Introduction to Marketing

Lecture 10

Course Instructor: Gaukhar Turganbekova

 PLACE (Distribution)
• Retailing
• Wholesaling
Retailing – all the activities involved in
selling goods or services directly to final
consumers for their personal, nonbusiness
use.

Retailers – a business whose sales come

primarily from retailing.
Store Retailer Types
 Non-Store Direct Retailing
Direct-Mail Marketing – Marketing that occurs by sending an offer,
announcement, reminder, or other item directly to a person at a
particular address.

Catalog Marketing – Direct marketing through print, video, or digital

catalogs that are mailed to select customers, made available in stores,
or presented online.

Telemarketing – Using the telephone to sell directly to customers.

Direct-Response Television Marketing – Airing television spots, which

persuasively describe a product and give customers a toll-free number
or an online site for ordering.
Omni-Channel Marketing – blending in-store,
online, mobile, and social media channels.
 Retailer Marketing Decisions

1. Segmentation, Targeting, Differentiation,

and Positioning Decisions

2. Product Assortment and Services Decision

3. Price Decision

4. Promotion Decision

5. Place Decision
• Wholesaling – all the activities involved in selling goods and
services to those buying for resale or business use.

• Wholesalers – a company engaged primarily in wholesaling

activities.
Channel Functions performed by Wholesalers
• Selling and promoting

• Bulk breaking

• Warehousing

• Transportation

• Financing

• Risk bearing

• Market information

• Management services and advice

 Types of Wholesalers
• Merchant wholesalers (an independently owned wholesale business
that takes title to the merchandise it handles):
• Full-service wholesalers (wholesale merchants, industrial
distributors)
• Limited-service wholesalers (cash-and-carry wholesalers, drop
shippers, rack jobbers, producers’ cooperatives, mail-order or
web wholesalers)
• Brokers and agents:
• Broker – a wholesaler who does not take title to goods and
whose function is to bring buyers and sellers together and assist
in negotiation
• Agent – a wholesaler who represents buyers or sellers on a
relatively permanent basis, performs only a few functions, and
does not take title to goods (manufacturers’ agents, selling
agents, purchasing agents)
• Manufacturers’ and retailers’ branches and offices (wholesaling by
sellers or buyers themselves rather than through independent
wholesalers):
• Sales branches and offices
• Purchasing offices
Wholesaler Marketing Decisions

1. Segmentation, Targeting, Differentiation,

and Positioning Decisions

2. Marketing Mix Decisions