Presentation of M.M.1-1

7/30/2019 Presentation of M.M.1-1

1/24

Marketing strategy In Retailing &

In Wholesaling & Major Activities

Involved in Physical Distributionchannel

Submitted To: Prof. Bhavik Shah

Submitted By: Gajera Jitendra Gajera Mitali

Gediya Neha Gherwada Kamlesh

Ghevariya Jatin

Ghoghari Jeenal

40

41

4243

44

45


2/24

RETAILINGRetailing includes all the activities

involved in selling goods or services

directly to final consumer- whether it is amanufacturer, wholesaler or retailer- is

doing retailing. It does not matter how the

good are sold ( by person, mail, telephone,

vending machine or internet) or where they

are sold (in a store, on the street, or in the

consumers home).


3/24

Examples of well-known retailers are

wall mart, target shoppers stop, Big Bazaar,

Pantaloon, Adanis, and Dhiraj Sons etc.


4/24

Marketing strategy In

Retailing...In the past retailing held customers by

offering convenient location, special or

unique of good, greater or better services

than competitors, and store credit cards.

1) Target Market

A retailers most important decision

concerns the target market. Unit the

target market is defined and profiled; the


5/24

Retailer cannot make consistent decision on a

product assortment. Store dcor, advertising

messages and media, price and service levels.E.g. wall mart, follows same method at India

level (Is se sasta aur achha aur kahin nahin).

Subhiksha for middle class people.

2) Product assortment and procurement

In retailers product assortment must

match the target markets expectations. The

retailer has to decide on product assortment

breath and depth. Thus a garment store can

offer a narrow and broad assortment. Real


6/24

Problem start after product assortment and

that is to develop product differentiation

strategy.

3) Service and store atmosphere

Retailer must also decide on theservice mix to offer customers.

4) Pre purchase service

Include accepting telephone and mail

orders, advertising, window and internet

display. Fitting rooms, shopping hours,

fashion shows, trade-ins.


7/24


8/24

7) Atmosphere

In another element in the store arsenal.

Every store has physical layout that makes ithard or easy to move around. The store must

design an atmosphere that suits to target

market and draw consumer towards purchase.

8) Price Decision

Prices are key positioning factor and

must be decided in relation to the targetmarket, product and service assortment mix,

and competition. Most retailers either fall


9/24

under low mark up with high volume or high

mark up with low volume.


10/24

Wholesaling

Wholesaling includes all the activities

in selling goods or services to those who buy

for resale or business use. Wholesalingexcludes manufacturers and farmers because

they are engaged primarily in production and

it excludes retailers. Wholesalers also calleddistributors differ from the retailer in number

of ways.


11/24

Marketing strategy In

wholesaler

Wholesalers distributors have faced

immense pressure in recent year from newsources of competition, demanding

customers, new technologies and more direct

buying programs by large industrial,institutional and retail buyers. They have to

develop appropriate strategies.


12/24


13/24

Pressure to carry full line and maintain

sufficient stock for immediate delivery, but

the cost of carrying huge inventory can killprofits. Today wholesalers are reexamining

how many lines to carry and are choosing to

carry only the more profitable ones.

3) Price Decision

Wholesalers usually mark up the cost

of good by a conventional percentage; say

20%, to cover their expenses. They might cut

their margin on some lines in order to win

important customers.


14/24

4) Promotion Decision

Wholesalers relay primarily on their

sales force to achieve promotional objectives.

Most wholesalers see selling as a single

salesperson to single customer instead of a

team effort to sell, build and service majoraccounts. They need to develop an overall

promotion strategy involving trade

advertising, sale promotion and publicity.They need to make use of supplier promotion

, materials and programs.


15/24

5) Place Decision

In the past, wholesalers were typically

located in low rent, low tax areas and put

little into their physical setting and offices.

Often the materials handling systems and

order processing systems legged, behind theavailable technologies. Today progressive

wholesalers have been improving their supply

capabilities through advanced informationsystem.


16/24

Physical Distribution

The marketing process is not complete

simple by creating a superb product and by

creating a customer by aggressive

salesmanship. Delivering the product to the

customer at the right time and place is an

equally imported function in marketing. In the

process of marketing this vital function iscalled physical distribution. Physical

distribution involves management (planning,

action and control) of the physical flows of


17/24

(1) raw material, and (2) finished products

from the points of origin to the points of

use/consumption to meet the customer need

at a profit. It covers all activities in the flow

of goods between producer and consumer.


18/24

Major activities involved in

physical distribution1) Inventory Management

There are four areas of decision-making

regarding inventory management:

i. The size of the inventory.

ii. The location of the inventory.iii. The material handling.

iv. The transportation of inventory.


19/24


20/24

Includes assembling, dividing and preparing

products for transportation.

c) Centralization v/s decentralization

Whether inventory is to be

concentrated at one point or to be dispersed

throughout market is a basic question. A

centralizes inventory costs and related

deliveries. Decentralization leads to lower

transport costs and quicker deliveries.

d) Distribution Centers

It is a new concept in warehousing.


21/24

Distribution centers are related to the markets

and not to the transport facilities. It represent

an integrated system for the flow of products.It accepts orders, executes them, and effects

deliveries to the customers.

2) Material Handling

We have to select the proper material

handling equipment so as to reduce the timeand costs in handling. Warehouse architecture

takes into account the material handling

aspects. Mechanized equipment is used to

move material integrity. Containerization has


22/24

come to be accepted for facilitating

intermodal transport. A metal container can be

placed on trucks, on railways wagons and inships. These containers remain unopened from

the point they are transported to their final

destination.

3) Inventory Control

Much finance gets committed it

inventory. The objective of inventory control

is to reduce the capital blocked and to

stabilized the fluctuations in inventories and

while doing so, to execute the orders of the


23/24

Customers, on time and with precision.

Information technology is of a grater help in

the proper management of inventory. Thereare two types of costs associated with

inventories (1) Ordering costs and (2)

Carrying costs.

4) Order processing

Each organization must have a

prescribed procedure for handling order.

Order are received and filled. It involves

billing, credit extension, invoice making and

collection of dues.


24/24

5) Transportation

Sending or dispatching product to

customers is a major part of any physicaldistribution systems. The decision is taken

regarding the mode of transport and the

specific carrier company. The chief modesarte railways, trucks, ship, aero planes and

pipelines. These days, truck have become a

major means of transport, through railwaysare more economical.

Presentation of M.M.1-1

Documents

Transcript of Presentation of M.M.1-1