Retailing and Wholesaling

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Chapter 13

• Retailing and Wholesaling

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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 Retailer 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.
13.1)
Store Description
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Classification of RetailingRelative Prices
Higher Prices and Offer Higher-Quality Goods and
Customer Service
Regular Prices and Offer Normal-Quality Goods
and Customer Service
Low Prices and Offer Lower-Quality Goods and
Customer Service
Catalog Showrooms
Discount Stores
Off-Priced Retailers
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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. 13.1)
Retailer Marketing Mix Product and service
assortment Prices Promotion Place (location)
Retailer Strategy Target Market Retail
Store Positioning
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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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The Future of Retailing
New Retail Forms and Shortening Retail Lifecycle
Growth of Nonstore Retailing
Increasing Intertype Competition
Rise of Megaretailer
Growing Importance of Retail Technology
Global Expansion of Major Retailers
Retail Stores as Communities or Hangouts
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The Wheel of Retailing
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Discussion Connections

• Online retailers provide an alternative to
  shopping the old fashioned way.
• Discuss the differences in shopping for books and
  music at www.Amazon.com vs. Barnes Noble
  Booksellers.
• Discuss the differences in shopping for groceries
  at www.peapod.com vs. your local grocery store.
• Which do you prefer and why?

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What is Wholesaling?

• All the activities involved in selling goods and
  services to those buying for resale or business
  use.
• Wholesaler - those firms engaged primarily in
  wholesaling activity.
• Wholesalers buy mostly from producers and sell
  mostly to
• Retailers,
• Industrial consumers, and
• Other wholesalers.

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Why are Wholesalers Used?
Management Services Advice
Selling and Promoting
Wholesalers are Often Better at Performing One or
More of the Following Channel Functions
Market Information
Buying and Assortment Building
Wholesaler Functions
Bulk Breaking
Risk Bearing
Financing
Warehousing
Transportation
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Types of Wholesalers
Merchant Wholesaler Independently Owned
Business that Takes Title to the Merchandise it
Handles.
Manufacturers Sales Branches and
Offices Wholesaling by Sellers or Buyers
Themselves Rather Than Through Independent
Wholesalers.
Brokers/ Agents They Dont Take Title to the
Goods, and They Perform Only a Few Functions.
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Wholesaler Marketing Decisions (Fig. 13.2)
Wholesaler Marketing Mix Product and service
assortment Prices Promotion Place (location)
Wholesaler Strategy Target Market Service Positi
oning
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Trends in Wholesaling
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Review of Concept Connections

• 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.