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Managing Retailing, Wholesaling, and Logistics
Key Concepts
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Marketing Management at Zara
Zara controls all aspects of its supply chain.
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Retailing All of the activities involved in selling goods or services directly to final consumers for personal, non-business use.
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Types of Retailers Specialty store Department store Supermarket
Convenience store Discount store Off-price retailer Superstore Catalog showroom .
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Retail Concepts Retail life-cycle Stages of growth and decline.
Wheel-of-retailing hypothesis New stores emerge after conventional stores increase services and raise prices to cover the cost.
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Levels of Service Self-service Self-selection Limited service
Full service
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Retail Positioning Strategies
Bloomingdale’s Tiffany Sunglass Hut Wal-Mart
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Nonstore Retailing Direct selling Direct marketing Automatic vending
Buying service
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The New Retail Environment
Assortments have grown more alike Differentiation has eroded Limited-time-only “pop-up” outlets Adding specialty products and customer-focused services Growth in global competition
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Corporate Retail Organizations
Corporate chain store Voluntary chain Retailer cooperative Consumer cooperative Franchise organization Merchandising conglomerate
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Retailer Marketing Decisions
Target market Product assortment and procurement Price High-markup, lower- volume Low-markup, higher-volume Services and store atmosphere Store activities and experiences Communications Location
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Breakthrough Marketing: TARGET
“Upscale discounter” image = $59 billion in annual sales!
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Marketing Skills: Experience Marketing
Enhance the sensory experience (feel, look, sound, smell, or taste).
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Private Labels Generics
Unbranded, plainly packaged, less expensive versions of common products. Private label brand One developed by retailers and wholesalers.
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Wholesaling All the activities in selling goods or services to those who buy for resale or business use.
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Major Wholesaler Types
Merchant wholesaler Full-service wholesaler Limited-service wholesaler Brokers and agents Manufacturers’ and retailers’ branches and offices Specialized wholesalers
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How Wholesalers Differ From Retailers
Pay less attention to promotion, atmosphere, and location Transactions are usually larger and cover a larger trade area Different legal regulations and taxes
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What Wholesalers do Selling and promoting
Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling
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Trends in Wholesaling Facing mounting pressures from: Responses:
New sources of competition Demanding customers New technologies More direct-buying programs by large buyers Manufacturers Responses: Revisiting decisions Cutting costs
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Market Logistics Supply chain management (SCM) Starts before physical distribution, covering procurement of inputs, conversion into finished products, and product movement to final destinations. Market logistics Planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer needs at a profit.
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Steps in Market Logistics Planning
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Integrated Logistics Systems (ILS)
Include materials management, material flow systems, and physical distribution, aided by information technology.
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Market-Logistics Decisions
Order processing Warehousing Inventory Transportation
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Determining Optimal Order Quantity
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