retailing and wholesaling
CHAPTER 11
Retailing and Wholesaling
Previewing The Concepts: Chapter Objectives
1. Explain the roles of retailers and wholesalers in the distribution channel
2. Describe the major types of retailers and give examples of each
3. Describe the major types of wholesalers and give examples of each
4. Explain the marketing decisions facing retailers and wholesalers
Just the Basics
Chapter Overview
This chapter is a continuation of the prior chapter on marketing channels; it provides more detail on retailing and wholesaling, two very important concepts in the value delivery network.
Retailers can be classified according to several characteristics, including the amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and how they are organized.
The major decisions retailers make are centered around their target market and positioning, their product assortment and services, their price, their promotion strategies, and where they are located.
The wheel of retailing concept says that many new retailing forms begin as low-margin, low-price, low-status operations. They challenge established retailers, and then the new retailers’ success leads them to upgrade their facilities and offer more services. In turn, their costs increase, and eventually they become like the conventional retailers they replaced. The cycle begins again.
There are many types of wholesalers, including merchant wholesalers, agents and brokers, and manufacturers’ sales branches and offices.
The distinction between large retailers and large wholesalers continues to blur. Annotated Chapter Notes/Outline
Introduction
Costco is trouncing Wal-Mart at its own low-price game.
With about the same number of members but 50 fewer stores, Costco outsells Sam’s Club by 50 percent. Its $60 billion in sales makes Costco the nation’s third-largest retailer, behind only Wal-Mart and Home Depot.
How is Costco
Retailing and Wholesaling
Previewing The Concepts: Chapter Objectives
1. Explain the roles of retailers and wholesalers in the distribution channel
2. Describe the major types of retailers and give examples of each
3. Describe the major types of wholesalers and give examples of each
4. Explain the marketing decisions facing retailers and wholesalers
Just the Basics
Chapter Overview
This chapter is a continuation of the prior chapter on marketing channels; it provides more detail on retailing and wholesaling, two very important concepts in the value delivery network.
Retailers can be classified according to several characteristics, including the amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and how they are organized.
The major decisions retailers make are centered around their target market and positioning, their product assortment and services, their price, their promotion strategies, and where they are located.
The wheel of retailing concept says that many new retailing forms begin as low-margin, low-price, low-status operations. They challenge established retailers, and then the new retailers’ success leads them to upgrade their facilities and offer more services. In turn, their costs increase, and eventually they become like the conventional retailers they replaced. The cycle begins again.
There are many types of wholesalers, including merchant wholesalers, agents and brokers, and manufacturers’ sales branches and offices.
The distinction between large retailers and large wholesalers continues to blur. Annotated Chapter Notes/Outline
Introduction
Costco is trouncing Wal-Mart at its own low-price game.
With about the same number of members but 50 fewer stores, Costco outsells Sam’s Club by 50 percent. Its $60 billion in sales makes Costco the nation’s third-largest retailer, behind only Wal-Mart and Home Depot.
How is Costco