Marketing strategy In Retailing & In Wholesaling & Major Activities Involved in Physical Distribution channel

Submitted To: Prof. Bhavik Shah

Submitted By: Gajera Jitendra

40 Gajera Mitali 41 Gediya Neha 42 Gherwada Kamlesh 43 Ghevariya Jatin 44 45 Ghoghari Jeenal

RETAILING
Retailing includes all the activities involved in selling goods or services directly to final consumer- whether it is a manufacturer, wholesaler or retailer- is doing retailing. It does not matter how the good are sold ( by person, mail, telephone, vending machine or internet) or where they are sold (in a store, on the street, or in the consumers home).

Examples of well-known retailers are wall mart, target shoppers stop, Big Bazaar, Pantaloon, Adanis, and Dhiraj Sons etc.

Marketing strategy In Retailing...

In the past retailing held customers by offering convenient location, special or unique of good, greater or better services than competitors, and store credit cards.

1) Target Market A retailers most important decision concerns the target market. Unit the target market is defined and profiled; the

Retailer cannot make consistent decision on a product assortment. Store dcor, advertising messages and media, price and service levels. E.g. wall mart, follows same method at India level (Is se sasta aur achha aur kahin nahin). Subhiksha for middle class people.
2) Product assortment and procurement In retailers product assortment must match the target markets expectations. The retailer has to decide on product assortment breath and depth. Thus a garment store can offer a narrow and broad assortment. Real

Problem start after product assortment and that is to develop product differentiation strategy.
3) Service and store atmosphere Retailer must also decide on the service mix to offer customers. 4) Pre purchase service Include accepting telephone and mail orders, advertising, window and internet display. Fitting rooms, shopping hours, fashion shows, trade-ins.

5) Post purchase services Include shipping and delivery, giftwrapping, adjustment and returns, alterations and tailoring, installation, engraving.
6) Ancillary Service Include general information check cashing, packing, repairs, credit, restrooms, baby attendant service. The service mix is a key tools for differentiating one store from another so is the atmosphere.

7) Atmosphere In another element in the store arsenal. Every store has physical layout that makes it hard or easy to move around. The store must design an atmosphere that suits to target market and draw consumer towards purchase. 8) Price Decision Prices are key positioning factor and must be decided in relation to the target market, product and service assortment mix, and competition. Most retailers either fall

under low mark up with high volume or high mark up with low volume.

Wholesaling
Wholesaling includes all the activities in selling goods or services to those who buy for resale or business use. Wholesaling excludes manufacturers and farmers because they are engaged primarily in production and it excludes retailers. Wholesalers also called distributors differ from the retailer in number of ways.

Marketing strategy In
wholesaler
Wholesalers distributors have faced immense pressure in recent year from new sources of competition, demanding customers, new technologies and more direct buying programs by large industrial, institutional and retail buyers. They have to develop appropriate strategies.

1) Target market The wholesaler can choose target customers by size (e.g. only large retailer), type of customer (e.g. convenience food stores only), need for service (e.g. customer who need credit) or other criteria. They can discourage less profitable customer by requiring larger orders or adding surcharges to smaller ones.

2) Product assortment and services The wholesalers product is their assortment. Wholesaler are under an immense

Pressure to carry full line and maintain sufficient stock for immediate delivery, but the cost of carrying huge inventory can kill profits. Today wholesalers are reexamining how many lines to carry and are choosing to carry only the more profitable ones.
3) Price Decision Wholesalers usually mark up the cost of good by a conventional percentage; say 20%, to cover their expenses. They might cut their margin on some lines in order to win important customers.

4) Promotion Decision Wholesalers relay primarily on their sales force to achieve promotional objectives. Most wholesalers see selling as a single salesperson to single customer instead of a team effort to sell, build and service major accounts. They need to develop an overall promotion strategy involving trade advertising, sale promotion and publicity. They need to make use of supplier promotion , materials and programs.

5) Place Decision In the past, wholesalers were typically located in low rent, low tax areas and put little into their physical setting and offices. Often the materials handling systems and order processing systems legged, behind the available technologies. Today progressive wholesalers have been improving their supply capabilities through advanced information system.

Physical Distribution
The marketing process is not complete simple by creating a superb product and by creating a customer by aggressive salesmanship. Delivering the product to the customer at the right time and place is an equally imported function in marketing. In the process of marketing this vital function is called physical distribution. Physical distribution involves management (planning, action and control) of the physical flows of

(1) raw material, and (2) finished products from the points of origin to the points of use/consumption to meet the customer need at a profit. It covers all activities in the flow of goods between producer and consumer.

Major activities involved in physical distribution

1) Inventory Management There are four areas of decision-making regarding inventory management: i. ii. iii. iv. The size of the inventory. The location of the inventory. The material handling. The transportation of inventory.

The location of inventory and the number of sites from which inventory is supplied affect the total size and the mode of transport of the inventory. a) Storage Storage means holding and preserving products from the point of production to the point of sale.

b) Warehousing Warehousing is broader is scope. It goes beyond storage. The other function

Includes assembling, dividing and preparing products for transportation. c) Centralization v/s decentralization Whether inventory is to be concentrated at one point or to be dispersed throughout market is a basic question. A centralizes inventory costs and related deliveries. Decentralization leads to lower transport costs and quicker deliveries. d) Distribution Centers It is a new concept in warehousing.

Distribution centers are related to the markets and not to the transport facilities. It represent an integrated system for the flow of products. It accepts orders, executes them, and effects deliveries to the customers. 2) Material Handling We have to select the proper material handling equipment so as to reduce the time and costs in handling. Warehouse architecture takes into account the material handling aspects. Mechanized equipment is used to move material integrity. Containerization has

come to be accepted for facilitating intermodal transport. A metal container can be placed on trucks, on railways wagons and in ships. These containers remain unopened from the point they are transported to their final destination.

3) Inventory Control Much finance gets committed it inventory. The objective of inventory control is to reduce the capital blocked and to stabilized the fluctuations in inventories and while doing so, to execute the orders of the

Customers, on time and with precision. Information technology is of a grater help in the proper management of inventory. There are two types of costs associated with inventories (1) Ordering costs and (2) Carrying costs.

4) Order processing Each organization must have a prescribed procedure for handling order. Order are received and filled. It involves billing, credit extension, invoice making and collection of dues.

5) Transportation Sending or dispatching product to customers is a major part of any physical distribution systems. The decision is taken regarding the mode of transport and the specific carrier company. The chief modes arte railways, trucks, ship, aero planes and pipelines. These days, truck have become a major means of transport, through railways are more economical.