MARKETING MANAGEMENT
Chaudhry Muhammad Nadeem Faisal
Cell: 0305-7761061
Email: faisal.uk@live.co.uk
B-Email: info@littlemichael.co.uk
Url: www.littlemichael.co.uk/faisal/index.htm
BI: www.ayaantraders.com.bi/index.php
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
 Retailing
 Wholesaling
 Market Logistics
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
Retailing
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
Retailing
Includes all the activities involved in selling goods or
services directly to final customers for their personal,
non business use. A retailer is any business enterprise
whose sales volume comes primarily from retailing.
Types
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
of
Retailing:
Store
Retailing:
8
categories
1. Specialty Stores: Carry a narrow product line with a
deep assortment within the line. Ex: Athlete's Foot, Tall
Men, The Limited.
2. Department Stores: Carry several product lines. Ex:
Sears, J.C. Penney, Bloomingdale's.
3. Supermarkets: Relatively large, low-cost, low-margin,
high-volume, self-service operations designed to serve
the consumer's total needs for food, laundry, &
household maintenance products. Ex: Kroger, Safeway,
Food Lion.
Managing Retailing, Wholesaling &
Market logistics
4. Convenience Stores: Relatively small stores located near
residential areas, opened long hours seven days a week.
Ex: 7-eleven
5. Discount Stores: Sell standard merchandise at lower
prices by accepting lower margins & selling higher
volumes. Ex: Wal-Mart, H.E.B., Kmart.
6. Off-Price Retailers: Buy at less than regular wholesale
prices & charge consumers less than retail.
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng

Factory outlets: Owned & operated by manufacturers &
normally carry the manufacturer's surplus, discontinued
or irregular goods. Ex: Ralph Lauren, Liz Claiborne.
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Independent off-price retailers: Owned & run either by
entrepreneurs or by division of larger retail corporations.
Ex: TJX Cos.
Managing Retailing, Wholesaling &
Market logistics
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng

Warehouse clubs: Sell a limited number of brand-name
grocery items, appliances, clothing, etc. at deep
discounts.
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Operate in huge, low-overhead, warehouse-like facilities.
No credit cards. No deliveries. Ex: Sam's Club.
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Superstores: 35,000 square feet selling space. Meets
consumer's total needs. Ex: Petsmart, Home Depot,
Staples.
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Catalog Showrooms: Sell a broad selection of highmarkup, fast-moving, brand-name goods at discount.
Ex: Service Merchandise.
Managing Retailing, Wholesaling &
Market logistics
Retail life cycle: emerges, grows, matures, declines
Wheel-of-retailing hypothesis:
New store types emerge to challenge old store types.
New store types emerge to meet widely different consumer
preferences for service levels & specific services.
Retailers can position themselves as offering one of four
levels of service:
Self-service.
Blekinge Institute of Technology
SE-371 79 Karlskrona

Self-selection. Customers can ask for assistance. Higher
operating expenses than the previous one.

Limited-service. More sales assistance because
customers need more info.

Full-service. Provides salespeople who are ready to
assist in every phase of the locate-compare-select
process.
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
Non store Retailing: 4 major categories
1. Direct Selling: Oldest one. 3 types:
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng

One-to-one selling: A salesperson visits & tries to
sell products to a single potential user. Ex: Avon,
Electrolux.
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One-to-many: A salesperson goes to the house of a
host who has some people in the house. Ex:
Tupperware.
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Multilevel: A variant of direct selling in which
companies recruit independent businesspeople who
act as distributors for their products. These
distributors in turn recruit & sell to sub-distributors,
who eventually recruit others to sell their products,
usually in customer homes. Ex: Amway, NuSkin.
Managing Retailing, Wholesaling &
Market logistics
2. Direct Marketing: Includes telemarketing, TV direct
response marketing & electronic shopping. Ex: 1-800FLOWERS, Home Shopping Network.
3. Automatic Vending: Vending machines offer 24 hour
selling, self-service & unhandled merchandise. Ex:
COKE, Pepsi.
4. Buying Service: A scoreless retailer serving specific
clienteles- usually the employees of large organizations,
such as schools, hospitals, unions, & government
agencies. Ex: United Buying Service
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
Retail Organizations
Achieve many economies of scale, such as greater
purchasing power, wider brand recognition, & better
trained employees. The major types of retail
organizations are:
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
1. Corporate Chain Stores: Two or more outlets that are
commonly owned & controlled, employ central buying
& merchandising, & sell similar lines of merchandise.
Their size allows them to buy in large quantities. Ex:
Tower Records, Pottery Barn.
2. Voluntary Chain: Wholesaler-sponsored group of
independent retailers engaged in bulk buying &
common merchandising. Ex: Independent Grocers
Alliance.
3. Retailer Cooperative: Independent retailers who set up a
central buying organization & conduct joint promotion
efforts. Ex: Associated Grocers, ACE.
Managing Retailing, Wholesaling &
Market logistics
4. Consumer Cooperative: A retail firm owned by its
customers. Started by community residents. Ex: local
consumer cooperatives.
5. Franchise Organization: Contractual association between
a franchiser & franchisees. Normally based on some
unique product, service or method of doing business.
Prominent in fast foods, video stores, health/fitness
centers, auto rentals. Ex: McDonald's, Pizza Hut, Taco
Bell, Burger King.
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
6. Merchandising Conglomerate: A free-form corporation
that combines several diversified retailing lines & forms
under central ownership , along with some integration of
their distribution-&-management function Ex: F.W.
Woolworth, Kids Mart.
Managing Retailing, Wholesaling &
Market logistics
Retailer Marketing Decisions
1. Target-market decision: A retailer's most important
decision. Until the target is not defined, the retailer
cannot make consistent decisions. Retailers should
conduct periodic marketing research to ensure that they
are reaching & satisfying their target customers.
2. Product Assortment-&-procurement decision: Must
match the target market's shopping expectations. The
retailer has to decide on product-assortment breadth &
depth. Another product assortment dimension is the
quality of the goods. The real challenge is to develop a
product differentiation strategy:
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
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Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Feature some exclusive brands not available at
competing retailers.
Feature mostly private branded merchandise.
Feature blockbuster distinctive merchandise events.
Feature surprise or ever-changing merchandise
Feature the latest or newest merchandise first.
Offer merchandise customizing services.
Offer a highly targeted assortment
Once the retailer decides on the product-assortment
strategy, the retailer must decide on procurement
sources, policies, & practices. Retailers are rapidly
improving their procurement skills. Stores are learning
to measure direct product profitability, which enables
them to measure a product's handling costs from the
time it reaches their warehouse until a customer buys it
& takes it out.
Managing Retailing, Wholesaling &
Market logistics
3. Services-&- store- atmosphere decision: The services
mix is one of the key tools for differentiating one store
from another. The store's atmosphere is another
element. Ex: Banana Republic stores work on the
concept of retail theater.
Blekinge Institute of Technology
SE-371 79 Karlskrona
4. Price Decision: Key positioning factor & must be decided
in relation to the target market, the product-&-serviceassortment & competition. Retailers must pay attention
to pricing tactics. They will plan markdowns on slowermoving merchandise. A growing number of retailers
have abandoned "sales pricing" in favor of everyday low
pricing (EDLP). This could lead to lower advertising
costs, greater pricing stability, a stronger store image of
fairness & liability, & higher retail profits.
+46 455 38 50 00
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5. Promotion Decision: Use promotion tools that reinforce
image position.
Managing Retailing, Wholesaling &
Market logistics
6. Place Decision: Retailers have a choice of locating their
stores in
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Central business districts (downtown). Rents are high.
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Regional shopping centers. Large suburban malls
containing 40-200 stores. Malls are attractive because of
generous parking, one-stop shopping, restaurants, &
recreational facilities.
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Community shopping centers. Smaller malls. Between
20-40 smaller stores.
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Strip malls. Contain a cluster of stores, usually housed in
one long building.
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A location within a larger store. Certain well known
retailers-McDonald's, Dunkin Donuts- are locating units
in airports, schools, Wal-Marts.
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
Retailers can assess a particular store's sales effectiveness
by
looking
at
four
indicators:
 Number of people passing by on an average day.
 % who enter the store.
 % of those entering who buy.
 Average amount spent per sale.
Trends in Retailing

Blekinge Institute of Technology

SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng

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Main developments that retailers need to take into
account as they plan their competitive advantage:
New Retail Forms constantly emerge to threaten
established retail forms.
Shortening Retail Life Cycles. Retail forms are rapidly
copied.
Nonstore Retailing due to electronic age.
Increasing Intertype Competition. Competition between
store & nonstore retailers is common.
Managing Retailing, Wholesaling &
Market logistics
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Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng

Polarity of Retailing.
Giant Retailers are emerging.
Changing Definition of One-Stop Shopping. Now
specialty stores within malls are becoming increasingly
competitive with large department stores in offering
one-stop shopping.
Growth of Vertical Marketing Systems.
Portfolio Approach. Retail organizations are increasingly
designing & launching new store formats targeted to
different lifestyle groups.
Growing Importance of Retail Technology.
Global Expansion of Major Retailers due to mature &
saturated markets at home. Ex: The Gap, Burger King,
Tony Romas.
Retail Stores as Community Centers or Hangouts.
Establishments that provide a place for people to
congregate (cafes, tea shops, book-shops, etc.).
Managing Retailing, Wholesaling &
Market logistics
Wholesaling
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
Wholesaling
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng

All the activities involved in selling goods or services to
those who buy for resale or business use.
Excludes manufacturers, farmers & retailers.
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They are also called distributors.
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Pay less attention to promotion, atmosphere & location.
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Transactions are larger than in retailing.
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They are used whenever they perform one of the
following more efficiently: selling & promoting, buying &
assortment building, bulk breaking, warehousing,
transportation, financing, risk bearing, market info &
management services & counseling.
Managing Retailing, Wholesaling &
Market logistics
Types of Wholesalers
1. Merchant wholesalers. Independently owned businesses
that take title to the merchandise they handle. Two
categories:
 Full service wholesalers provide a full line of
services. Two types:
 wholesale sell primarily to retailers
 industrial distributors sell to manufacturers.
 Limited-service wholesalers offer fewer services
than full-service wholesalers. Several types:
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
 Cash & carry wholesalers. Limited line of fast
moving goods. Sell to small retailers. Do not
deliver.
 Truck wholesalers. Limited line
perishable products. Sell & deliver.
of
semi-
Managing Retailing, Wholesaling &
Market logistics
 Drop shippers. Operate in bulk industries. Do not
carry inventory.
 Rack jobbers. Serve grocery & drug retailers. Bill
the retailers only for the goods sold to
consumers.
 Producers' cooperatives. Owned by farmer
members & assemble farm produce to sell in
local markets.
 Mail-order wholesalers. Send catalogs.
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
2. Brokers & agents. Do not take title to goods & perform
only a few functions
 Brokers bring buyers & sellers together & assist in
negotiation.
Managing Retailing, Wholesaling &
Market logistics
 Agents represent either buyers or sellers on a more
permanent basis than brokers do. Several types:
 Manufacturers' agents
 Selling agents
 Purchasing agents
 Commission merchants
3. Manufacturers' & retailers' branches & offices. Branches
& offices dedicated either to either sales or purchasing.
4. Miscellaneous Wholesalers. A few specialized types of
wholesalers are found in certain sectors of the economy.
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
Market Logistics
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
Market Logistics
Involves planning, implementing & controlling the physical
flows of materials & final goods from points of origin to
points of use to meet customer requirements at a profit.
Info systems plays a critical role in managing market
logistics.
Involves several activities: sales forecasting, distribution,
production & inventory levels.
Decisions
1. Order processing: How should orders be handled?
Blekinge Institute of Technology
SE-371 79 Karlskrona
2. Warehousing: Where should stocks be located?
+46 455 38 50 00
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3. Inventory: How much stock should be held?
4. Transportation: How should goods be shipped?
Managing Retailing, Wholesaling &
Market logistics
Thanks
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Managing Retailing, Wholesaling &
Market logistics
References
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Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
P. Kotler, Marketing Management, 13th ed, Pearson, 2009.
2 Publication form business research council (for support)
http://www.mbaboost.com/content/54/