Chapter Thirteen
Retailing, Direct Marketing, and
Wholesaling
Objectives
Describe retailing & wholesaling functions
Categorize retailers
Analyze patterns of U.S. retail history
Identify key retailer strategy elements
Explore impact of the Internet on retailing
Discriminate merchant wholesalers & agents
Describe contributions of wholesalers
Describe contributions of agent intermediaries
Identify key wholesaler strategy elements
Retailing
All business activities concerned with the sale of
goods and services to ultimate consumers.
Classifying Retailers
Type of ownership
Prominent strategy
Classifying Retailers by
Ownership
Independent
Retailers
Corporate
Chain
Retail
franchise
Chain
Store
Ownership
Group
Classifying Retailers by
Strategy
In-Store
Direct
Specialty Stores
Narrow variety
Deep selection
Personalized service
Examples:
Wallpapers to Go
Bookstore
Department Store
Chain operation
Wide variety
Full service
Examples:
Dillard’s
Macy’s
Bloomingdale’s
Supermarkets
Wide variety of food
and nonfood products
Departmentalized
operations
Self-service
Centralized checkout
Examples:
Albertson’s
Safeway
Convenience Stores
Limited variety
Shallow selection
Fast service
Examples:
STOP & GO
7-11
Circle K
Wawa
Other In-Store
General mass merchandiser
Catalog showroom
Warehouse club
Specialty mass merchandiser
Off-price retailer
Category superstore
Direct Marketing
Mail-order/direct
Door-to-Door
Vending
e-tailing
Internet Retailing:
Advantages
Not location bound
Interactive
Convenient
24x7x52
Shopbots
Internet Retailing:
Disadvantages
Examination
Privacy
The Wheel of Retailing
Conventional
department
stores
High: status,
margin, price
Prestige specialty
stores
Mass
merchandise
retailers
Low: status, margin
price, service
Wholesale clubs
The Dialectic View of Retail
Development
DEPARTMENT STORE
Thesis
DISCOUNT STORE
Antithesis
DISCOUNT
DEPT. STORE
Synthesis
Patterns of retail development:
The General Specific General
Model (GSG)
General Stores
Population growth
Cities
G
Specialty Stores
Population growth
Cities
General Stores
(containing specialty stores)
S
Retail Marketing Mix
PROMOTION
PRICE
PLACE/
DISTRIBUTION
PRODUCT
Key Retail Issues
Merchandise assortment
Location
Atmospherics
Customer Service
Store image
Database management
Internet strategy
Classifying Wholesalers
Merchant Wholesaler
Take title
~ 80% of all wholesalers
National or regional
Agents
No title to goods
Facilitators
Work on commission
Market experts
Wholesale Management
Strategies
Strategic Alliances
Selecting Target Markets/
Create Assortments
Physical Distribution
Review
Describe retailing & wholesaling functions
Categorize retailers
Analyze patterns of U.S. retail history
Identify key retailer strategy elements
Explore impact of the Internet on retailing
Discriminate merchant wholesalers & agents
Describe contributions of wholesalers
Describe contributions of agent intermediaries
Identify key wholesaler strategy elements