1. Chapter 13- slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Thirteen Retailing and Wholesaling

2. Chapter 13- slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing and Wholesaling Retailing Retailer Marketing Decisions Wholesaling Topic Outline

3. Chapter 13- slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing includes all the activities in selling products or services directly to final consumers for their personal, non-business use Retailers are businesses whose sales come primarily from retailing Retailing

4. Chapter 13- slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Non-store retailing includes selling to final consumers through: Direct mail Catalogs Telephone Internet TV shopping Door-to-door sales Vending machines Store Retailing Vs Non-store Retailing

5. Chapter 13- slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Classified in terms of: Amount of service Product lines Relative price Ownership Types of Retailers

6. Chapter 13- slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Amount of service Self-service Wal-Mart, Supermarkets Limited service JC Penny, Sears Full service department stores and specialty stores Types of Retailers

7. Chapter 13- slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailer Types based on Product Line Specialty stores Narrow product line with deep assortment Department stores Wide variety of product lines Convenience stores Limited line of high-turnover goods Superstores Non-food goods Category killers Deep in category with sales staff

8. Chapter 13- slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Types of Retailers Relative Prices Discount stores Off-price retailers Factory outlets Warehouse clubs

9. Chapter 13- slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Types of Retailers Relative Prices Discount stores sell standard merchandise at lower prices by accepting lower margins and selling higher volume. Independent off-price retailers either are owned and run by entrepreneurs or are divisions of larger retail corporations. Off-price retailers buy at less-than-regular wholesale prices and charge customers less than retail. Factory outlets are producer-operated stores. The link on this slide is to a Premium Factory Outlet mall. Students are probably familiar with these types of shopping locations. Warehouse clubs are large warehouse-like facilities with few frills and offer ultra-low prices.

10. Chapter 13- slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Types of Retailers Organizational Approach Corporate chains Voluntary chains Retailer cooperatives Franchise organizations Merchandising conglomerates

11. Chapter 13- slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Corporate chains are two or more outlets that are commonly owned and controlled Size allows them to buy in large quantities at lower prices and gain promotional economies –Sears –CVS Types of Retailers Organizational Approach

12. Chapter 13- slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Voluntary chains are wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising IGA Western Auto Types of Retailers Organizational Approach

13. Chapter 13- slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Retailer cooperatives is a group of independent retailers that band together to set up a joint-owned, central wholesale operation and conduct joint merchandising and promotion effort Ace Hardware Associated Grocers Types of Retailers Organizational Approach

14. Chapter 13- slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Types of Retailers Organizational Approach Franchise organizations are based on some unique product or service; on a method of doing business; or on the trade name, good will, or patent that the franchisor has developed

15. Chapter 13- slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Retailing Merchandising conglomerates are corporations that combine several retailing forms under central ownership Limited Brands Types of Retailers Organizational Approach

16. Chapter 13- slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Selling and promotingBuying assortment buildingBulk breakingWarehousingTransportationFinancingRisk bearingMarket informationManagement services and advice Wholesaling Wholesaling includes all activities involved in selling goods and services to those buying for resale or business use

17. Chapter 13- slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Wholesaling Types of Wholesalers Merchant wholesalers Agents and brokers

18. Chapter 13- slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Wholesaling Merchant wholesalers is the largest group of wholesalers and include: Full-service wholesalers who provide a full set of services Limited service wholesalers who provide few services and specialized functions Types of Wholesalers

19. Chapter 13- slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Wholesaling Brokers and agents do not take title, perform a few functions, and specialize by product line or customer type Brokers bring buyers and sellers together and assist in negotiations Agents represent buyers or sellers Types of Wholesalers