Directory UMM :Slide_Kuliah:PPT:MP_Kotler_10:

Objectives
 Retailing
 Wholesaling
 Market

©2000 Prentice Hall

Logistics

Four Levels of Retail Service
 Self-service
 Self-selection
 Limited-service
 Full-service

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Retail Positioning Map

Breadth of
product line


Broad

Bloomingdale’s

Wal-Mart

Tiffany

Kinney
Shoe

Narrow
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Value added
High

Low


Classification
Classification Of
Of Retailer
Retailer Types
Types
Store Type

Length and Breadth of Product
Assortment

Specialty
SpecialtyStores
Stores

Narrow
NarrowProduct
ProductLine,
Line,Deep
DeepAssortment
Assortment


Department
DepartmentStores
Stores

Wide
WideVariety
Varietyof
ofProduct
ProductLines
Linesi.e.
i.e.Clothing,
Clothing,
Home
Furnishings,
&
Household
Home Furnishings, & HouseholdItems
Items
Wide

WideVariety
Varietyof
ofFood,
Food,Laundry,
Laundry,&&Household
Household
Products
Products
Limited
LimitedLine
Lineof
ofHigh-Turnover
High-TurnoverConvenience
Convenience
Goods
Goods
Broad
BroadProduct
ProductLine,
Line,Low

LowMargin,
Margin,High
High
Volume
Volume
Inexpensive,
Inexpensive,Overruns,
Overruns,Irregulars,
Irregulars,and
and
Leftover
LeftoverGoods
Goods
Large
LargeAssortment
Assortmentof
ofRoutinely
RoutinelyPurchased
Purchased
Food

Food&&Nonfood
NonfoodProducts,
Products,Plus
PlusServices
Services
Broad
BroadSelection,
Selection,Fast
FastTurnover,
Turnover,Discount
Discount
Prices
Prices

Supermarkets
Supermarkets
Convenience
ConvenienceStores
Stores
Discount

DiscountStores
Stores
Off-Price
Off-PriceRetailer
Retailer
Superstores
Superstores
Catalog
CatalogShowroom
Showroom
©2000 Prentice Hall

Types
Types of
of NonStore
NonStore Retailing
Retailing

Direct
Direct Selling

Selling
Direct
Direct Marketing
Marketing
Automatic
Automatic Vending
Vending
Buying
Buying Services
Services
©2000 Prentice Hall

NonStore Retailing
Accounts for More
Than 12% of All
Consumer
Purchases, and is
trending up.

Wheel of Retailing

Mid Price
Mid Status
Mid Margin
Low Price
Low Status
Low Margin

©2000 Prentice Hall

High Price
High Status
High Margin

Why
Why are
are Wholesalers
Wholesalers Used?
Used?
Management
Management

Services
Services&&Advice
Advice
Market
Market
Information
Information
Risk
RiskBearing
Bearing

Selling
Selling and
and
Promoting
Promoting
Buying
Buyingand
and
Assortment

AssortmentBuilding
Building

Wholesaler
Functions

Financing
Financing

Warehousing
Warehousing
Transporting
Transporting

©2000 Prentice Hall

Bulk
BulkBreaking
Breaking

Goals
Goals of
of the
the Logistics
Logistics System
System
• Provide a Targeted Level of Customer Service at
the Least Cost.
• Maximize Profits, Not Sales.
Higher Distribution Costs/
Higher Customer Service Levels

©2000 Prentice Hall

Lower Distribution Costs/
Lower Customer Service Levels

Logistics Systems
Order
Order Processing
Processing

Costs
Costs

Submitted
Submitted
Processed
Processed
Shipped
Shipped

Minimize
MinimizeCosts
Costsof
of
Attaining
AttainingLogistics
Logistics
Objectives
Objectives

Logistics
Transportation

Functions

Storage
Storage
Distribution
Distribution

Water, Truck,
Rail,
Pipeline & Air

Inventory
Inventory

©2000 Prentice Hall

Warehousing
Warehousing

When
Whento
toorder
order
How
Howmuch
muchto
toorder
order
Just-in-time
Just-in-time

Transportation Modes
Rail
Rail

Nation’s
Nation’slargest
largestcarrier,
carrier,cost-effective
cost-effective
for
forshipping
shippingbulk
bulkproducts,
products,piggyback
piggyback

Truck
Truck

Flexible
Flexiblein
inrouting
routing&&time
timeschedules,
schedules,efficient
efficient
for
forshort-hauls
short-haulsof
ofhigh
highvalue
valuegoods
goods

Water
Water

Low
Lowcost
costfor
forshipping
shippingbulky,
bulky,low-value
low-value
goods,
goods,slowest
slowestform
form

Pipeline
Pipeline

Ship
Shippetroleum,
petroleum,natural
naturalgas,
gas,and
andchemicals
chemicals
from
fromsources
sourcesto
tomarkets
markets

Air
Air

High
Highcost,
cost,ideal
idealwhen
whenspeed
speedis
isneeded
neededor
orto
to
ship
shiphigh-value,
high-value,low-bulk
low-bulkitems
items
©2000 Prentice Hall

Checklist for Choosing
Transportation Modes
1. Speed.
2. Dependability.
3. Capability.
4. Availability.
5. Cost.

©2000 Prentice Hall

Rating Transportation Modes
Speed

Dependability

(Door-todoor
delivery
time)

(Meeting
Schedules
on Time)

Capability
(Ability to
Handle
Various
Products)

Rail

3 4

2

2

3

Water

4 5

1

4

1

Truck

2 2

3

1

4

Pipeline

5 1

5

5

2

Air

1 3

4

3

5

Availability
(No. of
Geographic
Points
Served)

Cost
(Per
TonMile)

Source: See Carl M. Guelzo; Introduction to Logistics Management Englewood Cliffs, NJ:
Prentice Hall, 1986), p. 46.
©2000 Prentice Hall

Review
 Retailing
 Wholesaling
 Market

©2000 Prentice Hall

Logistics