7/25/2019 Kotler Mm15e Inppt 18

Chapter
18
Managing
Retailing,
Wholesaling,

and Logistics

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Learning Objectives
1.
What major
occupy types of marketing intermediaries
this sector?
2. What major changes are occurring in the modern
retail marketing environment ith respect to
competitive market structure and technology?
!. What marketing decisions do marketing
intermediaries make?
". What does the future hold for private la#el #rands?
$.
What are some of the important issues in
holesaling??
%. What are some important issues in logistics?

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Retailing
& Retailing
 – A the acti!ities in seing
goods or ser!ices directy to
"ina consu#ers "or persona$
non%usiness use
& Retailer'retail store
 – Any %usiness enterprise
&hose saes !ou#e co#es
pri#ariy "ro# retaiing

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 (ypes of retailers
& )tore retailers, nonstore retailers,
and retail organi*ations

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 (ypes of retailers
& )tore retailers+

) *peciaty store )
) +epart#ent store +iscount store
) Etre#e !aue or hard-
) *uper#ar,et discount store
) Con!enience store ) ""-price retaier 
) +rug store ) *uperstore
) Cataog sho&roo#

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 (ypes of retailers
& Levels of service for store retailers

 *e"-ser!ice
 *e"-seection
 Li#ited ser!ice

 /u ser!ice

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 (ypes of retailers
& onstore retailing
 – +irect #ar,eting
 – +irect seing
 – Auto#atic !ending
 – uying ser!ices

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 (ypes of retailers
& -orporate retailing and franchising

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-orporate Retailing and

ranchising
& ranchises are distinguished #y three
characteristics+
 – he "ranchisor o&ns a trade or ser!ice #ar,
and icenses it to "ranchisees in return "or
royaty pay#ents
 – he "ranchisee pays "or the right to %e part o"
the syste#
 – he "ranchisor pro!ides its "ranchisees &ith a
syste# "or doing %usiness

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 (he Modern Retail Marketing

/nvironment
& -ompetitive retail market structure


 4e& retai "or#s and co#%inations
 5ro&th o" giant retaiers
 5ro&th o" intertype co#petition
 E#ergence o" "ast retaiing
 +ecine o" #idde-#ar,et retaiers

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 (he Modern Retail Marketing

/nvironment
& Role of technology
 – etaiers use
technoogy "or
%usiness operations$
to enhance the
consu#er shopping
eperience inside the
store$ and
7nternetsocia #edia
strategies

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Marketing 0ecisions

& (arget market & )ervices

& -hannels & )tore atmosphere
& roduct & )tore activities
assortment and eperiences
& rocurement & -ommunications
& rices & Location

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roduct 3ssortment
& 0evelop product di4erentiation

 /eature ecusi!e nationa %rands

 /eature pri!ate-a%e #erchandise
 /eature distincti!e-#erchandise e!ents
 /eature e!er-changing #erchandise
 /eature the atest #erchandise "irst
 ""er #erchandise-custo#i9ing ser!ices
 ""er a highy targeted assort#ent

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)ervices
& Retailers must decide on the services
mi to o4er customers+

Prepurchase ser!ices

Postpurchase ser!ices

 Anciary ser!ices

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Location

Centra egiona
%usiness shopping
districts centers

Co##unity
*tand-aone shopping
stores centers

Location &ithin *hopping

a arger store strips

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rivate La#els
& 3 private5la#el #rand is a #rand that
retailers and holesalers develop
 – oe o" pri!ate a%es
 – Pri!ate-a%e success "actors

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Wholesaling
& Wholesaling
includes all the
activities in
selling goods or
services to those
ho #uy for
resale or
#usiness use

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Major holesaler types

 :erchant  /u-ser!ice
&hoesaers &hoesaers

 Li#ited-
 *peciai9ed
ser!ice
&hoesaers
&hoesaers

 :anu"acturers;  ro,ers and

retaiers;
agents
%rancheso""ices

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Wholesaler functions

& )elling and & (ransportation

promoting & inancing
& 6uying and & Risk #earing
assortment
& Market
#uilding
information
& 6ulk #reaking & Management
& Warehousing services and
counseling
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Market Logistics
& )upply chain
management
7)-M8
& Market logistics
& 9ntegrated logistics
systems 79L)8
& Lean
manufacturing

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Market logistics planning

1. 0eciding on company:s
value proposition
2. )electing #est channel
design and netork strategy
!. 0eveloping operational
ecellence

". 9mplementing solution

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Market5Logistics 0ecisions
& ;rder processing+ ho should e
handle orders?
& Warehousing+ here should e
locate our stock?
& 9nventory+ ho much stock should e
hold?
& (ransportation+ ho should e ship
goods?

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;ptimal ;rdering =uantity

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 (ransportation
& -ontaineri*ation
 – Piggy%ac,$
"ishy%ac,$
trainship$ and
airtruc,
& rivate vs.
contract vs.
common
carriers
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