CHAPTER 16 MANAGING RETAILING, WHOLESALING, AND LOGISTICS Cherry Tatel 18-Sept-2013 1
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CHAPTER 16
MANAGING RETAILING,
WHOLESALING, AND LOGISTICS
Cherry Tatel18-Sept-2013
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CHAPTER OUTLINE
• Retailers, Wholesaler, and Logistics Market
• Marketing Trends and Decisions
• 6 key concepts to note
• Summary
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RETAILERS
Store Retailers
Self-service
Self-selection
Limited service
Full service
Non-store Retailing
Direct selling
Direct marketing
Automatic vending
Buying service
Corporate Retailing & Franchising
Corporate chain stores
Voluntary chains
Retailer and Consumer
cooperatives
Franchises
Merchandising conglomerat
es
4 services
4 categories
5 Major types
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WHOLESALERS
6 Functions:
• Selling and promoting• Buying and assortment building• Bulk breaking• Transportation• Financing• Market information
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LOGISTICS
4 Steps:
1. Decide on company’s value proposition.
2. Select best channel and network strategy.
3. Develop operational excellence
4. Implement solution
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MARKETING TRENDS
• New Retail forms and combinations
• Private labels
• Wholesaler trend – towards vertical integration
• Integrated Logistics System
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CONCEPT #1
Examine Retailers’ marketing decision
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Examine Retailers’ marketing decision in the following 11 areas:
1. Target market2. Channels3. Product assortment4. Procurement5. Prices6. Services
7. Store Atmosphere8. Store Activities9. Experiences10. Communication11. Location
EXAMPLE OF CONCEPT #1
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CONCEPT #2
Private Label as profitable source of revenue
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EXAMPLE OF CONCEPT #2
Private Label as profitable source of revenue
Success Factors:
Private labels give retailers advantages and increasing market power.
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CONCEPT #3
Continuous market pressures requires Wholesalers to adapt to changing needs.
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EXAMPLE OF CONCEPT #3
Continuous market pressures requires Wholesalers to adapt to changing needs.
New Sources of Pressure:
• New competition• Demanding customers• New technologies• More direct buying programs
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CONCEPT #4
Supply chain management leads managers to find the most efficient way to deliver value
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EXAMPLE OF CONCEPT #4
Supply chain management leads managers to find the most efficient way to deliver value
Getting the right goods, to the right places, at the right time for the least costs.
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CONCEPT #5
Market logistics are faced with 4 decisions that it has to make.
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EXAMPLE OF CONCEPT #5
Market logistics are faced with 4 decisions that it has to make.
1. How to handle order processing?2. Where to locate stocks?3. How much stock to hold?4. How should goods be shipped?
Market Logistics strategies must be derived from business rather than solely from cost considerations.
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CONCEPT #6
Majors gains in logistical efficiency comes from advancement in technology
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CONCEPT #6
Majors gains in logistical efficiency comes from advancement in technology
Developments in technology have shortened the order cycle time, reduced clerical labour, reduced errors, and provided improved control of operations.
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SUMMARY
Lesson
As the business environment evolves, the channel’s strategies and decision has to upgrade in order to survive.
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CHAPTER 16
MANAGING RETAILING, WHOLESALING, AND
LOGISTICS
Cherry Tatel 18-Sept-2013