Lecture Basic Marketing: A global-managerial approach: Chapter 13 - William D. Perreault, E. Jerome McCarthy

In chapter 13 you will: Understand how retailers plan their marketing strategies, know about the many kinds of retailers that work with producers and wholesalers as members of channel systems, understand the differences among the conventional and nonconventional retailers including Internet merchants and others who accept the mass-merchandising concept,...

Chapter 13:    Retailers, Wholesalers, and Their Strategy Planning For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 13 Objectives When you finish this chapter, you should 1.  Understand how retailers plan their  marketing strategies 2.  Know about the many kinds of  retailers that work with producers and  wholesalers as members of channel  systems 3.  Understand the differences among the  conventional and nonconventional  retailers—including Internet  merchants and others who accept the  mass­merchandising concept 4.  Understand scrambled merchandising  and the “wheel of retailing.” 5.  See why size or belonging to a chain  can be important to a retailer 13­2   6. Know what progressive wholesalers  are doing to modernize their  operations and marketing strategies   7. Know the various kinds of merchant  wholesalers and agent middlemen and  the strategies that they use   8. Understand why retailing and  wholesaling have developed in  different ways in different countries   9.  See why the Internet is impacting  both retailing and wholesaling 10. Understand the important new terms For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Retailing Price Key Economic Factors Affecting Consumers’ Retail Choice Location Product Selection Special Services Helpful Salespeople Fairness in Dealing 13­3 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Retailers Conventional offerings Exhibit 13­1 13­4 Singleand limitedline stores Expanded assortment and service Specialty shops and department stores Expanded assortment and/or reduced margins/service Supermarkets, discount houses, mass-merchandisers, catalog showrooms, supercenters Added convenience higher margins less assortment Telephone/mail order, vending machines, door-to-door, convenience stores, electronic shopping Expanded assortment reduced margins more information Internet For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Focusing on Convenience Convenience (Food) Stores Retail Formats that Focus on Convenience Automatic Vending Door-to-Door Selling Telephone and Direct Mail 13­5 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Retailing on the Internet Competition will bring Change Still in Infancy Costs are Deceptive New Convenience Shopping Differences 13­6 Wide Assortment More Information For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Retail Chains Corporate Chains Major Types of Retail Chains Cooperative Chains Voluntary Chains Franchise Chains 13­7 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The New Face of Wholesaling ???????? ???????? ???????? ???????? ???????? 13­8 Producing Producing Profits Profits Progress Progress of of Fail Fail New New Strategies Strategies Needed Needed to to Survive Survive For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Wholesalers Does wholesaler own the products? Yes (merchant wholesaler) No (agent middleman) How many functions does the wholesaler provide? Some functions All the functions Agent middlemen Limited-function merchant Wholesalers Service merchant wholesalers Exhibit 13­6 13­9 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Merchant Wholesalers General Merchandise Rack Jobbers Catalog Types of Merchant Wholesalers Specialty Cash-and-Carry Truck 13­10 Single- or General-Line Drop-Shippers For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Agent Middlemen Manufacturers’ Agents Auction Companies Types of Agent Middlemen Other types of Specialists 13­11 Brokers Selling Agents For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Key Terms Retailing General Stores Single/Limited Line Stores Specialty Shop Department Stores Mass­Merchandising    Concept Supermarkets Catalog Showrooms Discount Houses Mass­Merchandisers Supercenters Hypermarkets Convenience (Food) Stores Automatic Vending Door­to­Door Selling Telephone/Direct Mail Wheel of Retailing Scrambled Merchandising Corporate Chain Cooperative Chains Voluntary Chains Franchise Operation More 13­12 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Key Terms Wholesaling Wholesalers Manufacturers’ Sales Branches Merchant Wholesalers Service Wholesalers General Merchandise Wholesalers Single­ or General­Line Wholesalers Specialty Wholesalers Limited­Function  Wholesalers Cash­and­Carry Wholesalers 13­13 Drop­Shippers Truck Wholesalers Rack Jobbers Catalog Wholesalers Agent Middlemen Manufacturers’ Agent Brokers    Export    Import Selling Agents Combination Export Manager Auction Companies For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill ... Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Retail Chains Corporate Chains Major Types of Retail Chains Cooperative Chains Voluntary Chains Franchise Chains... Merchant Wholesalers General Merchandise Rack Jobbers Catalog Types of Merchant Wholesalers Specialty Cash-and-Carry Truck 13 10 Single- or General-Line Drop-Shippers For use only with Perreault and... Telephone/Direct Mail Wheel of Retailing Scrambled Merchandising Corporate Chain Cooperative Chains Voluntary Chains Franchise Operation More 13 12 For use only with Perreault and McCarthy texts © The McGraw-Hill