Good Governance and Social Responsibility Report-Chapter Xii

Chapter Xiii : 

Chapter Xiii Understanding Retailing and Wholesaling

Retailing : 

Retailing All activities involved in selling goods or services directly to final consumers for their personal, non-business use. RETAILER A business whose sales come primarily from retailing.

2 types of retailing : 

2 types of retailing Store Retailing Supermarkets, Department Stores, Restaurants… Non-store retailing via Internet, door-to-door sales, vending machines, mail-order business…

classifications1. Amount of service : 

classifications1. Amount of service

2. Product line sold : 

2. Product line sold Specialty Store carries a narrow product line with a deep assortment within that line.

Slide 6: 

Department Store carries a wide variety of product lines-typically clothing, home furnishing and household goods; each line is operated as a separate department.

Slide 7: 

Supermarkets large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of food, laundry, and household products.

Slide 8: 

Convenience Store small, located bear a residential area, that is open long hours 7 days a week and carries limited line of high-turnover convenience goods.

Slide 9: 

Superstore A store much larger than a regular supermarket that carries a large assortment of routinely purchased food products, nonfood items, and services. a) Category killer Giant specialty store that carries a very deep assortment of a particular line and is staffed by knowledge employees b) Supercenters combined supermarket and discount store c) Hypermarkets combined supermarket, discount and warehouse retailing

Slide 10: 

a) Factory outlet An off-price retailing that is owned and operated by a manufacturer and at normally carries the manufacturer’s surplus, discontinued, or irregular foods. b) Independent off- price An off price retailer that is either owned and run by entrepreneur or is a division of a larger retail corporation c) Warehouse club An off-price retailer that sells a legitimate selection of brand name grocery items, appliances, clothing, and a hodgepodge of other goods at deep discounts to members who pay annual membership fees. Off-price retailer buys at less-than-regular wholesale prices and sells at less than retail examples are factory outlets, independent and warehouse clubs

3. Relative prices : 

3. Relative prices Discount Store A retail institution that sells standard merchandized at lower prices by accepting lower margins and selling at higher volumes. Off-price retailer buys at less-than-regular wholesale prices and sells at less than retail examples are factory outlets, independent and warehouse clubs

4. Organizational approach : 

4. Organizational approach Chain stores Two or more outlets that are owned and controlled in common have centrals buying and merchandizing, and sells similar lines of merchandise.

Slide 13: 

Franchise A contractual association between a manufacturer, wholesale, or service organization (a franchiser) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system.

Retailer marketing decisions : 

Retailer marketing decisions

Product assortment and services decisions : 

Product assortment and services decisions 3 Major Product Variables 1. Product Assortment 2. Services Mix 3. Store Atmosphere

Target market and positioning decision : 

Target market and positioning decision Retailers first must define the markets and then decide how will position themselves in these markets.

Product assortment and services decision : 

Product assortment and services decision The retailer’s product assortment should differentiate the retailer while matching target expectations. The service mix can also help set one retailer apart from another. The store must plan an atmosphere that suits the target market and moves customers to buy.

Price decision : 

Price decision A retail’s price policy must fit its target market and positioning, product and service assortment, and competition.

Promotion decision : 

Promotion decision Retailers use any or all of the promotion tools-advertising, personal selling, sales promotion, public relations and direct marketing to reach consumers.

Place Decision : 

Place Decision Retailers often point three critical factors in retailing success: location, location, location .

Future of retailing : 

Future of retailing Retailers operate in a harsh and fast changing environment, which offers threats as well as opportunities. Growth of non-store retailing Retail convergence Rise of Megaretailers

Wholesaling : 

Wholesaling 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. Merchant wholesaler Independently owned business that take title to the merchandise it handles.

Functions of wholesaling : 

Functions of wholesaling Selling and promotion Buying and assortment building Bulk-breaking Warehousing Transportation Financing Risk bearing Market information Management services and advices

Types of wholesaler : 

Types of wholesaler Full-service wholesaler Wholesale merchants  Industrial distributors Limited-service wholesalers  Cash-and-carry wholesalers Truck wholesalers (or truck jobbers)  Drop shippers Rack jobbers  Producers’ cooperatives Mail-order wholesalers

Slide 25: 

Brokers and agents Brokers Agents Manufacturers’ agents Selling agents Purchasing agents Commission merchants Manufacturers’ and retailers’ branches and offices Sales branches and offices  Purchasing officers

wholesaler marketing decisions : 

wholesaler marketing decisions

Trends in wholesaling : 

Trends in wholesaling As the wholesaling industry moves into the twenty-first century, it faces considerable challenges.