1. Chapter 14 Retailers, Wholesalers, and Direct Marketers
Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 14 Retailers, Wholesalers, and Direct Marketers

2. Chapter Objectives Explain the wheel of retailing.
Discuss how retailers select target markets.
Show how the elements of the marketing mix apply to retailing strategy.
Explain the concepts of retail convergence and scrambled merchandising.
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3. Chapter Objectives
Identify the functions performed by wholesaling intermediaries.
Outline the major types of independent wholesaling intermediaries and the appropriate situations for using each.
Compare the basic types of direct marketing and nonstore retailing.
Describe how much the Internet has altered the wholesaling, retailing, and direct marketing environments.
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4. Retailing Strategy
Retailers base key decisions on two fundamental steps in the marketing strategy process:
Selecting a target market
Developing a retailing mix to satisfy the chosen market
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6. Merchandising Strategy
Guides retailer’s decisions on the items it will offer
While developing the merchandise mix, retailers should consider:
Needs and preferences of its target market
Competitive environment influencing choices
Overall profitability of each product line and category
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7. Customer Service Strategy
Heightened customer service is one possible retailing strategy
The goal is to attract and retain target customers to increase sales and profits
Some services that retailers could provide:
Enhanced comfort through lounges, complimentary coffee, convenient restrooms
Child-care services for customers
Virtual assistance programs
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8. Pricing Strategy
Prices reflect a retailer’s marketing objectives and policies
They affect consumer perceptions
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9. Location/Distribution Strategy
Location depends on many factors, including the type of merchandise, the retailer’s financial resources, characteristics of the target market, and site availability
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10. Promotional Strategy
Promotion informs customers about locations, merchandise selections, hours of operation, and prices
Helps retailers attract shoppers and build customer loyalty
National chains purchase advertising in print and broadcast media
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12. Classification of Retailers
By form of ownership
By shopping effort
By services provided
By product lines
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13. Retail Convergence and Scrambled Merchandising
Retail convergence - Situation in which similar merchandise is available from multiple retail outlets, resulting in the blurring of distinctions between type of retailer and merchandise offered
Scrambled merchandising - Retailing practice of combining dissimilar product lines to boost sales volume
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14. Functions of Wholesaling Intermediaries
Creating utility
Providing services
Lowering costs by limiting contacts
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16. Direct Marketing and Other Nonstore Retailing
Direct marketing - Direct communications, other than personal sales contacts, between buyer and seller, designed to generate sales, information requests, or store or Web site visits
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17. Other Nonstore Retailing
Direct mail
Direct selling
Direct-response retailing
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18. Telemarketing Direct marketing conducted by telephone
Most frequently used form of direct marketing
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19. Internet Retailing Selling directly to consumers via Web storefronts
Internet-based retailers keep little or no inventory
Fill customer orders directly from vendors
Some traditional brick-and-mortar stores have successfully extended their presence to the Web
Examples: Gap and Lands’ End
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20. Automatic Merchandising
Primarily used to sell food items, lottery tickets in the U.S.
Other countries use vending machines to offer a wider variety of goods
As technology advances, high-end products are being sold in vending machines
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