chapter thirteen retailing, direct marketing, and wholesaling
TRANSCRIPT
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Chapter ThirteenChapter Thirteen
Retailing, Direct Marketing, Retailing, Direct Marketing, and Wholesalingand Wholesaling
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ObjectivesObjectives
Describe retailing & wholesaling functionsCategorize retailersAnalyze patterns of U.S. retail historyIdentify key retailer strategy elementsExplore impact of the Internet on retailingDiscriminate merchant wholesalers & agentsDescribe contributions of wholesalersDescribe contributions of agent intermediariesIdentify key wholesaler strategy elements
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RetailingRetailingRetailingRetailing
All business activities concerned with the sale of goods and services to ultimate consumers.
All business activities concerned with the sale of goods and services to ultimate consumers.
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Classifying RetailersClassifying Retailers
Type of ownershipProminent strategy
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Classifying Retailers by Classifying Retailers by OwnershipOwnership
IndependentIndependentRetailersRetailers
RetailRetailfranchisefranchise
ChainChainStoreStore
CorporateCorporateChainChain
OwnershipOwnershipGroupGroup
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Classifying Retailers by Classifying Retailers by StrategyStrategy
In-Store
Direct
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Specialty StoresSpecialty Stores
Narrow varietyDeep selectionPersonalized serviceExamples:
Wallpapers to GoBookstore
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Department StoreDepartment StoreDepartment StoreDepartment Store
Chain operationWide varietyFull serviceExamples:
Dillard’sMacy’sBloomingdale’s
Chain operationWide varietyFull serviceExamples:
Dillard’sMacy’sBloomingdale’s
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SupermarketsSupermarkets
Wide variety of food and nonfood products
Departmentalized operations
Self-serviceCentralized checkoutExamples:
Albertson’sSafeway
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Convenience StoresConvenience Stores
Limited varietyShallow selectionFast serviceExamples:
7-11Circle KWawa
STOP & GO
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Other In-StoreOther In-Store
General mass merchandiserCatalog showroomWarehouse club
Specialty mass merchandiserOff-price retailerCategory superstore
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Direct MarketingDirect Marketing
Mail-order/direct
Door-to-Door
Vending
e-tailing
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Internet Retailing: Internet Retailing: AdvantagesAdvantages
Not location bound
Interactive
Convenient24x7x52
Shopbots
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Internet Retailing: Internet Retailing: DisadvantagesDisadvantages
Examination
Privacy
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The Wheel of RetailingThe Wheel of Retailing
High: status,High: status,margin, pricemargin, price
Prestige specialtyPrestige specialtystoresstores
High: status,High: status,margin, pricemargin, price
Prestige specialtyPrestige specialtystoresstores
ConventionalConventionaldepartmentdepartment
storesstores
ConventionalConventionaldepartmentdepartment
storesstores
MassMassmerchandisemerchandise
retailersretailers
MassMassmerchandisemerchandise
retailersretailers
Low: status, marginLow: status, marginprice, serviceprice, service
Wholesale clubsWholesale clubs
Low: status, marginLow: status, marginprice, serviceprice, service
Wholesale clubsWholesale clubs
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The Dialectic View of The Dialectic View of Retail DevelopmentRetail Development
Thesis
Antithesis
DEPARTMENT STORE
DISCOUNT STORE
DISCOUNTDEPT. STORE
Synthesis
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Patterns of retail Patterns of retail development: The development: The GGeneral eneral
SSpecific pecific GGeneral Model eneral Model (GSG)(GSG)
General StoresPopulation growthCities
G
S
Specialty StoresPopulation growthCities
General Stores (containing specialty stores)
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Retail Marketing MixRetail Marketing Mix
Consumer
Consumer
PRODUCTPRODUCT PLA
CE/
PLA
CE/
DIS
TR
IBU
TIO
ND
ISTR
IBU
TIO
N
PRICEPRICEPR
OM
OTIO
NP
RO
MO
TIO
N
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Key Retail IssuesKey Retail Issues
Merchandise assortment
LocationAtmosphericsCustomer ServiceStore imageDatabase
management Internet strategy
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Classifying WholesalersClassifying Wholesalers
Merchant WholesalerTake title~ 80% of all
wholesalersNational or regional
AgentsNo title to goodsFacilitatorsWork on commissionMarket experts
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Wholesale Management Wholesale Management StrategiesStrategies
Physical Distribution
Selecting Target Markets/Create Assortments
Strategic Alliances
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ReviewReview
Describe retailing & wholesaling functionsCategorize retailersAnalyze patterns of U.S. retail historyIdentify key retailer strategy elementsExplore impact of the Internet on retailingDiscriminate merchant wholesalers & agentsDescribe contributions of wholesalersDescribe contributions of agent intermediariesIdentify key wholesaler strategy elements