1. A FRAMEWORK for MARKETING MANAGEMENT
Chapter 14
Managing
Retailing,
Wholesaling,
and Logistics
Kotler Keller Cunningham

2. © Copyright 2008 Pearson Education Canada
Chapter Questions
What are the major types of marketing intermediaries?
What marketing decisions do these marketing intermediaries make?
What are the major trends in retailing, wholesaling, and logistics?
© Copyright 2008 Pearson Education Canada

3. Profile: Canadian Marketing Excellence RUNNING ROOM LTD
Founded by John Stanton, the Running Room aimed to provide good running advice and products, at the same time serving as a place where runners could meet and form a community
The Running Room maintains close relationships with its customers through clinics, while treating its customers as individuals
By 2006, it had over 80 locations in Canada and the United States
© Copyright 2008 Pearson Education Canada

4. Retailing Retailing includes all the activities involved
in selling goods or services directly
to final consumers for personal,
non-business use
© Copyright 2008 Pearson Education Canada

5. Levels of Retail Service
Self-service
Self-selection
Limited service
Full service
© Copyright 2008 Pearson Education Canada

6. Table 14.1 Major Retailer Types
Specialty store
Department store
Supermarket
Convenience store
Discount store
Off-price retailer
Superstore
Catalog showroom
© Copyright 2008 Pearson Education Canada

7. © Copyright 2008 Pearson Education Canada
Nonstore Retailing
Direct
selling
Direct
marketing
Buying
service
Automatic
vending
© Copyright 2008 Pearson Education Canada

8. Table 14.2 Major Types of Corporate Retail Organizations
Corporate chain store
Voluntary chain
Retailer cooperative
Consumer cooperative
Franchise organization
Merchandising conglomerate
© Copyright 2008 Pearson Education Canada

9. Retailers’ Marketing Decisions
Target market
Product assortment
Service/store atmosphere
Price
Communication
Location
© Copyright 2008 Pearson Education Canada

10. Liquor Control Board of Ontario
In the 1990s, the Liquor Control Board of Ontario (LCBO) embarked on a campaign to renew its image
Wanted to head off competition from small wine stores, cross-border shopping, and the illegal market
Transformed its stores into inviting and attractive boutiques
Design awards followed, and the LCBO expanded its product range to other gift items (CDs, glassware)
© Copyright 2008 Pearson Education Canada

11. © Copyright 2008 Pearson Education Canada
Location Decision
General business districts
Regional shopping centres
Community shopping centres
Strip malls
Location within a larger store
© Copyright 2008 Pearson Education Canada

12. © Copyright 2008 Pearson Education Canada
Trends in Retailing
New retail forms and combinations
Growth of intertype competition
Competition between store-based and non-store-based retailing
Growth of giant retailers
Decline of middle market retailers
Growing investment in technology
Global presence of major retailers
© Copyright 2008 Pearson Education Canada

13. © Copyright 2008 Pearson Education Canada
Private Labels
© Copyright 2008 Pearson Education Canada

14. Wholesaling Functions
Transportation
Financing
Risk bearing
Market information
Management services and counselling
Selling and promoting
Buying and assortment building
Bulk breaking
Warehousing
© Copyright 2008 Pearson Education Canada

15. Major Wholesaler Types
Merchant
Full-service
Limited-service
Brokers and agents
Manufacturers’
Specialized
© Copyright 2008 Pearson Education Canada

16. Wholesalers’ Marketing Decisions
Target market
Product assortment
Price
Promotion
Place
© Copyright 2008 Pearson Education Canada

17. Figure 14.1 Market Logistics Planning
Decide on the company’s value proposition to its customers
Decide on the best channel design and network strategy
Develop operational excellence
Implement the solution
© Copyright 2008 Pearson Education Canada

18. Market Logistics Decisions
How should orders be handled?
Where should stocks be located?
How much stock should be held?
How should goods be shipped?
© Copyright 2008 Pearson Education Canada

19. Figure 14.2 Determining Optimal Order Quantity
© Copyright 2008 Pearson Education Canada

20. Transportation Factors
Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost
© Copyright 2008 Pearson Education Canada

21. © Copyright 2008 Pearson Education Canada
Containerization
© Copyright 2008 Pearson Education Canada

22. For Discussion How might delays at Canadian ports
affect the retail industry?
Is this a threat for all retailers or just
for specific product categories?
© Copyright 2008 Pearson Education Canada