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Retailing/ Wholesaling - PowerPoint PPT Presentation

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Retailing/ Wholesaling
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  1. Retailing/ Wholesaling 13

  2. Definitions • Retailing • All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

  3. Specialty Stores Department Stores Supermarkets Retailers Types of Retailers Discount Stores Convenience Stores Off-Price Retailers Superstores

  4. Self-service retailers Customers are willing to self-serve to save money Discount stores MİGROS Limited-service retailers Most department stores BOYNER STORES Full-service retailers Salespeople assist customers in every way High-end department stores Specialty stores ARÇELİK Retailing Retailers are Classified by: Amount of service Product lines Relative prices Organizational approach

  5. Specialty stores Narrow product lines with deep assortments Department stores Wide variety of product lines Supermarkets Convenience stores Limited line Superstores Sell food, nonfood, and services Category killers Giant specialty stores Retailing Retailers are Classified by: Amount of service Product lines Relative prices Organizational approach

  6. Specialty Stores Narrow Product Line, Deep Assortment i.e. Deriden, Timberland Department Stores Wide Variety of Product Lines i.e. Clothing, Yeni Karamürsel, Boyner Supermarkets Wide Variety of Food, Laundry, & Household Products i.e. Canerler Convenience Stores Limited Line of High-Turnover Convenience Goods i.e. Büfeler, bakkallar Superstores Large Assortment of Routinely Purchased Food & Nonfood Products i.e. Real, Migros Discount Stores Standard Merchandise at Lower Prices i.e. Ulus, Kızılay mağazaları Off-Price Retailers Changing Collection of Higher-Quality Goods at a Reduced Price i.e. Outlet Warehouse Clubs Limited Selection of Brand-Name Grocery Items, Appliances, Etc. i.e. Metro Classification of Retailing:Product Line Store Description

  7. Discount stores Low margins are offset by high volume Ulus, Kızılay mağazaları Off-price retailers Independent off-price retailers Factory outlets Levi Strauss, Reebok Warehouse clubs METRO Retailing Retailers are Classified by: Amount of service Product lines Relative prices Organizational approach

  8. Corporate chain stores Commonly owned/controlled Voluntary chains Wholesaler-sponsored groups of independent retailers Retailer cooperatives Groups of independent retailers who buy in bulk Franchise organizations Based on uniqueness Merchandising conglomerates Diversified retailing lines under central ownership Retailing Retailers are Classified by: Amount of service Product lines Relative prices Organizational approach

  9. Retailing • Retailer Marketing Mix • Price • High markup or high volume? • Promotion • Public relations, sales promotions, advertising, direct marketing • Place • Location, location, location!

  10. Definitions • Wholesaling • All activities involved in selling goods and services to those buying for resale or business use. • Wholesaling • A firm engaged primarily in wholesaling activity.

  11. Wholesaling • Wholesalers add value by performing the following functions: • Selling and promoting • Buying and assortment building • Bulk-breaking • Warehousing • Transportation

  12. Wholesaling • Wholesalers add value by performing the following functions: • Financing • Risk bearing • Marketing information • Management services and advice

  13. Full-service wholesalers Wholesale merchants Industrial distributors Limited service wholesalers Cash-and-carry wholesalers Truck wholesalers (jobbers) Drop shippers Rack jobbers Producer’s cooperatives Mail-order wholesalers Wholesaling Types of Wholesalers Merchant Wholesalers Brokers and Agents Manufacturers’ and retailers’ branches and offices

  14. Brokers Bring buyers and sellers together and assist in negotiation Agents Manufacturers’ agents Selling agents Purchasing agents Commission merchants Wholesaling Types of Wholesalers Merchant Wholesalers Brokers and Agents Manufacturers’ and retailers’ branches and offices

  15. Sales branches and offices Branches carry inventory: lumber, auto equipment, parts Offices do not carry inventory: dry goods Purchasing officers Perform roles similar to brokers and agents, however these individuals are employees of the organization Wholesaling Types of Wholesalers Merchant Wholesalers Brokers and Agents Manufacturers’ and retailers’ branches and offices

  16. Wholesaling • Wholesaler Marketing Decisions • Marketing mix decisions • Product and service assortment: inventory, line • Pricing: usual markup on COG is 20% • Promotion: largely disorganized and unplanned • Place: location, facilities