1. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-1 Wholesaling The buying or handling of merchandise and subsequently reselling it to organizational users, other wholesalers, and retailers.

2. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-2 Wholesaling Functions Manufacturer Wholesaler Retailer Consumer Market Coverage Holding Inventory Order Processing Market Intelligence Sales Support Assortment Breaking Bulk

3. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-3 Retailing Activities related to the sale of goods and services to final consumers, for personal, family, and household use.

4. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-4 Retailing Functions Manufacturer Wholesaler Retailer Consumer Sorting Inventory Marketing Advertising Sales & Sales Promotion Pricing Merchandising Credit and Services

5. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-5 Retail by Ownership In terms of ownership, there are three prevalent forms: Chains Independents Franchises Operate 4 or more stores in same business. Operate 1 to 3 stores. Stores operated on the basis of a contractual agreement.

6. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-6 Franchising A retailer operating in an identical manner from one location to another. McDonald’s Harvey’s Choice Hotels Midas Piggybacking and co-branding are now popular among franchise operations. Pizza Hut, KFC and Taco Bell under one roof.

7. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-7 Retail by Marketing Strategy Product lines and services offered are another means of classifying retailers. Full Serve Self Serve Limited Serve Bay and Sears Costco Wal-Mart

8. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-8 Retail by Marketing Strategy Stores can be classified based on the variety of products they offer. Specialty Limited Line “Big Box” General Merch. Bluenotes, Old Navy Athletes’ World, Bata Staples Business Depot Sears

9. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-9 Alternate Forms of Retailing  Vending and Automated Merchandising  Direct Home Retailing  Direct Marketing  Catalogue Marketing

10. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-10 E-tailing Time-pressed consumers are looking at convenient alternatives. Only 1% of sales but significant potential ahead. Consumers are migrating toward online buying. Customer service and fast delivery are important aspects of online marketing.

11. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-11 Elements of Retail Planning  Location  Brand Identity  Atmosphere  Merchandise Assortment  Merchandise Control  Marketing Strategy

12. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-12 Site Location Location Central Business District Suburban Mall Mega-Mall Strip Mall Power Mall Freestanding Store

13. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-13 Brand Identity Branding strategies influence consumers’ perceptions of a store. Harry Rosen Harry Rosen Quality, contemporary fashion and personalized service (a cut above). La Senza Racy and exotic (men’s view); pretty and comfortable (women’s view).

14. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-14 Atmosphere Physical characteristics that help develop an image and attract customers. Appearance (inside/outside) Store Layout Displays Appearance (inside/outside) Store Layout Displays Wal-Mart has bins, sale signs and and industrial style shelves. La Senza has an elegant, bedroom-style environment.

15. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-15 Merchandise Assortment The assortment of merchandise is described as breadth of selection and depth of selection. Breadth Depth The number of classifications of goods. The number of brands and styles in each classification.

16. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-16 Product Mix Strategy Retailers opt for consistency of product or they add unrelated products to the mix. 1.Assortment Consistency 2.Scrambled Merchandising 3.Stock Balance

17. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 13-17 Merchandise Control Stock turnover (stockturn) is a key measure of retail success and control. Stockturn = Sales Average Inventory If sales are $1,000,000 and the average inventory is $200,000, the stockturn would be 5.