For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 13: Retailers, Wholesalers, and Their Strategy Planning

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Retailing Several factors comprise a retailer’s product: convenience variety of selection quality of products help from salespeople reputation for integrity and fairness services offered - delivery credit, returned-goods privileges value offered Different retailers appeal to different target markets (generally by varying width and depth of assortment, and price/service combination).

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Price Location Product Selection Special Services Helpful Salespeople Fairness in Dealing Key Economic Factors Affecting Consumers’ Retail Choice Factors Affecting Consumers’ Retail Choice 13-3

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Exhibit 13-1 Conven- tional offerings Single- and limited- line stores Expanded assortment and service Specialty shops and department stores Expanded assortment and/or reduced margins/service Supermarkets, discount houses, mass-merchandisers, catalog showrooms, supercenters Added convenience higher margins less assortment Telephone/mail order, vending machines, door-to-door, convenience stores, electronic shopping Expanded assortment reduced margins more information Internet 13-4 Types of Retailers

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Retail Formats that Focus on Convenience Convenience (Food) Stores Door-to-Door Selling Telephone, Direct Mail, Electronic Shopping Automatic Vending 13-5 Focusing on Convenience

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill 13-6 More Information Shopping Differences Still in Infancy Competition will bring Change Wide Assortment New Convenience Costs are Deceptive Retailing on the Internet

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Retail Chains Major Types of Retail Chains Corporate Chains Voluntary Chains Franchise Chains Cooperative Chains 13-7

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Wholesaling Wholesaling is concerned with the activities of those persons or establishments that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users, but that do not sell in large amounts to final consumers.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Wholesaler Activities What a wholesaler might do for customers: regroup products anticipate needs carry stocks deliver products grant credit provide information and advisory service provide part of the buying function What a wholesaler might do for producers/suppliers: provide part of a producer’s selling function store inventory reduce credit risk provide market information

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Wholesalers Exhibit Does wholesaler own the products? Limited-function merchant Wholesalers Service merchant wholesalers Agent middlemen How many functions does the wholesaler provide? All the functions Some functions Yes (merchant wholesaler)No (agent middleman)

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Merchant Wholesalers Rack Jobbers General Merchandise Single- or General-Line Catalog Specialty Drop-Shippers Truck Cash-and-Carry Types of Merchant Wholesalers

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Auction Companies Brokers Selling Agents Types of Agent Middlemen Manufacturers’ Agents Types of Agent Middlemen