Transcript A retailer operating in an identical manner from one location to

Wholesaling
The buying or handling of merchandise and
subsequently reselling it to organizational
users, other wholesalers, and retailers.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-1
Wholesaling Functions
Manufacturer
Wholesaler
Retailer
Consumer
Market Coverage
 Holding Inventory
 Order Processing
 Market Intelligence
 Sales Support
 Assortment
 Breaking Bulk

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-2
Retailing
Activities related to the sale of goods and
services to final consumers, for personal,
family, and household use.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-3
Retailing Functions
Manufacturer


Wholesaler

•Advertising
•Sales & Sales Promotion
•Pricing
Retailer

Consumer
Sorting
Inventory
Marketing

Merchandising
Credit and Services
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-4
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.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-5
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.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-6
Retail by Marketing Strategy
Product lines and services offered are
another means of classifying retailers.
Full Serve
Bay and Sears
Self Serve
Costco
Limited Serve
Wal-Mart
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-7
Retail by Marketing Strategy
Stores can be classified based on the
variety of products they offer.
Specialty
Bluenotes, Old Navy
Limited Line
Athletes’ World, Bata
“Big Box”
Staples Business Depot
General Merch.
Sears
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-8
Alternate Forms of Retailing
 Vending and Automated Merchandising

Direct Home Retailing

Direct Marketing

Catalogue Marketing
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-9
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.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-10
Elements of Retail Planning

Location

Brand Identity

Atmosphere

Merchandise Assortment

Merchandise Control

Marketing Strategy
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-11
Site Location
Location
Location
Location
Central Business District
• Suburban Mall
• Mega-Mall
• Strip Mall
• Power Mall
• Freestanding Store
•
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-12
Brand Identity
Branding strategies influence consumers’
perceptions of a store.
Harry
Rosen
La Senza
Quality, contemporary fashion
and personalized service (a
cut above).
Racy and exotic (men’s view);
pretty and comfortable (women’s
view).
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-13
Atmosphere
Physical characteristics that help develop
an image and attract customers.
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.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-14
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.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-15
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
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-16
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.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
13-17