KOTCHA13.ppt 97KB Sep 15 2006 07:07:10 PM
13-1
13-1
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter
Chapter 13
13
Retailing and
Wholesaling
Copyright 1999 Prentice Hall
What
What is
is Retailing?
Retailing?
13-2
13-2
• 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 can be classified as:
– Store retailers such as Home Depot, Sears,
Walmart
– Nonstore retailers such as the mail, telephone, and
Internet.
Copyright 1999 Prentice Hall
Classification
Classification of
of Retail
Retail Stores
Stores
Amount
Amount of
of Service
Service
Self-Service,
Self-Service, Limited-Service
Limited-Serviceand
and
Full-Service
Full-ServiceRetailers
Retailers
Product
Product Line
Line
Length
Lengthand
and Breadth
Breadth of
of the
theProduct
Product
Assortment
Assortment
Relative
Relative Prices
Prices
Pricing
Pricing Structure
Structurethat
thatis
isUsed
Used
by
by the
theRetailer
Retailer
Retail
Retail Organizations
Organizations
Independent,
Independent, Corporate,
Corporate, or
or Contractual
Contractual
Ownership
OwnershipOrganization
Organization
Copyright 1999 Prentice Hall
13-3
13-3
Classification
Classification By
By Product
Product Line
Line
Store Type
13-4
13-4
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
Large
LargeAssortment
Assortmentof
ofRoutinely
RoutinelyPurchased
Purchased
Food
&
Nonfood
Products,
Plus
Food & Nonfood Products, PlusServices
Services
Giant
GiantSpecialty
SpecialtyStore
Storethat
thatCarries
CarriesaaVery
Very
Deep
Assortment
of
a
Particular
Line
Deep Assortment of a Particular Line
Supermarkets
Supermarkets
Convenience
ConvenienceStores
Stores
Superstores
Superstores
Category
CategoryKillers
Killers
Hypermarkets
Hypermarkets
Huge
HugeSuperstores
Superstores
Copyright 1999 Prentice Hall
Classification
Classification By
By Retail
Retail
Organization
Organization
Merchandising
Merchandising
Conglomerates
Conglomerates
Franchise
Franchise
Organizations
Organizations
13-5
13-5
Corporate
Corporate
Chains
Chains
Retail
Organizations
Retailer
Retailer
Cooperatives
Cooperatives
Copyright 1999 Prentice Hall
Voluntary
Voluntary
Chains
Chains
Characteristics
Characteristics of
of Direct
Direct
Marketing
Marketing
Privacy
Privacy
Response
Response
Measurement
Measurement
Testing
Testing
13-6
13-6
Targeted
Targeted
Individuals
Individuals
Key
Key
Characteristics
Characteristics
of
of
Direct
Direct
Marketing
Marketing
Higher
Higher
Response
Response
Copyright 1999 Prentice Hall
Customized
Customized
Offer
Offer
Immediate
Immediate
Orders
Orders
Continuous
Continuous
Relationship
Relationship
Types
Types of
of NonStore
NonStore Retailing
Retailing
13-7
13-7
Nonstore Retailing Accounts for More Than 14% of All Consumer
Purchases, and May Account for 33% of All Sales by 2000.
Direct
Direct Marketing
Marketing
Direct
Direct Selling
Selling
Automatic
Automatic Vending
Vending
Catalogs
Catalogs &
& Direct
Direct Mail
Mail
TV
TV Shopping
Shopping Shows
Shows
Online
Online Shopping
Shopping
Copyright 1999 Prentice Hall
Home
Home &
& Office
Office Parties
Parties
Retailer
Retailer Marketing
Marketing Decisions
Decisions
Retailer
RetailerStrategy
Strategy
Target Market
Retail Store
Positioning
Retailer
Retailer Marketing
Marketing
Mix
Mix
Product and
Service
Assortment
Prices
Promotion
Place (Location)
Copyright 1999 Prentice Hall
13-8
13-8
Click
title
Retailer’s
Product
Click to
to add
add
title Assortment
Retailer’s
Product
Assortment and
and
Services
Services Decisions
Decisions
Product
ProductAssortment
Assortment Decisions
Decisions
•• Width
Widthand
andDepth
Depthof
ofAssortment
Assortment
•• Quality
Qualityof
ofProducts
Products
•• Product
ProductDifferentiation
DifferentiationStrategies
Strategies
Services
Services Mix
Mix
Key
KeyTool
Toolof
ofNonprice
NonpriceCompetition
Competition
for
forSetting
SettingOne
OneStore
StoreApart
ApartFrom
From
Another.
Another.
Store’s
Store’sAtmosphere
Atmosphere
•• Physical
PhysicalLayout
Layout
•• “Feel”
“Feel”That
ThatSuits
Suitsthe
theTarget
TargetMarket
Market
and
andMoves
MovesCustomers
Customersto
toBuy
Buy
Copyright 1999 Prentice Hall
13-9
13-9
Click
title
Retailer’s
Price,
Promotion,
Click to
to add
add
title
Retailer’s
Price,
Promotion, and
and
Place
Place Decisions
Decisions
Price
Price Decisions
Decisions
Target
Target Market
Market
Product
Product &
& Services
Services Assortment
Assortment
Competition
Competition
Promotion
Promotion Decisions
Decisions
Using
Using Advertising,
Advertising, Personal
Personal Selling,
Selling,
Sales
Sales Promotion
Promotion and
and Public
Public
Relations
Relations to
to Reach
Reach Customers.
Customers.
Place
Place Decisions
Decisions
Shopping
Shopping Centers,
Centers, Central
Central Business
Business
Districts,
Power
Districts,
Power Centers,
Centers, or
or Outlet
Outlet
Copyright 1999 Prentice Hall
Malls. Location!
13-10
13-10
The
The Wheel
Wheel of
of Retailing
Retailing
13-11
13-11
High Margin
High Price
High Status
11
33
22
11
22
33
44
Low Margin
Low Price
Low Status
22
1 = Discount
1 = Discount
2 = Superstore
2 = Superstore
3 = Warehouse Club
3 = Warehouse Club
4 = Combination Store
4 = Combination Store
Copyright 1999 Prentice Hall
33
11
The
The Future
Future of
of Retailing
Retailing
New
New Retail
Retail Forms
Forms and
and Shortening
Shortening
Retail
Retail Lifecycles
Lifecycles
Growth
Growth of
of Nonstore
Nonstore Retailing
Retailing
Increasing
Increasing Intertype
Intertype Competition
Competition
Rise
Rise of
of Megaretailers
Megaretailers
Growing
Growing Importance
Importance of
of
Retail
Retail Technology
Technology
Global
Global Expansion
Expansion of
of Major
Major Retailers
Retailers
Retail
Retail Stores
Stores as
as “Communities”
“Communities”
or
or “Hangouts”
“Hangouts”
Copyright 1999 Prentice Hall
13-12
13-12
What
What is
is Wholesaling?
Wholesaling?
• 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.
Copyright 1999 Prentice Hall
13-13
13-13
Why
Why are
are Wholesalers
Wholesalers Used?
Used?
13-14
13-14
Wholesalers are Often Better at Performing One
or More of the Following Channel Functions:
Management
Management
Services
Services&&Advice
Advice
Market
Market
Information
Information
Risk
RiskBearing
Bearing
Selling
Sellingand
and
Promoting
Promoting
Wholesaler
Functions
Financing
Financing
Buying
Buyingand
and
Assortment
AssortmentBuilding
Building
Bulk
BulkBreaking
Breaking
Warehousing
Warehousing
Transporting
Transporting
Copyright 1999 Prentice Hall
Types
Types of
of Wholesalers
Wholesalers
Merchant
Merchant
Wholesaler
Wholesaler
Independently
IndependentlyOwned
Owned
Business
Businessthat
thatTakes
Takes
Title
Titleto
tothe
the
Merchandise
Merchandise
ititHandles.
Handles.
13-15
13-15
Brokers/
Brokers/Agents
Agents
They
TheyDon’t
Don’tTake
TakeTitle
Titleto
to
the
theGoods,
Goods,and
andThey
They
Perform
PerformOnly
OnlyaaFew
Few
Functions.
Functions.
Manufacturers’
Manufacturers’
Sales
Sales Branches
Branches
and
and Offices
Offices
Wholesaling
Wholesalingby
bySellers
Sellers
or
orBuyers
BuyersThemselves
Themselves
Rather
RatherThan
ThanThrough
Through
Independent
Independent
Wholesalers.
Wholesalers.
Copyright 1999 Prentice Hall
Wholesaler
Wholesaler Marketing
Marketing Decisions
Decisions
Wholesaler
WholesalerStrategy
Strategy
Target Market
Retail Store
Positioning
Wholesaler
Wholesaler Marketing
Marketing
Mix
Mix
Product and
Service
Assortment
Prices
Promotion
Place (Location)
Copyright 1999 Prentice Hall
13-16
13-16
Trends
Trends in
in Wholesaling
Wholesaling
Wholesaling Developments to Consider
Must
MustLearn
Learnto
toCompete
Compete Effectively
EffectivelyOver
Over
Wider
Wider and
and More
More Diverse
DiverseAreas
Areas
Increasing
IncreasingConsolidations
ConsolidationsWill
Will Reduce
Reduce
Number
Number of
of Wholesalers
Wholesalers
Surviving
Surviving Wholesalers
Wholesalers Will
Will Grow
Grow Larger
Larger
Through
ThroughAcquisitions
Acquisitions and
and Mergers
Mergers
Vertical
Vertical Integration
Integration Will
Will Remain
RemainStrong
Strong
Global
Global Expansion
Expansion
Copyright 1999 Prentice Hall
13-17
13-17
13-1
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter
Chapter 13
13
Retailing and
Wholesaling
Copyright 1999 Prentice Hall
What
What is
is Retailing?
Retailing?
13-2
13-2
• 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 can be classified as:
– Store retailers such as Home Depot, Sears,
Walmart
– Nonstore retailers such as the mail, telephone, and
Internet.
Copyright 1999 Prentice Hall
Classification
Classification of
of Retail
Retail Stores
Stores
Amount
Amount of
of Service
Service
Self-Service,
Self-Service, Limited-Service
Limited-Serviceand
and
Full-Service
Full-ServiceRetailers
Retailers
Product
Product Line
Line
Length
Lengthand
and Breadth
Breadth of
of the
theProduct
Product
Assortment
Assortment
Relative
Relative Prices
Prices
Pricing
Pricing Structure
Structurethat
thatis
isUsed
Used
by
by the
theRetailer
Retailer
Retail
Retail Organizations
Organizations
Independent,
Independent, Corporate,
Corporate, or
or Contractual
Contractual
Ownership
OwnershipOrganization
Organization
Copyright 1999 Prentice Hall
13-3
13-3
Classification
Classification By
By Product
Product Line
Line
Store Type
13-4
13-4
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
Large
LargeAssortment
Assortmentof
ofRoutinely
RoutinelyPurchased
Purchased
Food
&
Nonfood
Products,
Plus
Food & Nonfood Products, PlusServices
Services
Giant
GiantSpecialty
SpecialtyStore
Storethat
thatCarries
CarriesaaVery
Very
Deep
Assortment
of
a
Particular
Line
Deep Assortment of a Particular Line
Supermarkets
Supermarkets
Convenience
ConvenienceStores
Stores
Superstores
Superstores
Category
CategoryKillers
Killers
Hypermarkets
Hypermarkets
Huge
HugeSuperstores
Superstores
Copyright 1999 Prentice Hall
Classification
Classification By
By Retail
Retail
Organization
Organization
Merchandising
Merchandising
Conglomerates
Conglomerates
Franchise
Franchise
Organizations
Organizations
13-5
13-5
Corporate
Corporate
Chains
Chains
Retail
Organizations
Retailer
Retailer
Cooperatives
Cooperatives
Copyright 1999 Prentice Hall
Voluntary
Voluntary
Chains
Chains
Characteristics
Characteristics of
of Direct
Direct
Marketing
Marketing
Privacy
Privacy
Response
Response
Measurement
Measurement
Testing
Testing
13-6
13-6
Targeted
Targeted
Individuals
Individuals
Key
Key
Characteristics
Characteristics
of
of
Direct
Direct
Marketing
Marketing
Higher
Higher
Response
Response
Copyright 1999 Prentice Hall
Customized
Customized
Offer
Offer
Immediate
Immediate
Orders
Orders
Continuous
Continuous
Relationship
Relationship
Types
Types of
of NonStore
NonStore Retailing
Retailing
13-7
13-7
Nonstore Retailing Accounts for More Than 14% of All Consumer
Purchases, and May Account for 33% of All Sales by 2000.
Direct
Direct Marketing
Marketing
Direct
Direct Selling
Selling
Automatic
Automatic Vending
Vending
Catalogs
Catalogs &
& Direct
Direct Mail
TV
TV Shopping
Shopping Shows
Shows
Online
Online Shopping
Shopping
Copyright 1999 Prentice Hall
Home
Home &
& Office
Office Parties
Parties
Retailer
Retailer Marketing
Marketing Decisions
Decisions
Retailer
RetailerStrategy
Strategy
Target Market
Retail Store
Positioning
Retailer
Retailer Marketing
Marketing
Mix
Mix
Product and
Service
Assortment
Prices
Promotion
Place (Location)
Copyright 1999 Prentice Hall
13-8
13-8
Click
title
Retailer’s
Product
Click to
to add
add
title Assortment
Retailer’s
Product
Assortment and
and
Services
Services Decisions
Decisions
Product
ProductAssortment
Assortment Decisions
Decisions
•• Width
Widthand
andDepth
Depthof
ofAssortment
Assortment
•• Quality
Qualityof
ofProducts
Products
•• Product
ProductDifferentiation
DifferentiationStrategies
Strategies
Services
Services Mix
Mix
Key
KeyTool
Toolof
ofNonprice
NonpriceCompetition
Competition
for
forSetting
SettingOne
OneStore
StoreApart
ApartFrom
From
Another.
Another.
Store’s
Store’sAtmosphere
Atmosphere
•• Physical
PhysicalLayout
Layout
•• “Feel”
“Feel”That
ThatSuits
Suitsthe
theTarget
TargetMarket
Market
and
andMoves
MovesCustomers
Customersto
toBuy
Buy
Copyright 1999 Prentice Hall
13-9
13-9
Click
title
Retailer’s
Price,
Promotion,
Click to
to add
add
title
Retailer’s
Price,
Promotion, and
and
Place
Place Decisions
Decisions
Price
Price Decisions
Decisions
Target
Target Market
Market
Product
Product &
& Services
Services Assortment
Assortment
Competition
Competition
Promotion
Promotion Decisions
Decisions
Using
Using Advertising,
Advertising, Personal
Personal Selling,
Selling,
Sales
Sales Promotion
Promotion and
and Public
Public
Relations
Relations to
to Reach
Reach Customers.
Customers.
Place
Place Decisions
Decisions
Shopping
Shopping Centers,
Centers, Central
Central Business
Business
Districts,
Power
Districts,
Power Centers,
Centers, or
or Outlet
Outlet
Copyright 1999 Prentice Hall
Malls. Location!
13-10
13-10
The
The Wheel
Wheel of
of Retailing
Retailing
13-11
13-11
High Margin
High Price
High Status
11
33
22
11
22
33
44
Low Margin
Low Price
Low Status
22
1 = Discount
1 = Discount
2 = Superstore
2 = Superstore
3 = Warehouse Club
3 = Warehouse Club
4 = Combination Store
4 = Combination Store
Copyright 1999 Prentice Hall
33
11
The
The Future
Future of
of Retailing
Retailing
New
New Retail
Retail Forms
Forms and
and Shortening
Shortening
Retail
Retail Lifecycles
Lifecycles
Growth
Growth of
of Nonstore
Nonstore Retailing
Retailing
Increasing
Increasing Intertype
Intertype Competition
Competition
Rise
Rise of
of Megaretailers
Megaretailers
Growing
Growing Importance
Importance of
of
Retail
Retail Technology
Technology
Global
Global Expansion
Expansion of
of Major
Major Retailers
Retailers
Retail
Retail Stores
Stores as
as “Communities”
“Communities”
or
or “Hangouts”
“Hangouts”
Copyright 1999 Prentice Hall
13-12
13-12
What
What is
is Wholesaling?
Wholesaling?
• 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.
Copyright 1999 Prentice Hall
13-13
13-13
Why
Why are
are Wholesalers
Wholesalers Used?
Used?
13-14
13-14
Wholesalers are Often Better at Performing One
or More of the Following Channel Functions:
Management
Management
Services
Services&&Advice
Advice
Market
Market
Information
Information
Risk
RiskBearing
Bearing
Selling
Sellingand
and
Promoting
Promoting
Wholesaler
Functions
Financing
Financing
Buying
Buyingand
and
Assortment
AssortmentBuilding
Building
Bulk
BulkBreaking
Breaking
Warehousing
Warehousing
Transporting
Transporting
Copyright 1999 Prentice Hall
Types
Types of
of Wholesalers
Wholesalers
Merchant
Merchant
Wholesaler
Wholesaler
Independently
IndependentlyOwned
Owned
Business
Businessthat
thatTakes
Takes
Title
Titleto
tothe
the
Merchandise
Merchandise
ititHandles.
Handles.
13-15
13-15
Brokers/
Brokers/Agents
Agents
They
TheyDon’t
Don’tTake
TakeTitle
Titleto
to
the
theGoods,
Goods,and
andThey
They
Perform
PerformOnly
OnlyaaFew
Few
Functions.
Functions.
Manufacturers’
Manufacturers’
Sales
Sales Branches
Branches
and
and Offices
Offices
Wholesaling
Wholesalingby
bySellers
Sellers
or
orBuyers
BuyersThemselves
Themselves
Rather
RatherThan
ThanThrough
Through
Independent
Independent
Wholesalers.
Wholesalers.
Copyright 1999 Prentice Hall
Wholesaler
Wholesaler Marketing
Marketing Decisions
Decisions
Wholesaler
WholesalerStrategy
Strategy
Target Market
Retail Store
Positioning
Wholesaler
Wholesaler Marketing
Marketing
Mix
Mix
Product and
Service
Assortment
Prices
Promotion
Place (Location)
Copyright 1999 Prentice Hall
13-16
13-16
Trends
Trends in
in Wholesaling
Wholesaling
Wholesaling Developments to Consider
Must
MustLearn
Learnto
toCompete
Compete Effectively
EffectivelyOver
Over
Wider
Wider and
and More
More Diverse
DiverseAreas
Areas
Increasing
IncreasingConsolidations
ConsolidationsWill
Will Reduce
Reduce
Number
Number of
of Wholesalers
Wholesalers
Surviving
Surviving Wholesalers
Wholesalers Will
Will Grow
Grow Larger
Larger
Through
ThroughAcquisitions
Acquisitions and
and Mergers
Mergers
Vertical
Vertical Integration
Integration Will
Will Remain
RemainStrong
Strong
Global
Global Expansion
Expansion
Copyright 1999 Prentice Hall
13-17
13-17