13-Principles of Marketing.pptx (134Kb)
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PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong
Chapter 13 Chapter 13 Retailing and Wholesaling
What is Retailing? What is Retailing?
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All the activities involved in selling goods
or services directly to final consumers for
their personal, nonbusiness use.- All the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
Retailers - businesses whose sales come
primarily from retailing.Retailers - businesses whose sales come
primarily from retailing.- Retailers can be classified as:
- Retailers can be classified as:
- –
Store retailers such as Home Depot, Sears,
Walmart - – Store retailers such as Home Depot, Sears, Walmart
- – Nonstore retailers such as the mail, telephone, and Internet.
- – Nonstore retailers such as the mail, telephone, and Internet.
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Classification of Retail Stores Classification of Retail Stores
Fu ll- Ser vic e R eta ile rs Pro duct L in e
Am oun t o f S ervice
Am oun t o f S ervice
Ass ort men t Rel ati ve P rices
Ass ort men t Prod uct L ine
Ret by the aile r Rel ative Pri ces
In dep en den t, C orp ora te, or Co ntr actu al Ow ner sh ip O rg an iza tio n
In dep en den t, Co rp ora te, o r C on tra ctu al Ow ner sh ip O rg an iza tio n
Pric in g S tru ctu re that is U sed Ret by the aile r
Pri cin g S tru ctu re that is U sed
Len gth an d B rea dth o f th e Pr od uct
Len gth a nd B rea dth o f th e Pr od uct
e, L im ite d-Se rvi ce an d
Self- Ser vic
e, L im ite d-Se rvi ce an d Fu ll- Ser vic e R eta ile rs
Sel f-S erv ic
Ret ail Org anizat io ns
Ret ail O rgani zatio ns
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Classification By Product Line Classification By Product Line
Specialty Stores Specialty Stores Department Stores Department Stores Supermarkets Supermarkets Convenience Stores Convenience Stores Superstores Superstores Category Killers Category Killers Narrow Product Line, Deep Assortment Narrow Product Line, Deep Assortment Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items Wide Variety of Food, Laundry, & Household Products Wide Variety of Food, Laundry, & Household Products Limited Line of High-Turnover Convenience Goods Limited Line of High-Turnover Convenience Goods Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services Giant Specialty Store that Carries a Very Deep Assortment of a Particular Line Giant Specialty Store that Carries a Very Deep Assortment of a Particular Line Hypermarkets Hypermarkets Huge Superstores Huge Superstores Store Type Length and Breadth of Product Assortment
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Classification By Retail Organization Classification By Retail Organization
Co rp ora te Ch ain s
Co rp ora te Ch ain s
Reta ile r
Co op era tiv esReta ile r Co op era tiv es
Vo lu nta ry Ch ain s
Vo lu nta ry Ch ain s
Fra nch ise Org an iza tio ns
Fra nch is e Org an iza tio ns
Me rch an dis in g Co ng lo mer ate s
Merc han dis in g Co ng lo mer ate s
Retail Organizations
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Characteristics of Direct Marketing Characteristics of Direct Marketing
Pri vacy
Pri vacy
Tar get ed In divi dual s
Tar get ed In div idu als
Resp onse Measurem ent
Cu sto miz ed Off er
Resp onse Measurem ent
Cust om ized Off er
Key Characteristics of Direct Marketing Key Characteristics of Direct Marketing
Test in g
Test in g
Im mediat e Orders
Im mediat e Orde rs
Con tin uou s Rel ation ship
Con tin uou s Rel ation ship
High er Resp onse
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Types of NonStore Retailing Types of NonStore Retailing
Dir ec t M ark etin g Dir ec t M ark etin g Direc t S ellin g Direc t S ellin g
Auto ma tic Ve nd ing
Auto ma tic Ve nd ing
Cata log s & Dir ec t M ail
Cata log s & Direc t M ail
TV Sh op pin g S ho ws
TV Sh op pin g S ho ws
On line Sh op pin g
Hom e & O ffic e P art ies Hom e & O ffic e P art ies Nonstore Retailing Accounts for More Than 14% of All Consumer Purchases, and May Account for 33% of All Sales by 2000.
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Retailer Marketing Decisions
Retailer Marketing Decisions
Retailer Marketing Mix Retailer Marketing Mix Retailer Strategy Retailer Strategy Target Market Retail Store Positioning Product and Service Assortment Prices Promotion Place (Location )
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Click to add title Click to add title
Retailer’s Product Assortment and Services Decisions Retailer’s Product Assortment and Services Decisions
- Pro du ct Dif fer en tia tio n S tra teg ies
- Pro du ct D iff ere ntia tio n S tra teg ies
- Qu alit y o f P ro du cts
-
Qualit y o f P ro du cts
- Wid th a nd Dep th of A sso rtm en t
- Wid th a nd Dep th of Ass ort men t
- Ph ysic al L ayo ut
- “
- Ph ysic al L ayo ut
- “
Pro du ct Ass ort men t D eci sio ns
Pro du ct Ass ortm en t D eci sio ns
Ser vic es Mix Key To ol o f N on pric e C om pe tit ion
On fo r S ett ing e S to re Ap art Fro m Ano th er.
Ser vic es Mix Key To ol o f No np ric e C om pe tit ion
On fo r S ett ing e S to re Ap art Fro m Ano th er.
Store ’s A tmo sp her e
Fee l” Th at S uit s t he T arg et M ark et an d M ove s Cu sto mer s t o Bu y
S to re’ s A tm osp her e
Fee l” Th at S uit s t he T arg et M ark et an d M ove s Cu sto mer s t o B uy
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Click to add title Click to add title
Retailer’s Price, Promotion, and Place Decisions Retailer’s Price, Promotion, and Place Decisions
Promotion Decisions
Using Advertising, Personal Selling,
Sales Promotion and Public
Relations to Reach Customers.
Promotion Decisions
Using Advertising, Personal Selling,
Sales Promotion and Public
Relations to Reach Customers.
Place Decisions
Shopping Centers, Central Business
Districts, Power Centers, or Outlet
Malls. Location!
Place Decisions
Shopping Centers, Central Business
Districts, Power Centers, or Outlet
Malls. Location!
Price Decisions
Target Market
Product & Services Assortment
Competition
Price DecisionsTarget Market Product & Services Assortment Competition
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The Wheel of Retailing
The Wheel of Retailing
1 = Discount 2 = Superstore 3 = Warehouse Club 4 = Combination Store 1 = Discount 2 = Superstore 3 = Warehouse Club 4 = Combination Store 4 4 3 3 2 2 1 1 1 1 2 2 3 3 3 3 2 2 1 High Price 1 High Margin High Status Low Margin Low Price Low Status
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The Future of Retailing
New R etai l F orms and S hort enin g Ret ail Lif ecy cle s
New R etai l Fo rms and S hort ening
The Future of Retailing
Ret ail L ifecycl es
Grow th o f N on sto re Ret ailin g Grow th o f N on store Ret ailin g
In creasing Int ertyp e C omp etit ion In crea sin g Int ertyp e C omp etit io n
Rise of Meg aretai lers Rise of Meg aret ailers
Grow in g Im port ance of Ret ail T echno log y
Grow ing Im port ance of Ret ail T echnol ogy
Glo bal E xpan sion of M ajo r R etai lers Glo bal E xpan sion of M ajor Ret ailers
Ret ail S to res as “C ommu nit ies” or “H ango uts”
Ret ail Sto res as “C ommu nit ies” “H or ango uts”
What is Wholesaling? What is Wholesaling?
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- All the activities involved in selling goods and services to those buying for resale or business use.
- 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 .
- Wholesaler - those firms engaged primarily in wholesaling activity .
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Why are Wholesalers Used? Why are Wholesalers Used?
Wholesaler Functions Mana geme nt Se rvic es & A dvic e Man age men t Se rvic es & A dv ice
Sel lin g and Pro mo tin g Sel ling an d Pro mo tin g Mark et In forma tion Mark et In forma tion Buy in g and Ass ortm ent B uildi ng Bu yin g and Ass ortm ent B uildi ng Ris k B ea ring Ris k B eari ng
Bul k B reak ing Bu lk Bre ak ing Tra nsp ortin g Tra nsp orting Fina ncin g Fina ncin g Wa reh ousin g Wa reh ous in g
Wholesalers are Often Better at Performing One
or More of the Following Channel Functions:
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Types of Wholesalers Types of Wholesalers
Merchant Merchant Brokers/ Agents Brokers/ Agents Wholesaler Wholesaler They Don’t Take Title to They Don’t Take Title to the Goods, and They Independently Owned the Goods, and They Independently Owned Perform Only a Few Business that Takes Business that Takes Perform Only a Few Functions. Title to the Functions. Title to the Merchandise Merchandise it Handles. it Handles. Manufacturers’ Manufacturers’ Sales Branches Sales Branches and Offices and Offices Wholesaling by Sellers Wholesaling by Sellers or Buyers Themselves or Buyers Themselves Rather Than Through Rather Than Through Independent Independent Wholesalers. Wholesalers.
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Wholesaler Marketing Decisions
Wholesaler Marketing Decisions
Wholesaler Marketing Mix Wholesaler Marketing Mix Wholesaler Strategy Wholesaler Strategy Target Market Retail Store Positioning Product and Service Assortment Prices Promotion Place (Location)
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Trends in Wholesaling Trends in Wholesaling
Wholesaling Developments to Consider
Must Lea rn to C om pete E ffe cti vel y O ver Wid er an d Mo re Div ers e A rea s
Must Lea rn to C om pet e Effe cti vel y O ver Wid er an d Mo re Div ers e A rea s
In cre asi ng C on so lid ati on s W ill R ed uce Nu mb er of Wh ole sal ers
In cre asi ng C on so lid ati on s W ill R ed uce Nu mb er of Wh ole sal ers
Surv ivi ng W ho les ale rs Wil l G ro w L arg er Th ro ug h A cq uis iti on s a nd Me rg ers
Surv iv in g W ho le sal ers W ill G ro w L arg er Th ro ug h A cq uis iti on s a nd Me rg ers
Verti cal In teg rat io n W ill Rem ain Str on g Verti cal In teg rat io n W ill Rem ain St ro ng
Glo bal E xp an sio n Glo bal E xp an sio n