Chapter 11: Retailing and Wholesaling Flashcards
What is the role of retailers?
The role of retailers involves selling goods or services directly to final consumers.
What are some major trends in retailing?
Nonstore retailing (no storefront) e.g. amazon, agoda
Retail stores are moving to be opened at large “power centers” (huge unenclosed shopping malls) and “lifestyle centers” (smaller malls with upscale stores and nonretail activities such as dining and a movie in affluent areas.
Elaborate on the types of retailers classified based on the amount of service they offer.
1) Self-service retailers - serve customers who perform their own “locate-compare-select” process to save money e.g. Tesco Lotus
2) Limited-service retailers - provide more sales assistance for shopping goods e.g. Central
3) Full-service retailers - carry more specialty goods for which customers need or want assistance or advice e.g. Lamborghini
Elaborate on the types of retailers classified based on product line classification.
1) Specialty stores - carry narrow product lines with deep assortments within those lines e.g. ZARA, better vision (หอแว่น)
2) Department stores - carry a wide variety of product lines; each product line is operated by a separate department e.g. Central, The Mall
3) Supermarkets - self-service store that carries a wide variety of household products e.g. Foodland, Villamarket
4) Convenience stores - small stores near residential areas that carries a limited line of high-turnover convenience goods e.g. 7/11
5) Superstores - larger than regular supermarkets that offers a large assortment of routinely purchased items; subdivided into
a) category killers - giant specialty stores that carry a very deep assortment of a particular line + staffed by knowledgeable employees e.g. HomePro
b) supercenters - large combination of discount and grocery stores e.g. BigC
c) Hypermarkets - gigantic supercenters e.g. Carrefour, Tesco Lotus
Elaborate on the types of retailers classified based on relative prices classification.
1) Discount stores - sells at lower prices by accepting lower margins and selling at higher volume e.g. Tesco Lotus, Carrefour, Walmart
2) Off-price retailers - provides high quality goods at cheap price; subdivided into
a) Independent off-price retailer: owned by entrepreneurs or as a division of a larger retail operation e.g. TJ max
b) Factory outlets - owned and operated by a manufacturer; carries surplus, discontinued, or irregular goods e.g. Factory Outlet
c) Warehouse club - limited selection of items at deep discounts to members who pay annual membership fees
Elaborate on the types of retailers classified based on organizational approach.
1) Chain stores - two or more outlets that have central buying and sell similar lines of merchandise e.g. Boots, MK
2) Voluntary chains - wholesaler-sponsored group of independent retailers that engages in bulk buying and common merchandising e.g. Makro - ร้านรักบ้านเกิด
3) Retailer cooperatives - voluntary chains w/out wholesaler’s sponsorship
4) Franchises - e.g. 7/11
5) Merchandising conglomerates
Elaborate on retailer’s marketing mix.
There are 4 items to concern:
1) Product and service assortment - should differentiate while matching customers’ expectations; store atmosphere is also important
2) Retail prices
3) Promotion
4) Distribution - location is the key to success
Why is the growing retail technology important?
Because it provides better forecast, inventory control improved merchandise handling systems, and the ability to connect with customers.
What is the role of wholesalers?
The role of wholesales is to sell goods and services to those buying for resale or business use.
What services do wholesalers provide that add value?
They perform multiple services including
1) Selling and promoting - help manufacturer reach many smaller customers at lower cost
2) Buying assortment - selection of items and building of assortments
3) Bulk breaking - buying in larger quantity and breaking into smaller lots for its customers
4) Warehousing - holding inventory, reducing inventory cost and risk
5) Risk bearing - taking title and bearing the cost of theft, damage, spoilage, and obsolescence
6) Market information - provides information about competitors, new products, and price developments
7) Management services and advices - help retailers train their sales clerks, improve store layouts, and set up accounting and inventory control systems
What are some examples of trends or challenges in wholesaling?
Resistance to price increases, fewer suppliers, changing customer needs, and adding value by increasing efficiency and effectiveness
Explain the roles of retailers and wholesalers in distribution channel.
A retailer’s role is to sell goods and services to final consumers for personal use. A wholesaler’s role is to sell goods and services to those buying for resale or for business use.
Describe the major types of retailers and give examples of each.
Retailers can be classified on four bases:
1) Amount of service provided - self service, limited-service, full-service retailers
2) Breadth and depth of product lines - specialty stores, department stores, supermarkets, convenience stores, superstores
3) Relative prices classification - discount stores, off-price retailers (independent, factory outlets, warehouse clubs)
4) Organizational approach - chain stores, voluntary chains, retailer cooperatives, franchise organizations, merchandising conglomerates
Describe the major types of wholesalers and give examples of each.
Merchant wholesaler, full-service wholesaler, limited service wholesaler, brokers and agents, branches and mini offices, specialized wholesalers
Explain the marketing decisions facing retailers and wholesalers.
Retailers and wholesalers need to consider marketing strategy and marketing mix in order to create value for the customers. There are considerations pertaining to segmentation, targeting, differentiation, and positioning.
