Professional Documents
Culture Documents
14-2
Retailing
Retailing includes all of the activities involved
in selling goods or services directly to final
consumers for personal, nonbusiness use.
A retailer or retail store is any business
enterprise whose sales volume comes
primarily from retailing.
14-3
Major Retailer Types
14-4
Levels of Retail Service
Self service
Self selection
Limited service
Full service
14-5
Retail Positioning Map
14-6
Nonstore Retailing
Direct selling
Direct marketing
Automatic vending
Buying service
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Corporate Retailing
Corporate chain store
Voluntary chain
Retailer cooperative
Consumer
cooperative
Franchise
organization
Merchandising
conglomerate
14-8
What is a Franchising System?
A franchising system Characteristics
is a system of The franchisor owns a
14-10
Retailers’ Marketing Decisions
14-11
Store Atmosphere
and Experiences
Walls
Lighting
Signage
Product
placement
Floors
Surface space
Music
14-12
Location Decision
14-13
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
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Indicators of Sales Effectiveness
Number of people
passing by
Percent who enter
store
Percent who buy
Average amount spent
per sale
14-15
Retail Category Management
Define the category
Figure out its role
Assess performance
Set goals
Choose the audience
Figure out tactics
Implement the plan
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Retailer Services Mix
Prepurchase services
Postpurchase services
Ancillary services
14-17
Private Label Brands
Private labels are everywhere
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
14-18
Wholesaling Functions
Selling and Transportation
promoting Financing
Buying and Risk bearing
assortment building Market information
Bulk breaking Management
Warehousing services and
counseling
14-19
Major Wholesaler Types
Merchant
Full-service
Limited-service
Brokers and agents
Manufacturers
Specialized
14-20
Market Logistics
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.
14-21
Market Logistics Planning
STEP 1: Deciding on the company’s value
proposition to its customers
STEP 2: Deciding on the best channel design
and network strategy
STEP 3: Developing operational excellence
STEP 4: Implementing the solution
14-22
What are Integrated Logistics Systems?
14-23
Market Logistics
14-24
Market Logistics Decisions
14-25
Determining Optimal Order
Quantity
14-26
Transportation Factors
Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost
14-27