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Principles of Marketing

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Presentation on theme: "Principles of Marketing"— Presentation transcript:

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


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