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 Learning Objectives
11-1. Explain the role of retailers in the distribution
channel and describe the major types of retailers.
11-2. Describe the major retailer marketing
decisions.
11-3. Discuss the major trends and developments in
retailing.
11-4. Explain the major types of wholesalers
and their marketing decisions.

Copyright © 2017 Pearson Education, Inc. 11 - 2

 First Stop: Walmart
The World’s Largest Retailer-the World’s Largest Company

“Save money.
Live better.”
Says Walmart’s
CEO, “We’re
obsessed with
delivering value
to customers.”

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 Learning Objective 11-1
Explain the role of retailers in the distribution
channel and describe the major types of retailers.

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 Retailing
• Activities involved in selling goods or services
directly to consumers for their personal use
• Retailer: Business whose sales come primarily
from retailing

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 Retailing
• Shopper marketing: Focusing the entire
marketing process toward turning shoppers into
buyers as they approach the point of sale
• Omni-channel retailing: Creating a seam-less
cross-channel buying experience that integrates
in-store, online, and mobile shopping

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 Types of Retailers
• Retailer classification can be based on
• Amount of service offered
• Breadth and depth of the product lines
• Relative prices charged
• Way they are organized

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 Amount of Service
Self-service retailers (e.g., Save-A-Lot, ALDI’s)
• Serve customers who are willing to perform their own locate-
compare-select process

Limited-service retailers (e.g., department stores)

• Carry more shopping goods about which customers need
information
• Provide more sales assistance

Full-service retailers (Saks Fifth Avenue, Nordstrom)

• Carry more specialty goods
• Assist customers in every phase of the shopping process

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 Major Store Retailer Types
Type Type description
Specialty store • Carries a narrow product line with a deep assortment
Department • Carries several product lines
store • Each line is operated as a separate department
Supermarket • Large, low-cost, low-margin, high-volume, self-service operation
Convenience • Carries a limited line of high-turnover convenience products at
store slightly higher prices

Discount store • Sells goods at lower prices with lower margins and higher
volumes
Off-price • Sells merchandise bought at less-than-regular wholesale prices
retailer and sold at less than retail
Superstore • Very large store for routinely purchased items
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 Major Store Retailer Types

Discounter Dollar
General is the
nation’s largest
small-box
discount retailer.

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 Major Types of
Retail Organizations
Type Description
Corporate chain • Two or more outlets that are commonly owned
and controlled (Macy’s, Target, Kroger)

Voluntary chain • Wholesaler sponsored independent retailers

engaged in group buying and merchandising (
IGA-Independent Grocers Alliance, True Value,
Western Auto)
Retailer cooperative • Group of independent retailers who jointly
establish a central buying organization and
conduct joint promotion efforts (Ace Hardware,
Associated Grocers, Inc.)
Franchise • Contractual association between a franchisor and
organization franchisees (Subway, 7-Eleven, Jiffy Lube)

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Voluntary Chain Example

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Learning Objective 11-1 Summary
• Retailing - selling goods or services directly to final
consumers
• Shopper marketing - turning shoppers into buyers
• Omni-channel retailing - integrates in-store, online,
and mobile shopping
• Retailers classified by amount of service, product
line sold, and relative prices
• Corporate and contractual retail organizations

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 Learning Objective 11-2
Describe the major retailer marketing decisions.

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Figure 11.1 - Retailer
Marketing Strategies

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 Segmentation, Targeting, Differentiation,
and Positioning Decisions
• Target markets must be segmented and
defined.
• Retailers then decide how to differentiate and
position themselves in those markets.

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 Segmentation, Targeting, Differentiation,
and Positioning Decisions
Which Wich Superior Sandwiches succeeds by
positioning itself strongly away from larger
competitors.

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 Product Assortment and
Services Decision
• Retailers must determine three product
variables.
• Product assortment
• Services mix
• Store atmosphere

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 Price Decision
• Price policy must fit the retailers’
• Target market and positioning
• Product and service assortment
• Competition
• Economic factors
• Retailers practice either
• Everyday low pricing (EDLP)
• High-low pricing

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 Promotion Decision
• Retailers use various combinations of the
five promotion tools:
• Advertising
• Personal selling
• Sales promotion
• Public relations (PR)
• Direct and social media marketing

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 Place Decision
• Locations should be accessible to the target
market in areas that are consistent with the
retailer’s positioning.
• Shopping center: Group of retail businesses
built on a site that is planned, developed,
owned, and managed as a unit

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 Types of Shopping Centers

Community Shopping
Regional Center (15-50) Neighborhood
Shopping Shopping
Center (50+) Center (5-15)

Lifestyle Center (upscale-small)

Power Center
(major retailers)

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Learning Objective 11-2 Summary
• Major retailer marketing decisions
• Segmentation and targeting
• Store differentiation and positioning
• Retail marketing mix decisions
• Product and services assortment
• Price, promotion, and place

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 Learning Objective 11-3
Discuss the major trends and developments in
retailing.

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 Retailing Trends and Developments

• Tighter consumer spending 紧缩的消费支出

• Impact of the Great Recession on consumers 大衰退
对消费者的影响
• Changed spending patterns 改变支出模式
• Impact of the Great Recession on retailers 大衰退对
零售商的影响
• Cost-cutting, price promotions, bankruptcy 削减成本、价
格促销、破产
• New value pitches in positioning 定位方面的新价值间距
• New retail forms, shortening retail life cycles,
and retail convergence 新的零售形式、缩短零售生命周期
和零售融合
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 Retailing Trends
and Developments
• Rise of megaretailers 巨型零售商的崛起
• Offer better merchandise selections, good service,
and strong price savings to consumers 为消费者提供
更好的商品选择、良好的服务和强大的价格节约
• Have shifted the balance of power between
retailers and producers 改变了零售商和生产商之间的权力
平衡

• Growth of direct, online, mobile, and social

media retailing 直接、在线、移动和社交媒体零售的增长
• Availability of a variety of nonstore alternatives 各
种非商店替代品的可用性

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 Retailing Trends
and Developments

Showrooming is the
now common
practice of viewing
products in stores
but buying them
online.

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 Retailing Trends
and Developments
• Growing importance of retail technology
• 零售技术的重要性日益提高
• Produce better forecasts (Logicinfo, NetSuite) 生成
更好的预测（逻辑信息、网络套装）
• Control inventory costs (RFID, just-in-time) 控制库存
成本（ RFID ，及时）
• Interact electronically with suppliers (intranet) 与供
应商进行电子交互（内联网）
• Send information between stores (EDI) 在商店之间发
送信息 （ EDI ）
• Sell to customers within stores (kiosks) 销售给商店内
的客户（展台）
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 Retailing Trends
and Developments
• Green retailing 绿色零售
• Promoting more environmentally responsible
products 推广更环保的产品
• Launching programs to help customers be more
responsible (e.g., hotels) 启动计划，帮助客户更负责任（例如酒店）
• Working with channel partners to reduce their
environmental impact 与渠道合作伙伴合作，减少对环境的影响
• Global expansion of major retailers 主要零售商的全
球扩张
• Escaping saturated home markets 逃离饱和的国内市场
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Learning Objective 11-3 Summary
• Major trends and developments in retailing
• New economic realities – thrift-minded consumers
• New retail forms and retail convergence
• Rise of megaretailers
• Growth of direct, online, mobile, and social media
retailing and retail technology
• Green retailing and global expansion of major
retailers

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 Learning Objective 11-4
Explain the major types of wholesalers and
their marketing decisions.

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 Wholesaling
• Involves all the activities in selling goods and
services to those buying for resale or business
use 涉及向购买转售或商业用途的人销售商
品和服务的所有活动
• Wholesaler: A firm engaged primarily in
wholesaling activities
• 批发商：主要从事整用活动的公司

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 Wholesaling

Many of the nation’s

largest and most
important wholesalers
—like Grainger—are
largely unknown to
final consumers.

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Channel Functions Performed
by Wholesalers
Buying and
Selling and
Assortment Bulk Breaking
Promoting
Building

Warehousing Transportation Financing

Management
Market
Risk Bearing Services and
Information
Advice

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 Types of Wholesalers
Type Description
Merchant • Independently owned wholesale businesses that take title
wholesalers to all merchandise handled
• Full-service wholesalers
• Limited-service wholesalers

Brokers & Agents • Do not take title to goods

• Facilitate buying and selling
• Earn a commission based on selling price
• Perform only a few functions
• Represent buyers or sellers on a relatively permanent
basis

Manufacturers’ • Wholesaling by sellers or buyers themselves rather

and retailers’ than through independent wholesalers
branches and
offices

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Types of Full-Service Wholesalers
Wholesale merchants 批发商
• Sell primarily to retailers 主要销售给零售商
• Provide a full range of services 提供全方位的服务
• Types
• General merchandise wholesalers (several product lines) 一般
商品批发商（若干产品线）
• General line wholesalers (1-2 lines in depth) 一般线批发商（ 1-2
线深度）
• Specialty wholesalers (specialty goods) 专业批发商（专业商品）

Industrial distributors
• Sell to manufacturers, not to retailers 卖给制造商，而不是零售商
• Carry stock 携带库存
• Offer credit 提供积分
• Provide delivery 提供交货
• May carry a broad range of merchandise, a general line, or a specialty line
• 可携带广泛的商品、一般线或专用线

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 Types of
Limited-Service Wholesalers
Types Description
Cash-and-carry • Carry a limited line of fast-moving goods
wholesalers 现金和携带批 • Sell to small retailers for cash
发商 • 携带有限的快速运输货物
• 以现金出售给小型零售商

Truck wholesalers 卡车批 • Perform primarily a selling and delivery function

发商 • 主要执行销售和交付功能
Drop shippers 丢弃发货人 • Do not carry inventory or handle the product
• 不要携带库存或处理产品
Rack jobbers • Price the goods 为商品做价
• Keep goods fresh 保持商品新鲜
• Set up point-of-purchase displays 设置购买点显示
• Keep inventory records 保留库存记录

Producers’ cooperatives • Farmer-owned members

生产者合作社 • Assemble farm produce for sale in local markets
在当地市场组装农产品

Mail-order or Web • Send catalogs to or maintain Web sites for retail,

wholesalers 邮购或网络批 Copyrightindustrial,
© 2017 Pearsonand institutional
Education, Inc. customers 向零售、工 11 - 37
 Types of Agents
Manufacturers’ agents 制造商代理
• Represent two or more manufacturers of complementary lines
代表两个或多个互补生产线制造商

Selling agents 销售代理

• Have contractual authority to sell a manufacturer’s entire output
拥有销售制造商全部产出的合同授权

Purchasing agents 采购代理

• Have a long-term relationship with buyers and make purchases
for them 与买家建立长期关系，并为他们购买

Commission merchants 佣金商人

• Take physical possession of products and negotiate sales (mostly
agricultural) 实际占有产品并洽谈销售（主要是农业）

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 Types of Manufacturers’ and
Retailers’ Branches and Offices
• Sales branches and offices 销售分支机构和办事处
• Set up by manufacturers to improve inventory
control, selling, and promotion 由制造商设置，以改善库存
控制、销售和推广
• Sales branches carry inventory. 销售分支机构携带库存
• Sales offices do not carry inventory. 销售办事处不携带库
存。

• Purchasing offices
• Role similar to that of brokers or agents 与经纪人或代
理人的角色相似
• Part of the buyer’s organization 买方组织的一部分
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Figure 11.2 – Wholesaler
Marketing Strategies

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 Trends in Wholesaling
• Need for greater efficiency 需要更高的效率
• Demands for lower prices 要求降低价格
• Sorting out suppliers who are not adding value
based on cost and quality 对未根据成本和质量增加
价值的供应商进行分类
• Blurring distinction between large retailers
and wholesalers 模糊大型零售商和批发商之间的区别
• Increased use of technology to contain costs
and boost productivity. 增加技术的使用，以控制成
本和提高生产力。
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 Learning Objective 11-4 Summary
• Wholesaling - selling goods or services to those
buying for the purpose of resale or business use
• 整用 - 向为转售或商业用途而购买商品或服务的人出售商品或服务

• Wholesalers fall into three groups:

• Merchant wholesalers
• Brokers and agents
• Manufacturers’ and retailers’ branches and offices
• 批发商分为三组： 商户批发商 经纪人和代理人 制造商和零售商的分支机构和办事处

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 Learning Objectives
11-1. Explain the role of retailers in the
distribution channel and describe the
major types of retailers.
11-2. Describe the major retailer marketing
decisions.
11-3. Discuss the major trends and
developments in retailing.
11-4. Explain the major types of wholesalers
and their marketing decisions.
Copyright © 2017 Pearson Education, Inc. 11 - 43
Copyright © 2017 Pearson Education, Inc. 11-44