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Marketing Management: Sixteenth Edition
Marketing Management: Sixteenth Edition
Sixteenth Edition
Chapter 16
Managing Retailing
Learning Objectives
16.1 Explain the key changes defining modern retailing.
16.2 Define the marketing decisions that retailers face.
16.3 Describe how a company manages omnichannel
retailing.
16.4 Explain the key principles in building and managing
private labels.
16.5 Describe the key aspects of wholesaling.
Modern Retailing
• Retailing
– All the activities in selling goods or services directly to
final consumers for personal, nonbusiness use
The Modern Retail Marketing
Environment
• Store atmosphere
– Consider all the senses
Key Retailing Decisions (6 of 8)
• Pricing
– Most retailers are high markup/low volume or low
markup/high volume
– Manage price and manage price image
Key Retailing Decisions (7 of 8)
• Incentives
– Everyday low pricing (EDLP)
– High–low pricing
– Geofencing
Key Retailing Decisions (8 of 8)
• Communications
– Tools to generate traffic and purchases
▪ Shopper marketing
▪ Technology—“smart” shopping carts
Managing Omnichannel Retailing
• Retailers must decide which channels to employ to reach
their customers—increasingly, the answer is multiple
channels
Brick-and-Mortar Retailers (1 of 3)
• Department stores
Brick-and-Mortar Retailers (2 of 3)
Most common brick-and-mortars:
generic
Managing Private Labels (3 of 3)
• Competing against or collaborate with private labels
– Fight selectivity
– Partner effectively
– Innovate brilliantly
– Create winning value propositions
Wholesaling (1 of 2)
• Wholesaling
– Includes all the activities in selling goods or services
to those who buy for resale or business use
Wholesaling (2 of 2)
• Merchant wholesalers
– Buy directly from the manufacturer, take title to the
merchandise they handle, store the product, and then
sell it to the customer
• Brokers and agents
– Do not take ownership of the goods they buy and sell
Key Wholesaler Functions