Principles of marketing: Lecture 30 provide students with knowledge about: retailing and wholesaling; distribution channel functions; direct and indirect channels; marketing channels for consumer goods; industrial marketing channels; channel behavior and conflict;... Please refer to this lesson for details!
MGT301 Principles of Marketing Lecture30 Summary of Lecture29 Producer Marketing activities Intermediaries Demand End users Demand Push Strategy Marketing activities Producer Demand Intermediaries Demand End users Pull Strategy Marketing Logistics and Supply Chain Management Functions of Logistics Systems Costs Costs Minimize MinimizeCosts Costsof of Attaining AttainingLogistics Logistics Objectives Objectives Order Order Processing Processing Submitted Submitted Processed Processed Shipped Shipped Logistics Transportation Water, Truck, Rail, Pipeline & Air Functions Warehousing Warehousing Storage Storage Distribution Distribution Inventory Inventory When Whento toorder order How How much muchto toorder order Just-in-time Just-in-time Today’s Topics Retailing and Wholesaling Retailing Retailing is the process by which goods and services are sold to consumers for their personal use Retailers provide many benefits such as: providing an assortment of merchandise under one roof, allowing access to goods customers might never see, providing interesting environments in which to spend our leisure time Retailing can be done in stores (store retailing) or out of a store (nonstore retailing) such as: Direct mail, Catalogs, Telephone, Home shopping shows, Internet Merchant Merchant Wholesaler Wholesaler Brokers/ Brokers/Agents Agents They TheyDon’t Don’tTake TakeTitle Titleto to the Goods, and They the Goods, and They Perform PerformOnly OnlyaaFew Few Functions Functions Independently IndependentlyOwned Owned Business that Takes Business that Takes Title Titleto tothe the Merchandise Merchandise ititHandles Handles Manufacturers’ Manufacturers’ Sales SalesBranches Branches and Offices and Offices Wholesaling Wholesalingby bySellers Sellers or orBuyers BuyersThemselves Themselves Rather RatherThan ThanThrough Through Independent Independent Wholesalers Wholesalers Wholesaler Marketing Decisions Wholesaler WholesalerStrategy Strategy Wholesaler Wholesaler Marketing Marketing Mix Mix Product and Service Assortment Target Market Prices Retail Store Positioning Promotion Place (Location) Compete on value (not just price.) Save customers time and energy Make shopping fun So… End of Place part… Enough for today. . Summary Retailing and Wholesaling Classification of Retailing Amount Amount of of Service Service Self-Service, Self-Service, Limited-Service Limited-Service and and Full-Service Full-Service Retailer Retailer Product Product Line Line Length Length and and Breadth Breadth of of the the Product Product Assortment Assortment Relative Relative Prices Prices Pricing Pricing Structure Structure that that is is Used Used by by the the Retailer Retailer Retail Organizations Independent, Corporate, or Contractual Ownership Organization Nonstore Retailing Mail Mail Order Order ••Catalogs Catalogs from from clothing clothing to to computers computers ••Direct Direct Mail Mail brochure brochure offering offering aa product product or or service service at at one one point point in in time time Direct Direct Selling Selling ••Door-to-Door Door-to-Door Sales Sales declining declining in in U.S U.S ••Parties Parties && Networks Networks presentations presentations ••Telemarketing Telemarketing over over the the phone phone Automatic Automatic Vending Vending ••Best Best suited suited to to inexpensive inexpensive merchandise merchandise and and food food and and beverages beverages Direct Direct Response Response Television Television ••Home Home Shopping Shopping Networks Networks TV TV channels channels that that sell sell products products Wholesaling Types of Wholesalers Merchant Merchant Wholesaler Wholesaler Brokers/ Brokers/Agents Agents Independently IndependentlyOwned Owned Business Businessthat thatTakes Takes Title Titleto tothe the Merchandise Merchandise ititHandles Handles They TheyDon’t Don’tTake TakeTitle Titleto to the theGoods, Goods,and andThey They Perform PerformOnly OnlyaaFew Few Functions Functions Manufacturers’ Manufacturers’ Sales SalesBranches Branches and andOffices Offices Wholesaling Wholesalingby bySellers Sellers or orBuyers BuyersThemselves Themselves Rather RatherThan ThanThrough Through Independent Independent Wholesalers Wholesalers Next… Review 3rd P (Place) MGT301 Principles of Marketing Lecture30 ... Depth of of Assortment Assortment •• Quality Quality of ofProducts Products •• Product Product Differentiation DifferentiationStrategies Strategies Services ServicesMix Mix Key KeyTool Tool of ofNonprice... economies of of scale scale Corporate Chains Franchise Operations Retailers Retailers wanting wanting economies economies of of scale scale Voluntary Chains Cooperative Chains The Wheel? ?of? ?Retailing ... Stores “Off-Priced” “Off-Priced” Retailers Retailers Catalog Catalog Showrooms Showrooms Retail Organization Corporate Chains Retailers Retailers wanting wanting economies economies of of scale