Basic Marketing - Chapter 13: Retailers, Wholesalers, and Their Strategy Planning

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1. Chapter 13: Retailers, Wholesalers, and Their Strategy Planning For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
2. Chapter 13 Objectives When you finish this chapter, you should 1. Understand how retailers plan their 6. Know what progressive wholesalers marketing strategies. are doing to modernize their 2. Know about the many kinds of operations and marketing strategies. retailers that work with producers and 7. Know the various kinds of merchant wholesalers as members of channel wholesalers and agent middlemen and systems. the strategies that they use. 3. Understand the differences among the 8. Understand why retailing and conventional and nonconventional wholesaling have developed in retailers—including Internet different ways in different countries. merchants and others who accept the 9. See why the Internet is impacting mass-merchandising concept. both retailing and wholesaling. 4. Understand scrambled merchandising 10. Understand the important new terms. and the “wheel of retailing.” 5. See why size or belonging to a chain can be important to a retailer. For use only with Perreault and McCarthy texts. 13-2 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
3. Retailing Price Location Key Economic Factors Product Selection Affecting Consumers’ Special Services Retail Choice Helpful Salespeople Fairness in Dealing For use only with Perreault and McCarthy texts. 13-3 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
4. Types of Retailers Expanded Specialty shops and assortment department stores and service Expanded Supermarkets, discount assortment houses, mass-merchandisers, and/or reduced catalog showrooms, Single- supercenters Conven- and margins/service tional limited- line offerings Added stores Telephone/mail order, convenience vending machines, higher margins door-to-door, convenience less assortment stores, electronic shopping Expanded assortment Internet reduced margins Exhibit 13-1 more information For use only with Perreault and McCarthy texts. 13-4 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
5. Focusing on Convenience Convenience (Food) Stores Automatic Retail Formats Vending that Focus on Convenience Door-to-Door Selling Telephone and Direct Mail For use only with Perreault and McCarthy texts. 13-5 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
6. Retailing on the Internet Still in Infancy Competition Wide will bring Assortment Change Costs are New Deceptive Convenience Shopping More Differences Information For use only with Perreault and McCarthy texts. 13-6 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
7. Retail Chains Corporate Chains Cooperative Major Types Chains of Retail Chains Voluntary Chains Franchise Chains For use only with Perreault and McCarthy texts. 13-7 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
8. The New Face of Wholesaling ???????? Producing Profits ???????? ???????? Progress of Fail ???????? New Strategies ???????? Needed to Survive For use only with Perreault and McCarthy texts. 13-8 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
9. Types of Wholesalers Does wholesaler own the products? Yes (merchant wholesaler) No (agent middleman) How many functions does the wholesaler provide? Agent middlemen Some functions Limited-function merchant All the functions Wholesalers Service merchant wholesalers Exhibit 13-6 For use only with Perreault and McCarthy texts. 13-9 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
10. Types of Merchant Wholesalers General Merchandise Rack Jobbers Single- or Types General-Line Catalog of Merchant Specialty Wholesalers Truck Cash-and-Carry Drop-Shippers For use only with Perreault and McCarthy texts. 13-10 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
11. Types of Agent Middlemen Manufacturers’ Agents Auction Brokers Companies Types of Agent Middlemen Other types of Specialists Selling Agents For use only with Perreault and McCarthy texts. 13-11 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
12. Key Terms Retailing Hypermarkets General Stores Convenience (Food) Stores Single/Limited Line Stores Automatic Vending Specialty Shop Door-to-Door Selling Department Stores Telephone/Direct Mail Mass-Merchandising Wheel of Retailing Concept Scrambled Merchandising Supermarkets Corporate Chain Catalog Showrooms Cooperative Chains Discount Houses Voluntary Chains Mass-Merchandisers Franchise Operation Supercenters More For use only with Perreault and McCarthy texts. 13-12 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill
13. Key Terms Wholesaling Drop-Shippers Wholesalers Truck Wholesalers Manufacturers’ Sales Branches Rack Jobbers Merchant Wholesalers Catalog Wholesalers Service Wholesalers Agent Middlemen General Merchandise Manufacturers’ Agent Wholesalers Brokers Single- or General-Line Export Wholesalers Import Specialty Wholesalers Selling Agents Limited-Function Combination Export Manager Wholesalers Auction Companies Cash-and-Carry Wholesalers For use only with Perreault and McCarthy texts. 13-13 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill