Chapter 12:
Retailers,
Wholesalers, and
Their Strategy
Planning
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Chapter 12 Objectives
When you finish this chapter, you should
1. Understand how retailers plan their
6. Know what progressive wholesalers
marketing strategies.
are doing to modernize their
operations and marketing strategies.
2. Know about the many kinds of
retailers that work with producers and 7. Know the various kinds of merchant
wholesalers as members of channel
wholesalers and agent middlemen and
systems.
the strategies that they use.
3. Understand the differences among the 8. Understand why retailing and
conventional and nonconventional
wholesaling have developed in
retailers—including Internet
different ways in different countries.
merchants and others who accept the
9. See why the Internet is impacting
mass-merchandising concept.
both retailing and wholesaling.
4. Understand scrambled merchandising 10. Understand the important new terms.
and the “wheel of retailing.”
5. See why size or belonging to a chain
can be important to a retailer.
12-2
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Retailing
Price
Location
Key
Economic
Factors
Affecting
Consumers’
Retail Choice
Product Selection
Special Services
Helpful Salespeople
Fairness in Dealing
12-3
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Types of Retailers
Conventional
offerings
Exhibit 12-1
12-4
Singleand
limitedline
stores
Expanded
assortment
and service
Specialty shops and
department stores
Expanded
assortment
and/or reduced
margins/service
Supermarkets, discount
houses, mass-merchandisers,
supercenters
Added
convenience
higher margins
less assortment
Telephone/mail order,
vending machines,
door-to-door, convenience
stores, electronic shopping
Expanded
assortment
reduced margins
more information
Internet
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Focusing on Convenience
Convenience
(Food) Stores
Retail Formats
that Focus on
Convenience
Automatic
Vending
Door-to-Door
Selling
Telephone and
Direct Mail
12-5
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Retailing on the Internet
Still in
Infancy
Competition
will bring
Change
Wide
Assortment
Costs are
Deceptive
New
Convenience
Shopping
Differences
12-6
More
Information
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Retail Chains
Corporate
Chains
Major Types
of Retail
Chains
Cooperative
Chains
Voluntary
Chains
Franchise
Chains
12-7
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
The New Face of Wholesaling
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12-8
Producing Profits
Progress of Fail
New Strategies
Needed to Survive
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Types of Wholesalers
Does wholesaler own
the products?
Yes (merchant wholesaler)
No (agent middleman)
How many functions
does the wholesaler
provide?
Some
functions
All the functions
Agent middlemen
Limited-function
merchant
Wholesalers
Service
merchant
wholesalers
Exhibit 12-5
12-9
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Types of Merchant Wholesalers
General
Merchandise
Rack Jobbers
Catalog
Types
of
Merchant
Wholesalers
Specialty
Cash-and-Carry
Truck
12-10
Single- or
General-Line
Drop-Shippers
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Types of Agent Middlemen
Manufacturers’
Agents
Auction
Companies
Types of
Agent
Middlemen
Other types of
Specialists
12-11
Brokers
Selling
Agents
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Key Terms
Retailing
General Stores
Single/Limited Line Stores
Specialty Shop
Department Stores
Mass-Merchandising
Concept
Supermarkets
Discount Houses
Mass-Merchandisers
Supercenters
Hypermarkets
Convenience (Food) Stores
Automatic Vending
Door-to-Door Selling
Telephone/Direct Mail
Wheel of Retailing
Scrambled Merchandising
Corporate Chain
Cooperative Chains
Voluntary Chains
Franchise Operation
More
12-12
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Key Terms
Wholesaling
Wholesalers
Manufacturers’ Sales Branches
Merchant Wholesalers
Service Wholesalers
General Merchandise
Wholesalers
Single- or General-Line
Wholesalers
Specialty Wholesalers
Limited-Function
Wholesalers
Cash-and-Carry Wholesalers
12-13
Drop-Shippers
Truck Wholesalers
Rack Jobbers
Catalog Wholesalers
Agent Middlemen
Manufacturers’ Agent
Brokers
Export
Import
Selling Agents
Combination Export Manager
Auction Companies
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill