managing retailing, wholesaling, and market logistics
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Managing Retailing, Wholesaling, and Market LogisticsTRANSCRIPT
To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 15©2003 Prentice Hall, Inc.
Chapter 15Chapter 15
Managing Retailing, Managing Retailing, Wholesaling, and Wholesaling, and Market LogisticsMarket Logistics
PowerPoint by Karen E. JamesPowerPoint by Karen E. JamesLouisiana State University - ShreveportLouisiana State University - Shreveport
To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 15©2003 Prentice Hall, Inc.
ObjectivesObjectives
Determine the types of organizations in this sector.
Learn what marketing decisions organizations in this sector make.
Understand the major trends in this sector.
To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 15©2003 Prentice Hall, Inc.
RetailingRetailing
Retailing Basics
Types of retailers
Marketing decisions
Retailing trends
Retail life cycle
Wheel-of-retailing
Service levels
Retail positioning strategies
Nonstore retailing
Corporate retailing
To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 15©2003 Prentice Hall, Inc.
RetailingRetailing
Specialty store
Department store
Supermarket
Discount store
Convenience store
Off-price retailer Superstore
Major Store Retailer Types
To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 15©2003 Prentice Hall, Inc.
RetailingRetailing
Retail-store types pass through the retail life cycle.
The wheel-of-retailing describes how new store types emerge.
Retailers can offer one of four levels of service:
– Self-service, self-selection, limited service, and full service
To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 15©2003 Prentice Hall, Inc.
RetailingRetailing
Four broad retail positioning strategies include:
– Bloomingdale’s– Tiffany– Sunglass Hut– Wal-Mart
Non-store retailing has been growing faster than store retailing
To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 15©2003 Prentice Hall, Inc.
RetailingRetailing
Corporate chain store
Voluntary chain
Retailer cooperative
Consumer cooperative
Franchise organization
Merchandising conglomerate
Major Types of Retail Organizations
To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 15©2003 Prentice Hall, Inc.
RetailingRetailing
Retailing Basics
Types of retailers
Marketing decisions
Retailing trends
Target market
Product assortment and placement
Services mix and store atmosphere
Price
Promotion
Place
To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 15©2003 Prentice Hall, Inc.
RetailingRetailing
General business district
Regional shopping center
Community shopping center
Strip mall (shopping strip)
Location within a larger store or operation
Location Options for Retailers
To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 15©2003 Prentice Hall, Inc.
RetailingRetailing
Retailing Basics
Types of retailers
Marketing decisions
Retailing trends
New retail forms
Intertype competition
Growth of giant retailers
Technology
Global expansion
Selling experiences
Competition between store-based and non-store-based retailing
To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 15©2003 Prentice Hall, Inc.
WholesalingWholesaling
Wholesaling
Wholesaling basics
Types of wholesalers
Marketing decisions
Wholesaling trends
Wholesaling excludes manufacturers, farmers, and retailers
Wholesalers differ from retailers in three key ways
Wholesalers handle many functions more efficiently than do manufacturers
To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 15©2003 Prentice Hall, Inc.
WholesalingWholesaling
Selling and promoting
Buying and assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Wholesaler Functions
To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 15©2003 Prentice Hall, Inc.
WholesalingWholesaling
Wholesaling
Wholesaling basics
Growth and types of wholesalers
Marketing decisions
Wholesaling trends
Wholesalers vary in type and function
Wholesaling has been growing due to two key factors:
– Many factories are located far from buyers
– An increasing need to adapt product quantities, features, or packages to meet buyer needs
To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 15©2003 Prentice Hall, Inc.
WholesalingWholesaling
Merchant wholesalers
Full-service wholesalers
Limited-service wholesalers
Brokers & agents
Brokers
Agents
Manufacturers’ and retailers’ branches and offices
Miscellaneous wholesalers
Major Wholesaler Types
To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 15©2003 Prentice Hall, Inc.
WholesalingWholesaling
Wholesaling
Wholesaling basics
Types of wholesalers
Marketing decisions
Wholesaling trends
Target market
Product assortment and placement
Price
Promotion
Place
To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 15©2003 Prentice Hall, Inc.
WholesalingWholesaling
Wholesaling
Wholesaling basics
Types of wholesalers
Marketing decisions
Wholesaling trends
Direct buying trends initially threatened wholesalers
Wholesalers have adapted by:– Adding value– Reducing costs– Strengthening
relationships with manufacturers
To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 15©2003 Prentice Hall, Inc.
Market LogisticsMarket Logistics
Interrelated Aspects Associated with Market Logistics:
– Physical distribution– Supply chain management (SCM)– Value network– Demand chain planning– Market logistics– Integrated logistics systems (ILS)
To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 15©2003 Prentice Hall, Inc.
Market LogisticsMarket Logistics
Key Elements
Market-logistics objectives
Market-logistics decisions
Market logistics lessons
Logistics involve trade-offs between costs and customer service
Maximizing profits, not sales, is key
A total system basis should be considered
Designing a system that will minimize the cost of achieving objectives should be the outcome
To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 15©2003 Prentice Hall, Inc.
Market LogisticsMarket Logistics
M = T + FW + VW + SWhere . . .
M = total market-logistics cost of proposed system; T = total freight cost of proposed system;FW = total fixed warehouse cost of proposed system;VW = total variable warehouse cost of proposed system S = total cost of lost sales due to average delivery delay
Calculating the Cost of Market-Logistics Systems
To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 15©2003 Prentice Hall, Inc.
Market LogisticsMarket Logistics
Key Elements
Market-logistics objectives
Market-logistics decisions
Market logistics lessons
Order processing
Warehousing– Storage, distribution,
automated warehouses Inventory
– Determine reorder point, relevant cost comparison, optimal order quantity
Transportation– Containerization– Private vs. contract carriers
To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 15©2003 Prentice Hall, Inc.
Market LogisticsMarket Logistics
Key Elements
Market-logistics objectives
Market-logistics decisions
Market logistics lessons
A senior V.P. is needed as the single contact point for all logistical elements
Senior V.P. must maintain close control
Software and systems are essential for competitively superior logistics performance