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Chapter 13

PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong. Chapter 13. Retailing and Wholesaling. All the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

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Chapter 13

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  1. PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong Chapter 13 Retailing and Wholesaling

  2. All the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use. Retailers - businesses whose sales come primarily from retailing. Retailers can be classified as: Store retailers such as Home Depot, Sears, Walmart Nonstore retailers such as the mail, telephone, and Internet. What is Retailing?

  3. Amount of Service Self-Service, Limited-Service and Full-Service Retailers Classification of Retail Stores Product Line Length and Breadth of the Product Assortment Relative Prices Pricing Structure that is Used by the Retailer Retail Organizations Independent, Corporate, or Contractual Ownership Organization

  4. Classification By Product Line Store Type Length and Breadth of Product Assortment Specialty Stores Narrow Product Line, Deep Assortment Department Stores Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items Supermarkets Wide Variety of Food, Laundry, & Household Products Convenience Stores Limited Line of High-Turnover Convenience Goods Superstores Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services Category Killers Giant Specialty Store that Carries a Very Deep Assortment of a Particular Line Hypermarkets Huge Superstores

  5. Classification By Retail Organization Merchandising Conglomerates Corporate Chains Voluntary Chains Franchise Organizations Retail Organizations Retailer Cooperatives

  6. Privacy Targeted Individuals Characteristics of Direct Marketing Response Measurement Customized Offer Key Characteristics of Direct Marketing Immediate Orders Testing Continuous Relationship Higher Response

  7. Direct Marketing Types of NonStore Retailing Nonstore Retailing Accounts for More Than 14% of All Consumer Purchases, and May Account for 33% of All Sales by 2000. Direct Selling Automatic Vending Catalogs & Direct Mail TV Shopping Shows Online Shopping Home & Office Parties

  8. Retailer Marketing Decisions Retailer Marketing Mix Retailer Strategy Product and Service Assortment Prices Promotion Place (Location) Target Market Retail Store Positioning

  9. Product Assortment Decisions • Width and Depth of Assortment • Quality of Products • Product Differentiation Strategies Click to add title Retailer’s Product Assortment and Services Decisions Services Mix Key Tool of Nonprice Competition for Setting One Store Apart From Another. • Store’s Atmosphere • Physical Layout • “Feel” That Suits the Target Market • and Moves Customers to Buy

  10. Click to add title Retailer’s Price, Promotion, and Place Decisions Price Decisions Target Market Product & Services Assortment Competition Promotion Decisions Using Advertising, Personal Selling, Sales Promotion and Public Relations to Reach Customers. Place Decisions Shopping Centers, Central Business Districts, Power Centers, or Outlet Malls. Location!

  11. The Wheel of Retailing High Margin High Price High Status 1 3 2 Low Margin Low Price Low Status 3 2 1 1 = Discount 2 = Superstore 3 = Warehouse Club 4 = Combination Store 1 2 3 4

  12. New Retail Forms and Shortening Retail Lifecycles Growth of Nonstore Retailing Increasing Intertype Competition The Future of Retailing Rise of Megaretailers Growing Importance of Retail Technology Global Expansion of Major Retailers Retail Stores as “Communities” or “Hangouts”

  13. All the activities involved in selling goods and services to those buying for resale or business use. Wholesaler - those firms engaged primarily in wholesaling activity. What is Wholesaling?

  14. Selling and Promoting Management Services & Advice Wholesaler Functions Market Information Buying and Assortment Building Bulk Breaking Risk Bearing Financing Warehousing Transporting Why are Wholesalers Used? Wholesalers are Often Better at Performing One or More of the Following Channel Functions:

  15. Types of Wholesalers Brokers/ Agents They Don’t Take Title to the Goods, and They Perform Only a Few Functions. Merchant Wholesaler Independently Owned Business that Takes Title to the Merchandise it Handles. Manufacturers’ Sales Branches and Offices Wholesaling by Sellers or Buyers Themselves Rather Than Through Independent Wholesalers.

  16. Wholesaler Marketing Decisions Wholesaler Marketing Mix Wholesaler Strategy Product and Service Assortment Prices Promotion Place (Location) Target Market Retail Store Positioning

  17. Must Learn to Compete Effectively Over Wider and More Diverse Areas Increasing Consolidations Will Reduce Number of Wholesalers Trends in Wholesaling Surviving Wholesalers Will Grow Larger Through Acquisitions and Mergers Wholesaling Developments to Consider Vertical Integration Will Remain Strong Global Expansion

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