1. www.mhhe.com/fourps For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin CHAPTER TWELVE Retailers, Wholesalers, and Their Strategy Planning

2. CH 12: Retailers, Wholesalers & Their Strategy Planning Strategy planning for retailers CH 10: Place and Development of Channel Systems Nature of retailing Future of retailing and wholesaling CH 11: Distribution Customer Service & Logistics Strategy planning for wholesalers Marketing Strategy Planning for Retailers and Wholesalers (Exhibit 12-1)

3. Convenience Product Selection Fairness in Dealings Helpful Information Prices Social Image Convenience Product Selection Fairness in Dealings Helpful Information Prices Social Image Planning a Retailer’s Strategy Key Features Affecting Consumers’ Retail Choice Shopping Atmosphere

4. Conventional Offerings Single- & limited- line stores Expanded assortment &/or reduced margins & service Supermarkets, disc. houses, mass merch., super-, club- Stores, + Safeway, IKEA, Home Depot, Costco Added conv., higher margins, reduced assortment C-stores, vending, door- to-door, phone, mail, some e-tail 7-11, Pepsi vending, Avon, Lands’ End, QVC Expanded assortment, reduced margins, more information Internet eBay, Amazon, Zappos, Netflix, Dell Expanded assortment & service Specialty shops & dept. stores Ritz Ritz Camera, Coach, Gap, Macy’s Conventional Retailers – Try to Avoid Price Competition (Exhibit 12-2)

5. Online versus In-store Shopping (Exhibit 12-3) In-Store Shopping Online shopping Cross-section, depends on store Customer characteristics Younger, better educated upscale More purchases on the weekend More purchases on weekdays Day-of-week emphasis Varies, usually better than online Weak but improving Customer service More routine purchases More emphasis on one-time purchase Products purchased Can inspect for immediate use Not available for inspection or use Availability of product Cross-section, depends on store Younger, better educated upscale Customer characteristics More purchases on the weekend More purchases on weekdays Day-of-week emphasis Varies, usually better than online Weak but improving Customer service More routine purchases More emphasis on one-time purchase Products purchased

6. Online versus In-store Shopping (Exhibit 12-3) In-Store Shopping Online shopping Often weak – maybe only on packaging Comparative information More extensive, sometimes poorly organized Often a social experience A media experience Entertainment value Prices and taxes higher – no delivery charges Prices often lower, shipping/handling costs Charges Depends on store and available transportation Completely flexible Shopping hours and preparation Often weak – maybe only on packaging Comparative information More extensive, sometimes poorly organized Often a social experience A media experience Entertainment value Prices and taxes higher – no delivery charges Prices often lower, shipping/handling costs Charges

7. Types of Wholesalers (Exhibit 12-6)

8. Types of Merchant Wholesalers Service Limited - Function Limited - Function General merchandise Single line (or general- line) Specialty Cash and Carry Drop Shippers Truck Rack- Jobbers Catalog Types of Merchant Wholesalers

9. Manufacturer’s Agents Manufacturer’s Agents Brokers Selling Agents Brokers Manufacturer’s Agents Manufacturer’s Agents Agent Middlemen Are Strong on Selling Auction Companies Types of Agent Middlemen

10. New Web- Based Retailers Development of Specialized Intermediaries New Internet Applications Improved Logistics Efficiency Improved Logistics Efficiency Improved Logistics Efficiency Improved Logistics Efficiency What Will Happen to Retailers and Wholesalers in the Future? Increasing Competition Marketers and Consumers Can Expect