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Managing
Retailing Wholesaling and Logistics
What major types of marketing intermediaries occupy
this sector ?
SHUBHAM VERMA ,
IIT GUWAHATI
What is retailing ?
Activities of selling goods or services directly to final
consumers for personal and non business use .
Who are retailers ?
Any business enterprise whose sales mainly comes from
retailing .
Types of retailers - Store retailers
Non-store retailers
Corporate retailing and franchising
Types of Store Retailers
Speciality store – Narrow product
line .
Departmental Store – Several product
lines
Supermarket – Large , low cost , low
margin , high volume , self service
stores.
Drug store – Prescription and
Pharmacies , health and beauty aids
Discount store – Low price ; Low margin ;
High volume stores
Extreme value store – More restricted
merchandise mix ; lower prices
Off price retailer – Leftover goods , overruns ,
irregular , merchandise sold at less than retail .
Factory outlets .
S
Convenience store – Small store in residential
area , 24/7 , limited line of high convenience
product
Superstore – Huge selling space ; plus
services ; category killer
Catalog Showrooms – Broad selection of high
markup ; fast moving ; branded goods sold at
discount
Types of Non store retailing
• Direct Selling
• Direct marketing
• Automatic vending
• Buying service
D
I
R
E
C
T
S
E
L
L
I
N
G
A sales person goes to home of a host who has invited friends ;
Sales person demonstrates the product and takes the order .
DIRECT
MARKETING
Includes telemarketing ; television direct response ; and
electronic shopping .
US online sales are estimated to be $ 210 billion with
travel being the biggest industry ($80 billion) in 2009
A
U
T
O
M
A
T
I
C
V
E
N
D
I
N
G
Vending machines are found in
factories , offices , large retail
stores, and hotels .
Japan has maximum vending
machines per person –Coca Cola
has 1 million vending machines in
Japan with with sales of $50
billion- twice than US
In India , Mother Dairy has used
bulk vending machines since
1970s
BUYING SERVICE
B
U
Y
I
N
G
S
E
R
V
I
C
E
Storeless retailer
servicing a specific
clientele
- large organisations –
who are entitled to buy
from a list of from list of
retailers who have agreed
to give discounts
Corporate Retailing – Independently owned organizations
which work under a brand name and achieve greater
economies , greater purchasing power , wide and better
trained employees that independent stores can usually get
.
Eg – Raymonds, Euro kids , VLCC , NIIT
Corporate retail stores – Two or more
outlets owned and controlled ,
merchandising and selling .
Voluntary chain – Wholesaler sponsored
group of independent retailers engaged in
bulk buying
Retailer cooperative – independent
retailers using central buying organization
Convenience store
Franchise organization – Contract
association with franchisor and
franchisees , popular in a number of
product and services
Merchandising conglomerate –
Corporation that combines several
diversified retailing lines and forms
under a central ownership
WHOLESALING
Activities in selling goods or services to those who buy
for resale or business use
Difference between retailer and
wholesaler
• Less promotion than retailers
• Larger transaction than retailers
• Government norms are different for both
Types of wholesalers
• Merchant wholesalers :
• Full – Service wholesalers
• Limited service wholesalers
• Brokers and Agents
• Manufacturers and retailers’ branches
• Specialized wholesalers
LOGISTICS
Managers select a set of warehouses
and transportation carriers that will
deliver the goods to final destinations in
the desired time at lowest cost
Market Logistics include :
• Order Processing
• Warehousing
• Inventory
• Transportation
"These slides were created by
Shubham Verma( IIT Guwahati ) as
part of an internship done under
the guidance of Prof. Sameer
Mathur
(www.IIMInternship.com)"
What major types of marketing intermediaries occupy this sector

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What major types of marketing intermediaries occupy this sector

  • 1. Managing Retailing Wholesaling and Logistics What major types of marketing intermediaries occupy this sector ? SHUBHAM VERMA , IIT GUWAHATI
  • 2. What is retailing ? Activities of selling goods or services directly to final consumers for personal and non business use . Who are retailers ? Any business enterprise whose sales mainly comes from retailing . Types of retailers - Store retailers Non-store retailers Corporate retailing and franchising
  • 3. Types of Store Retailers Speciality store – Narrow product line . Departmental Store – Several product lines Supermarket – Large , low cost , low margin , high volume , self service stores.
  • 4. Drug store – Prescription and Pharmacies , health and beauty aids Discount store – Low price ; Low margin ; High volume stores Extreme value store – More restricted merchandise mix ; lower prices Off price retailer – Leftover goods , overruns , irregular , merchandise sold at less than retail . Factory outlets .
  • 5. S Convenience store – Small store in residential area , 24/7 , limited line of high convenience product Superstore – Huge selling space ; plus services ; category killer Catalog Showrooms – Broad selection of high markup ; fast moving ; branded goods sold at discount
  • 6. Types of Non store retailing • Direct Selling • Direct marketing • Automatic vending • Buying service
  • 7. D I R E C T S E L L I N G A sales person goes to home of a host who has invited friends ; Sales person demonstrates the product and takes the order .
  • 8. DIRECT MARKETING Includes telemarketing ; television direct response ; and electronic shopping . US online sales are estimated to be $ 210 billion with travel being the biggest industry ($80 billion) in 2009
  • 9. A U T O M A T I C V E N D I N G Vending machines are found in factories , offices , large retail stores, and hotels . Japan has maximum vending machines per person –Coca Cola has 1 million vending machines in Japan with with sales of $50 billion- twice than US In India , Mother Dairy has used bulk vending machines since 1970s
  • 10. BUYING SERVICE B U Y I N G S E R V I C E Storeless retailer servicing a specific clientele - large organisations – who are entitled to buy from a list of from list of retailers who have agreed to give discounts
  • 11. Corporate Retailing – Independently owned organizations which work under a brand name and achieve greater economies , greater purchasing power , wide and better trained employees that independent stores can usually get . Eg – Raymonds, Euro kids , VLCC , NIIT
  • 12. Corporate retail stores – Two or more outlets owned and controlled , merchandising and selling . Voluntary chain – Wholesaler sponsored group of independent retailers engaged in bulk buying Retailer cooperative – independent retailers using central buying organization
  • 13. Convenience store Franchise organization – Contract association with franchisor and franchisees , popular in a number of product and services Merchandising conglomerate – Corporation that combines several diversified retailing lines and forms under a central ownership
  • 14. WHOLESALING Activities in selling goods or services to those who buy for resale or business use Difference between retailer and wholesaler • Less promotion than retailers • Larger transaction than retailers • Government norms are different for both
  • 15. Types of wholesalers • Merchant wholesalers : • Full – Service wholesalers • Limited service wholesalers • Brokers and Agents • Manufacturers and retailers’ branches • Specialized wholesalers
  • 16. LOGISTICS Managers select a set of warehouses and transportation carriers that will deliver the goods to final destinations in the desired time at lowest cost Market Logistics include : • Order Processing • Warehousing • Inventory • Transportation
  • 17. "These slides were created by Shubham Verma( IIT Guwahati ) as part of an internship done under the guidance of Prof. Sameer Mathur (www.IIMInternship.com)"