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Chapter Thirteen

Chapter Thirteen. Retailing, Direct Marketing, and Wholesaling. Objectives. Describe retailing & wholesaling functions Categorize retailers Analyze patterns of U.S. retail history Identify key retailer strategy elements Explore impact of the Internet on retailing

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Chapter Thirteen

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  1. Chapter Thirteen Retailing, Direct Marketing, and Wholesaling

  2. Objectives • Describe retailing & wholesaling functions • Categorize retailers • Analyze patterns of U.S. retail history • Identify key retailer strategy elements • Explore impact of the Internet on retailing • Discriminate merchant wholesalers & agents • Describe contributions of wholesalers • Describe contributions of agent intermediaries • Identify key wholesaler strategy elements

  3. Retailing All business activities concerned with the sale of goods and services to ultimate consumers.

  4. Classifying Retailers • Type of ownership • Prominent strategy

  5. Independent Retailers Chain Store Retail franchise Corporate Chain Ownership Group Classifying Retailers by Ownership

  6. In-Store Classifying Retailers by Strategy Direct

  7. Specialty Stores • Narrow variety • Deep selection • Personalized service • Examples: • Wallpapers to Go • Bookstore

  8. Department Store • Chain operation • Wide variety • Full service • Examples: • Dillard’s • Macy’s • Bloomingdale’s

  9. Supermarkets • Wide variety of food and nonfood products • Departmentalized operations • Self-service • Centralized checkout • Examples: • Albertson’s • Safeway

  10. Limited variety Shallow selection Fast service Examples: 7-11 Circle K Wawa Convenience Stores STOP & GO

  11. Other In-Store • General mass merchandiser • Catalog showroom • Warehouse club • Specialty mass merchandiser • Off-price retailer • Category superstore

  12. Mail-order/direct Door-to-Door Vending e-tailing Direct Marketing

  13. Not location bound Interactive Convenient 24x7x52 Shopbots Internet Retailing: Advantages

  14. Examination Privacy Internet Retailing: Disadvantages

  15. Conventional department stores Mass merchandise retailers Low: status, margin price, service Wholesale clubs The Wheel of Retailing High: status, margin, price Prestige specialty stores

  16. DEPARTMENT STORE DISCOUNT DEPT. STORE Thesis Synthesis DISCOUNT STORE Antithesis The Dialectic View of Retail Development

  17. S Patterns of retail development: The General Specific General Model (GSG) G • General Stores • Population growth • Cities • Specialty Stores • Population growth • Cities • General Stores (containing specialty stores)

  18. PRODUCT PLACE/ DISTRIBUTION Consumer PROMOTION PRICE Retail Marketing Mix

  19. Key Retail Issues • Merchandise assortment • Location • Atmospherics • Customer Service • Store image • Database management • Internet strategy

  20. Merchant Wholesaler Take title ~ 80% of all wholesalers National or regional Agents No title to goods Facilitators Work on commission Market experts Classifying Wholesalers

  21. Strategic Alliances Selecting Target Markets/ Create Assortments Physical Distribution Wholesale Management Strategies

  22. Review • Describe retailing & wholesaling functions • Categorize retailers • Analyze patterns of U.S. retail history • Identify key retailer strategy elements • Explore impact of the Internet on retailing • Discriminate merchant wholesalers & agents • Describe contributions of wholesalers • Describe contributions of agent intermediaries • Identify key wholesaler strategy elements

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