Managing Retailing, Wholesaling, and Logistics Key Concepts

Marketing Management at Zara Zara controls all aspects of its supply chain.

Retailing All of the activities involved in selling goods or services directly to final consumers for personal, non-business use.

Types of Retailers Specialty store Department store Supermarket Convenience store Discount store Off-price retailer Superstore Catalog showroom .

Retail Concepts Retail life-cycle Stages of growth and decline. Wheel-of-retailing hypothesis New stores emerge after conventional stores increase services and raise prices to cover the cost.

Levels of Service Self-service Self-selection Limited service Full service

Retail Positioning Strategies Bloomingdale’s Tiffany Sunglass Hut Wal-Mart

Nonstore Retailing Direct selling Direct marketing Automatic vending Buying service

The New Retail Environment Assortments have grown more alike Differentiation has eroded Limited-time-only “pop-up” outlets Adding specialty products and customer-focused services Growth in global competition

Corporate Retail Organizations Corporate chain store Voluntary chain Retailer cooperative Consumer cooperative Franchise organization Merchandising conglomerate

Retailer Marketing Decisions Target market Product assortment and procurement Price High-markup, lower- volume Low-markup, higher-volume Services and store atmosphere Store activities and experiences Communications Location

Breakthrough Marketing: TARGET “Upscale discounter” image = $59 billion in annual sales!

Marketing Skills: Experience Marketing Enhance the sensory experience (feel, look, sound, smell, or taste).

Private Labels Generics Unbranded, plainly packaged, less expensive versions of common products. Private label brand One developed by retailers and wholesalers.

Wholesaling All the activities in selling goods or services to those who buy for resale or business use.

Major Wholesaler Types Merchant wholesaler Full-service wholesaler Limited-service wholesaler Brokers and agents Manufacturers’ and retailers’ branches and offices Specialized wholesalers

How Wholesalers Differ From Retailers Pay less attention to promotion, atmosphere, and location Transactions are usually larger and cover a larger trade area Different legal regulations and taxes

What Wholesalers do Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling

Trends in Wholesaling Facing mounting pressures from: Responses: New sources of competition Demanding customers New technologies More direct-buying programs by large buyers Manufacturers Responses: Revisiting decisions Cutting costs

Market Logistics Supply chain management (SCM) Starts before physical distribution, covering procurement of inputs, conversion into finished products, and product movement to final destinations. Market logistics Planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer needs at a profit.

Steps in Market Logistics Planning

Integrated Logistics Systems (ILS) Include materials management, material flow systems, and physical distribution, aided by information technology.

Market-Logistics Decisions Order processing Warehousing Inventory Transportation

Determining Optimal Order Quantity