| Retailing and Wholesaling 373
Chapter 13 | Retailing and Wholesaling 373
nology. Its Bentonville, Arkansas, headquarters contains a computer communications system that the U.S. Department of Defense would envy, giving managers around the country instant access to sales and operating information. And its huge, fully automated distribution centers employ the latest technol- ogy to supply stores efficiently.
Walmart also keeps costs down through good old “tough buying.” The company is known for the calculated way it wrings low prices from suppliers. “Don’t expect a greeter and don’t expect friendly,” said one supplier’s sales executive after a visit to Walmart’s buying offices. “Once you are ush- ered into one of the spartan little buyers’ rooms, expect a steely eye across the table and be prepared to cut your price. They are very, very focused people, and they use their buying power more force-
higher-quality merchandise: Many urban At Walmart, the
fully than anyone else in America.”
Walmarts now carry a slew of higher-end company promises,
Some critics argue that Walmart squeezes its suppliers too
consumer electronics products, from Sony you'll “Save
hard, driving some out of business. Walmart proponents
plasma televisions to Dell and Toshiba lap- money. Live
counter, however, that it is simply acting in its customers’ inter-
tops to Apple iPods. The retailer has also better.” Says
ests by forcing suppliers to be more efficient. And most suppli-
dressed up its apparel racks with more- Walmart’s CEO,
ers seem to agree that although Walmart is tough, it’s honest and
stylish fashion lines. Finally, Walmart has “We’re obsessed
straightforward in its dealings.
dropped its old, hard-sell “rollback prices” with delivering
Despite its incredible success over the past four decades,
advertising in favor of softer, more refined value to
mighty Walmart faces some weighty challenges ahead. Having
lifestyle ads that better support its “Save customers.”
grown so big, the maturing giant is having difficulty maintain-
money. Live better.” slogan.
ing the exploding growth rates of its youth. To reignite growth, But don’t expect Walmart to try to out-Target Target. In Walmart is pushing into new, faster-growing product and ser-
fact, given the recently troubled retail economy, Target has vice lines, including organic foods, store brands, in-store health
moved more toward Walmart than the other way around. Dur- clinics, and consumer financial services. It’s also pushing its ex-
ing and following the recent recession, Walmart found itself pansion into international markets and online sales. Still,
strongly positioned to serve today’s thriftier consumers. By growth remains a daunting task. Think about this: To grow just
contrast, the more stylish Target was forced to drop its prices
7 percent next year, Walmart will have to add nearly $30 billion and margins to avoid losing market share to Walmart. And in new sales. That’s a sales increase equivalent to the total sales of
whereas other retailers’ sales suffered in hard times, Walmart’s Coca-Cola, DuPont, or more than 1.5 Nikes. That’s a lot of
continued to grow.
growth. So even as it brushes up its image, in no way will Walmart Recently, to refresh its positioning relative to younger, hip-
ever give up its core low price value proposition. After all, Wal- per competitors such as Target, Walmart has been giving itself
mart is and always will be a discount store. “I don’t think Wal-
a modest image face-lift. For example, it’s spruced up its stores mart’s . . . ever going to be edgy,” says a Walmart marketer. “I with a cleaner, brighter, more open look and less clutter to make
don’t think that fits our brand. Our brand is about saving peo- them more shopper-friendly, like Target. It’s added some new,
ple money” so that they can live better. 1
The Walmart story sets the stage for examining the fast-changing world of today’s resellers. This chapter looks at retailing and wholesaling. In the first section, we look at the nature and importance of retailing, the major types of store and nonstore retailers, the
decisions retailers make, and the future of retailing. In the second section, we discuss these same topics as they apply to wholesalers.
Objective OUTLINE
Explain the role of retailers in the distribution channel and describe the major types of retailers.
Retailing (374–382)
Describe the major retailer marketing decisions. Retailer Marketing Decisions (382–388)
Discuss the major trends and developments in retailing. Retailing Trends and Developments (389–394)
Explain the major types of wholesalers and their marketing decisions. Wholesaling (394–400)
Retailing
Author You already know a lot
(pp 374–394)
Comment
about retailers. You deal with them every day—store retailers,
What is retailing? We all know that Costco, Home Depot, Macy’s, Best Buy, and Target are service retailers, online retailers, and
retailers, but so are Avon representatives, Amazon.com, the local Hampton Inn, and a doc- others.
tor seeing patients. Retailing includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. Many institutions—
manufacturers, wholesalers, and retailers—do retailing. But most retailing is done by All the activities involved in selling goods
Retailing
retailers , businesses whose sales come primarily from retailing.
or services directly to final consumers for Retailing plays a very important role in most marketing channels. Each year, retailers their personal, nonbusiness use.
account for more than $4.1 trillion of sales to final consumers. They connect brands to con-
sumers in what marketing agency OgilvyAction, calls “the last mile”—the final stop in the A business whose sales come primarily
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
Show more