1. Principles of Marketing
“ Retailing & Wholesaling”

2. Retailing
All the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
Retailers - businesses whose sales come primarily from re
Retailers can be classified as:
Store retailers such as Home Depot, Sears, Walmart
Nonstore retailers such as the mail, telephone, and Internet.

3. Types of Retailers Retailers can be classified on the basis of:
Amount of service
The breadth and depth of their product lines
The relative prices they charge
And how they are organized.

4. Amount of service
Self Service: for customers who are willing to perform their own locate-compare and select functions
Limited-service retailers: provide more sales assistance as they carry more shopping goods about which customers need information
Full-service retailers: such as specialty stores and first class department stores. These stores carry more specialty items.

5. Breadth and Depth of product lines
Store Type Length and Breadth of Product Assortment
Specialty Stores
Narrow Product Line, Deep Assortment
Department Stores
Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items
Supermarkets
Wide Variety of Food, Laundry, & Household Products
Convenience Stores
Limited Line of High-Turnover Convenience Goods
Superstores
Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services
Category Killers
Giant Specialty Store that Carries a Very Deep Assortment of a Particular Line
Hypermarkets
Huge Superstores

6. Relative Prices Charged
Discount Stores: A retail institution that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume.
Off-Price Retailers: Retailers that buy at less than regular wholesale prices and sells at less than retail. E.g.
Independent off-price retailer: An off price retailer that is either owned and run by an entrepreneur or is a division of a larger retail corporation
Factory outlet: An off-price retailing operation that is owned and operated by a manufacturer and that normally carries the manufacturer’s surplus , discontinued or irregular goods.
An off-price retailer that sells a limited selection of brand name grocery items , appliances, clothing, and a hodgepodge of other goods at deep discounts to members who pay annual membership fees.

7. Organizational Approach
Merchandising
Conglomerates
Corporate
Chains
Franchise
Organizations
Voluntary
Chains
Retail Organizations
Retailer
Cooperatives

8. Corporate Chain Stores
Two or more outlets that are commonly owned and controlled, employ central buying and merchandising, and sell similar lines of merchandise.
Corporate chain stores appear in all types of retailing, but they are strongest in department stores, variety stores, food, drug and women clothing stores.

9. Voluntary Chains
Wholesaler-sponsored groups of independent retailers engaged in bulk buying and common merchandising.

10. Retailer Cooperatives
Groups of independent retailers who set up a central buying organization and conduct joint promotion efforts.

11. Franchise Organizations
Contractual association between a franchiser ( a manufacturer, wholesaler, or a service organization) and franchisees ( independent business people who buy the right to own and operate one or more units in the franchise system)
Franchise organization are commonly based on some unique product, service or method or doing business, or a on a trade name to patent, or on good will that the franchiser has developed.

12. Merchandising conglomerates
A free form corporation that combines several diversified retailing lines and form under central ownership along with some integration of their distribution and management functions.

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

14. Retailer’s Product Assortment and Services Decisions
Product Assortment Decisions
Width and Depth of Assortment
Quality of Products
Product Differentiation Strategies
Retailer’s Product Assortment and Services Decisions
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

15. Retailer’s Price, Promotion, and Place Decisions
Price Decisions
Target Market
Product & Services Assortment
Competition
Promotion Decisions
Using Advertising, Personal Selling, Sales Promotion and Public Relations to Reach Customers.
Place Decisions
Shopping Centers, Central Business Districts, Power Centers, or Outlet Malls. Location!

16. Wholesaling
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.

17. Wholesaler Functions Wholesalers are Often Better at Performing One
or More of the Following Channel Functions:
Wholesaler
Functions
Management
Services & Advice
Selling and
Promoting
Market
Information
Buying and
Assortment Building
Risk Bearing
Bulk Breaking
Transporting
Financing
Warehousing

18. They Don’t Take Title to Wholesaling by Sellers
Types of Wholesalers
Brokers/ Agents
They Don’t Take Title to
the Goods, and They
Perform Only a Few
Functions.
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.

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

20. Trends in Wholesaling Wholesaling Developments to Consider
Must Learn to Compete Effectively Over
Wider and More Diverse Areas
Increasing Consolidations Will Reduce
Number of Wholesalers
Trends in Wholesaling
Surviving Wholesalers Will Grow Larger
Through Acquisitions and Mergers
Wholesaling Developments to Consider
Vertical Integration Will Remain Strong
Global Expansion