Managing Retailing,
Wholesaling,and Logistics
Chapter 18
Retailing
Retailing
◦ All the activities in selling goods or
services directly to final consumers for
personal, nonbusiness use
Retailer/retail store
◦ Any business enterprise whose sales
volume comes primarily from retailing
Retailing
Types of Retailers
◦ Major retailer type (Specialty store, Department store,
Supermarket, Convenience store, Discount store, off-price
retailer, superstore, catalog showroom)
◦ Levels of retail service (self-service, self-selection,
limited service, full service)
Nonstore Retailing
◦ Direct selling, Direct marketing, Automatic vending,
Buying service
Corporate Retailing
◦ Major Types of Corporate Retail Organizations (Corporate
chain store, Voluntary chain, Retailer cooperative,
Franchise Organization, Merchandising conglomerate)
Types of retailers
Store retailers:
• Specialty store • Discount store
• Department store • Extreme value or hard-
• Supermarket discount store
• Convenience store • Off-price retailer
• Drug store • Superstore
• Catalog showroom
Types of retailers
Levels of service for store retailers
Self-service
Self-selection
Limited service
Full service
Types of retailers
Nonstore retailing
◦ Direct marketing
◦ Direct selling
◦ Automatic vending
◦ Buying services
Corporate Retailing and
Franchising
Franchises are distinguished by three
characteristics:
◦ The franchisor owns a trade or service
mark and licenses it to franchisees in
return for royalty payments
◦ The franchisee pays for the right to be
part of the system
◦ The franchisor provides its franchisees
with a system for doing business
TRENDS IN RETAILING
New retail forms and combinations
Growth of giant retailers
Growth of intertype competition
Emergence of fast retailing
Decline of middle-market retailers
Growing Investment in Technology
Global presence of major retailer
The Modern Retail Marketing
Environment
Role of technology
◦ Retailers use technology
for business operations,
to enhance the
consumer shopping
experience inside the
store, and Internet/social
media strategies
Marketing Decisions
• Target market • Services
• Channels • Store atmosphere
• Product • Store activities and
assortment experiences
• Procurement • Communications
• Prices • Location
Product Assortment
Develop product differentiation
Feature exclusive national brands
Feature private-label merchandise
Feature distinctive-merchandise events
Feature ever-changing merchandise
Feature the latest merchandise first
Offer merchandise-customizing services
Offer a highly targeted assortment
Service
Retailers must decide on the services mix to offer customers:
Prepurchase services
Postpurchase services
Ancillary services
Location
Central Regional
business shopping
districts centers
Community
Stand-alone shopping
stores centers
Location within Shopping
a larger store strips
Private Labels
A private-label brand is a brand that
retailers and wholesalers develop
◦ Role of private labels
◦ Private-label success factors
Wholesalling
Wholesaling includes all the activities in
selling goods or services to those who buy
for resale or business use
Major wholesaler types
Merchant Full-service
wholesalers wholesalers
Limited-
Specialized
service
wholesalers
wholesalers
Manufacturers’/
Brokers and
retailers’
agents
branches/offices
Wholesaler functions
• Selling and promoting• Transportation
• Buying and • Financing
assortment building • Risk bearing
• Bulk breaking • Market information
• Warehousing • Management services
and counseling
Logistics
Supply chain management (SCM)
Market logistics
Integrated logistics systems (ILS)
Lean manufacturing
Market Logistics planning
1. Deciding on company’s value
proposition
2. Selecting best channel design and
network strategy
3. Developing operational excellence
4. Implementing solution
Market-Logistics Decisions
Order processing: how should we
handle orders?
Warehousing: where should we locate
our stock?
Inventory: how much stock should we
hold?
Transportation: how should we ship
goods?
