marketing management 12 th edition kotlerkeller 16 managing retailing, wholesaling, and logistics
TRANSCRIPT
MARKETING MANAGEMENT12th edition
Kotler Keller
16 Managing Retailing,
Wholesaling, and Logistics
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Chapter Questions
What major types of marketing intermediaries occupy this sector?
What marketing decisions do these marketing intermediaries make?
What are the major trends with marketing intermediaries?
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Retailing
Includes all the activities involved inselling goods or services directlyto final consumers for personal,
nonbusiness use.
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Table 16.1 Major Retailer Types
Specialty store Department store Supermarket Convenience store
Discount store Off-price retailer Superstore Catalog showroom
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Levels of Retail Service
Self-service Self-selection Limited service Full service
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Nonstore Retailing
Direct selling Direct marketing Automatic vending Buying service
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Major Types of Corporate Retail Organizations Corporate chain store Voluntary chain Retailer cooperative Consumer cooperative Franchise organization Merchandising conglomerate
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Retailers’ Marketing Decisions
Target market Product assortment Service/store atmosphere Price Communication Location
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Retail Category Management
Define the category
Figure out its role
Set goals
Choose the audience
Implement the plan
Figure out tactics
Assess performance
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Retailer Services Mix
Prepurchase services Postpurchase services Ancillary services
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Location Decision
General business districts Regional shopping centers Community shopping centers Strip malls Location within a larger store
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Indicators of Sales Effectiveness
Number of people passing by location Percentage who enter store Percentage of those who enter who also
buy Average amount spent per sale
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Trends in Retailing
New retail forms and combinations Growth of intertype competition Competition between store-based and non-
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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Wholesaling Functions
Selling and promoting Buying and
assortment building Bulk breaking Warehousing
Transportation Financing Risk bearing Market information Management services
and counseling
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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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Market Logistics Planning
Deciding on the company’s value proposition to its customers
Deciding on the best channel design and network strategy
Developing operational excellence Implementing the solution
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Market Logistics Decisions
How should orders be handled? Where should stock be located? How much stock should be held? How should goods be shipped?
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Transportation Factors
Speed Frequency Dependability Capability Availability Traceability Cost
Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, non-business use
A retailer or Retail store: is any business enterprise whose sales volume comes primarily from retailing
Retail Life-cycle:Like products Retail-store pass through stages of growth and decline
What is Retailing?What is Retailing?
Major Retailer TypesMajor Retailer Types
Specialty store
Department store
Supermarket
Convenience store
Discount store
Off-price retailer
Superstore
Catalog showroom
1. Self–Service: customers carry out their own- locate, compare, and select process to save money
2. Self-Selection: customers find their own goods, although they can ask for assistance
3. Limited services: these retailers carry more shopping goods and services such as credit and merchandise return privilege. Customer need more assistance and information
4. Full service: salespeople are ready to assist in every phase of the - locate, compare, and select process
Retailers Level of ServiceRetailers Level of Service
Non-store RetailingNon-store Retailing• Direct selling: companies selling door-to-door or at
home sales parties, it can be:o One-to-oneo One-to-manyo Multilevel marketing network
• Direct marketing: include telemarketing, television direct –response marketing , and electronic shopping
Non-store RetailingNon-store Retailing
• Buying service: is a store-less retailer serving a specific clientele “usually employees of large organization“ who are entitled to buy from a list of retailers that have agreed to give discounts in return for member ship
• Automatic vending: vending machines are found in many places as: factories, offices, large retail store
Japan has the most vending machines
• Corporate chain store: two or more out lets owned and controlled, employing central buying merchandise and selling similar lines of merchandise
• Voluntary chain: a wholesaler- sponsored group of independent retailers engaged in bulk buying and common merchandising
Major Types of Corporate Major Types of Corporate Retail OrganizationsRetail Organizations
• Retailer cooperative: Independent retailers using a central buying organization efforts
• Consumer cooperative: a retail firm owned by its customers. Members contribute money to open their own store , vote on its polices, elect a group to manage it, and receive dividends
Major Types of Corporate Major Types of Corporate Retail OrganizationsRetail Organizations
• Franchise organization: contractual association between a franchisor and franchisees
• Merchandising conglomerate: a corporate that combines several diversified retailing in lines and forms under central ownership
Major Types of Corporate Major Types of Corporate Retail OrganizationsRetail Organizations
Franchising SystemFranchising System
A franchising system is a system of individual franchisees, a tightly knit group of enterprises whose systematic operations are planned, directed, and controlled by the operation’s franchisor.Characteristics of Franchises• 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
Changes in the Retail Changes in the Retail EnvironmentEnvironment
• New retail forms and combinations• Growth of intertype competition• Competition between store-based and non-
store-based retailing• Growth of giant retailers• Decline of middle market retailers• Growing investment in technology• Global profile of major retailers
Retailers’ Marketing DecisionsRetailers’ Marketing Decisions
• Target market
• Product assortment:o Must match target market expectationo Decide product assortment breadth and depth
• Procurement
• Prices:o Must be decided in relation to the target market, the
product assortment and the competition
Retailers’ Marketing DecisionsRetailers’ Marketing Decisions
• Services:o Pre-purchase services as advertising and accept telephone
and mail orders
o Post-purchase services as gift wrapping and shipping and delivery
o Ancillary services as parking, general information and rest room
• Store atmosphere as walls, lighting, Product placement, and floor
• Store activities
• Communications tools as ads, run special sales, and issue
money saving coupons
Retailers’ Marketing DecisionsRetailers’ Marketing Decisions
• Location decision:o Central business district “down town”o Regional shopping centerso Community shopping centerso Shopping strips “cluster of stores”o A location within a larger store
Retail Category ManagementRetail Category Management
Tips for Increasing SalesTips for Increasing Sales in Retail Space in Retail Space
• Attract and Keep shoppers in the store• Honor the transition zone• Don’t make them hunt• Make merchandise available to the reach
and touch• Note that men do not ask questions• Remember women need space• Make checkout easy
Indicators of Sales Indicators of Sales EffectivenessEffectiveness
• Number of people passing by• Percent who enter store• Percent who buy• Average amount spent per sale
Private Label BrandsPrivate Label Brands
A privatee- label brand( a reseller, store, house)
is a brand that retailers and wholesalers develop
Why do intermediaries bother to sponsor their own brands?
• They can be more profitable• Retailers develop exclusive store to differentiate
themselves from competitors
Ex: Canadian company LOBLAW which start as local store brand and then become global
Wholesaling Wholesaling
Wholesaling includes all the activities in selling goods or services to those who for resale or business use
Ex:
Wholesaling Functions Wholesaling Functions
Major Wholesaler TypesMajor Wholesaler Types
Market Logistics Market Logistics
Market logistic includes planning the infrastructure to meet demand, then implementing and controlling the physical flow of materials and goods from points of origin to points of use to meet customer requirements at profit
Market Logistics PlanningMarket Logistics Planning
• Deciding on the company’s value proposition to its customers
• Deciding on the best channel design and network strategy
• Developing operational excellence• Implementing the solution
What are What are Integrated Logistics Systems?Integrated Logistics Systems?
An integrated logistics system (ILS) includes materials management, material flow systems, and physical distribution, aided by information technology.
Market Logistics ActivitiesMarket Logistics Activities
• Sales forecasting• Distribution scheduling• Production plans• Finished-goods inventory
decisions• Packaging
• In-plant warehousing• Shipping-room
processing• Outbound
transportation• Field warehousing• Customer delivery and
servicing
Market Logistics DecisionsMarket Logistics Decisions
• How should orders be handled?(Order processing)
• Where should stock be located?(Warehousing)• How much stock should be held?(Inventory)• How should goods be shipped?
( Transportation)