Title: Managing Retailing, Wholesaling, and Logistics
1 Managing Retailing, Wholesaling, and Logistics Lecture 8 Place Marketing Management, European ed 2 Chapter Questions
What major types of marketing intermediaries occupy this sector?
What marketing decisions do these marketing intermediaries make?
What are the major trends with marketing intermediaries?
3 Retailing Includes all the activities involved in selling goods or services directly to final consumers for personal, non-business use. 4 Company-to-Consumer Channels 5 Major Retailer Types
Speciality store - Maplin
Department store John Lewis
Supermarket - Sainsbury
Convenience store - Londis
Discount store - Aldi
Off-price retailer - TKMaxx
Superstore Tesco Bar Hill
Catalogue showroom - Argos
6 Levels of Retail Service Self-service - they even get you to scan the barcodes on your purchases! Self-selection Limited service Full service 7 Retail Positioning Map Tesco Harrods Aldi Carphone Warehouse 8 Indicators of Sales Effectiveness (KPIs)
Number of people passing by location
Percentage who enter store
Percentage of those who enter who also buy
Average amount spent per sale.
9 Trends in Retailing
New retail forms and combinations- eg coffee bar in a bookshop
Growth of intertype competition
Competition between store-based and non-store-based retailing (eg the Internet)
Growth of giant retailers
Decline of middle market retailers eg Woolworth, Debenhams, House of Fraser
Growing investment in technology, Lean Thinking
Global presence of major retailers
Ebay and other Internet providers.
10 Nonstore Retailing Direct selling Direct marketing Buying service Automatic vending 11 Characteristics of Franchises
The franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments
The franchisee pays for the right to be part of the system
The franchisor provides its franchisees with a system for doing business
12 Retailers Marketing Decisions Target market Product assortment Procurement Prices Services 13 Retailers Marketing Decisions (cont.) Store atmosphere Store activities Communications Locations Selfridges store in Birmingham 14 Retailers Marketing Decisions (cont.) General business districts Regional shopping centres Community shopping centers Community shopping centres Retail Parks Retail Parks Location within a larger store. 15 Wholesaling Functions
Selling and promoting
Buying and assortment building
Management services and counseling
16 Major Wholesaler Types Merchant Full-service Limited-service Brokers and agents Manufacturers Specialized Nisa-Todays warehouse - Scunthorpe 17 Logistics
That part of the supply chain process that plans, implements and controls the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet customers requirements
Deciding on the companys value proposition to its customers
Deciding on the best channel design and network strategy
Developing operational excellence
Implementing the solution
Value Proposition Total Product Concept The Marketing Mix The USP 19 Market Logistics
Finished-goods inventory decisions
Customer delivery and servicing
20 Logistics Objectives
Attain market coverage
Deliver Customer Service
Ensure Adherence to Product Specifications
21 Market Logistics Decisions
How should orders be handled?
Where should stock be located?
How much stock should be held?
How should goods be shipped?
22 Logistics and Channel Management 23 Relational Logistics Model 24 The Five Logistics Mediators 1 - Inventory Management
Electronic Data Interchange (EDI)
Just-in-Time Manufacturing (JIT)
Inventory -- often called stock -- is a tangible asset capable of being mined, converted or created. It is one of the largest investments in any logistics system. 25 The Five Logistics Mediators 2 - Transportation
26 The Five Logistics Mediators 3 - Warehousing
27 The Five Logistics Mediators 4 - Purchasing
Forecasting Materials Demand
Selection of suppliers sourcing
Minimizing transaction and product costs
Maximizing transaction and product quality
28 The Five Logistics Mediators 5 - Packaging
29 LOGISTICS TRENDS SAME TIME, SAME PLACE DISTRIBUTION Technology-driven reduction in waiting times between channel members. BOUNDARYLESS DISTRIBUTION Multiple market entry facilitated by coordinated logistics systems. THIRD-PARTY LOGISTICS Channel members are increasingly outsourcing logistics functions. STRATEGIC LOGISTICS PARTNERING Alliances between channel members will become a mainstay of competitive distribution advantage. 30 Determining Optimal Order Quantity 31 Transportation Factors
32 Sources Banks see chart from Economist, 8nov08 Minerals and Mining See USGS Insurance see ABI website 33 See website www.sginns.co.uk for links to each business segment 34 (No Transcript) 35 The Thiepval Memorial, the Memorial to the Missing of the Somme