Transcript ch 16 MANAGING RETAILING, WHOLESALING, AND LOGISTICS

1
16
Managing Retailing,
Wholesaling,
and Logistics
Chapter Questions
What major types of marketing
intermediaries occupy this sector?
 What marketing decisions do these
marketing intermediaries make?
 What are the major trends with marketing
intermediaries?

14-2
Retailing
Includes all the activities involved in
selling goods or services directly
to final consumers for personal,
nonbusiness use.
14-3
Table 16.1 Major Retailer Types




Specialty store
Department store
Supermarket
Convenience store




Discount store
Off-price retailer
Superstore
Catalog showroom
14-4
Wal-Mart: Ready to serve the mass.
14-5
Branded manufacturers enter retail




Nespresso (Nestle) “coffee boutiques” to
establish lifestyle brand
Heineken branded beer bars in airports and
retail
Strategic logic is to avoid control of thirdparty retailers over brand
Move from selling “A product in a box” to
offering a superior service experience for the
brand
Nespresso
(Nestle) “coffee
boutiques” to
establish
lifestyle brand
A Heineken branded beer bar
Different type of retail outlet representing different
marketing (mix) strategies
14-9
Retail outlet design
as a branding
strategy
14-10
Is it a retail outlet or
a museum?
14-11
Retail outlet design as a branding strategy (2)
14-12
Levels of Retail Service
Self-service
 Self-selection
 Limited service
 Full service

14-13
The issues:
The battle in the aisle
The increased power of retailers
Private Labels (and House Brands)
14-14
Nonstore Retailing
Direct selling
 Direct marketing
 Automatic vending
 Buying service

14-15
“Instore electronic orders - where
is the staff???”
When at Nike Town you can actually
service yourself. Their instore
computer allow you to design your
own shoe and other relevant gear
such as bags. Their NikeID concept is
catching on now you can make your
very own limited edition NIKE shoes
without having to be a master
shoemaker. If you do not have your
very own Nike Town around the
corner, then you can order online recently also available for us
Europeans.
14-16
Major Types of Corporate Retail Organizations






Corporate chain store
Voluntary chain
Retailer cooperative
Consumer cooperative
Franchise organization
Merchandising conglomerate
14-17
Retailers’ Marketing Decisions






Target market
Product assortment
Service/store atmosphere
Price
Communication
Location
14-18
Retail Category Management
Define the category
Figure out its role
Assess performance
Set goals
Choose the audience
Figure out tactics
Implement the plan
14-19
Retailer Services Mix



Prepurchase services
Postpurchase services
Ancillary services
14-20
Lifestyle destination
14-21
Indicators of Sales Effectiveness
Number of people passing by location
 Percentage who enter store
 Percentage of those who enter who also
buy
 Average amount spent per sale

14-22
Trends in Retailing
New retail forms and combinations
 Growth of intertype competition
 Competition between store-based and
non-store-based retailing
 Growth of giant retailers
 Decline of middle market retailers
 Growing investment in technology
 Global presence of major retailers

14-23
14-24
www.airasia.com
www.hotwire.com
www.worldpoint.com
Yahoo!India
www.ezface.com
Retail-outlet destinations in the USA
14-30
How is it different from the other retail formats?
14-31
The Importance of After-Sales Support in
Consumer Decision Journey
Welcome to Apple Genius Bar.
The Genius Bar is a tech support
station located inside every Apple
Retail Store, the purpose of which
is to offer help and support for
Apple products. Ron Johnson, the
Senior Vice President for Retail,
has often referred to the Genius
Bar as the "heart and soul of our
stores". Employees are specially
trained and certified at the Genius
Bar. Their role is to help
customers with Apple hardware
and software. All in-store repairs
of Apple products are carried out
by "Geniuses", formerly known as
Mac Geniuses.
Wholesaling Functions




Selling and promoting
Buying and
assortment building
Bulk breaking
Warehousing





Transportation
Financing
Risk bearing
Market information
Management services
and counseling
14-33
Major Wholesaler Types



Merchant
Full service
Limited service



Brokers and agents
Manufacturers
Specialized
14-34
Wholesalers’ Marketing Decisions





Target market
Product assortment
Price
Promotion
Place
14-35
Market Logistics Planning




Deciding on the company’s value proposition to
its customers
Deciding on the best channel design and
network strategy
Developing operational excellence
Implementing the solution
14-36
Market Logistics Decisions




How should orders be handled?
Where should stock be located?
How much stock should be held?
How should goods be shipped?
14-37
Transportation Factors
Speed
 Frequency
 Dependability
 Capability
 Availability
 Traceability
 Cost

14-38