Managing Retailing,

Wholesaling,and Logistics
Chapter 18
Retailing
Retailing
◦ All the activities in selling goods or
services directly to final consumers for
personal, nonbusiness use
Retailer/retail store
◦ Any business enterprise whose sales
volume comes primarily from retailing
Retailing
 Types of Retailers
◦ Major retailer type (Specialty store, Department store,
Supermarket, Convenience store, Discount store, off-price
retailer, superstore, catalog showroom)
◦ Levels of retail service (self-service, self-selection,
limited service, full service)
 Nonstore Retailing
◦ Direct selling, Direct marketing, Automatic vending,
Buying service
 Corporate Retailing
◦ Major Types of Corporate Retail Organizations (Corporate
chain store, Voluntary chain, Retailer cooperative,
Franchise Organization, Merchandising conglomerate)
Types of retailers
Store retailers:

• Specialty store • Discount store

• Department store • Extreme value or hard-
• Supermarket discount store
• Convenience store • Off-price retailer
• Drug store • Superstore
• Catalog showroom
 Types of retailers
Levels of service for store retailers

 Self-service
 Self-selection
 Limited service
 Full service
Types of retailers
Nonstore retailing
◦ Direct marketing
◦ Direct selling
◦ Automatic vending
◦ Buying services
Corporate Retailing and
Franchising
Franchises are distinguished by three
characteristics:
◦ The franchisor owns a trade or service
mark and licenses it to franchisees in
return for royalty payments
◦ The franchisee pays for the right to be
part of the system
◦ The franchisor provides its franchisees
with a system for doing business
TRENDS IN RETAILING

 New retail forms and combinations

 Growth of giant retailers
 Growth of intertype competition
 Emergence of fast retailing
 Decline of middle-market retailers
 Growing Investment in Technology
Global presence of major retailer
 The Modern Retail Marketing
Environment
Role of technology
◦ Retailers use technology
for business operations,
to enhance the
consumer shopping
experience inside the
store, and Internet/social
media strategies
Marketing Decisions

• Target market • Services

• Channels • Store atmosphere
• Product • Store activities and
assortment experiences
• Procurement • Communications
• Prices • Location
Product Assortment
Develop product differentiation

 Feature exclusive national brands

 Feature private-label merchandise
 Feature distinctive-merchandise events
 Feature ever-changing merchandise
 Feature the latest merchandise first
 Offer merchandise-customizing services
 Offer a highly targeted assortment
Service
Retailers must decide on the services mix to offer customers:

Prepurchase services

Postpurchase services

Ancillary services
Location

Central Regional
business shopping
districts centers

Community
Stand-alone shopping
stores centers

Location within Shopping

a larger store strips
Private Labels
A private-label brand is a brand that
retailers and wholesalers develop
◦ Role of private labels
◦ Private-label success factors
Wholesalling
Wholesaling includes all the activities in
selling goods or services to those who buy
for resale or business use
Major wholesaler types

Merchant Full-service
wholesalers wholesalers

Limited-
Specialized
service
wholesalers
wholesalers

Manufacturers’/
Brokers and
retailers’
agents
branches/offices
 Wholesaler functions

• Selling and promoting• Transportation

• Buying and • Financing
assortment building • Risk bearing
• Bulk breaking • Market information
• Warehousing • Management services
and counseling
Logistics
Supply chain management (SCM)
Market logistics
Integrated logistics systems (ILS)
Lean manufacturing
Market Logistics planning
1. Deciding on company’s value
proposition
2. Selecting best channel design and
network strategy
3. Developing operational excellence
4. Implementing solution
Market-Logistics Decisions
Order processing: how should we
handle orders?
Warehousing: where should we locate
our stock?
Inventory: how much stock should we
hold?
Transportation: how should we ship
goods?