OHT 13.1 © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Retailers and wholesalers

OHT 13.2 © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Distinction between retailers and wholesalers Both buy and sell for profit. Both bridge the gap between producers and the end consumer. Both receive goods from a wide range of different sources and often redistribute them with a relevant marketing package valued by their customers. Retailers are focused primarily on the highly differentiated consumer market. Wholesalers are primarily focused on other resellers (B2B markets).

OHT 13.3 © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Main functions of retailers and wholesalers Assembling a range of goods - providing place utility and time utility. Providing storage and transportation. Providing advice and information. Transferring title. Providing an appropriate environment.

OHT 13.4 © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition The European retail sector Total retail sales across the EU in 1999 amounted to US$ 1,934,059 million.

OHT 13.5 © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Classifying retailers Retailers can be classified according to a range of criteria: Form of ownership. Level of service provided. Merchandise lines stocked. Operating methods used.

OHT 13.6 © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Retailing - forms of ownership Independent - typically a sole trader or family run business offering personalised attention and flexibility to the consumer. Corporate chains - multiple outlets under common ownership and centralised purchasing. Contractual systems - members of the distribution channels are linked through formal agreements rather than ownership, e.g. franchises.

OHT 13.7 © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Retailers - level of service Full range of customer services. Limited service. Self-service.

OHT 13.8 © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Retailers - merchandise lines Breadth of range - variety of different product lines stocked. Depth of range - choice or assortment within a product line.

OHT 13.9 © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Categorising retailers (1 of 2) Department stores - large stores organised into discrete departments of related product lines, e.g. Harrods. Variety stores - smaller stores which stock a limited number of ranges in depth, e.g. M&S. Supermarkets - large self service stores that carry a comprehensive range of fmcg products. Hypermarkets - stores offering more choice and depth of range to a supermarket. Speciality stores (out of town or in town) - tend to specialise in one broad product group, e.g. electrical goods.

OHT © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Categorising retailers (2 of 2) Convenience stores - small shops which operate mainly in groceries, drinks etc., and tend to be open over long hours thus filling a gap left by supermarkets. Some petrol stations are now providing these as part of their services to customers. Discount clubs - cash and carry outlets for the general public. Membership of these is generally required. Markets - typically provide fresh food, clothing and house wares. Catalogue showrooms, e.g. Argos and Littlewoods.

OHT © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Non-store retailing In-home selling - door to door selling, party planning, etc. Mail order shopping via catalogue or magazine and newspaper advertisements. Teleshopping - includes shopping by telephone in response to television advertisements. Vending - purchasing goods from vending machines.

OHT © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Strategic and operational issues facing retailers Location - considerations in selecting the right site include social and demographic changes, catchment, product type and range. Product range to be stocked. The retail competitive position. Store image and atmosphere. Store appearance inside and out. Merchandising strategies. Technology.

OHT © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Factors influencing the location decision making process Figure 13.3

OHT © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Factors influencing product assortment strategy Figure 13.4

OHT © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Factors influencing layout and display Figure 13.5

OHT © Pearson Education Limited 2003 Brassington and Pettitt: Principles of Marketing, 3rd Edition Types of wholesalers Full service wholesalers offer the fullest range of wholsesaling services from sourcing and bulk breaking to transportation and marketing and management advice. Limited service wholesalers offer a limited service and undertake clearly defined services as a means of keeping their costs down.