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RETAILING WHOLESALING - PowerPoint PPT Presentation


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Chapter 17. Managing Retailing, Wholesaling, and Market Logistics. Marketing Management Tenth Edition Philip Kotler. Objectives. Retailing Wholesaling Market Logistics. Four Levels of Retail Service. Self-service Self-selection Limited-service Full-service. Broad. Breadth of

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Presentation Transcript
slide1

Chapter 17

Managing Retailing,

Wholesaling, and

Market Logistics

Marketing Management

Tenth Edition

Philip Kotler

objectives
Objectives
  • Retailing
  • Wholesaling
  • Market Logistics
four levels of retail service
Four Levels of Retail Service
  • Self-service
  • Self-selection
  • Limited-service
  • Full-service
slide4

Broad

Breadth of

product line

Narrow

Value added

Low

High

Retail Positioning Map

Bloomingdale’s

Wal-Mart

Tiffany

Kinney

Shoe

slide5

Classification Of Retailer Types

Narrow Product Line, Deep Assortment

Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items

Wide Variety of Food, Laundry, & Household Products

Limited Line of High-Turnover Convenience Goods

Broad Product Line, Low Margin, High Volume

Inexpensive, Overruns, Irregulars, and Leftover Goods

Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services

Broad Selection, Fast Turnover, Discount Prices

Store Type Length and Breadth of Product Assortment

Specialty Stores

Department Stores

Supermarkets

Convenience Stores

Discount Stores

Off-Price Retailer

Superstores

Catalog Showroom

slide6

Types of NonStore Retailing

Direct Selling

Direct Marketing

NonStore Retailing Accounts for More Than 12% of All Consumer Purchases, and is trending up.

Automatic Vending

Buying Services

slide7

Wheel of Retailing

Mid Price

Mid Status

Mid Margin

Low Price

Low Status

Low Margin

High Price

High Status

High Margin

New Entrants

slide8

Why are Wholesalers Used?

Wholesaler

Functions

Selling and

Promoting

Management

Services & Advice

Market

Information

Buying and

Assortment Building

Bulk Breaking

Risk Bearing

Financing

Warehousing

Transporting

slide9

Provide a Targeted Level of Customer Service at the Least Cost.

  • Maximize Profits, Not Sales.

Higher Distribution Costs/ Higher Customer Service Levels

Lower Distribution Costs/ Lower Customer Service Levels

Goals of the Logistics System

logistics systems

Transportation Water, Truck, Rail, Pipeline & Air

Logistics Systems

Order Processing

Submitted

Processed

Shipped

Costs

Minimize Costs of

Attaining Logistics

Objectives

Logistics

Functions

Warehousing

Storage

Distribution

Inventory

When to order

How much to order

Just-in-time

transportation modes

Rail

Nation’s largest carrier, cost-effective

for shipping bulk products, piggyback

Truck

Flexible in routing & time schedules, efficient

for short-hauls of high value goods

Water

Low cost for shipping bulky, low-value

goods, slowest form

Pipeline

Ship petroleum, natural gas, and chemicals

from sources to markets

Air

High cost, ideal when speed is needed or to

ship high-value, low-bulk items

Transportation Modes
slide12

1. Speed.

2. Dependability.

3. Capability.

4. Availability.

5. Cost.

Checklist for Choosing

Transportation Modes

slide13

Speed Dependability Capability Availability Cost

(Door-to-

door

delivery

time)

(Meeting

Schedules

on Time)

(Ability to

Handle

Various

Products)

(No. of

Geographic

Points

Served)

(Per

Ton-

Mile)

Rating Transportation Modes

Rail 3 4 2 2 3

Water 4 5 1 4 1

Truck 2 2 3 1 4

Pipeline 5 1 5 5 2

Air 1 3 4 3 5

Source: See Carl M. Guelzo; Introduction to Logistics Management Englewood Cliffs, NJ:

Prentice Hall, 1986), p. 46.

review
Review
  • Retailing
  • Wholesaling
  • Market Logistics
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