Chapter 12: Retailers, Wholesalers, and Their Strategy Planning

1. Chapter 12: Retailers, Wholesalers, and Their Strategy Planning

2. 1. Understand how retailers plan their marketing strategies. 2. Know about the many kinds of retailers that work with producers and wholesalers as members of channel systems. 3. Understand the differences among the conventional and nonconventional retailers—including Internet merchants and others who accept the mass-merchandising concept. 4. Understand scrambled merchandising and the “wheel of retailing.” 5. See why size or belonging to a chain can be important to a retailer. 6. Know what progressive wholesalers are doing to modernize their operations and marketing strategies. 7. Know the various kinds of merchant wholesalers and agent middlemen and the strategies that they use. 8. Understand why retailing and wholesaling have developed in different ways in different countries. 9. See why the Internet is impacting both retailing and wholesaling. 10. Understand the important new terms. Chapter 12 Objectives When you finish this chapter, you should 12-2

3. Price Location Product Selection Special Services Helpful Salespeople Fairness in Dealing Retailing Key Economic Factors Affecting Consumers’ Retail Choice 12-3

4. Expanded assortment and service Specialty shops and department stores Expanded assortment and/or reduced margins/service Supermarkets, discount houses, mass-merchandisers, supercenters Conven- tional offerings Single- and limited- line stores Added convenience higher margins less assortment Telephone/mail order, vending machines, door-to-door, convenience stores, electronic shopping Expanded assortment reduced margins more information Internet Types of Retailers Exhibit 12-1 12-4

5. Convenience (Food) Stores Automatic Vending Retail Formats that Focus on Convenience Door-to-Door Selling Telephone and Direct Mail Focusing on Convenience 12-5

6. Still in Infancy Competition will bring Change Wide Assortment Costs are Deceptive New Convenience Shopping Differences More Information Retailing on the Internet 12-6

7. Corporate Chains Cooperative Chains Major Types of Retail Chains Voluntary Chains Franchise Chains Retail Chains 12-7

8. Producing Profits ???????? ???????? ???????? ???????? ???????? Progress of Fail New Strategies Needed to Survive The New Face of Wholesaling 12-8

9. Does wholesaler own the products? Yes (merchant wholesaler) No (agent middleman) How many functions does the wholesaler provide? Agent middlemen Some functions Limited-function merchant Wholesalers All the functions Service merchant wholesalers Types of Wholesalers Exhibit 12-5 12-9

10. Types of Merchant Wholesalers General Merchandise Types of Merchant Wholesalers Rack Jobbers Single- or General-Line Catalog Specialty Cash-and-Carry Truck Drop-Shippers 12-10

11. Manufacturers’ Agents Types of Agent Middlemen Auction Companies Brokers Other types of Specialists Selling Agents Types of Agent Middlemen 12-11

12. Key Terms Retailing General Stores Single/Limited Line Stores Specialty Shop Department Stores Mass-Merchandising Concept Supermarkets Discount Houses Mass-Merchandisers Supercenters Hypermarkets Convenience (Food) Stores Automatic Vending Door-to-Door Selling Telephone/Direct Mail Wheel of Retailing Scrambled Merchandising Corporate Chain Cooperative Chains Voluntary Chains Franchise Operation More 12-12

13. Key Terms Wholesaling Wholesalers Manufacturers’ Sales Branches Merchant Wholesalers Service Wholesalers General Merchandise Wholesalers Single- or General-Line Wholesalers Specialty Wholesalers Limited-Function Wholesalers Cash-and-Carry Wholesalers Drop-Shippers Truck Wholesalers Rack Jobbers Catalog Wholesalers Agent Middlemen Manufacturers’ Agent Brokers Export Import Selling Agents Combination Export Manager Auction Companies 12-13