Kotler Keller

Marketing Management 14e

Phillip

Kevin Lane

Managing Retailing, Wholesaling, and Logistics

Discussion Questions
1. What major types of marketing intermediaries occupy this sector? 2. What marketing decisions do these marketing intermediaries make? 3. What are the major trends with marketing intermediaries? 4. What does the future hold for private label brands?

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Retailing
All the activities in selling goods or services directly to final consumers for personal, nonbusiness use.

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Types of Retailers
Limited Service

Self-Service

Full Service

Self-Selection
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Major Types of Store Retailers

Specialty store Department store Supermarket Convenience store Drug store Discount store Extreme value or harddiscount store Off-price retailer Superstore Catalog showroom The Limited, The Body Shop JCPenney, Bloomingdales Kroger, Safeway 7-Eleven, Circle K CVS, Walgreens Wal-Mart, K-Mart Aldi, Lidl, Family Dollar, Dollar General Factory outlets, TJ Ma23, Costco Staples, Jewel-Osco, Carrefour Inside Edge Ski and Bike
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Nonstore Retailing
Automatic Vending

Direct Selling

Direct Marketing
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Buying Service
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Corporate Retailing and Franchising

Corporate Retailing Organizations

Corporate Chain store

Voluntary chain
Retailer cooperative Consumer cooperative Franchise organization Merchandising conglomerate
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Franchising
Franchisee Pays: Royalty Payments Start-up / Licensing Fee

Franchisee Receives: Well-known brand name Developed system

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New Retail Environment

Store / Non-store Competition

Global Retailers

New Retail Forms

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Giant Retailers
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Marketing Decisions
Target Market

Prices Channels

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Marketing Decisions
Communications

Atmosphere

Location
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Product Assortment
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Private Labels
Lower Costs:
Development Advertising Sales promotions Distribution

Higher Profit Margins

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Top 10 Private Label Categories 2009

(billions of dollars)
Milk Bread & Baked Goods Cheese Medications Paper Products Eggs Fresh Fresh Produce $8.1 $4.2 $3.5 $3.4 $2.6 $1.9 $1.5

Packaged Meat Pet Food Unprepared Meat

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$1.5 $1.5 $1.4

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Wholesaling
All the activities in selling goods and services to those who buy for resale or business use.

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Types of Wholesalers
Merchant wholesalers Full-service wholesalers Limited-service wholesalers Brokers and agents Specialized wholesalers Take title to merchandise; Full-service and limited-service jobbers and distributors Carry stock, maintain a sales force, offer credit, make deliveries, and provide management assistance. Limited line of fast-moving goods. Truck wholesalers, drop shippers, rack jobbers, mailorder wholesalers Facilitate buying and selling; earn 2% - 6% commission on selling price. Agricultural assemblers, petroleum bulk plants, and actions companies.
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Wholesaler Functions
Selling and Promoting

Warehousing

Buying and assortment building

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Bulk breaking
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Wholesaler Functions
Market information

Transportation

Management Services

Risk bearing Financing

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Market Logistics
Supply Chain Management

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Market-Logistics Objectives
Integrated Logistics Systems

Transportation Modes

Tradeoffs
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Market-Logistics Decisions
Order Processing

Warehouse Locations

Inventory Levels
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Transportation Mode
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Determining Optimal Order Quantity

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Organizational Lessons

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