1. Retailing and Wholesaling
Chapter 13
Retailing and Wholesaling

2. What is Retailing? Retailing
Includes all the activities Involved in Selling Goods or Services Directly to Final Consumers for Their Personal, Nonbusiness Use.

3. Retailing
Retailing can be done in stores (store retailing) or out of a store (nonstore retailing) such as:
Direct mail,
Catalogs,
Telephone,
Home shopping shows,
Internet.

4. Classification of Retailing
Amount of Service
Self-Service, Limited-Service and
Full-Service Retailer
Classification of Retailing
Product Line
Length and Breadth of the Product
Assortment
Relative Prices
Pricing Structure that is Used
by the Retailer
Retail Organizations
Independent, Corporate, or Contractual
Ownership Organization

5. Classification of Retailing: Amount of Service
Self-Service
Retailer
Provide Few or No
Services to
Shoppers
i.e. Best Buy
Limited-Service
Retailers
Provide Only a Limited
Number of Services
to Shoppers
i.e. Sears
Full-Service
Retailers
Retailers that Provide a
Full Range of Services
to Shoppers
i.e. Neiman Marcus

6. Classification of Retailing: Product Line (Tab. 13.1)
Store Description
Specialty Stores
Department Stores
Supermarkets
Convenience Stores
Superstores
Discount Stores
Narrow Product Line, Deep Assortment i.e. The Limited or Athlete’s Foot
Wide Variety of Product Lines i.e. Clothing, Home Furnishings, Saks Fifth Avenue
Wide Variety of Food, Laundry, & Household Products i.e. Kroger
Limited Line of High-Turnover Convenience Goods i.e. 7-Eleven
Large Assortment of Routinely Purchased Food & Nonfood Products i.e. Toys R Us
Standard Merchandise at Lower Prices
i.e. Wal-Mart
Off-Price Retailers
Changing Collection of Higher-Quality Goods at a Reduced Price i.e. T.J. Maxx
Warehouse Clubs
Limited Selection of Brand-Name Grocery Items, Appliances, Etc. i.e. Sam’s Club

7. Classification of Retailing: Relative Prices
Higher Prices and Offer Higher-Quality Goods
and Customer Service
Regular Prices and Offer Normal-Quality Goods
and Customer Service
Low Prices and Offer Lower-Quality Goods
and Customer Service
Discount
Stores
“Off-Priced”
Retailers
Catalog
Showrooms

8. Classification of Retailing: Retail Organization
Corporate
Chain
Merchandising
Conglomerates
Voluntary
Chain
Franchise
Organizations
Retailer
Cooperatives

9. Retailer Marketing Decisions (Fig. 13.1)
Marketing Mix
Product and service
assortment
Prices
Promotion
Place (location)
Retailer
Strategy
Target Market
Retail Store
Positioning

10. Product Assortment and Services Decisions
Width and Depth of Assortment
Quality of Products
Product Differentiation Strategies
Services Mix
Key Tool of Nonprice Competition
for Setting One Store Apart From
Another
Store’s Atmosphere
Physical Layout
“Feel” That Suits the Target Market
and Moves Customers to Buy

11. Retailer’s Price, Promotion, and Place Decisions
Price Decisions
Target Market,
Product & Service Assortment,
Competition
Promotion Decisions
Using Advertising, Personal Selling, Sales Promotion, Public Relations, & Direct Marketing to Reach Customers
Place Decisions
Shopping Centers, Central Business Districts, or Power Centers, or Online Shopping
Location, Location, Location!

12. The Future of Retailing
New Retail Forms and Shortening Retail Lifecycle
Growth of Nonstore Retailing
Increasing Intertype Competition
Rise of Megaretailer
The Future of Retailing
Growing Importance of Retail Technology
Global Expansion of Major Retailers
Retail Stores as “Communities” or “Hangouts”

13. The Wheel of Retailing 1 = Discount 2 = Superstore 3 = Warehouse Club
4 = Combination Store 4 3 2 1
High Margin
High Price
High Status
Low Margin
Low Price
Low Status

14. Discussion Connections
Online retailers provide an alternative to shopping the old fashioned way.
Discuss the differences in shopping for books and music at vs. Barnes & Noble Booksellers.
Discuss the differences in shopping for groceries at vs. your local grocery store.
Which do you prefer and why?

15. What is Wholesaling?
All the activities involved in selling goods and services to those buying for resale or business use.
Wholesaler - those firms engaged primarily in wholesaling activity.
Wholesalers buy mostly from producers and sell mostly to:
Retailers,
Industrial consumers, and
Other wholesalers.

16. Why are Wholesalers Used?
Wholesalers are Often Better at Performing One or More of the Following Channel Functions:
Management
Services & Advice
Selling and
Promoting
Market
Information
Buying and
Assortment Building
Wholesaler
Functions
Risk Bearing
Bulk Breaking
Financing
Warehousing
Transportation

17. Manufacturers’ Sales Branches and Offices
Types of Wholesalers
Merchant Wholesaler
Independently Owned
Business that Takes Title to the
Merchandise it Handles.
Manufacturers’ Sales Branches and Offices
Wholesaling by Sellers or Buyers Themselves
Rather Than Through
Independent
Wholesalers.
Brokers/ Agents
They Don’t Take Title to
the Goods, and They
Perform Only a Few
Functions.

18. Wholesaler Marketing Decisions (Fig. 13.2)
Marketing Mix
Product and service
assortment
Prices
Promotion
Place (location)
Wholesaler
Strategy
Target Market
Service
Positioning

19. Trends in Wholesaling
Consolidation within the Industry is Reducing # of Wholsalers
Distinction Between Large Retailers and Wholesalers Blurs
Wholesalers Will Continue to Increase the Services Provided
Wholesalers Are Beginning to Go Global

20. Review of Concept Connections
Explain the roles of retailers and wholesalers in the distribution channel.
Describe the major types of retailers and give examples of each.
Identify the major types of wholesalers and give examples of each.
Explain the marketing decisions facing retailers and wholesalers.