Retailing and Wholesaling

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Chapter 12

• Retailing and Wholesaling

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Road Map Previewing the Concepts

• Explain the roles of retailers and wholesalers in
  the distribution channel.
• Describe the major types of retailers and give
  examples of each.
• Identify the major types of wholesalers and give
  examples of each.
• Explain the marketing decisions facing retailers
  and wholesalers.

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What is Retailing?


Retailing
Includes all the Activities Involved
in Selling Goods or Services Directly to Final
Consumers for Their Personal, Nonbusiness Use.
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Retailing

• Retailing can be done in stores (store retailing)
  or out of a store (nonstore retailing) such as
• Direct mail,
• Catalogs,
• Telephone,
• Home shopping shows,
• Internet.

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Classification of Retailing
Amount of Service Self-Service, Limited-Service
and Full-Service Retailer
Product Line Length and Breadth of the
Product Assortment
Relative Prices Pricing Structure that is Used
by the Retailer
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Classification of RetailingAmount of Service
Self-Service Retailers Provide Few or No
Services to Shoppers i.e. Best Buy
Limited-Service Retailers Provide Only a Limited
Number of Services to Shoppers i.e. Sears
Full-Service Retailers Retailers that Provide a
Full Range of Services to Shoppers i.e. Neiman
Marcus
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Classification of RetailingProduct Line (Tab.
12-1)
Store Description
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Discussion Question

• Giant superstores called category killers are an
  emerging trend. Answer the following questions
• How is a category killer different from other
  types of retailers?
• Why has this form of retailing grown so rapidly?

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Classification of RetailingRetail Organization
Corporate Chain
Merchandising Conglomerates
Voluntary Chain
Franchise Organizations
Retailer Cooperatives
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Retailer Marketing Decisions (Fig. 12-1)
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Interactive Student Assignments

• Consider the following thought question, format
  an answer, pair with the student on your right,
  share your thoughts with one another, and respond
  to questions from the instructor.
• How do retailers establish a position in the
  marketplace?

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Product Assortment and Services Decisions
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Retailers Price, Promotion, and Place Decisions
Location, Location, Location!
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Mall of America

• The Mall of America megamall contains more
  than
• 520 specialty stores,
• 49 restaurants,
• 7-acre indoor theme park,
• Underwater World featuring hundreds of marine
  specimens,
• And a two-story miniature golf course.

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The Future of Retailing

• New Retail Forms and Shortening Retail
  Life-Cycles
• Growth of Nonstore Retailing
• Increasing Intertype Competition
• Rise of the Megaretailers

• Growing Importance of Retail Technology
• Global Expansion of Major Retailers
• Retail Stores as Communities or Hangouts

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What is Wholesaling?


Wholesaling
Includes all the activities Involved
in Selling Goods and Services to Those Buying for
Resale or Business Use.
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Why are Wholesalers Used?
Management Services Advice
Selling Promoting
Wholesalers are Often Better at Performing One or
More of the Following Channel Functions
Market Information
Buying Assortment Building
Wholesaler Functions
Bulk-Breaking
Risk Bearing
Financing
Warehousing
Transportation
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Types of Wholesalers
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Wholesaler Marketing Decisions (Fig. 12-2)
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Trends in Wholesaling
Must Constantly Improve Their Services and Reduce
Costs
Distinction Between Large Retailers and
Wholesalers Blurs
Wholesalers Will Continue to Increase the
Services Provided
Wholesalers Are Beginning to Go Global
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Rest Stop Reviewing the Concepts

• Explain the roles of retailers and wholesalers in
  the distribution channel.
• Describe the major types of retailers and give
  examples of each.
• Identify the major types of wholesalers and give
  examples of each.
• Explain the marketing decisions facing retailers
  and wholesalers.