2. Principles of Marketing Lecture-30

3. Summary of Lecture-29

4. Producer End users Interme- diaries Interme- diaries Producer Marketing activities Demand Push Strategy Pull Strategy Marketing activities Demand

5. Marketing Logistics and Supply Chain Management

6. Functions of Logistics Systems

7. Inventory When to order How much to order Just-in-time Inventory When to order How much to order Just-in-time Costs Minimize Costs of Attaining Logistics Objectives Costs Minimize Costs of Attaining Logistics Objectives Warehousing Storage Distribution Warehousing Storage Distribution Order Processing Submitted Processed Shipped Order Processing Submitted Processed Shipped Logistics Functions Transportation Water, Truck, Rail, Pipeline & Air

8. Today’s Topics

9. Retailing and Wholesaling

10. Retailing

11. Retailing is the process by which goods and services are sold to consumers for their personal use.

12. Retailers provide many benefits such as: – providing an assortment of merchandise under one roof, – allowing access to goods customers might never see, – providing interesting environments in which to spend our leisure time.

13. Retailing can be done in stores (store retailing) or out of a store (nonstore retailing) such as: – Direct mail, – Catalogs, – Telephone, – Home shopping shows, – Internet.

14. “...all activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family or household use.” -Berkowitz et al

15. Classification of Retailing

16. Amount of Service Self-Service, Limited-Service and Full-Service Retailer Amount of Service Self-Service, Limited-Service and Full-Service Retailer Product Line Length and Breadth of the Product Assortment Product Line Length and Breadth of the Product Assortment Relative Prices Pricing Structure that is Used by the Retailer Relative Prices Pricing Structure that is Used by the Retailer Retail Organizations Independent, Corporate, or Contractual Ownership Organization

17. Amount of Service

18. Self-Service Retailer Provide Few or No Services to Shoppers Limited-Service Retailers Provide Only a Limited Number of Services to Shoppers Full-Service Retailers Retailers that Provide a Full Range of Services to Shoppers

19. Product Line

20. Specialty Stores Department Stores Supermarkets Convenience Stores Superstores Discount Stores Narrow Product Line, Deep Assortment Wide Variety of Product Lines i.e. Clothing, Home Furnishings Wide Variety of Food, Laundry, & Household Products Limited Line of High-Turnover Convenience Goods Large Assortment of Routinely Purchased Food & Nonfood Products Standard Merchandise at Lower Prices Off-Price Retailers Changing Collection of Higher-Quality Goods at a Reduced Price Warehouse Clubs Limited Selection of Brand-Name Grocery Items, Appliances

21. Relative Prices

22. Discount Stores Discount Stores “Off-Priced” Retailers “Off-Priced” Retailers Catalog Showrooms Catalog Showrooms

23. Retail Organization

24. Corporate Chains Retailers wanting economies of scale Retailers wanting economies of scale

25. Corporate Chains Franchise Operation s Retailers wanting economies of scale Retailers wanting economies of scale

26. Corporate Chains Franchise Operations Voluntary Chains Cooperative Chains Retailers wanting economies of scale Retailers wanting economies of scale

27. The Wheel of Retailing

28. Young Store Young Store Brand New Store High Margin High Price High Status Low Margin Low Price Low Status Older Store

29. Nonstore Retailing

30. Mail Order Catalogs - from clothing to computers Direct Mail - brochure offering a product or service at one point in time. Mail Order Catalogs - from clothing to computers Direct Mail - brochure offering a product or service at one point in time. Direct Selling Door-to-Door Sales - declining in U.S. Parties & Networks - presentations Telemarketing - over the phone Direct Selling Door-to-Door Sales - declining in U.S. Parties & Networks - presentations Telemarketing - over the phone Automatic Vending Best suited to inexpensive merchandise and food and beverages. Automatic Vending Best suited to inexpensive merchandise and food and beverages. Direct Response Television Home Shopping Networks - TV channels that sell products Direct Response Television Home Shopping Networks - TV channels that sell products

31. Retailer’s Product Assortment and Services Decisions

32. Product Assortment Decisions Width and Depth of Assortment Quality of Products Product Differentiation Strategies Product Assortment Decisions Width and Depth of Assortment Quality of Products Product Differentiation Strategies Services Mix Key Tool of Nonprice Competition for Setting One Store Apart From Another. Services Mix Key Tool of Nonprice Competition for Setting One Store Apart From Another. Store’s Atmosphere Physical Layout “Feel” That Suits the Target Market and Moves Customers to Buy Store’s Atmosphere Physical Layout “Feel” That Suits the Target Market and Moves Customers to Buy

33. Factors Influencing Store Atmosphere

34. Employee Type and Density Merchandise Type and Density Fixture Type and Density Sound Odors Visual Factors Most Influential Factors on Store Atmosphere Most Influential Factors on Store Atmosphere

35. Retailer Marketing Decisions

36. Retailer Marketing Mix Retailer Marketing Mix Retailer Strategy Target Market Retail Store Positioning Product and Service Assortment Prices Promotion Place (Location )

37. Strategic Issues in Retailing

38.  Location  Product Assortment  Customer Service  Atmospherics  Pricing  Promotion

39. Wholesaling

40. What is Wholesaling?

41.  All the activities involved in selling goods and services to those buying for resale or business use.  Wholesaler - those firms engaged primarily in wholesaling activity.

42. Services Provided by Wholesaling Intermediaries

43.  Buying  Selling  Storing  Transporting  Providing Makret Information  Financing  Risk Taking

44. Customer Expectations for Wholesaling

45. Suppliers’ Logistics Systems Accuracy Easy Inquiry and Order Easy Inquiry and Order Reliable Delivery On-time Delivery On-time Delivery Error-Free Invoicing Error-Free Invoicing Post-Sales Support Post-Sales Support Easy Claims Handling Easy Claims Handling

46. Types of Wholesalers

47. Merchant Wholesaler Independently Owned Business that Takes Title to the Merchandise it Handles. Merchant Wholesaler Independently Owned Business that Takes Title to the Merchandise it Handles. Manufacturers’ Sales Branches and Offices Wholesaling by Sellers or Buyers Themselves Rather Than Through Independent Wholesalers. Manufacturers’ Sales Branches and Offices Wholesaling by Sellers or Buyers Themselves Rather Than Through Independent Wholesalers. Brokers/ Agents They Don’t Take Title to the Goods, and They Perform Only a Few Functions. Brokers/ Agents They Don’t Take Title to the Goods, and They Perform Only a Few Functions.

48. Wholesaler Marketing Decisions

49. Wholesaler Marketing Mix Wholesaler Marketing Mix Wholesaler Strategy Target Market Retail Store Positioning Product and Service Assortment Prices Promotion Place (Location)

50. So….

51. Compete on value (not just price.) Save customers time and energy. Make shopping fun.

52. End of Place part…..

53. Enough for today...

54. Summary

55. Retailing and Wholesaling

56. Classification of Retailing

57. Amount of Service Self-Service, Limited-Service and Full-Service Retailer Amount of Service Self-Service, Limited-Service and Full-Service Retailer Product Line Length and Breadth of the Product Assortment Product Line Length and Breadth of the Product Assortment Relative Prices Pricing Structure that is Used by the Retailer Relative Prices Pricing Structure that is Used by the Retailer Retail Organizations Independent, Corporate, or Contractual Ownership Organization

58. Nonstore Retailing

59. Mail Order Catalogs - from clothing to computers Direct Mail - brochure offering a product or service at one point in time. Mail Order Catalogs - from clothing to computers Direct Mail - brochure offering a product or service at one point in time. Direct Selling Door-to-Door Sales - declining in U.S. Parties & Networks - presentations Telemarketing - over the phone Direct Selling Door-to-Door Sales - declining in U.S. Parties & Networks - presentations Telemarketing - over the phone Automatic Vending Best suited to inexpensive merchandise and food and beverages. Automatic Vending Best suited to inexpensive merchandise and food and beverages. Direct Response Television Home Shopping Networks - TV channels that sell products Direct Response Television Home Shopping Networks - TV channels that sell products

60. Wholesaling

61. Types of Wholesalers

62. Merchant Wholesaler Independently Owned Business that Takes Title to the Merchandise it Handles. Merchant Wholesaler Independently Owned Business that Takes Title to the Merchandise it Handles. Manufacturers’ Sales Branches and Offices Wholesaling by Sellers or Buyers Themselves Rather Than Through Independent Wholesalers. Manufacturers’ Sales Branches and Offices Wholesaling by Sellers or Buyers Themselves Rather Than Through Independent Wholesalers. Brokers/ Agents They Don’t Take Title to the Goods, and They Perform Only a Few Functions. Brokers/ Agents They Don’t Take Title to the Goods, and They Perform Only a Few Functions.

63. Next….

64. Review 3 rd P (Place)

65. Principles of Marketing Lecture-30