Phillip Kevin Lane

Kotler • Keller
Marketing Management • 14e
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Managing Retailing,
Wholesaling, and Logistics
Discussion Questions
1. What major types of marketing
intermediaries occupy this sector?
2. What marketing decisions do these
marketing intermediaries make?
3. What are the major trends with
marketing intermediaries?
4. What does the future hold for private
label brands?

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Retailing

All the activities in selling goods or

services directly to final consumers for
personal, nonbusiness use.

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 Types of Retailers
Limited Service Self-Service

Full Service

Self-Selection
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 Major Types of Store Retailers
Specialty store The Limited, The Body Shop
Department store JCPenney, Bloomingdales
Supermarket Kroger, Safeway
Convenience store 7-Eleven, Circle K
Drug store CVS, Walgreens
Discount store Wal-Mart, K-Mart
Extreme value or hard-
Aldi, Lidl, Family Dollar, Dollar General
discount store
Off-price retailer Factory outlets, TJ Ma23, Costco
Superstore Staples, Jewel-Osco, Carrefour
Catalog showroom Inside Edge Ski and Bike
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Nonstore Retailing
Automatic Vending

Direct Selling

Direct Marketing Buying Service

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 Corporate Retailing and Franchising
Corporate Retailing Organizations

• Corporate Chain store

• Voluntary chain
• Retailer cooperative
• Consumer cooperative
• Franchise organization
• Merchandising conglomerate
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 Franchising
Franchisee Pays:
Royalty Payments
Start-up / Licensing Fee

Franchisee Receives:
Well-known brand name
Developed system
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 New Retail Environment
Store / Non-store Competition

Global Retailers

New Retail Forms Giant Retailers

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Marketing Decisions
Target Market

Prices
Channels

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 Marketing Decisions
Communications

Atmosphere

Product Assortment
Location
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Private Labels

Lower Costs:
• Development
• Advertising
• Sales promotions
• Distribution

Higher Profit Margins

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 Top 10 Private Label Categories – 2009
(billions of dollars)

Milk $8.1
Bread & Baked Goods $4.2
Cheese $3.5
Medications $3.4
Paper Products $2.6
Eggs – Fresh $1.9
Fresh Produce $1.5
Packaged Meat $1.5
Pet Food $1.5
Unprepared Meat $1.4
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Wholesaling

All the activities in selling goods and

services to those who buy for resale or
business use.

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 Types of Wholesalers
Merchant Take title to merchandise; Full-service and
wholesalers limited-service jobbers and distributors
Carry stock, maintain a sales force, offer credit,
Full-service
make deliveries, and provide management
wholesalers
assistance.
Limited line of fast-moving goods. Truck
Limited-service
wholesalers, drop shippers, rack jobbers, mail-
wholesalers
order wholesalers
Brokers and Facilitate buying and selling; earn 2% - 6%
agents commission on selling price.
Specialized Agricultural assemblers, petroleum bulk plants,
wholesalers and actions companies.
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 Wholesaler Functions
Selling and Promoting

Warehousing

Bulk breaking
Buying and assortment building
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Wholesaler Functions
Market information

Transportation

Management Services

Risk bearing
Financing
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 Market Logistics
Supply Chain Management

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 Market-Logistics Objectives
Integrated Logistics Systems

Transportation Modes

Tradeoffs
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Market-Logistics Decisions
Order Processing Warehouse Locations

Inventory Levels Transportation Mode

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Determining Optimal Order Quantity

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Organizational Lessons

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