1 Definitions Retailing All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
2 Retailers Types of Retailers Specialty Stores Department Stores SupermarketsDiscount StoresConvenience StoresOff-Price RetailersSuperstores
3 Retailers are Classified by: RetailingRetailers are Classified by:Self-service retailersCustomers are willing to self-serve to save moneyDiscount storesMİGROSLimited-service retailersMost department storesBOYNER STORESFull-service retailersSalespeople assist customers in every wayHigh-end department storesSpecialty storesARÇELİKAmount of serviceProduct linesRelative pricesOrganizational approach
4 Retailers are Classified by: RetailingRetailers are Classified by:Specialty storesNarrow product lines with deep assortmentsDepartment storesWide variety of product linesSupermarketsConvenience storesLimited lineSuperstoresSell food, nonfood, and servicesCategory killersGiant specialty storesAmount of serviceProduct linesRelative pricesOrganizational approach
5 Classification of Retailing: Product Line Store DescriptionSpecialty StoresDepartment StoresSupermarketsConvenience StoresSuperstoresDiscount StoresNarrow Product Line, Deep Assortment i.e.Deriden, TimberlandWide Variety of Product Lines i.e. Clothing,Yeni Karamürsel, BoynerWide Variety of Food, Laundry, & Household Products i.e. CanerlerLimited Line of High-Turnover Convenience Goods i.e. Büfeler, bakkallarLarge Assortment of Routinely Purchased Food & Nonfood Products i.e. Real, MigrosStandard Merchandise at Lower Pricesi.e. Ulus, Kızılay mağazalarıOff-Price RetailersChanging Collection of Higher-Quality Goods at a Reduced Price i.e. OutletWarehouse ClubsLimited Selection of Brand-Name Grocery Items, Appliances, Etc. i.e. Metro
6 Retailers are Classified by: RetailingRetailers are Classified by:Discount storesLow margins are offset by high volumeUlus, Kızılay mağazalarıOff-price retailersIndependent off-price retailersFactory outletsLevi Strauss, ReebokWarehouse clubsMETROAmount of serviceProduct linesRelative pricesOrganizational approach
7 Retailers are Classified by: RetailingRetailers are Classified by:Corporate chain storesCommonly owned/controlledVoluntary chainsWholesaler-sponsored groups of independent retailersRetailer cooperativesGroups of independent retailers who buy in bulkFranchise organizationsBased on uniquenessMerchandising conglomeratesDiversified retailing lines under central ownershipAmount of serviceProduct linesRelative pricesOrganizational approach
8 Retailing Retailer Marketing Mix Price Promotion Place High markup or high volume?PromotionPublic relations, sales promotions, advertising, direct marketingPlaceLocation, location, location!
9 Definitions Wholesaling All activities involved in selling goods and services to those buying for resale or business use.A firm engaged primarily in wholesaling activity.
10 WholesalingWholesalers add value by performing the following functions:Selling and promotingBuying and assortment buildingBulk-breakingWarehousingTransportation
11 WholesalingWholesalers add value by performing the following functions:FinancingRisk bearingMarketing informationManagement services and advice
12 Wholesaling Types of Wholesalers Merchant Wholesalers Full-service wholesalersWholesale merchantsIndustrial distributorsLimited service wholesalersCash-and-carry wholesalersTruck wholesalers (jobbers)Drop shippersRack jobbersProducer’s cooperativesMail-order wholesalersMerchant WholesalersBrokers and AgentsManufacturers’ and retailers’ branches and offices
13 Wholesaling Types of Wholesalers Brokers Agents Merchant Wholesalers Bring buyers and sellers together and assist in negotiationAgentsManufacturers’ agentsSelling agentsPurchasing agentsCommission merchantsMerchant WholesalersBrokers and AgentsManufacturers’ and retailers’ branches and offices
14 Wholesaling Types of Wholesalers Merchant Wholesalers Sales branches and officesBranches carry inventory: lumber, auto equipment, partsOffices do not carry inventory: dry goodsPurchasing officersPerform roles similar to brokers and agents, however these individuals are employees of the organizationMerchant WholesalersBrokers and AgentsManufacturers’ and retailers’ branches and offices
15 Wholesaling Wholesaler Marketing Decisions Marketing mix decisions Product and service assortment: inventory, linePricing: usual markup on COG is 20%Promotion: largely disorganized and unplannedPlace: location, facilities