1 16

Managing
Retailing,
Wholesaling,
and Logistics
 Chapter Questions

What major types of marketing intermediaries
occupy this sector?

What marketing decisions do these marketing
intermediaries make?

What are the major trends with marketing
intermediaries?

What does the future hold for private label
brands?

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 Retailing

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 Table 16.1 Major Retailer Types

Specialty store 
Discount store

Department store 
Off-price retailer

Supermarket 
Superstore

Convenience store 
Catalog showroom

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 Levels of Retail Service

Self service

Self selection

Limited service

Full service

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 Nonstore Retailing

Direct selling

Direct marketing

Automatic vending

Buying service

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-6

 Table 16.2 Major Types of Corporate
Retail Organizations

Corporate chain store

Voluntary chain

Retailer cooperative

Consumer cooperative

Franchise organization

Merchandising conglomerate

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 Franchising System

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

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-8

 Changes in the
Retail Environment

New retail forms and combinations

Competition between store-based and non-
store-based retailing

Growth of giant retailers

Decline of middle market retailers

Growing investment in technology

Global profile of major retailers

Growth of shopper marketing

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-9

 Retailers’ Marketing Decisions

Target market 
Store atmosphere

Product assortment 
Store activities

Procurement 
Store experiences

Prices 
Communications

Services 
Location

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-10

 Retailer Services Mix

Prepurchase services

Postpurchase services

Ancillary services

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 Store Atmosphere
and Experiences

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 Tips for Increasing Sales
in Retail Space

Keep shoppers in the store

Honor the transition zone

Don’t make them hunt

Make merchandise available to the reach and
touch

Note that men do not ask questions

Remember women need space

Make checkout easy

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-13

 Location Decision

Central business districts

Regional shopping centers

Community shopping centers

Shopping strips

Location within a larger store

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 Private Label Brands

Private labels are ubiquitous

Consumer accepts private labels

Private-label buyers come from all
socioeconomic strata

Private labels are not a recessionary
phenomenon

Consumer loyalty shifts from manufacturers to
retailers

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 Wholesaling Functions


Selling and 
Transportation
promoting 
Financing

Buying and 
Risk bearing
assortment building 
Market information

Bulk breaking 
Management

Warehousing services and
counseling

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-16

 Major Wholesaler Types

Merchant

Full-service

Limited-service

Brokers and agents

Manufacturers

Specialized

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 Supply Chain Management

Supply chain management starts before

physical distribution and means strategically
procuring the right inputs (raw materials,
components, and capital equipment);
converting them efficiently into finished
products; and dispatching them to the final
destinations.

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 Market Logistics Planning

Deciding on the company’s value proposition
to its customers

Deciding on the best channel design and
network strategy

Developing operational excellence

Implementing the solution

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-19

 What are
Integrated Logistics Systems?

An integrated logistics system (ILS)

includes materials management, material
flow systems, and physical distribution,
aided by information technology.

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 Market Logistics

Sales forecasting 
In-plant

Distribution warehousing
scheduling 
Shipping-room

Production plans processing

Finished-goods

Outbound
inventory decisions transportation

Packaging

Field warehousing

Customer delivery
and servicing

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-21

 Market Logistics Decisions

How should orders be handled?

Where should stock be located?

How much stock should be held?

How should goods be shipped?

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 Figure 16.1 Determining Optimal
Order Quantity

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 Transportation Factors

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 For Review

What major types of marketing intermediaries
occupy this sector?

What marketing decisions do these marketing
intermediaries make?

What are the major trends with marketing
intermediaries?

What does the future hold for private label
brands?

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16-25