2. Retailing & Retailer
• We all know that Wal-Mart, Home
Depo, Harrods, and Carrefour are
retailer, but so amazon.com, avon
representatives and a doctor seeing
patients.
• Retailing plays a very important
role in most marketing channels.
Each year, retailers account for
more than $5.5 trillion of sales to
final consumers.
3. • Retailing is all activities involved in selling goods
or services directly to final consumers for their
personal, non business use.
• Retailer is a business whose sales come primarily
from retailing.
• Although most retailing is done in retail stores, in
recent years non-store retailing has been growing
much faster than store retailing. Non-store
retailing includes selling to final consumers via
the Internet, direct mail, catalogs, the telephone,
and other direct-selling approaches.
4. • Self-service retailers : serve customers who
are willing to perform their own “locate-
compare-select”), process to save time or
money. Self service is the basis of all discount
operations and is typically used by retailing
selling convenience good (such as
supermarket) and nationally branded, fast-
moving shopping goods (such as Wal-Mart).
• Limited service retailer : provide more sales
assistance because they carry more shopping
goods about which customer need
information.
• Full-service-retailer : usually carry more
specialty goods for which customer need or
want assistance or advice.
Types of Retailers
Amount of service
5. Types of Retailers
Product Line
• Specialty Store is a retail store that
carries a narrow product line with a
deep assortment within that line.
• Department Store is a retail
organization that carries a wide
variety of product line – each line is
operated as a separate department
managed by specialist buyers or
merchandisers
• Supermarket is a large, low–cost,
low–margin, high–volume, self–
service store that carries a wide
variety of grocery and household
products.
6. • Convenience store is a small store, located
near a residential area, that is open long
hours seven days a week and carries a
limited line of high – turn over
convenience goods.
• Superstore is a store much larger than a
regular supermarket that offers a large
assortment of routinely purchased food
products, nonfood items, and services.
• Service retailer is a retailer whose product
line is actually a service, including hotels,
airlines, banks, colleges, and many
others.
7. Types of Retailers
Relative prices
• Discount store is a retail operation that
sells standard merchandise at lower prices
by accepting lower margins and selling at
higher volume.
• Off – price retailer is a retailer that buys at
less – than – regular wholesale prices and
sells at less than retail. Examples are
factory outlets, independents, and
warehouse clubs.
• Independent off – price retailer is an off –
price retailer that is either independently
owned and run or is a division of a large
retail corporation.
8. • Factory outlet is an off – price
retailing operation that is owned and
operated by a manufacturer and that
normally carries the manufacturer’s
surplus, discontinued, or irregular
goods.
• Warehouse club is an off – price
retailer that sells a limited selection
of brand name grocery items,
appliances, clothing, and a
hodgepodge of other goods at deep
discounts to members who pay
annual membership fees.
9. Types of Retailers
Organizational Approach
• Chain stores is two or more outlets
that are commonly owned and
controller
• Franchise is a contractual association
between a manufacturer, wholesaler,
of services organization (a franchisor)
and independent businesspeople
(franchisees) who buy the right to
own and operate one or more units
in the franchise systems.
10. Retailer Marketing Decision
• Segmentation, targeting, differentiation, and
positioning decision
Retail Strategy
Retail segmentation
and Targeting
Store diffrentiation
and positioning
Retail Marketing
MIX
Product & service
assortment
Retail Prices
Promotion
Distribution
Create Value for targeted retail customers
11. The Future of Retailing
• Wheel–of–retailing concept is a concept that
states that new types of retailers usually begin as
low – margin, low – price, low – status operations
but later evolve into higher – priced, higher –
services operations, eventually becoming like the
conventional retailers they replaced.
• Growth of Non-store retailing
• Retail Convergence
• The Rise of mega-retailer
12. Wholesaling
• Wholesaling is all activities involved in selling
goods and services to those buying for resale or
business use.
• Wholesaler is a firm engaged primarily in
wholesaling activities.
• Wholesaler buy mostly from producers and sell
mostly to retailer, industrial consumer, and other
wholesalers. As a result, many of the largest and
most important wholesalers are largely unknown
to final customers. For example : Grainger, its
more than 1,8 million business and institutional
customers across North America. It’s a $6.4
billion business that offer more than 800.000
product.
13. Types of Wholesalers
• Merchant wholesaler is an independently owned
business that takes title to the merchandise it handles.
• Broker is a wholesaler who does not take title to goods
and whose function is to bring buyers and sellers
together and assist in negotiation.
• Agent is a wholesaler who represents buyers or sellers
on a relatively permanent basis, performs only a few
functions, and does not take title goods.
• Manufacturer’s sales branches and offices : is
wholesaling by sellers or buyers themselves rather than
through independent wholesalers.
14. Wholesaler Marketing Decision
• Segmentation, targeting, differentiation, and
positioning decision
Wholesale Strategy
Wholesale
segmentation and
Targeting
Store diffrentiation
and positioning
Wholesale
Marketing MIX
Product & service
assortment
Wholesale Prices
Promotion
Distribution
Create Value for targeted Wholesale customers
