kotler_mm_14e_16_ippt.ppt

16
Managing Retailing,
Wholesaling,
and Logistics
1

Table 16.1 Major Retailer Types
 Specialty store
 Department store
 Supermarket
 Convenience store
 Discount store
 Off-price retailer
 Superstore
 Catalog showroom
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-2

Levels of Retail Service
 Self service
 Self selection
 Limited service
 Full service

Nonstore Retailing
 Direct selling
 Direct marketing
 Automatic vending

Changes in the
Retail Environment
 New retail forms and combinations
 Competition between store-based and non-
store-based retailing
 Growth of giant retailers
 Decline of middle market retailers
 Growing investment in technology
 Global profile of major retailers
 Growth of shopper marketing

Retailers’ Marketing Decisions
 Target market
 Product assortment
 Procurement
 Prices
 Services
 Store atmosphere
 Store activities
 Store experiences
 Communications
 Location

Store Atmosphere
 Walls
 Lighting
 Signage
 Product placement
 Floors
 Surface space
 Music
The Fornarina flagship store
features award-winning retail
design.

Tips for Increasing Sales
in Retail Space
 Keep shoppers in the store
 Honor the transition zone
 Don’t make them hunt
 Make merchandise available to the reach and
touch
 Note that men do not ask questions
 Remember women need space
 Make checkout easy

Private Label Brands
 Private labels are ubiquitous
 Consumer accepts private labels
 Private-label buyers come from all
socioeconomic strata
 Private labels are not a recessionary
phenomenon
 Consumer loyalty shifts from manufacturers to
retailers

Private Labels

Wholesaling Functions
 Selling and
promoting
 Buying and
assortment building
 Bulk breaking
 Warehousing
 Transportation
 Financing
 Risk bearing
 Market information
 Management
services and
counseling

Supply Chain Management
Supply chain management starts before
physical distribution and means strategically
procuring the right inputs (raw materials,
components, and capital equipment);
converting them efficiently into finished
products; and dispatching them to the final
destinations.

Market Logistics
 Sales forecasting
 Distribution
scheduling
 Production plans
 Finished-goods
inventory decisions
 Packaging
 In-plant
warehousing
 Shipping-room
processing
 Outbound
transportation
 Field warehousing
 Customer delivery
and servicing

Market Logistics Decisions
 How should orders be handled?
 Where should stock be located?
 How much stock should be held?
 How should goods be shipped?

Figure 16.1 Determining Optimal
Order Quantity

Transportation Factors
 Speed
 Frequency
 Dependability
 Capability
 Availability
 Traceability
 Cost

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