PRINCIPLES OF

MARKETING
COURSE OUTLINE
Unit I. Understanding Marketing
Module 1 Marketing Concepts
2 Assessing Competitive Advantage
3 Role of Research in Marketing
4 Customer Relationship Management
5 Consumer Behaviour
6 Segmenting, Targeting, and Positioning
Unit 2 The Marketing Mix
7 Developing the Product
8 Pricing Strategies
9 Distribution Strategies
10 Promotion Strategies
11 Global Marketing
12 Managing the Marketing Effort
13 Creating and Presenting a Marketing Plan
Definitions
Retailing
All activities involved in selling goods or services directly
to final consumers for their personal, nonbusiness use.
Retailer
Business whose sales come primarily from retailing.

13 - 4
 Retailer – The Gap
Retailers will often use
celebrity spokespeople to
endorse their brand

13 - 5
Marketing in Action
Definitions
Wholesaling
All activities involved in selling goods and services to
those buying for resale or business use.
Wholesaler
A firm engaged primarily in wholesaling activity.

13 - 6
Retailing
Types of Retailers
Specialty Stores Discount Stores
Department Stores Convenience
Supermarkets Stores
Off-Price Retailers

• Superstores
13 - 7
Retailing
 Self-service retailers
Retailers Are  Customers are willing to self-

Classified By:
serve to save money
 Convenience stores and fast
moving shopping goods
 Limited-service retailers
Amount of service  Most department stores
Product lines  Full-service retailers
 Salespeople assist customers in
Relative prices every aspect of shopping
Organizational approach experience
 High-end department stores and
specialty stores

13 - 8
Retailing
Retailers Are
 Specialty stores
 Narrow product lines with deep

Classified By: assortments

 Department stores
 Wide variety of product lines
 Supermarkets
Amount of service
 Convenience stores
Product lines  Limited line
 Superstores
Relative prices  Food, nonfood, and services
Organizational approach  Category killers
 Giant specialty stores

13 - 9
Retailing
Retailers Are
 Corporate chain stores
 Commonly owned / controlled

Classified By:  Voluntary chains

 Wholesaler-sponsored groups of
independent retailers
Amount of service  Retailer cooperatives
 Groups of independent retailers
Product lines who buy in bulk
 Franchise organizations
Relative prices  Based on something unique
Organizational approach  Merchandising conglomerates
 Diversified retailing lines and forms
under central ownership

13 - 10
Wholesaling
Wholesalers add value by performing the
following functions:
Selling and promoting
Buying and assortment building
Bulk-breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management services and advice

13 - 11
Wholesaling
Types of  Full-service wholesalers

Wholesalers  Wholesale merchants

 Industrial distributors
 Limited-service wholesalers
Merchant Wholesalers  Cash-and-carry wholesalers
 Truck wholesalers (jobbers)
Brokers and Agents  Drop shippers
Manufacturers’ and  Rack jobbers
 Producer’s cooperatives
retailers’ branches and  Mail-order wholesalers
offices

13 - 12
Wholesaling
Types of  Brokers and agents do not take

Wholesalers title of the goods.

 Brokers
 Bring buyers and sellers
Merchant Wholesalers together and assist in
Brokers and Agents negotiation
 Agents
Manufacturers’ and  Manufacturers’ agents
retailers’ branches and  Selling agents
offices  Purchasing agents
 Commission merchants

13 - 13
Wholesaling
Types of  Sales branches and offices

Wholesalers  Branches carry inventory:

lumber, auto equipment, parts
 Offices do not carry inventory:
dry goods
Merchant Wholesalers  Purchasing officers
Brokers and Agents  Perform roles similar to brokers
and agents; however, these
Manufacturers’ and individuals are employees of the
retailers’ branches and organization
offices

13 - 14
Wholesaling
Trends in Wholesaling
Price competition is still intense
Successful wholesalers must add value by increasing
efficiency and effectiveness
The distinction between large retailers and wholesalers
continues to blur
More services will be provided to retailers
Many wholesalers are going global

13 - 15