Kotler Keller PhillipKevin Lane Marketing Management 14e

Managing Retailing, Wholesaling, and Logistics Chapter 16

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 3 of 23 Discussion Questions 1.What major types of marketing intermediaries occupy this sector? 2.What marketing decisions do these marketing intermediaries make? 3.What are the major trends with marketing intermediaries? 4.What does the future hold for private label brands?

Defined Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 4 of 23 All the activities in selling goods or services directly to final consumers for personal, nonbusiness use. Retailing

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 5 of 23 Types of Retailers Full Service Self-Service Limited Service Self-Selection

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 6 of 23 Major Types of Store Retailers Specialty storeThe Limited, The Body Shop Department storeJCPenney, Bloomingdales SupermarketKroger, Safeway Convenience store7-Eleven, Circle K Drug storeCVS, Walgreens Discount storeWal-Mart, K-Mart Extreme value or hard- discount store Aldi, Lidl, Family Dollar, Dollar General Off-price retailerFactory outlets, TJ Ma23, Costco SuperstoreStaples, Jewel-Osco, Carrefour Catalog showroomInside Edge Ski and Bike

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 7 of 23 Nonstore Retailing Direct Selling Direct Marketing Automatic Vending Buying Service

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 8 of 23 Corporate Retailing and Franchising Corporate Chain store Voluntary chain Retailer cooperative Consumer cooperative Franchise organization Merchandising conglomerate Corporate Retailing Organizations

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 9 of 23 Franchising Franchisee Pays: Royalty Payments Start-up / Licensing Fee Franchisee Receives: Well-known brand name Developed system

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 10 of 23 New Retail Environment New Retail Forms Store / Non-store Competition Giant Retailers Global Retailers

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 11 of 23 Marketing Decisions Channels Prices Target Market

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 12 of 23 Marketing Decisions Atmosphere Location Communications Product Assortment

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 13 of 23 Private Labels Lower Costs: Development Advertising Sales promotions Distribution Higher Profit Margins

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 14 of 23 Top 10 Private Label Categories – 2009 (billions of dollars) Milk$8.1 Bread & Baked Goods$4.2 Cheese$3.5 Medications$3.4 Paper Products$2.6 Eggs – Fresh$1.9 Fresh Produce$1.5 Packaged Meat$1.5 Pet Food$1.5 Unprepared Meat$1.4

Defined Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 15 of 23 All the activities in selling goods and services to those who buy for resale or business use. Wholesaling

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 16 of 23 Types of Wholesalers Merchant wholesalers Take title to merchandise; Full-service and limited-service jobbers and distributors Full-service wholesalers Carry stock, maintain a sales force, offer credit, make deliveries, and provide management assistance. Limited-service wholesalers Limited line of fast-moving goods. Truck wholesalers, drop shippers, rack jobbers, mail- order wholesalers Brokers and agents Facilitate buying and selling; earn 2% - 6% commission on selling price. Specialized wholesalers Agricultural assemblers, petroleum bulk plants, and actions companies.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 17 of 23 Wholesaler Functions Selling and Promoting Buying and assortment building Bulk breaking Warehousing

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 18 of 23 Wholesaler Functions Transportation Financing Risk bearing Market information Management Services

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 19 of 23 Market Logistics Supply Chain Management

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 20 of 23 Market-Logistics Objectives Integrated Logistics Systems Transportation Modes Tradeoffs

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 21 of 23 Market-Logistics Decisions Order Processing Warehouse Locations Inventory Levels Transportation Mode

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 22 of 23 Figure 16.1 Determining Optimal Order Quantity

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 23 of 23 Organizational Lessons