Marketing Management, 12/e

A South Asian Perspective

16
Managing Retailing,
Wholesaling, and Logistics

Chapter Questions
What major types of marketing
intermediaries occupy this sector?
What marketing decisions do these
marketing intermediaries make?
What are the major trends with marketing
intermediaries?

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Retailing

Includes all the activities involved in

selling goods or services directly
to final consumers for personal,
nonbusiness use.

16-3

Table 16.1 Major Retailer Types

Specialty store
Department store
Supermarket
Convenience store

Discount store
Off-price retailer
Superstore
Catalog showroom

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Levels of Retail Service

Self-service
Self-selection
Limited service
Full service

16-5

Nonstore Retailing
Direct selling
Direct marketing
Automatic vending
Buying service

16-6

Major Types of Corporate Retail

Organizations
Corporate chain store (Wal Mart,
Subhiksha)
Voluntary chain (Jagriti in Uttarakhand)
Retailer cooperative (Karnavati Pagarkha)
Consumer cooperative (NCCF of India
Ltd)
Franchise organization (7 Eleven)
Merchandising conglomerate (Reliance)

16-7

Retailers Marketing Decisions

Target market
Product assortment
Procurement
Service/store atmosphere
Price
Communication
Location

16-8

Retail Category Management

Define the category
Figure out its role
Assess performance

Set goals
Choose the audience

Figure out tactics

Implement the plan
16-9

Retailer Services Mix

Prepurchase services
Postpurchase services
Ancillary services

16-10

Location Decision
General business districts
Regional shopping centers
Community shopping centers
Strip malls
Location within a larger store

16-11

Indicators of Sales Effectiveness

Number of people passing by location
Percentage who enter store
Percentage of those who enter who also
buy
Average amount spent per sale

16-12

Trends in Retailing
New retail forms and combinations
Growth of intertype competition
Competition between store-based and
non-store-based retailing
Growth of giant retailers
Decline of middle market retailers
Growing investment in technology
Global presence of major retailers

16-13

Wholesaling Functions

Selling and promoting

Buying and
assortment building
Bulk breaking
Warehousing

Transportation
Financing
Risk bearing
Market information
Management services
and counseling

16-14

Major Wholesaler Types

Merchant

Full service

Mill Supply, Jobbers, Distributor

(Grease, Coal, Zinc)

Brokers and agents

Manufacturers (Paperfine)
Specialized

Stock, Sales, Credit

(FMCG & Pharma Distributors)

Limited service

Petroleum
Refrigerated Products
Concrete

Drop Shipper (Imported Perfumes),

Mail-Orders (High End Furniture),
Rack Jobbers (Designer Laminates),
Producers Co-operatives
(Mahabaleshwar Madodpatak Sangh,
Sankheda Swings)

16-15

Wholesalers Marketing Decisions

Target market Area
Product assortment
Price Parity
Promotional Expenditure Sharing
Distance & Places to Supply

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Market Logistics Planning

Deciding on the companys value proposition to

its customers Billing, Ordering
Deciding on the best channel design and
network strategy Lead, Sourcing & Storage
Developing operational excellence
Forecasting, Warehousing, Transportation
Implementing the solution - Info. System (EDI,
EFT), Std. Equip., Policies & Procedure

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Market Logistics Decisions

How should orders be handled? Order

Processing (Credit, Perfect Order Size)
Where should stock be located? Warehousing
(Storage & Distribution)
How much stock should be held? Inventory
(Sony SOMO)
- How should goods be shipped?
Transportation (Piggyback, Fisshyback,
Trainship, Airtruck, Containerization)

16-18

Transportation Factors
Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost

16-19