1. MANAGING RETAILING, WHOLESALING, AND LOGISTIC
4/6/ :18 PM
MANAGING RETAILING, WHOLESALING, AND LOGISTIC
Disusun Oleh:
Syilvta Nastassia Syahputri ( )
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

2. 4/6/ :18 PM
Chapter Objective:
What major types of marketing intermediaries occupy this sector?
What marketing decisions do these marketing intermediaries make?
What are major trends with marketing intermediaries?
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

3. Retail positioning strategies
4/6/ :18 PM
RETAILING
Types of Retailers
Retailers can offer one of four levels of service; Self-service, self-selection, limited service, and full service
Retail-store types pass through the retail life cycle.
The wheel-of-retailing describes how new store types emerge.
Four broad retail positioning strategies include:
Bloomingdale’s
Tiffany
Sunglass Hut
Wal-Mart
Non-store retailing has been growing faster than store retailing.
These organizations achieve economies of scale, greater purchasing power, wider brand recognation & better trained employees than independent stores can usually gain alone.
Retail life cycle
Wheel-of retailing
Service levels
Retail positioning strategies
Non-store retailing
Corporate retailing
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4. 4/6/ :18 PM
RETAILING
Retailing includes all the activities in selling goods or service directly to final consumers for personal, non-business use.
Major Retailer Types:
Specialty store
Narrow product line. Example;
Department store
Several product line. Example;
Supermarket
Large, low-cost, low-margin, high volume, self service store designed to meet total needs for food and household products.
Example;
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

5. RETAILING Convenience store
4/6/ :18 PM
RETAILING
Convenience store
Small store in residential area, often open 24/7, limited line of high-turnover convenience products plus takeout.
Example;
Discount store
Standard or specialty merchandise; low-price, low-margin, high-volume stores. Example;
Off-price retailer
Leftover goods, overruns, irregular merchandise sold at less than retail. Example;
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

6. 4/6/ :18 PM
RETAILING
Superstore
Huge selling space, routinely purchased food and household items, plus services. Category killer (deep assortment in one category), example; combination store, example;
hypermarket (huge stores that combine supermarket, discount, and warehouse retailing), example;
Catalog Showroom
Broad selection of high-markup, fast moving, brand-name goods sold by catalog at discount. Customer pick up merchandise at the store. Example;
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

7. Breadth of Product Line
RETAILING
Retail Positioning Map
Source: William T. Gregor and Eileen M. Friars, Money Merchandising: Retail Revolution in Consumer Financial Service (Cambridge, MA: The MAC Group, 1982).
Broad
Bloomingdale’s
Wal-Mart
Breadth of Product Line
Tiffany
Sunglass Hut
Narrow
Value Added

8. RETAILING Levels of Retail Service Self-service Self-selection
Self service is the cornerstone of all discount operations.
Self-selection
Customers find their own goods, although they can ask
for assistance.
Limited service
These retailers carry more shopping goods & services
such as credit & merchandise-return privileges.
Full service
Sales people are ready to assist in every phase
of the locate-compare-select process.

9. RETAILING Direct selling Direct marketing Automatic vending
4/6/ :18 PM
RETAILING
Non-store Retailing
Direct selling
Is a multibillion-dollar
industry, with hundreds of
companies selling door to
door or at home sales
parties.
Direct marketing
Has roots in direct-mail & catalog
marketing; it includes
telemarketing, television direct-
response marketing,
& electronic shopping.
Automatic vending
Offers a variety of merchandise,
including impulse goods such as
soft drinks, coffee & newspapers
Buying service
Is a store less retailer serving a specific
Clientele, usually employees of large
Organizations, who are entitled to buy
From a list of retailers that have agreed
To give discounts in return for
membership
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

10. Characteristics of Franchises
RETAILING
Characteristics of Franchises
The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments.
The franchisee pays for the right to be part of the system.
The franchisor provides its franchisees with a system for doing business.

11. Retailer’s Marketing Decisions
4/6/ :18 PM
RETAILING
Retailer’s Marketing Decisions
Target market
Until it defines & profiles the target market, the retailer cannot make consistent decisions about product assortment, store decor, advertising messages & media, price and service levels.
Product assortment and placement
The retailer’s product assortment must match the target market’s shopping expectations. The retailer must decide on product-assortment breadth and depth.
Procurement
After deciding on the product-assortment strategy, the retailer must establish merchandise sources, policies and practices.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

12. RETAILING Services mix and store atmosphere
4/6/ :18 PM
RETAILING
Services mix and store atmosphere
The service mix is a key tool for differentiating one store from another. retailers must decide on the service mix to offer customers. Pre-purchase services include accepting telephone & mail orders, Post-purchase service include shipping & delivery, Ancillary services include general information, check cashing & parking. Atmosphere is another element in the store arsenal. Every store has a look and a physical layout that makes it hard or easy to move around.
Price
Price is the key positioning factor & must be decided in relation to the target market, the product-and-service assortment mix, and the competition. Retailers must also pay attention to pricing tactics. Most retailers will put low prices on some items to serve as traffic builders or loss leaders or to signal their pricing policies.
Store activities and experiences
Victoria’s Secret, retailer of lingerie, other women’s clothing, and beauty products, works on the concept of “retail theater”: customers feel they are in a romance novel, with lush music & faint floral scents in the background.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

13. RETAILING Communications
4/6/ :18 PM
RETAILING
Communications
Retailers use a wide range of communication tools to generate traffic and purchases.
Location Decision
The three keys to retail success are “location, location, location”. Retails can place their stores in the following locations:
1. Central business districts. Downtown.
2. Regional shopping centers. Large suburban malls containing 40 to 200 stores, typically featuring one or two nationally known anchor stores & a great number of smaller stores, many under franchise operation.
3. Community shopping centers. Smaller malls with one anchor store and between 20 and 40 smaller stores.
4. Shopping strips. A cluster of stores, usually housed in one long building, serving a neighborhood’s needs for groceries, hardware, laundry, shoe repair & dry cleaning.
5. A location within a large store. Certain well-known retailers locate new, smaller units as concession space within larger stores such as airports.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

14. WHOLESALING Wholesaling Basics
4/6/ :18 PM
WHOLESALING
Wholesaling Basics
Wholesaling excludes manufacturers, farmers, and retailers.
Wholesalers differ from retailers in three key ways.
Wholesalers handle many functions more efficiently than do manufacturers.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

15. WHOLESALING Wholesaling Functions Selling and promoting
4/6/ :18 PM
WHOLESALING
Wholesaling Functions
Selling and promoting
Buying and assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management services and counseling
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

16. WHOLESALING Major Wholesaler Types
4/6/ :18 PM
WHOLESALING
Major Wholesaler Types
Merchant. Independently owned businesses that take title to the merchandise they handle.
Full-service. Carry stock, maintain a sales force, offer credit, make deliveries, provide
management assistance.
Limited-service. Cash & carry wholesalers sell a limited line of fast-moving goods
to small retailers for cash.
Brokers & agents. Facilitate buying & selling, on commission of 2% to 6% of the
selling price; limited functions; specialize by product line.
Manufacturers. Wholesaling operations conducted by sellers or buyers themselves
rather than through independent wholesalers.
Specialized. Agricultural assemblers, petroleum bulk plants&terminals, auction companies.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

17. WHOLESALING Wholesaling Trends
4/6/ :18 PM
WHOLESALING
Wholesaling Trends
Direct buying trends initially threatened wholesalers.
Wholesalers have adapted by:
Adding value
Reducing costs
Strengthening relationships with manufacturers
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

18. WHOLESALING Market Logistics Planning
4/6/ :18 PM
WHOLESALING
Market Logistics Planning
Deciding on the company’s value proposition to its customers.
Deciding on the best channel design and network strategy.
Developing operational excellence.
Implementing the solution.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

19. WHOLESALING Market Logistics Sales forecasting In-plant warehousing
4/6/ :18 PM
WHOLESALING
Market Logistics
Sales forecasting
Distribution scheduling
Production plans
Finished-goods inventory decisions
Packaging
In-plant warehousing
Shipping-room processing
Outbound transportation
Field warehousing
Customer delivery and servicing
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

20. WHOLESALING Market-Logistics Decisions How should orders be handled?
4/6/ :18 PM
WHOLESALING
Market-Logistics Decisions
How should orders be handled?
Where should stock be located?
How much stock should be held?
How should goods be shipped?
Order processing
Warehousing
Storage, distribution, automated warehouses.
Inventory
Determine reorder point, relevant cost comparison, optimal order quantity.
Transportation
Containerization & private vs. contract carriers.
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

21. Calculating the Cost of Market-Logistics Systems
4/6/ :18 PM
WHOLESALING
Calculating the Cost of Market-Logistics Systems
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
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

22. Figure 16.2 Determining Optimal Order Quantity
4/6/ :18 PM
WHOLESALING
Figure 16.2 Determining Optimal Order Quantity
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

23. WHOLESALING Transportation Factors Speed Frequency Dependability
4/6/ :18 PM
WHOLESALING
Transportation Factors
Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

24. CONCLUSION Transportation Factors Speed Frequency Dependability
4/6/ :18 PM
CONCLUSION
Transportation Factors
Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

25. TERIMA KASIH