.7 Extreme value or hard-discount store

( A more restricted merchandise mix than discount stores)

2.Non-Store Retailing

2.1 Direct Selling(selling door-to-door)

2.2Direct marketing(telemarketing,television direct-response

marketing,electronic shopping)

2.3Automatic Vending

2.4 Buying Service(storeless retailer serving a specific clientele)

3.Retail Organisations

3.1 Corporate chain store(Two or more outlets owned and controlled, employing central buying and

merchandising, and selling similar lines of merchandise)

3.2Voluntary chain( A wholesaler-sponsored group of independent retailers engaged in bulk

buying andcommon merchandising)

3.3 Retailer cooperative( Independent retailers using a central

buying organization and joint promotionefforts.)

WholesalingWholesaling includes all the activities in selling goods or services to those who buy for resale

orbusiness use.

Why have wholesalers at all when we have retailers?

Selling and Promoting

Transportation

Warehousing

Bulk breaking Financing

Wholesaling

Merchant Full-service Limited Service Broker/Agents Specialized

MARKET LOGISTICS

Market logistics includes planning the infrastructure to meet demand, then

implementing andcontrolling the physical flows of

materials and final goods from points of origin to points of use, to

meet customer requirements at a profit

Four step system

Deciding on the company’s value proposition to its customers

Selecting the best channel design and network strategy for reaching the customers

Developing operational excellence in sales forecasting, warehouse management, transportationmanagement, and materials management

Implementing the solution with the best information systems, equipment, policies, and procedures

The magical Equation

Each possible market-logistics system will lead to the following cost:

M=T +FW+VW+Swhere M = total market-logistics costT =total freight cost VW =total variable warehouse

costsS =total cost of lost sales due to average delivery delay

Thank you!