1. PharmaSim MANAGING YOUR RETAILERS
Advanced Marketing Management
Marketing 6202

2. Managing Your Retailers STRATEGY
Push vs Pull Strategy
Retailers are the focus of a Push strategy, bypassed in a Pull strategy
PULL
Manufacturer
Retailer
Consumer
PUSH

3. Managing Your Retailers WHAT RETAILERS DO FOR YOU
Distribution
Shelf Space
Quantity
Quality
Retail Price Discounts
Cooperative Advertising
Displays

4. Managing Your Retailers RETAILER DIFFERENCES
SMALL
Most Independent Drug
Most Convenience
“Mom and Pop” Grocery
Smallest orders
Value merchandising support
MEDIUM
Most Grocery
Most Chain Drug
Some Mass Merch
Medium orders
Value turnover and allowances, some merchandising support
LARGE
Most Mass Merch
Most Wholesale
Some Grocery & Drug
Larger orders
Focus on turnover and allowances

5. Managing Your Retailers MARKETING MIX
Your marketing mix decisions affect retailers’ incentive to “push” your products
Manufacturer
PRICE
PROMOTION
Place
Product
Retailer
Margins
Merchandising
Turnover
Demand

6. Managing Your Retailers PRICE
Suggested Retail Price – affects demand and retailer margins
Volume Discount – affects retailer margins
Promotional Allowance – performance includes price reduction

7. Managing Your Retailers TRADE PROMOTIONS
Promotion Allowance
Co-op Advertising
Point of Purchase
Promotional Spending
Product Sales
Co-op Ad?
Promo Allowance?
Point of Purchase?

8. Managing Your Retailers SALES FORCE
Number and distribution of sales people affects retailer response
Merchandisers are valued differentially by different retailers
Detailers only affect retailers by stimulating demand
Merchandisers
Distribution Channel A
Channel Sales
Distribution Channel B
Sales Force

9. Managing Your Retailers MEASURING SUCCESS
Trade Rating - Product Promotion Report
% Participation - Product Promotion Report
Sales - Income Statement and Product Contribution Reports
Income - Income Statement

10. Managing Your Retailers OTHER INFORMATION
How are trade promotions affecting my costs? - Product Contribution Reports
What are my competitors doing? - Sales Force Report; Promotion Report; Operating Statistics
How are my competitors doing? - Operating Statistics; Shelf Space Reports
What are the distribution trends? - Channel Share Report; Marketing Update

11. Managing Your Retailers SUMMARY
Marketing mix decisions affect not only consumers but retailers as well:
Margins
Merchandising
Provide retailers with incentives to “push” your product to consumers
Turnover
Demand