13. Retailing And Wholesaling - UNY

RETAILING ANDWHOLESALING

OBJECTIVES.1.Retailing2.Retailer Marketing Decisions3.Retailing Trends andDevelopments4.Wholesaling

1. RETAILING ? includes all the activitiesinvolved in selling productsor services directly to finalconsumersfor their personal,nonbusiness use

TYPES OF RETAILERSSpecialty StoreDepartment StoreSupermarketConvenience StoreDiscount StoreOff-Price RetailerSuperstore

ORGANIZATIONAL APPROACHCorporate ChainVoluntary ChainRetailer CooperativeFranchise Organization

2.RETAILER MARKET DECISION Retailer Marketing StrategiesRetailerStrategyRetailMarketing MixRetailSegmentation andTargetingRetail PriceStoredifferentiationand PositioningDistribution(location)PromotionCreate value for targeted retail consumers

PRODUCT ASSORTMENT AND SERVICES DECISION Retailers must decide on three major product variables: Product assortment, should differentiate it whilematching target shoppers expectations. Services mix, can also help set one retailer apartfrom another. Store’s atmosphere, to create a unique storeexperience, one that suits the target market and movescustomers to buy.

PRICE DESICIONA retailer’s price policymust fit its target marketand positioning, productand service assortment, thecompetition, and economicfactors.Retailers must also decide onthe extent to which they willuse sales and other pricepromotions. Some retailers useno price promotions at all,competing instead on productand service quality rather thanon price

PLACE DESICIONIt’s very important thatretailers select locationsthat are accessible to thetarget market in areas thatare consistent with theretailer’s positioning.In recent years, many cities havejoined with merchants to revivedowntown shopping areas,generally with only mixedsuccess. A shopping center is agroup of retail businesses built ona site that is planned, developed,owned, and managed as a unit.

PROMOTIONS DECISIONRetailers usevariouscombinations of thefive promotiontools—advertising,personal selling,sales promotion,public relations(PR), and directand social mediamarketing—toreach consumers.They advertise innewspapers andmagazines and onradio andtelevision.

3. RETAILING TRENDS AND DEVELOPMENTSTigher Consumer SpendingNew retail forms, shortening retail life cycles, andretail convergenceThe rise of megaretailersGrowth of direct, online,, mobile, and socialmedia retailingGrowing importance of retail technologyGreen RetailingGlobal expansion of major retailers

4. WHOLESALINGincludes all the activitiesinvolved in selling goodsand services to thosebuying them for resaleor business use. Firmsengaged primarily inwholesaling activitiesare called wholesalers.Wholesalers buy mostlyfrom producers and sellmostly to retailers,industrial

MAJOR TYPES OF WHOLESALERSMerchant wholesalers :Independently owned businessesthat take title to all merchandisehandled. There are full-servicewholesalers and limited-servicewholesalers.Full-service wholesalers : Provide a full line ofservices: carrying stock, maintaining a salesforce, offering credit, making deliveries, andproviding management assistance. Full-servicewholesalers include wholesale merchants andindustrial distributors.Cash-and-carry wholesalers : Carry a limitedline of fast-moving goods and sell to smallretailers for cash. Normally do not deliver

WHOLESALER MARKETING DECISIONS Segmentation, Targeting, Differentiation, and PositioningDecisionsLike retailers, wholesalers must segmentand define their target markets anddifferentiate and position themselveseffectively—they cannot serve everyone.They can choose a target group by size ofcustomer (for example, large retailers only),type of customer (convenience stores only),the need for service (customers who needcredit), or other factors. Within the targetgroup, they can identify the more profitablecustomers, design stronger offers, and buildbetter relationships with them. They canpropose automatic reordering systems,establish management-training and advisorysystems, or even sponsor a voluntary chain.

includes all the activities involved in selling goods and services to those buying them for resale or business use. Firms engaged primarily in wholesaling activities are called wholesalers. Wholesalers buy mostl