Transcript Managing Retailing, Wholesaling, and Logistics

Managing Retailing,
Wholesaling, and
Logistics
Key Concepts
Marketing Management at Zara
Zara controls
all aspects of
its supply
chain.
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Retailing
All of the activities involved in
selling goods or services directly
to final consumers for personal,
non-business use.
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Types of Retailers
 Specialty store
 Discount store
 Department store
 Off-price retailer
 Supermarket
 Superstore
 Convenience
 Catalog
store
.
showroom
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Retail Concepts
Retail life-cycle
Stages of growth and
decline.
Wheel-of-retailing hypothesis
New stores emerge after
conventional stores increase
services and raise prices to
cover the cost.
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Levels of Service
Self-service
Self-selection
Limited service
Full service
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Retail Positioning Strategies
Bloomingdale’s
Tiffany
Sunglass Hut
Wal-Mart
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Nonstore Retailing
Direct selling
Direct marketing
Automatic vending
Buying service
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The New Retail Environment
 Assortments have grown more alike
 Differentiation has eroded
 Limited-time-only “pop-up” outlets
 Adding specialty products and customer-focused
services
 Growth in global competition
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Corporate Retail
Organizations
 Corporate chain store
 Voluntary chain
 Retailer cooperative
 Consumer cooperative
 Franchise organization
 Merchandising conglomerate
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Retailer Marketing Decisions
 Target market
 Product
assortment and
procurement
 Price
 High-markup, lowervolume
 Low-markup,
higher-volume
 Services and
store atmosphere
 Store activities
and experiences
 Communications
 Location
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Breakthrough Marketing:
TARGET
“Upscale
discounter
” image =
$59 billion
in annual
sales!
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Marketing Skills: Experience
Marketing
Enhance the
sensory
experience
(feel, look,
sound, smell,
or taste).
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Private Labels
Private label brand
One developed by
retailers and
wholesalers.
Generics
Unbranded, plainly
packaged, less
expensive versions of
common products.
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Wholesaling
All the activities in selling goods
or services to those who buy
for resale or business use.
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Major Wholesaler Types
 Merchant wholesaler
 Full-service wholesaler
 Limited-service wholesaler
 Brokers and agents
 Manufacturers’ and retailers’ branches and offices
 Specialized wholesalers
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How Wholesalers Differ From
Retailers
 Pay less attention to promotion, atmosphere, and
location
 Transactions are usually larger and cover a larger trade
area
 Different legal regulations and taxes
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What Wholesalers do
 Selling and
 Transportation
promoting
 Financing
 Buying and
assortment building  Risk bearing
 Market information
 Bulk breaking

Management
 Warehousing
services and
counseling
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Trends in Wholesaling
 Facing mounting
pressures from:




New sources of competition
Demanding customers
New technologies
More direct-buying programs
by large buyers
 Manufacturers
 Responses:
 Revisiting decisions
 Cutting costs
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Market Logistics
Supply chain management
(SCM)
Starts before physical
distribution, covering
procurement of inputs,
conversion into finished
products, and product
movement to final
destinations.
Market logistics
Planning the infrastructure
to meet demand, then
implementing and
controlling the physical
flows of materials and final
goods from points of origin
to points of use to meet
customer needs at a profit.
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Steps in Market Logistics Planning
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Integrated Logistics Systems (ILS)
Include materials management,
material flow systems, and
physical distribution, aided by
information technology.
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Market-Logistics Decisions
Order processing
Warehousing
Inventory
Transportation
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Determining Optimal Order Quantity
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