Managing Retailing,

1
Chapter 17
Managing Retailing, Wholesaling, and Market
Logistics
Marketing Management Tenth Edition Philip Kotler
2
Objectives

• Retailing
• Wholesaling
• Market Logistics

3
Four Levels of Retail Service

• Self-service
• Self-selection
• Limited-service
• Full-service

4
Retail Positioning Map
Bloomingdales
Wal-Mart
Kinney Shoe
Tiffany
5
Classification Of Retailer Types
Store Type Length and Breadth of Product
Assortment
Specialty Stores
Department Stores
Supermarkets
Convenience Stores
Discount Stores
Off-Price Retailer
Superstores
Catalog Showroom
6
Types of NonStore Retailing
Direct Selling
Direct Marketing
NonStore Retailing Accounts for More Than 12 of
All Consumer Purchases, and is trending up.
Automatic Vending
Buying Services
7
Wheel of Retailing
Mid Price Mid Status Mid Margin
Low Price Low Status Low Margin
High Price High Status High Margin
New Entrants
8
Why are Wholesalers Used?
Management Services Advice
Selling and Promoting
Market Information
Buying and Assortment Building
Bulk Breaking
Risk Bearing
Financing
Warehousing
Transporting
9
Goals of the Logistics System
10
Logistics Systems
Order Processing Submitted Processed Shipped
Costs Minimize Costs of Attaining
Logistics Objectives
Logistics Functions
Warehousing Storage Distribution
Inventory When to order How much to
order Just-in-time
11
Transportation Modes
12
Checklist for Choosing
Transportation Modes
13
Rating Transportation Modes
Rail 3 4 2 2 3 Water 4 5 1 4 1 T
ruck 2 2 3 1 4 Pipeline 5 1 5 5 2 Air 1
3 4 3 5
Source See Carl M. Guelzo Introduction to
Logistics Management Englewood Cliffs,
NJ Prentice Hall, 1986), p. 46.
14
Review

• Retailing
• Wholesaling
• Market Logistics