Explain the roles of retailers and Identify the major types of wholesalers

Copyright 2007, Prentice Hall, Inc. 11-2 Roadmap: Previewing the Concepts

1. Explain the roles of retailers and

wholesalers in the distribution channel. 2. Describe the major types of retailers and give examples of each.

3. Identify the major types of wholesalers

and give examples of each. 4. Explain the marketing decisions facing retailers and wholesalers. Copyright 2007, Prentice Ha ll, Inc. 11-3 Whole Foods Market  Has 170 stores worldwide with 4 billion in sales vs. 5000 stores and sales of 285 billion for Wal-Mart.  Offers organic, natural, and gourmet foods.  Positions itself AWAY from Wal-Mart: “Whole Foods, Whole People, Whole Planet.” Whole Foods Market – Finding Its Whole Foods Market – Finding Its Niche Niche Case Study Case Study Marketing Efforts  Web site reinforces the company’s positioning.  Caters to health conscious, affluent, liberal, educated consumer base.  Both in-store and online shopping is a customer experience.  Cares about employees, customers, community. Copyright 2007, Prentice Ha ll, Inc. 11-4 What Is Retailing?  Retailing: – includes all the activities involved in selling products or services directly to final consumers for their personal, non- business use.  Most retailing is done by retailers , but nonstore retailing has recently grown by leaps and bounds. Copyright 2007, Prentice Ha ll, Inc. 11-5 Types of Retailers  Retailers are classified based on: – Amount of service they offer – Breadth and depth of product lines – Relative prices charged – How they are organized Copyright 2007, Prentice Ha ll, Inc. 11-6 Amount of Service  Self-Service Retailers: – Serve customers who are willing to perform their own “locate-compare-select” process to save money.  Limited-Service Retailers: – Provide more sales assistance because they carry more shopping goods about which customers need information.  Full-Service Retailers: – Usually carry more specialty goods for which customers like to be “waited on.” Copyright 2007, Prentice Ha ll, Inc. 11-7 Major Store Retailer Types  Specialty stores  Department stores  Supermarkets – Category Killers  Convenience stores  Discount stores  Off-price retailers  Superstores Copyright 2007, Prentice Ha ll, Inc. 11-8 Relative Prices Classification  Discount stores  Off-price retailers – Independent off-price retailers – Factory outlets • Factory outlet malls • Value-retail centers – Warehouse club Copyright 2007, Prentice Ha ll, Inc. 11-9 Organizational Classification  Corporate chain stores  Voluntary chain  Retailer cooperative  Franchise  Merchandising conglomerates Copyright 2007, Prentice Ha ll, Inc. 11-10 Retailer Marketing Decisions  Retailer Strategy: – Target market – Retail store positioning • Until retailers define and profile their markets, retailers cannot make meaningful decisions related to the retailer marketing mix. Copyright 2007, Prentice Ha ll, Inc. 11-11 Retailer Marketing Decisions  Retailer Marketing Mix: – Product assortment and services – Price – Promotion – Place location Copyright 2007, Prentice Ha ll, Inc. 11-12  Product assortment – Should differentiate the retailer while matching target shoppers’ expectations  Services mix  Store atmosphere – Physical layout can helphinder shopping – Experiential retailing helps sell goods – Unusual, exciting shopping environments are becoming more common Copyright 2007, Prentice Ha ll, Inc. 11-13  Price policy must fit its target market and positioning, product and service assortment, and competition.  Can use any or all of the promotion tools—advertising, personal selling, sales promotion, public relations, and direct marketing—to reach consumers. Copyright 2007, Prentice Ha ll, Inc. 11-14 Place Decisions  Retailers can locate in central business districts, various types of shopping centers, strip malls, or power centers.  Location is key to success. Copyright 2007, Prentice Ha ll, Inc. 11-15 The Future of Retailing

1. New Retail Forms