Retailing includes all the activities involved in selling
products or services directly to final consumers for their
personal, non-business use.
3. Types of Retailers Retailers are classified based on: Amount
of Service They Offer Breadth & Depth of Product Lines Relative
Prices Charged How They Are Organized
4. Amount of Service
Self-Service Retailers:
Serve customers who are willing to perform their own
locate-compare-select process to save money.
Limited-Service Retailers:
Provide more sales assistance because they carry more shopping
goods about which customers need information.
Full-Service Retailers:
Usually carry more specialty goods for which customers like to
be waited on.
5. Product Line Classification Specialty Stores: Carry narrow
product lines with deep assortments within those lines, e.g
jewelry, Books stores ,sports goods Department Stores: Carry a wide
variety of product linestypically clothing, home furnishings, and
household goods. Each line is operated as a separate department
managed by specialist buyers or merchandisers. E.g- akbarallys
Single line-shopper stop Limited line- raymonds Super
speciality-all brands
6. Product Line Classification Supermarket: Large, low-cost,
low-margin, high-volume, self-service store that carries a wide
variety of food, laundry, and household products. e.g- foodland
& garware Convenience Stores: Small stores located near
residential areas that are open long hours 7 days a week and carry
a limited line of high-turnover convenience goods.
7. Web-Based Supermarket In the battle for share of stomachs,
Safeway and many large supermarkets have added Web-based
sales.
8. Product Line Classification Superstores: Much larger than
regular supermarkets and offer a large assortment of routinely
purchased food products, nonfood items, and services. Offer dry
cleaning, shoe repair Category Killers: Giant specialty stores that
carry a very deep assortment of a particular line and is staffed by
knowledgeable employees. e.g toys R U, home depot
9.
What type of impact did the emergence of category killers have
on department stores?
Discussion Question
10. Relative Prices Classification
Discount Store:
A retail institution that sells standard merchandise
at lower prices by accepting lower margins and
selling at higher volume. e.g walmart, big bazaar
Sells goods at discounted price
Carries national brands
Operational costs r min. as self service & no frills
Location in low rent areas, it draws customers
from distant areas
11.
Off-Price Retailer:
Retailer that buys at less-than-regular wholesale
prices and sells at less than retail. Examples are
factory outlets, independents, and warehouse
clubs.
Factory Outlet: Off-price retailing operation that is owned and
operated by a manufacturer and that normally carries the
manufacturers surplus, discontinued, or irregular goods.
Independent Off-Price Retailer: Off-price retailer that is either
owned and run by entrepreneurs or is a division of a larger retail
operation.
12. Factory Outlets Factory outlet malls and value-retail
centers have blossomed in recent years, making them one of
retailings hottest growth areas.
13. Relative Prices Classification Warehouse Club: Off-price
retailer that sells a limited selection of brand-name grocery
items, appliances, clothing, at deep discounts to members who pay
annual membership fees.
14. Organizational Classification Chain Stores: Two or more
outlets that are owned and controlled, have central buying and
merchandising, and sell similar lines of merchandise. Voluntary
Chain: A wholesaler-sponsored group of independent retailers that
engages in bulk buying and common merchandising.
15. Organizational Classification Retailer Cooperative: A group
of independent retailers that bands together to set up a jointly
owned, central wholesale operation and conducts joint merchandising
and promotion efforts. Franchise: A contractual association between
a manufacturer, wholesaler, or service organization (a franchiser)
and independent businesspeople (franchisees) who buy the right to
own and operate one or more units in the franchise system.
16. Franchising Franchisees now command 35% of all retail sales
in the U.S. Subway is one of the fastest growing franchises, with
nearly 20,000 shops in 74 countries.
17. Retailer Marketing Decisions
18. Price, Promotion, & Place Decisions Price policy must
fit its target market and positioning, product and service
assortment, and competition Can use any or all of the promotion
toolsadvertising, personal selling, sales promotion, public
relations, and direct marketingto reach consumers Location-road
infrastructure,power and public transport Visibility-ability to see
the store,parking lo
19. Mall of America
The Mall of America megamall contains:
Over 520 specialty stores
49 restaurants
7-acre indoor theme park
Underwater World featuring hundreds of marine specimens
A two-story miniature golf course.
20. Business model
Low margin-high turnover
High operational efficiency
Economic drivers- high inventory turnover, low operating
cost
New retails forms& combinations-gas stations include food
stores
Shorter life span
Electronic age-non store retailing via mail, tv, phones
Intertype competition-discount store vs deptt. Store
Deptt. Stores gave way to malls
Technology-Pcs for forecast, control inventory costs, scanning
systems.
Unique formats & strong brand positioning. Mc, gap
Establishments provide people to congregate e.g tea shops, caf
coffee day, book stores, pubs
22. Wholesaling
Wholesaling includes all activities involved in selling goods
and services to those buying for resale or business use.
Difference b/w wholesalers & retailers
Less attention to promos, atmosphere, location then
retailers
Transactions are larger ,cover large trade area
Govt. dealing will be different
23. Functions Provided by Wholesalers Selling & Promoting
Buying & Assortment Building Bulk-Breaking Warehousing
Transportation Financing Risk Bearing Market Information Management
Services & Advice
24. Types of Wholesalers
Merchant Wholesalers- independently owned business take title
to merchandise they handle
Largest group of wholesalers
Account for 50% of wholesaling
Two broad categories:
Full-service wholesalers
Limited-service wholesalers
Cash n carry ,truck wholesalers, drop shippers, rack jobbers
,producers cooperatives, mail order wholesalers
25. Types of Wholesalers
Brokers
Do not take title to goods, Perform fewer functions
Brokers bring buyers and sellers together
Paid by party who hired them
Do not carry inventory, no finance, risk
E.g food brokers, real estate, insurance
Agents
Agents represent buyers or sellers on more permanent basis
Manufacturers agents written agreement on
Pricing
territories
delivery, order procedure
Apparel, furniture, electrical goods
26. Types of Wholesalers
Manufacturers Sales Branches and Offices
Wholesaling by sellers or buyers themselves rather than through
independent wholesalers.
27. Wholesaling In Action
Grainger is by far the worlds leading wholesaler of
maintenance, repair, and operating supplies.
200,000 products,520 branches
Satellite network
Online ordering
28. Wholesaler Marketing Decisions
29.
30. Trends in Wholesaling Must Constantly Improve Services and
Reduce Costs Distinction Between Large Retailers & Wholesalers
is Blurry Will Continue to Increase the Services Provided to
Retailers Wholesalers Are Now Going Global
31. Rest Stop: Reviewing the Concepts
Explain the roles of retailers and wholesalers in the
distribution channel.
Describe the major types of retailers and give examples of
each.
Identify the major types of wholesalers and give examples of
each.
Explain the marketing decisions facing retailers and
wholesalers.