Chapter 15

1. Chapter 15 Managing Retailing, Wholesaling, and Market Logistics PowerPoint by Karen E. James Louisiana State University - Shreveport To accompany A Framework for Marketing Management, 2nd Edition

2. Objectives • Determine the types of organizations in this sector. • Learn what marketing decisions organizations in this sector make. • Understand the major trends in this sector. To accompany A Framework for Marketing Management, 2nd Edition

3. Retailing Basics Types of retailers Marketing decisions Retailing trends Retail life cycle Wheel-of-retailing Service levels Retail positioning strategies Nonstore retailing Corporate retailing Retailing To accompany A Framework for Marketing Management, 2nd Edition

4. Specialty store Department store Supermarket Discount store Convenience store Off-price retailer Retailing Major Store Retailer Types • Superstore To accompany A Framework for Marketing Management, 2nd Edition

5. Retailing • Retail-store types pass through the retail life cycle. • The wheel-of-retailing describes how new store types emerge. • Retailers can offer one of four levels of service: • Self-service, self-selection, limited service, and full service To accompany A Framework for Marketing Management, 2nd Edition

6. Retailing • Four broad retail positioning strategies include: • Bloomingdale’s • Tiffany • Sunglass Hut • Wal-Mart • Non-store retailing has been growing faster than store retailing To accompany A Framework for Marketing Management, 2nd Edition

7. Corporate chain store Voluntary chain Retailer cooperative Consumer cooperative Franchise organization Merchandising conglomerate Retailing Major Types of Retail Organizations To accompany A Framework for Marketing Management, 2nd Edition

8. Retailing Basics Types of retailers Marketing decisions Retailing trends Target market Product assortment and placement Services mix and store atmosphere Price Promotion Place Retailing To accompany A Framework for Marketing Management, 2nd Edition

9. General business district Regional shopping center Community shopping center Strip mall (shopping strip) Location within a larger store or operation Retailing Location Options for Retailers To accompany A Framework for Marketing Management, 2nd Edition

10. Retailing Basics Types of retailers Marketing decisions Retailing trends New retail forms Intertype competition Growth of giant retailers Technology Global expansion Selling experiences Competition between store-based and non-store-based retailing Retailing To accompany A Framework for Marketing Management, 2nd Edition

11. Wholesaling Wholesaling basics Types of wholesalers Marketing decisions Wholesaling trends Wholesaling excludes manufacturers, farmers, and retailers Wholesalers differ from retailers in three key ways Wholesalers handle many functions more efficiently than do manufacturers Wholesaling To accompany A Framework for Marketing Management, 2nd Edition

12. Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Wholesaling Wholesaler Functions To accompany A Framework for Marketing Management, 2nd Edition

13. Wholesaling Wholesaling basics Growth and types of wholesalers Marketing decisions Wholesaling trends Wholesalers vary in type and function Wholesaling has been growing due to two key factors: Many factories are located far from buyers An increasing need to adapt product quantities, features, or packages to meet buyer needs Wholesaling To accompany A Framework for Marketing Management, 2nd Edition

14. Merchant wholesalers Full-service wholesalers Limited-service wholesalers Brokers & agents Brokers Agents Manufacturers’ and retailers’ branches and offices Miscellaneous wholesalers Wholesaling Major Wholesaler Types To accompany A Framework for Marketing Management, 2nd Edition

15. Wholesaling Wholesaling basics Types of wholesalers Marketing decisions Wholesaling trends Target market Product assortment and placement Price Promotion Place Wholesaling To accompany A Framework for Marketing Management, 2nd Edition

16. Wholesaling Wholesaling basics Types of wholesalers Marketing decisions Wholesaling trends Direct buying trends initially threatened wholesalers Wholesalers have adapted by: Adding value Reducing costs Strengthening relationships with manufacturers Wholesaling To accompany A Framework for Marketing Management, 2nd Edition

17. Market Logistics • Interrelated Aspects Associated with Market Logistics: • Physical distribution • Supply chain management (SCM) • Value network • Demand chain planning • Market logistics • Integrated logistics systems (ILS) To accompany A Framework for Marketing Management, 2nd Edition

18. Key Elements Market-logistics objectives Market-logistics decisions Market logistics lessons Logistics involve trade-offs between costs and customer service Maximizing profits, not sales, is key A total system basis should be considered Designing a system that will minimize the cost of achieving objectives should be the outcome Market Logistics To accompany A Framework for Marketing Management, 2nd Edition

19. M = T + FW + VW + S Where . . . M = total market-logistics cost of proposed system; T = total freight cost of proposed system; FW = total fixed warehouse cost of proposed system; VW = total variable warehouse cost of proposed system S = total cost of lost sales due to average delivery delay Market Logistics Calculating the Cost of Market-Logistics Systems To accompany A Framework for Marketing Management, 2nd Edition

20. Key Elements Market-logistics objectives Market-logistics decisions Market logistics lessons Order processing Warehousing Storage, distribution, automated warehouses Inventory Determine reorder point, relevant cost comparison, optimal order quantity Transportation Containerization Private vs. contract carriers Market Logistics To accompany A Framework for Marketing Management, 2nd Edition

21. Key Elements Market-logistics objectives Market-logistics decisions Market logistics lessons A senior V.P. is needed as the single contact point for all logistical elements Senior V.P. must maintain close control Software and systems are essential for competitively superior logistics performance Market Logistics To accompany A Framework for Marketing Management, 2nd Edition