Managing Retailing,
Wholesaling, and Logistics
Key Concepts
Marketing Management at Zara
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Zara controls all aspects of its supply chain.
Retailing
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All of the activities involved in selling goods or services directly to final consumers for personal, non-business use.
All of the activities involved in selling goods or services directly to final consumers for personal, non-business use.
Types of RetailersSpecialty store
Department store
Supermarket
Convenience store
Discount store
Off-price retailer
Superstore
Catalog showroom
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Retail Concepts
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Retail life-cycleStages of growth and decline.
Retail life-cycleStages of growth and decline.
Wheel-of-retailing hypothesisNew stores emerge after conventional stores increase services and raise prices to cover the cost.
Wheel-of-retailing hypothesisNew stores emerge after conventional stores increase services and raise prices to cover the cost.
Levels of Service
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Self-serviceSelf-service
Self-selectionSelf-selection
Limited serviceLimited service
Full serviceFull service
Retail Positioning Strategies
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Bloomingdale’sBloomingdale’s
TiffanyTiffany
Sunglass HutSunglass Hut
Wal-MartWal-Mart
Nonstore Retailing
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Direct sellingDirect selling
Direct marketingDirect
marketing
Automatic vendingAutomatic vending
Buying serviceBuying service
The New Retail Environment
Assortments have grown more alike
Differentiation has eroded
Limited-time-only “pop-up” outlets
Adding specialty products and customer-focused services
Growth in global competition
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Corporate Retail Organizations
Corporate chain store
Voluntary chain
Retailer cooperative
Consumer cooperative
Franchise organization
Merchandising conglomerate
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Retailer Marketing Decisions
Target market
Product assortment and procurement
PriceHigh-markup, lower-volume
Low-markup, higher-volume
Services and store atmosphere
Store activities and experiences
Communications
Location
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Breakthrough Marketing: TARGET
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“Upscale discounter” image = $59 billion in annual sales!
Marketing Skills: Experience Marketing
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Enhance the sensory experience (feel, look, sound, smell, or taste).
Private Labels
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Private label brandOne developed by retailers and wholesalers.
Private label brandOne developed by retailers and wholesalers.
GenericsUnbranded, plainly packaged, less expensive versions of common products.
GenericsUnbranded, plainly packaged, less expensive versions of common products.
Wholesaling
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All the activities in selling goods or services to those who buy for resale or business use.
All the activities in selling goods or services to those who buy for resale or business use.
Major Wholesaler TypesMerchant wholesaler
Full-service wholesaler
Limited-service wholesaler
Brokers and agents
Manufacturers’ and retailers’ branches and offices
Specialized wholesalers
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How Wholesalers Differ From Retailers
Pay less attention to promotion, atmosphere, and location
Transactions are usually larger and cover a larger trade area
Different legal regulations and taxes
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What Wholesalers do
Selling and promoting
Buying and assortment building
Bulk breakingWarehousing
TransportationFinancingRisk bearingMarket information
Management services and counseling
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Trends in WholesalingFacing mounting pressures from: New sources of
competition Demanding customers New technologies More direct-buying
programs by large buyers
Manufacturers
Responses: Revisiting decisions Cutting costs
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Market LogisticsSupply chain management (SCM)
Starts before physical distribution, covering procurement of inputs, conversion into finished products, and product movement to final destinations.
Supply chain management (SCM)
Starts before physical distribution, covering procurement of inputs, conversion into finished products, and product movement to final destinations.
Market logistics
Planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer needs at a profit.
Market logistics
Planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer needs at a profit.
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Steps in Market Logistics Planning
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Integrated Logistics Systems (ILS)
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Include materials management, material flow systems, and physical distribution, aided by information technology.
Include materials management, material flow systems, and physical distribution, aided by information technology.
Market-Logistics Decisions
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Order processingOrder processing
WarehousingWarehousing
InventoryInventory
TransportationTransportation
Determining Optimal Order Quantity
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