www.mhhe.com/fourps For use only with Perreault/Cannon/McCa rthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin CHAPTER TWELVE Retailers, Wholesalers, and Their Strategy Planning
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3. When we finish this lecture you should
4. Marketing Strategy Planning Process 5. Marketing Strategy Planning for Retailers and Wholesalers(Exhibit 12-1) CH 12:Retailers, Wholesalers & Their Strategy Planning Strategy planning for retailers CH 10:Place and Development of Channel Systems Nature of retailing Future of retailing and wholesaling CH 11:Distribution Customer Service & Logistics Strategy planning for wholesalers 6. Wholesalers and Retailers Plan Their Strategies Must Select Target Markets and Marketing Mixes Carefully Marketers Must Understand Retailer/ Wholesaler Evolution Must Select Target Markets and Marketing Mixes Carefully Marketers Must Understand Retailer/ Wholesaler Evolution Retailing Deals with Final Customers 7. Planning a Retailers Strategy Convenience Product Selection Fairness in Dealings Helpful Information Prices Social Image Key Features Affecting Consumers Retail Choice Convenience Product Selection Fairness in Dealings Helpful Information Prices Social Image Shopping Atmosphere 8. Conventional Retailers Try to Avoid Price Competition (Exhibit 12-2) RitzCamera, Coach, Gap, Macys Conventional Offerings Single- & limited- line stores Expanded assortment &/or reduced margins &service Supermarkets, disc. houses, mass merch.,super-, club- Stores, + Safeway, IKEA, Home Depot, Costco Added conv.,higher margins, reducedassortment C-stores,vending, door- to-door, phone, mail, somee-tail 7-11, Pepsi vending, Avon, Lands End, QVC Expanded assortment, reduced margins, more information Internet eBay, Amazon, Zappos, Netflix, Dell Expanded assortment & service Specialty shops & dept. stores 9. Conventional Retailers Try to Avoid Price Competition(Exhibit 12-2) Conventional Offerings Single- & limited- line stores Expanded assortment & service Specialty shops & dept. stores Ritz Camera, Coach, Gap, Macys 10. Conventional Retailers Try to Avoid Price Competition(Exhibit 12-2) RitzCamera, Coach, Gap, Macys Conventional Offerings Single- & limited- line stores Expanded assortment &/or reduced margins &service Supermarkets, disc. houses, mass merch.,super-, club- Stores, + Safeway, IKEA, Home Depot, Costco Expanded assortment & service Specialty shops & dept. stores 11.
Checking your knowledge 12. Conventional Retailers Try to Avoid Price Competition(Exhibit 12-2) RitzCamera, Coach, Gap, Macys Conventional Offerings Single- & limited- line stores Expanded assortment &/or reduced margins &service Supermarkets, disc. houses, mass merch.,super-, club- Stores, + Safeway, IKEA, Home Depot, Costco Added conv.,higher margins, reducedassortment C-stores,vending, door- to-door, phone, mail, somee-tail 7-11, Pepsi vending, Avon, Lands End, QVC Expanded assortment & service Specialty shops & dept. stores 13. Vending Machines Are Convenient 14. Shop at Home in a Variety of Ways 15. Conventional Retailers Try to Avoid Price Competition (Exhibit 12-2) RitzCamera, Coach, Gap, Macys Conventional Offerings Single- & limited- line stores Expanded assortment &/or reduced margins &service Supermarkets, disc. houses, mass merch.,super-, club- Stores, + Safeway, IKEA, Home Depot, Costco Added conv.,higher margins, reducedassortment C-stores,vending, door- to-door, phone, mail, somee-tail 7-11, Pepsi vending, Avon, Lands End, QVC Expanded assortment, reduced margins, more information Internet eBay, Amazon, Zappos, Netflix, Dell Expanded assortment & service Specialty shops & dept. stores 16. Online versus In-store Shopping(Exhibit 12-3) In-Store Shopping Online shopping Cross-section, depends on store Customer characteristics Younger, better educated upscale More purchases on the weekend More purchases on weekdays Day-of-week emphasis Varies, usually better than online Weak but improving Customer service More routine purchases More emphasis on one-time purchase Products purchased Can inspect for immediate use Not available for inspection or use Availability of product Cross-section, depends on store Younger, better educated upscale Customer characteristics More purchases on the weekend More purchases on weekdays Day-of-week emphasis Varies, usually better than online Weak but improving Customer service More routine purchases More emphasis on one-time purchase Products purchased 17. Online versus In-store Shopping(Exhibit 12-3) In-Store Shopping Online shopping Often weak maybe only on packaging Comparative information More extensive, sometimes poorly organized Often a social experience A media experience Entertainment value Prices and taxes higher no delivery charges Prices often lower, shipping/handling costs Charges Depends on store and available transportation Completely flexible Shopping hours and preparation Often weak maybe only on packaging Comparative information More extensive, sometimes poorly organized Often a social experience A media experience Entertainment value Prices and taxes higher no delivery charges Prices often lower, shipping/handling costs Charges 18. Four Online Retailer Approaches More efficientthan competitors Complementtheir stores/catalogs Supplementtheir stores FourOnline Retailer Approaches More efficientthan competitors Complementtheir stores/catalogs Supplementtheir stores Very focusedon specific needs of target 19. Interactive Exercise: Types of Retail Outlets 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 20. Competitive Effects Influence Other Retailers 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 21. Why Retailers Evolve and Change Product Life Cycle Appliesto Retailing Scrambled Merchandising = Higher Profits The Wheel of Retailing Keeps on Rolling! Product Life Cycle Appliesto Retailing Scrambled Merchandising = Higher Profits AND Ethical Issues May Arise 22.
Checking your knowledge 23. An Example of a Large Retail Chain 24. Big Chains Are Building Market Clout 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 25. Differences in Retailing in Different Nations Mass-Marketing Requires Mass Markets New Ideas Spread New Ideas Spread Mass-Marketing Requires Mass Markets Some Countries Block Change 26. What Is a Wholesaler? Progressive Wholesalers Adapt Changing With the Times Goodbye to Some? Producing Value and Profits, Not Chasing Orders Ethical Issues? Progressive Wholesalers Adapt Changing With the Times Producing Products, Not Chasing Orders Goodbye to Some? Ethical Issues? New Strategies Needed To Survive 27. Wholesalers Add Value in Different Ways(Exhibit 12-5) 28. Types of Wholesalers(Exhibit 12-6) 29. Types of Merchant Wholesalers
Types of Merchant Wholesalers Service Limited -Function 30. Agent Middlemen Are Strong on Selling Selling Agents Brokers Manufacturers Agents Types ofAgentMiddlemen Manufacturers Agents Brokers Selling Agents Auction Companies 31.
Checking your knowledge 32. What Will Happen to Retailers and Wholesalers in the Future? New Web-Based Retailers Development of Specialized Intermediaries New Internet Applications Improved Logistics Efficiency Marketers and Consumers Can ExpectNew Web-Based Retailers Development of Specialized Intermediaries New Internet Applications Improved Logistics Efficiency Increasing Competition 33. You now
34. You now
35. Key Terms
36. Key Terms
37. Key Terms