Transcript of Retailing and wholesaling unit3
- 1. Retailing
- 2. What is Retailing?
- Retailing includes all the activities involved in selling
products or services directly to final consumers for their
personal, non-business use.
- 3. Types of Retailers Retailers are classified based on: Amount
of Service They Offer Breadth & Depth of Product Lines Relative
Prices Charged How They Are Organized
- 4. Amount of Service
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- Serve customers who are willing to perform their own
locate-compare-select process to save money.
- Limited-Service Retailers:
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- Provide more sales assistance because they carry more shopping
goods about which customers need information.
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- Usually carry more specialty goods for which customers like to
be waited on.
- 5. Product Line Classification Specialty Stores: Carry narrow
product lines with deep assortments within those lines, e.g
jewelry, Books stores ,sports goods Department Stores: Carry a wide
variety of product linestypically clothing, home furnishings, and
household goods. Each line is operated as a separate department
managed by specialist buyers or merchandisers. E.g- akbarallys
Single line-shopper stop Limited line- raymonds Super
speciality-all brands
- 6. Product Line Classification Supermarket: Large, low-cost,
low-margin, high-volume, self-service store that carries a wide
variety of food, laundry, and household products. e.g- foodland
& garware Convenience Stores: Small stores located near
residential areas that are open long hours 7 days a week and carry
a limited line of high-turnover convenience goods.
- 7. Web-Based Supermarket In the battle for share of stomachs,
Safeway and many large supermarkets have added Web-based
sales.
- 8. Product Line Classification Superstores: Much larger than
regular supermarkets and offer a large assortment of routinely
purchased food products, nonfood items, and services. Offer dry
cleaning, shoe repair Category Killers: Giant specialty stores that
carry a very deep assortment of a particular line and is staffed by
knowledgeable employees. e.g toys R U, home depot
- 9.
- What type of impact did the emergence of category killers have
on department stores?
Discussion Question
- 10. Relative Prices Classification
- A retail institution that sells standard merchandise
- at lower prices by accepting lower margins and
- selling at higher volume. e.g walmart, big bazaar
- Sells goods at discounted price
- Operational costs r min. as self service & no frills
- Location in low rent areas, it draws customers
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- Retailer that buys at less-than-regular wholesale
- prices and sells at less than retail. Examples are
- factory outlets, independents, and warehouse
Factory Outlet: Off-price retailing operation that is owned and
operated by a manufacturer and that normally carries the
manufacturers surplus, discontinued, or irregular goods.
Independent Off-Price Retailer: Off-price retailer that is either
owned and run by entrepreneurs or is a division of a larger retail
operation.
- 12. Factory Outlets Factory outlet malls and value-retail
centers have blossomed in recent years, making them one of
retailings hottest growth areas.
- 13. Relative Prices Classification Warehouse Club: Off-price
retailer that sells a limited selection of brand-name grocery
items, appliances, clothing, at deep discounts to members who pay
annual membership fees.
- 14. Organizational Classification Chain Stores: Two or more
outlets that are owned and controlled, have central buying and
merchandising, and sell similar lines of merchandise. Voluntary
Chain: A wholesaler-sponsored group of independent retailers that
engages in bulk buying and common merchandising.
- 15. Organizational Classification Retailer Cooperative: A group
of independent retailers that bands together to set up a jointly
owned, central wholesale operation and conducts joint merchandising
and promotion efforts. Franchise: A contractual association between
a manufacturer, wholesaler, or service organization (a franchiser)
and independent businesspeople (franchisees) who buy the right to
own and operate one or more units in the franchise system.
- 16. Franchising Franchisees now command 35% of all retail sales
in the U.S. Subway is one of the fastest growing franchises, with
nearly 20,000 shops in 74 countries.
- 17. Retailer Marketing Decisions
- 18. Price, Promotion, & Place Decisions Price policy must
fit its target market and positioning, product and service
assortment, and competition Can use any or all of the promotion
toolsadvertising, personal selling, sales promotion, public
relations, and direct marketingto reach consumers Location-road
infrastructure,power and public transport Visibility-ability to see
the store,parking lo
- 19. Mall of America
- The Mall of America megamall contains:
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- Over 520 specialty stores
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- Underwater World featuring hundreds of marine specimens
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- A two-story miniature golf course.
- 20. Business model
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- High operational efficiency
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- Economic drivers- high inventory turnover, low operating
cost
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- Operating drivers- merchandise ,cost, sales productivity
mgmt.
- 21. Trends in retailing
- New retails forms& combinations-gas stations include food
stores
- Electronic age-non store retailing via mail, tv, phones
- Intertype competition-discount store vs deptt. Store
- Deptt. Stores gave way to malls
- Technology-Pcs for forecast, control inventory costs, scanning
systems.
- Unique formats & strong brand positioning. Mc, gap
- Establishments provide people to congregate e.g tea shops, caf
coffee day, book stores, pubs
- 22. Wholesaling
- Wholesaling includes all activities involved in selling goods
and services to those buying for resale or business use.
- Difference b/w wholesalers & retailers
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- Less attention to promos, atmosphere, location then
retailers
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- Transactions are larger ,cover large trade area
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- Govt. dealing will be different
- 23. Functions Provided by Wholesalers Selling & Promoting
Buying & Assortment Building Bulk-Breaking Warehousing
Transportation Financing Risk Bearing Market Information Management
Services & Advice
- 24. Types of Wholesalers
- Merchant Wholesalers- independently owned business take title
to merchandise they handle
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- Largest group of wholesalers
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- Account for 50% of wholesaling
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- Limited-service wholesalers
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- Cash n carry ,truck wholesalers, drop shippers, rack jobbers
,producers cooperatives, mail order wholesalers
- 25. Types of Wholesalers
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- Do not take title to goods, Perform fewer functions
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- Brokers bring buyers and sellers together
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- Paid by party who hired them
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- Do not carry inventory, no finance, risk
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- E.g food brokers, real estate, insurance
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- Agents represent buyers or sellers on more permanent basis
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- Manufacturers agents written agreement on
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- delivery, order procedure
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- Apparel, furniture, electrical goods
- 26. Types of Wholesalers
- Manufacturers Sales Branches and Offices
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- Wholesaling by sellers or buyers themselves rather than through
independent wholesalers.
- 27. Wholesaling In Action
- Grainger is by far the worlds leading wholesaler of
maintenance, repair, and operating supplies.
- 200,000 products,520 branches
- 28. Wholesaler Marketing Decisions
- 29.
- 30. Trends in Wholesaling Must Constantly Improve Services and
Reduce Costs Distinction Between Large Retailers & Wholesalers
is Blurry Will Continue to Increase the Services Provided to
Retailers Wholesalers Are Now Going Global
- 31. Rest Stop: Reviewing the Concepts
- Explain the roles of retailers and wholesalers in the
distribution channel.
- Describe the major types of retailers and give examples of
each.
- Identify the major types of wholesalers and give examples of
each.
- Explain the marketing decisions facing retailers and
wholesalers.