MANAGING

RETAILING,
WHOLESALING,
AND LOGISTICS
Key Concepts
Marketing Management at Zara

Zara controls
all aspects of
its supply
chain.

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Retailing

All of the activities involved in

selling goods or services directly
to final consumers for personal,
non-business use.

3
 Types of Retailers
Specialty store Discount store
Department store Off-price retailer
Supermarket Superstore
Convenience store Catalog showroom

. 4
Retail Concepts
Retail life-cycle
Stages of growth and
decline.

Wheel-of-retailing hypothesis
New stores emerge after
conventional stores increase
services and raise prices to
cover the cost.

5
Levels of Service
Self-service

Self-selection

Limited service

Full service

6
Retail Positioning Strategies
Bloomingdales

Tiffany

Sunglass Hut

Wal-Mart

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Nonstore Retailing
Direct selling

Direct marketing

Automatic vending

Buying service

8
The New Retail Environment

Assortments have grown more alike

Differentiation has eroded
Limited-time-only pop-up outlets
Adding specialty products and customer-focused services
Growth in global competition

9
Corporate Retail
Organizations
Corporate chain store
Voluntary chain
Retailer cooperative
Consumer cooperative
Franchise organization
Merchandising conglomerate

10
 Retailer Marketing Decisions
Target market Services and store
Product atmosphere
assortment and Store activities and
procurement experiences
Price Communications
High-markup, lower- Location
volume
Low-markup,
higher-volume

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Breakthrough Marketing:
TARGET
Upscale
discounter
image =
$59 billion
in annual
sales!

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 Marketing Skills: Experience
Marketing
Enhance the
sensory
experience
(feel, look,
sound, smell,
or taste).

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 Private Labels

Generics
Unbranded, plainly
packaged, less
Private label brand expensive versions of
One developed by common products.
retailers and
wholesalers.

14
Wholesaling

All the activities in selling goods

or services to those who buy
for resale or business use.

15
Major Wholesaler Types

Merchant wholesaler
Full-service wholesaler
Limited-service wholesaler
Brokers and agents
Manufacturers and retailers branches and offices
Specialized wholesalers

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How Wholesalers Differ From
Retailers

Pay less attention to promotion, atmosphere, and location

Transactions are usually larger and cover a larger trade area
Different legal regulations and taxes

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 What Wholesalers do

Selling and Transportation

promoting Financing
Buying and Risk bearing
assortment building
Market information
Bulk breaking
Management
Warehousing services and
counseling

18
 Trends in Wholesaling
Facing mounting Responses:
pressures from: Revisiting decisions
New sources of Cutting costs
competition
Demanding customers
New technologies
More direct-buying
programs by large buyers
Manufacturers

19
 Market Logistics
Supply chain management (SCM)
Starts before physical
distribution, covering
procurement of inputs,
conversion into finished
products, and product
movement to final
destinations.
Market logistics
Planning the infrastructure
to meet demand, then
implementing and
controlling the physical
flows of materials and final
goods from points of origin
to points of use to meet
customer needs at a profit.
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Steps in Market Logistics Planning

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Integrated Logistics Systems (ILS)

Include materials management,

material flow systems, and
physical distribution, aided by
information technology.

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Market-Logistics Decisions
Order processing

Warehousing

Inventory

Transportation

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Determining Optimal Order
Quantity

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