| Retailing and Wholesaling 401

Chapter 13 | Retailing and Wholesaling 401

Other trends in retailing include the rise of megaretailers, the rapid and mail-order wholesalers). Second, brokers and agents do not growth of nonstore retailing, the growing importance of retail

take possession of the goods but are paid a commission for aiding technology, a surge in green retailing, and the global expansion of

buying and selling. Finally, manufacturers’ sales branches and of- major retailers.

fices are wholesaling operations conducted by nonwholesalers to bypass the wholesalers.

Explain the major types of

Like retailers, wholesalers must target carefully and position

wholesalers and their marketing decisions.

themselves strongly. And, like retailers, wholesalers must decide on product and service assortments, prices, promotion, and

(pp 394–400) place. Progressive wholesalers constantly watch for better ways Wholesaling includes all the activities involved in selling goods or

to meet the changing needs of their suppliers and target cus- services to those who are buying for the purpose of resale or busi-

tomers. They recognize that, in the long run, their only reason ness use. Wholesalers fall into three groups. First, merchant

for existence comes from adding value by increasing the effi- wholesalers take possession of the goods. They include full-service

ciency and effectiveness of the entire marketing channel. As with wholesalers (wholesale merchants and industrial distributors) and

other types of marketers, the goal is to build value-adding cus- limited-service wholesalers (cash-and-carry wholesalers, truck

tomer relationships.

wholesalers, drop shippers, rack jobbers, producers’ cooperatives,

KEY Terms

OBJECTIVE 1

Service retailer (p 378)

OBJECTIVE 3

Retailing (p 374)

Wheel-of-retailing concept (p 390) Retailer (p 374)

Discount store (p 378)

Off-price retailer (p 378)

Shopper marketing (p 374)

Independent off-price retailer (p 378)

OBJECTIVE 4

Specialty store (p 376)

Wholesaling (p 394) Department store (p 376)

Factory outlet (p 378)

Wholesaler (p 394) Supermarket (p 376)

Warehouse club (p 380)

Merchant wholesaler (p 396) Convenience store (p 377)

Chain stores (p 381)

Franchise (p 381)

Broker (p 396)

Superstore (p 378)

OBJECTIVE 2

Agent (p 396)

Category killer (p 378) Manufacturers’ sales branches and

Shopping center (p 388)

offices (p 396)

• Check your understanding of the concepts and key terms using the mypearsonmarketinglab study plan for this chapter. • Apply the concepts in a business context using the simulation entitled Retailing/Wholesaling.

DISCUSSING & APPLYING THE Concepts

Discussing the Concepts

6. What is retail convergence? Has it helped or harmed small retailers? (AACSB: Communication; Reflective Thinking)

1. Discuss how retailers and wholesalers add value to the marketing system. Explain why marketers are embracing the

Applying the Concepts

concept of shopper marketing. (AACSB: Communication; Reflective Thinking)

1. The atmosphere in a retail store is carefully crafted to

2. influence shoppers. Select a retailer with both a physical store Discuss the factors used to classify retail establishments and list the types within each classification. (AASCB:

and an online store. Describe the elements of the physical Communication)

store’s atmosphere, such as coloring, lighting, music, scents, and décor. What image is the store’s atmosphere projecting?

3. List and briefly discuss the trends impacting the future of Is the atmosphere appropriate given the store’s merchandise retailing. (AACSB: Communication)

assortment and target market? Which elements of the

4. Suppose you are a manufacturer’s agent for three lines of physical store’s atmosphere are in the online store’s complementary women’s apparel. Discuss the types of

atmosphere? Does the retailer integrate the physical store’s marketing mix decisions you will make. (AACSB:

atmosphere with its online presence? Explain. (AACSB: Communication; Reflective Thinking)

Communication; Use of IT; Reflective Thinking)

5. Discuss the different organizational approaches for retailers

2. Shop for a product of your choice on Amazon.com. Do and provide an example of each. (AACSB: Communication;

consumer reviews influence your perception of a product or Reflective Thinking)

brand offered? Consumers participating in the Amazon Vine