1. Retailing and Wholesaling
Chapter Eleven
Retailing and Wholesaling

2. Describe the major types of retailers and give examples of each.
4/16/2017
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.
Copyright 2007, Prentice Hall, Inc.
Copyright 2005 Brainy Betty, Inc.

3. Whole Foods Market – Finding Its Niche
Case Study
Whole Foods Market – Finding Its Niche
Whole Foods Market
Has 170 stores worldwide with $4 billion in sales vs stores and sales of $285 billion for Wal-Mart.
Offers organic, natural, and gourmet foods.
Positions itself AWAY from Wal-Mart: “Whole Foods, Whole People, Whole Planet.”
Marketing Efforts
Web site reinforces the company’s positioning.
Caters to health conscious, affluent, liberal, educated consumer base.
Both in-store and online shopping is a customer experience.
Cares about employees, customers, & community.
Copyright 2007, Prentice Hall, Inc.

4. What Is Retailing? Retailing:
includes all the activities involved in selling products or services directly to final consumers for their personal, non-business use.
Most retailing is done by retailers, but nonstore retailing has recently grown by leaps and bounds.
Copyright 2007, Prentice Hall, Inc.

5. Types of Retailers Retailers are classified based on:
Amount of service they offer
Breadth and depth of product lines
Relative prices charged
How they are organized
Copyright 2007, Prentice Hall, Inc.

6. Amount of Service Self-Service Retailers: Limited-Service Retailers:
Serve customers who are willing to perform their own “locate-compare-select” process to save money.
Limited-Service Retailers:
Provide more sales assistance because they carry more shopping goods about which customers need information.
Full-Service Retailers:
Usually carry more specialty goods for which customers like to be “waited on.”
Copyright 2007, Prentice Hall, Inc.

7. Major Store Retailer Types
Specialty stores
Department stores
Supermarkets
Category Killers
Convenience stores
Discount stores
Off-price retailers
Superstores
Copyright 2007, Prentice Hall, Inc.

8. Relative Prices Classification
Discount stores
Off-price retailers
Independent off-price retailers
Factory outlets
Factory outlet malls
Value-retail centers
Warehouse club
Copyright 2007, Prentice Hall, Inc.

9. Organizational Classification
Corporate chain stores
Voluntary chain
Retailer cooperative
Franchise
Merchandising conglomerates
Copyright 2007, Prentice Hall, Inc.

10. Retailer Marketing Decisions
Retailer Strategy:
Target market
Retail store positioning
Until retailers define and profile their markets, retailers cannot make meaningful decisions related to the retailer marketing mix.
Copyright 2007, Prentice Hall, Inc.

11. Retailer Marketing Decisions
Retailer Marketing Mix:
Product assortment and services
Price
Promotion
Place (location)
Copyright 2007, Prentice Hall, Inc.

12. Assortment and Service Decisions
Product assortment
Should differentiate the retailer while matching target shoppers’ expectations
Services mix
Store atmosphere
Physical layout can help/hinder shopping
Experiential retailing helps sell goods
Unusual, exciting shopping environments are becoming more common
Copyright 2007, Prentice Hall, Inc.

13. Price and Promotion Decisions
Price policy must fit its target market and positioning, product and service assortment, and competition.
Can use any or all of the promotion tools—advertising, personal selling, sales promotion, public relations, and direct marketing—to reach consumers.
Copyright 2007, Prentice Hall, Inc.

14. Place Decisions
Retailers can locate in central business districts, various types of shopping centers, strip malls, or power centers.
Location is key to success.
Copyright 2007, Prentice Hall, Inc.

15. The Future of Retailing
New Retail Forms and Shortening Retail Life Cycles
Growth of Nonstore Retailing
Retail Convergence
Rise of the Megaretailers
Growing Importance of Retail Technology
Global Expansion of Major Retailers
Retail Stores as “Communities” or “Hangouts”
Copyright 2007, Prentice Hall, Inc.

16. Wholesaling Wholesaling:
includes all activities involved in selling goods and services to those buying for resale or business use.
Wholesalers add value for producers by performing one or more channel functions.
Copyright 2007, Prentice Hall, Inc.

17. Functions Provided by Wholesalers
Selling and promoting
Buying and assortment building
Bulk-breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management services and advice
Copyright 2007, Prentice Hall, Inc.

18. Types of Wholesalers Merchant Wholesalers Largest group of wholesalers
Account for 50% of wholesaling
Two broad categories:
Full-service wholesalers
Limited-service wholesalers
Copyright 2007, Prentice Hall, Inc.

19. Types of Wholesalers Brokers and Agents Do not take title to goods
Perform fewer functions
Brokers bring buyers and sellers together
Agents represent buyers on more permanent basis
Manufacturers’ agents are most common type of agent wholesaler
Copyright 2007, Prentice Hall, Inc.

20. Types of Wholesalers Manufacturers’ Sales Branches and Offices
Wholesaling by sellers or buyers themselves rather than through independent wholesalers.
Copyright 2007, Prentice Hall, Inc.

21. Wholesaler Marketing Decisions
Wholesaler Strategy:
Target market
Service positioning
Wholesaler Marketing Mix:
Product assortment and services
Price
Promotion
Place (location)
Copyright 2007, Prentice Hall, Inc.

22. Trends in Wholesaling Fierce resistance to price increases.
Winnowing out of suppliers who are not adding value based on cost and quality.
Distinction between large retailers and wholesalers is blurry.
Will continue to increase the services provided to retailers.
Wholesalers are now going global.
Copyright 2007, Prentice Hall, Inc.

23. Describe the major types of retailers and give examples of each.
4/16/2017
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.
Copyright 2007, Prentice Hall, Inc.
Copyright 2005 Brainy Betty, Inc.