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16 Managing Retailing, Wholesaling, and Logistics 1
Table 16.1 Major Retailer Types Specialty store Department store Supermarket Convenience store Discount store Off-price retailer Superstore Catalog showroom Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-3 Levels of Retail Service Self service Self selection Limited service Full service
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-4 Nonstore Retailing Direct selling Direct marketing Automatic vending
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-5 Changes in the Retail Environment New retail forms and combinations Competition between store-based and non- store-based retailing Growth of giant retailers Decline of middle market retailers Growing investment in technology Global profile of major retailers Growth of shopper marketing
Retailers’ Marketing Decisions Target market Product assortment Procurement Prices Services Store atmosphere Store activities Store experiences Communications Location Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-6
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-7 Store Atmosphere Walls Lighting Signage Product placement Floors Surface space Music The Fornarina flagship store features award-winning retail design.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-8 Tips for Increasing Sales in Retail Space Keep shoppers in the store Honor the transition zone Don’t make them hunt Make merchandise available to the reach and touch Note that men do not ask questions Remember women need space Make checkout easy
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-9 Private Label Brands Private labels are ubiquitous Consumer accepts private labels Private-label buyers come from all socioeconomic strata Private labels are not a recessionary phenomenon Consumer loyalty shifts from manufacturers to retailers
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Private Labels
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Wholesaling Functions Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling
Supply Chain Management Supply chain management starts before physical distribution and means strategically procuring the right inputs (raw materials, components, and capital equipment); converting them efficiently into finished products; and dispatching them to the final destinations. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16-12
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Market Logistics Decisions How should orders be handled? Where should stock be located? How much stock should be held? How should goods be shipped?
Figure 16.1 Determining Optimal Order Quantity Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16-15
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Transportation Factors Speed Frequency Dependability Capability Availability Traceability Cost
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LOGO Supply Chain Management A Logistics Approach COURSE FACILITATOR Muhammad Tariq Yousafzai Assistant Professor MS in Innovation and Business Creation.
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E-Business Strategies Bob Smith Associate Professor/Extension Specialist Dept. of Wood Science and Forest Products Virginia Tech E-Commerce: Impacting.
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