1. MARKETING MANAGEMENT 12th edition16
Managing Retailing,
Wholesaling, and Logistics
Kotler Keller

2. Chapter Questions
What major types of marketing intermediaries occupy this sector?
What marketing decisions do these marketing intermediaries make?
What are the major trends with marketing intermediaries?

3. Retailing Includes all the activities involved in
selling goods or services directly
to final consumers for personal,
nonbusiness use.

4. Table 16.1 Major Retailer Types
Specialty store
Department store
Supermarket
Convenience store
Discount store
Off-price retailer
Superstore
Catalog showroom

5. Levels of Retail Service
Self-service
Self-selection
Limited service
Full service

6. Nonstore Retailing Direct selling Direct marketing Automatic vending
Buying service

7. Major Types of Corporate Retail Organizations
Corporate chain store
Voluntary chain
Retailer cooperative
Consumer cooperative
Franchise organization
Merchandising conglomerate

8. Retailers’ Marketing Decisions
Target market
Product assortment
Service/store atmosphere
Price
Communication
Location

9. Retail Category Management
Define the category
Figure out its role
Assess performance
Set goals
Choose the audience
Figure out tactics
Implement the plan

10. Retailer Services Mix Prepurchase services Postpurchase services
Ancillary services

11. Location Decision General business districts Regional shopping centers
Community shopping centers
Strip malls
Location within a larger store

12. Indicators of Sales Effectiveness
Number of people passing by location
Percentage who enter store
Percentage of those who enter who also buy
Average amount spent per sale

13. Trends in Retailing New retail forms and combinations
Growth of intertype competition
Competition between store-based and non-store-based retailing
Growth of giant retailers
Decline of middle market retailers
Growing investment in technology
Global presence of major retailers

14. Wholesaling Functions
Selling and promoting
Buying and assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management services and counseling

15. Major Wholesaler Types
Merchant
Full service
Limited service
Brokers and agents
Manufacturers
Specialized

16. Wholesalers’ Marketing Decisions
Target market
Product assortment
Price
Promotion
Place

17. Market Logistics Planning
Deciding on the company’s value proposition to its customers
Deciding on the best channel design and network strategy
Developing operational excellence
Implementing the solution

18. Market Logistics Decisions
How should orders be handled?
Where should stock be located?
How much stock should be held?
How should goods be shipped?

19. Transportation Factors
Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost

20. What is Retailing?
Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, non-business use
A retailer or Retail store:
is any business enterprise whose sales volume comes primarily from retailing
Retail Life-cycle:
Like products Retail-store pass through stages of growth and decline

21. Major Retailer Types Department store Superstore Supermarket
Convenience store
Off-price retailer
Catalog showroom
Specialty store
Discount store

22. Retailers Level of Service
Self–Service: customers carry out their own- locate, compare, and select process to save money
Self-Selection: customers find their own goods, although they can ask for assistance
Limited services: these retailers carry more shopping goods and services such as credit and merchandise return privilege. Customer need more assistance and information
Full service: salespeople are ready to assist in every phase of the - locate, compare, and select process

23. Non-store Retailing
Direct selling: companies selling door-to-door or at home sales parties, it can be:
One-to-one
One-to-many
Multilevel marketing network
Direct marketing: include telemarketing, television direct –response marketing , and electronic shopping

24. Non-store Retailing
Automatic vending: vending machines are found in many places as: factories, offices, large retail store
Japan has the most vending machines
Buying service: is a store-less retailer serving a specific clientele “usually employees of large organization“ who are entitled to buy from a list of retailers that have agreed to give discounts in return for member ship

25. Major Types of Corporate Retail Organizations
Corporate chain store: two or more out lets owned and controlled, employing central buying merchandise and selling similar lines of merchandise
Voluntary chain: a wholesaler- sponsored group of independent retailers engaged in bulk buying and common merchandising

26. Major Types of Corporate Retail Organizations
Retailer cooperative: Independent retailers using a central buying organization efforts
Consumer cooperative: a retail firm owned by its customers. Members contribute money to open their own store , vote on its polices, elect a group to manage it, and receive dividends

27. Major Types of Corporate Retail Organizations
Franchise organization: contractual association between a franchisor and franchisees
Merchandising conglomerate: a corporate that combines several diversified retailing in lines and forms under central ownership

28. Franchising System Characteristics of Franchises
A franchising system is a system of individual franchisees, a tightly knit group of enterprises whose systematic operations are planned, directed, and controlled by the operation’s franchisor.
Characteristics of Franchises
The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments
The franchisee pays for the right to be part of the system
The franchisor provides its franchisees with a system for doing business

29. Changes in the Retail Environment
New retail forms and combinations
Growth of intertype competition
Competition between store-based and non-store-based retailing
Growth of giant retailers
Decline of middle market retailers
Growing investment in technology
Global profile of major retailers

30. Retailers’ Marketing Decisions
Target market
Product assortment:
Must match target market expectation
Decide product assortment breadth and depth
Procurement
Prices:
Must be decided in relation to the target market, the product assortment and the competition

31. Retailers’ Marketing Decisions
Services:
Pre-purchase services as advertising and accept telephone and mail orders
Post-purchase services as gift wrapping and shipping and delivery
Ancillary services as parking, general information and rest room
Store atmosphere as walls, lighting, Product placement, and floor
Store activities
Communications tools as ads, run special sales, and issue money saving coupons

32. Retailers’ Marketing Decisions
Location decision:
Central business district “down town”
Regional shopping centers
Community shopping centers
Shopping strips “cluster of stores”
A location within a larger store

33. Retail Category Management
Define the category
Figure out its role
Assess performance
Set goals
Choose the audience
Figure out tactics
Implement the plan

34. Tips for Increasing Sales in Retail Space
Attract and Keep shoppers in the store
Honor the transition zone
Don’t make them hunt
Make merchandise available to the reach and touch
Note that men do not ask questions
Remember women need space
Make checkout easy

35. Indicators of Sales Effectiveness
Number of people passing by
Percent who enter store
Percent who buy
Average amount spent per sale

36. Private Label Brands
A privatee- label brand( a reseller, store, house)
is a brand that retailers and wholesalers develop
Why do intermediaries bother to sponsor their own brands?
They can be more profitable
Retailers develop exclusive store to differentiate themselves from competitors
Ex: Canadian company LOBLAW which start as local store brand and then become global

37. Wholesaling
Wholesaling includes all the activities in selling goods or services to those who for resale or business use
Ex:

38. Wholesaling Functions
Selling and promoting
Buying and assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management services and counseling

39. Major Wholesaler Types
Merchant
Full-service
Limited-service
Brokers and agents
Manufacturers
Specialized

40. Market Logistics
Market logistic includes planning the infrastructure to meet demand, then implementing and controlling the physical flow of materials and goods from points of origin to points of use to meet customer requirements at profit

41. Market Logistics Planning
Deciding on the company’s value proposition to its customers
Deciding on the best channel design and network strategy
Developing operational excellence
Implementing the solution

42. What are Integrated Logistics Systems?
An integrated logistics system (ILS) includes materials management, material flow systems, and physical distribution, aided by information technology.

43. Market Logistics Activities
In-plant warehousing
Shipping-room processing
Outbound transportation
Field warehousing
Customer delivery and servicing
Sales forecasting
Distribution scheduling
Production plans
Finished-goods inventory decisions
Packaging

44. Market Logistics Decisions
How should orders be handled?(Order processing)
Where should stock be located?(Warehousing)
How much stock should be held?(Inventory)
How should goods be shipped?( Transportation)