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Phillip Kevin Lane Kotler • Keller Marketing Management • 14e Managing Retailing, Wholesaling, and Logistics Discussion Questions 1. What major types of marketing intermediaries occupy this sector? 2. What marketing decisions do these marketing intermediaries make? 3. What are the major trends with marketing intermediaries? 4. What does the future hold for private label brands? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 23 Retailing All the activities in selling goods or services directly to final consumers for personal, nonbusiness use. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 4 of 23 Types of Retailers Self-Service Limited Service Full Service Self-Selection Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 5 of 23 Major Types of Store Retailers Specialty store The Limited, The Body Shop Department store JCPenney, Bloomingdales Supermarket Kroger, Safeway Convenience store 7-Eleven, Circle K Drug store CVS, Walgreens Discount store Wal-Mart, K-Mart Extreme value or harddiscount store Aldi, Lidl, Family Dollar, Dollar General Off-price retailer Factory outlets, TJ Ma23, Costco Superstore Staples, Jewel-Osco, Carrefour Catalog showroom Inside Edge Ski and Bike Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 6 of 23 Nonstore Retailing Automatic Vending Direct Selling Direct Marketing Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Buying Service Slide 7 of 23 Corporate Retailing and Franchising Corporate Retailing Organizations • Corporate Chain store • Voluntary chain • Retailer cooperative • Consumer cooperative • Franchise organization • Merchandising conglomerate Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 8 of 23 Franchising Franchisee Pays: Royalty Payments Start-up / Licensing Fee Franchisee Receives: Well-known brand name Developed system Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 9 of 23 New Retail Environment Store / Non-store Competition Global Retailers New Retail Forms Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Giant Retailers Slide 10 of 23 Marketing Decisions Target Market Prices Channels Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 11 of 23 Marketing Decisions Communications Atmosphere Location Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Product Assortment Slide 12 of 23 Private Labels Lower Costs: • • • • Development Advertising Sales promotions Distribution Higher Profit Margins Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 23 Top 10 Private Label Categories – 2009 (billions of dollars) Milk Bread & Baked Goods Cheese Medications Paper Products Eggs – Fresh Fresh Produce Packaged Meat Pet Food Unprepared Meat Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall $8.1 $4.2 $3.5 $3.4 $2.6 $1.9 $1.5 $1.5 $1.5 $1.4 Slide 14 of 23 Wholesaling All the activities in selling goods and services to those who buy for resale or business use. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 15 of 23 Types of Wholesalers Merchant wholesalers Take title to merchandise; Full-service and limited-service jobbers and distributors Full-service wholesalers Carry stock, maintain a sales force, offer credit, make deliveries, and provide management assistance. Limited-service wholesalers Limited line of fast-moving goods. Truck wholesalers, drop shippers, rack jobbers, mailorder wholesalers Brokers and agents Facilitate buying and selling; earn 2% - 6% commission on selling price. Specialized wholesalers Agricultural assemblers, petroleum bulk plants, and actions companies. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16 of 23 Wholesaler Functions Selling and Promoting Warehousing Buying and assortment building Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Bulk breaking Slide 17 of 23 Wholesaler Functions Market information Transportation Management Services Risk bearing Financing Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 18 of 23 Market Logistics Supply Chain Management Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 19 of 23 Market-Logistics Objectives Integrated Logistics Systems Transportation Modes Tradeoffs Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 20 of 23 Market-Logistics Decisions Order Processing Inventory Levels Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Warehouse Locations Transportation Mode Slide 21 of 23 Determining Optimal Order Quantity Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22 of 23 Organizational Lessons Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 23 of 23