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TOP 10 Learning Concepts


 Chapter 16: Managing Retailing,
   Wholesaling, and Logistics


        Jerold I. Saddi
          May 10, 2012
Outline:Top 10 Concepts of Managing Retailing, Wholesaling, and Logistics


            To manage effectively, one should
             know the following:
            1. Major Retailer Types
            2. Levels of Retail Service
            3. Retail Positioning Map
            4. Nonstore Retailing
            5. Retailer’s Marketing Decision



                            http://jeroldsaddi.blogspot.com
Outline:Top 10 Concepts of Managing Retailing, Wholesaling, and Logistics



           Plus..
            6. Retailer Services Mix
            7. Location Decision
            8. Major Wholesaler Types
            9. Market Logistic Decisions
            10. Transportation Factors



                            http://jeroldsaddi.blogspot.com
Concept 1:

 Major Retailer Types
To demonstrate I will use banks as example…

Specialty Store

Department Store

Supermarket

Convenience Store

             http://jeroldsaddi.blogspot.com
Also…
Discount Store

Off-price retailer

Superstore

Catalog Showroom

       http://jeroldsaddi.blogspot.com
Concept 2:
Retailers can offer one of the
four levels of service..
In opening a bank account you may choose your
preferential bank…
Where

    Self – Selection

                 begins…




             http://jeroldsaddi.blogspot.com
Concept 2:

You may either choose some of the banks service features..


If you’re always on the go, choose BDO for you can find BDO
ATMs anywhere…



   Self-Service




             http://jeroldsaddi.blogspot.com
Concept 2:


If you want extra mile of service, choose BPI..




   FULL SERVICE




             http://jeroldsaddi.blogspot.com
Concept 2:


If you often sends Telegraphic transfers abroad,
choose HSBC but with


   LIMITED SERVICE




 DUE TO ITS Limited Branches
 in the country…




             http://jeroldsaddi.blogspot.com
Concept 3:

Retail Positioning Map

             broad
  Breadth of Product
         Line




  Narrow                                          Low
                        High    Value Added


                       http://jeroldsaddi.blogspot.com
Concept 4:
Nonstore Retailing
To market clients, Banks would do the following:


   Direct Selling
       Managers will convince
       you to get a credit card..




   Direct Marketing
     Put posters in their
     branches..

             http://jeroldsaddi.blogspot.com
Concept 4:
Non Store Retailing

   Automatic Vending




   Buying Service


         http://jeroldsaddi.blogspot.com
Concept 5:
 Retailer’s Marketing Decision

Bank’s position their branches based
on their..


   TARGET MARKET




   PRODUCT ASSORTMENT

              http://jeroldsaddi.blogspot.com
Concept 5:
Retailer’s Marketing Decision

   PROCUREMENT
   PRICES
       Determine rates..



   SERVICES
    Determine the manpower
    needed…



            http://jeroldsaddi.blogspot.com
Concept 5:
Retailer’s Marketing Decision
   Store Atmosphere
   Store Activities
   Communications




   Locations

         http://jeroldsaddi.blogspot.com
Concept 6:
     Retailer Services Mix
To convince you to open an account, managers
may invite you for a coffee break..

         Prepurchase services



         Postpurchase Services
          Managers will deliver your passbook to
          your doorsteps..



                  http://jeroldsaddi.blogspot.com
Concept 6:
   Retailer Services Mix
      Ancillary Services

If you incur overdraft on your
checking account, they will waive
it the charges…




                http://jeroldsaddi.blogspot.com
Concept 7:
   Location Decisions

   Banks will strategize to position their branches to get a
   substantial market share on the deposits…



Central Business Districts



Regional Shopping Centers


                 http://jeroldsaddi.blogspot.com
Concept 7:
Location Decisions
Community Shopping Centers

Shopping Strips



Location within a larger store


       http://jeroldsaddi.blogspot.com
Concept 8:

Major Wholesaler Types

   Merchant




   Full-Service



         http://jeroldsaddi.blogspot.com
Concept 8:

Major Wholesaler Types

   Limited Service



   Brokers and Agents




         http://jeroldsaddi.blogspot.com
Concept 8:

Major Wholesaler Types

   Manufacturers




   Specialized

         http://jeroldsaddi.blogspot.com
Concept 9
Market Logistics Decisions
 In making a decision, he should answer the
 following:

   How should orders be handled?
   Where should stock be located?
   How much stock should be held?
   How should goods be shipped?



            http://jeroldsaddi.blogspot.com
Concept 10
Transportation Factors
                      In transporting stocks, he must
   Speed             think of the capabilities of an
                      “Eagle”…
   Dependability
   Capability
   Availability

   Frequency
   Traceability
   Cost

          http://jeroldsaddi.blogspot.com
TOP 10 Learning Concepts


 Chapter 16: Managing Retailing,
   Wholesaling, and Logistics


        Jerold I. Saddi
          May 10, 2012
Managing Retailing,
Wholesaling, and Logistics

      Mary Antonette B. Viray
           May 10, 2012




                 www.yourwebsite.com
    http://ph.linkedin.com/in/mabviray
Outline

• What is retailing?
• What are the 8 major types of
  retailer?
• What are the 8 steps in retail
  category management?
• What is franchising?
• What is wholesaling?
• What is Market logistics?


                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
Retailing are all activities



Activities




                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
of selling of goods and
  services
Activities



Goods             and services




                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
to final consumers for
  personal or non business use
Activities



Goods             and services



              Final consumer

Individual                          non business
                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
Retailing includes all activities in selling goods and
  services directly to final consumers for personal, non
  business use
Activities



Goods              and services



               Final consumer



Individual                          non business
                    www.yourwebsite.com
       http://ph.linkedin.com/in/mabviray
There are 8 Major Types of
  Retailer and these are:
Specialty Store

Department Store

Supermarket

Convenience



                  www.yourwebsite.com
     http://ph.linkedin.com/in/mabviray
And..

Discount Store

Off-Price Retailer

Superstore

Catalog Showroom



                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
There are 8 steps in Retail
  Category Management
                   Define the
                   category
Step 1




Step 2              Figure out
                    its Role




                  www.yourwebsite.com
     http://ph.linkedin.com/in/mabviray
Next steps in Retail Category
  Management
                       Assess
                     Performance
Step 3



Step 4
                   Set Goals




                  www.yourwebsite.com
     http://ph.linkedin.com/in/mabviray
Followed by

                   Choose the
                    Audience
Step 5




                   Figure out
                   Tactics
Step 6



                  www.yourwebsite.com
     http://ph.linkedin.com/in/mabviray
And Lastly to..

Step 7




                  Implement
                   the Plan




                  www.yourwebsite.com
     http://ph.linkedin.com/in/mabviray
These are the Retail Category Management Steps

Step 1
Step 2

Step 3
Step 4

Step 5
Step 6

Step 7

                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
Franchises is when there is

Franchisor                      Franchisee




                  www.yourwebsite.com
     http://ph.linkedin.com/in/mabviray
Franchisor owns the trade mark and gives
  licenses to franchisees


Franchisor                      Franchisee



          gives licenses




                  www.yourwebsite.com
     http://ph.linkedin.com/in/mabviray
In return for royalty payment

Franchisor                      Franchisee



          gives licenses

          royalty fee




                  www.yourwebsite.com
     http://ph.linkedin.com/in/mabviray
The Franchisor provides its franchisees
  with a system and the franchisee pays the
  royalty fee

Franchisor                       Franchisee



           gives licenses

           royalty fee




                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
Wholesaling are all activities

Activities




                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
Wholesaling are all activities
  in selling goods or services
Activities




                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
Wholesaling are all activities in selling
  goods or services for resale or business
  use
Activities

Goods                                      services




    Resale                       business use


                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
Market Logistics includes

To meet customer            to meet customer
                           requirements at a
                                    profit
 demand



  planning        implementing         controlling




            to meet customer
                   www.yourwebsite.com
      http://ph.linkedin.com/in/mabviray
 requirements at a profit
Self-Service
                                                Self-Selection




Limited Service
                                 Full Service
Automatic Vending
          Direct Selling




Direct Marketing           Buying Service
Department Store   Specialty Store
                                     Supermarket
                                                   Convenience Store
• Franchisor owns a trade or service
• Franchisor provides system for doing business




         Franchisee pays for the right to
         be part of the system
Target Market

                     Price

Product Assortment



                     Services
Procurement
Central Business District                   Shopping Center




                    Community Shopping Center
Walls            Lighting




        Floors              Signage
Ordering


                       Warehousing



           Inventory
Selling & Promotions   Warehousing     Transportation




     Financing         Risk Bearing   Market Information
How should orders be handled?


Where should Stock be located?


How much stock be held?



How should goods be shipped?
Managing Retailing, Wholesaling, and
Logistics
Chapter 16

Maynard Anthony A. Cruz

Group 5
Types of Major Retailers

 Specialty Store
Types of Major Retailers

 Supermarket
Types of Major Retailers

 Convenience Store
Types of Major Retailers

 Discount Store
Types of Major Retailers

 Department Store
Types of Major Retailers


 Off-price Retailer
Types of Major Retailers

 Superstore
Types of Major Retailers

 Catalog Showroom
Levels of Retail Service

 Full service
Levels of Retail Service

 Self-selection
Levels of Retail Service

 Limited service
Levels of Retail Service

 Self service
Retail Positioning Map
Broad




                Rustan’s          SM




Narrow
         High                          Low
Retail Positioning Map

 Broad

 High
Retail Positioning Map

 Broad

 Low
Retail Positioning Map

 Narrow

 High
Retail Positioning Map

 Narrow

 Low
Nonstore Retailing

 Direct marketing
Nonstore Retailing

 Vending
Nonstore Retailing

 Direct selling
Nonstore Retailing

 Buying Service
Characteristics of Franchises

 Franchisor owns a trade or service
Characteristics of Franchises

 In return for royalty payments the trade or service is
  licensed to Franchisees
Characteristics of Franchises

 Franchisees pay for the right to be part of the system
Characteristics of Franchises

 Franchisor provides its Franchisees with a system for the
  business
Location Decision

 Central Business District

 Community Shopping Centers

 Shopping Strips

 Regional Shopping Centers

 Location within a larger store
Location Decision

 Central Business District
Location Decision

 Community Shopping Centers
Location Decision

 Shopping Strips
Location Decision

 Regional Shopping Centers
Location Decision

 Location within a larger store
Types of Wholesalers

 Merchant

 Specialized

 Full-service

 Limited-service

 Brokers & Agents

 Manufacturers
Retailer’s Marketing Decisions

   Target market

   Product assortment

   Procurement

   Prices

   Services

   Store atmosphere

   Store activities

   Communication

   Locations
Wholesaling Functions

   Selling & Promoting

   Warehousing

   Transportation

   Financing

   Risk bearing

   Buying

   Bulk breaking

   Market information

   Management services & counseling
Transportation Factors

 Cost

 Speed

 Frequency

 Capability

 Dependability

 Traceability

 Availability
Managing Retailing, Wholesaling, and
Logistics
Chapter 16

Maynard Anthony A. Cruz

Group 5

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Retailing

  • 1. TOP 10 Learning Concepts Chapter 16: Managing Retailing, Wholesaling, and Logistics Jerold I. Saddi May 10, 2012
  • 2. Outline:Top 10 Concepts of Managing Retailing, Wholesaling, and Logistics To manage effectively, one should know the following: 1. Major Retailer Types 2. Levels of Retail Service 3. Retail Positioning Map 4. Nonstore Retailing 5. Retailer’s Marketing Decision http://jeroldsaddi.blogspot.com
  • 3. Outline:Top 10 Concepts of Managing Retailing, Wholesaling, and Logistics Plus.. 6. Retailer Services Mix 7. Location Decision 8. Major Wholesaler Types 9. Market Logistic Decisions 10. Transportation Factors http://jeroldsaddi.blogspot.com
  • 4. Concept 1: Major Retailer Types To demonstrate I will use banks as example… Specialty Store Department Store Supermarket Convenience Store http://jeroldsaddi.blogspot.com
  • 5. Also… Discount Store Off-price retailer Superstore Catalog Showroom http://jeroldsaddi.blogspot.com
  • 6. Concept 2: Retailers can offer one of the four levels of service.. In opening a bank account you may choose your preferential bank… Where  Self – Selection begins… http://jeroldsaddi.blogspot.com
  • 7. Concept 2: You may either choose some of the banks service features.. If you’re always on the go, choose BDO for you can find BDO ATMs anywhere…  Self-Service http://jeroldsaddi.blogspot.com
  • 8. Concept 2: If you want extra mile of service, choose BPI..  FULL SERVICE http://jeroldsaddi.blogspot.com
  • 9. Concept 2: If you often sends Telegraphic transfers abroad, choose HSBC but with  LIMITED SERVICE DUE TO ITS Limited Branches in the country… http://jeroldsaddi.blogspot.com
  • 10. Concept 3: Retail Positioning Map broad Breadth of Product Line Narrow Low High Value Added http://jeroldsaddi.blogspot.com
  • 11. Concept 4: Nonstore Retailing To market clients, Banks would do the following:  Direct Selling Managers will convince you to get a credit card..  Direct Marketing Put posters in their branches.. http://jeroldsaddi.blogspot.com
  • 12. Concept 4: Non Store Retailing  Automatic Vending  Buying Service http://jeroldsaddi.blogspot.com
  • 13. Concept 5: Retailer’s Marketing Decision Bank’s position their branches based on their..  TARGET MARKET  PRODUCT ASSORTMENT http://jeroldsaddi.blogspot.com
  • 14. Concept 5: Retailer’s Marketing Decision  PROCUREMENT  PRICES Determine rates..  SERVICES Determine the manpower needed… http://jeroldsaddi.blogspot.com
  • 15. Concept 5: Retailer’s Marketing Decision  Store Atmosphere  Store Activities  Communications  Locations http://jeroldsaddi.blogspot.com
  • 16. Concept 6: Retailer Services Mix To convince you to open an account, managers may invite you for a coffee break..  Prepurchase services  Postpurchase Services Managers will deliver your passbook to your doorsteps.. http://jeroldsaddi.blogspot.com
  • 17. Concept 6: Retailer Services Mix  Ancillary Services If you incur overdraft on your checking account, they will waive it the charges… http://jeroldsaddi.blogspot.com
  • 18. Concept 7: Location Decisions Banks will strategize to position their branches to get a substantial market share on the deposits… Central Business Districts Regional Shopping Centers http://jeroldsaddi.blogspot.com
  • 19. Concept 7: Location Decisions Community Shopping Centers Shopping Strips Location within a larger store http://jeroldsaddi.blogspot.com
  • 20. Concept 8: Major Wholesaler Types  Merchant  Full-Service http://jeroldsaddi.blogspot.com
  • 21. Concept 8: Major Wholesaler Types  Limited Service  Brokers and Agents http://jeroldsaddi.blogspot.com
  • 22. Concept 8: Major Wholesaler Types  Manufacturers  Specialized http://jeroldsaddi.blogspot.com
  • 23. Concept 9 Market Logistics Decisions In making a decision, he should answer the following:  How should orders be handled?  Where should stock be located?  How much stock should be held?  How should goods be shipped? http://jeroldsaddi.blogspot.com
  • 24. Concept 10 Transportation Factors In transporting stocks, he must  Speed think of the capabilities of an “Eagle”…  Dependability  Capability  Availability  Frequency  Traceability  Cost http://jeroldsaddi.blogspot.com
  • 25. TOP 10 Learning Concepts Chapter 16: Managing Retailing, Wholesaling, and Logistics Jerold I. Saddi May 10, 2012
  • 26. Managing Retailing, Wholesaling, and Logistics Mary Antonette B. Viray May 10, 2012 www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 27. Outline • What is retailing? • What are the 8 major types of retailer? • What are the 8 steps in retail category management? • What is franchising? • What is wholesaling? • What is Market logistics? www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 28. Retailing are all activities Activities www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 29. of selling of goods and services Activities Goods and services www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 30. to final consumers for personal or non business use Activities Goods and services Final consumer Individual non business www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 31. Retailing includes all activities in selling goods and services directly to final consumers for personal, non business use Activities Goods and services Final consumer Individual non business www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 32. There are 8 Major Types of Retailer and these are: Specialty Store Department Store Supermarket Convenience www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 33. And.. Discount Store Off-Price Retailer Superstore Catalog Showroom www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 34. There are 8 steps in Retail Category Management Define the category Step 1 Step 2 Figure out its Role www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 35. Next steps in Retail Category Management Assess Performance Step 3 Step 4 Set Goals www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 36. Followed by Choose the Audience Step 5 Figure out Tactics Step 6 www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 37. And Lastly to.. Step 7 Implement the Plan www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 38. These are the Retail Category Management Steps Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 39. Franchises is when there is Franchisor Franchisee www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 40. Franchisor owns the trade mark and gives licenses to franchisees Franchisor Franchisee gives licenses www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 41. In return for royalty payment Franchisor Franchisee gives licenses royalty fee www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 42. The Franchisor provides its franchisees with a system and the franchisee pays the royalty fee Franchisor Franchisee gives licenses royalty fee www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 43. Wholesaling are all activities Activities www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 44. Wholesaling are all activities in selling goods or services Activities www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 45. Wholesaling are all activities in selling goods or services for resale or business use Activities Goods services Resale business use www.yourwebsite.com http://ph.linkedin.com/in/mabviray
  • 46. Market Logistics includes To meet customer to meet customer requirements at a profit demand planning implementing controlling to meet customer www.yourwebsite.com http://ph.linkedin.com/in/mabviray requirements at a profit
  • 47.
  • 48. Self-Service Self-Selection Limited Service Full Service
  • 49. Automatic Vending Direct Selling Direct Marketing Buying Service
  • 50. Department Store Specialty Store Supermarket Convenience Store
  • 51. • Franchisor owns a trade or service • Franchisor provides system for doing business Franchisee pays for the right to be part of the system
  • 52. Target Market Price Product Assortment Services Procurement
  • 53. Central Business District Shopping Center Community Shopping Center
  • 54. Walls Lighting Floors Signage
  • 55. Ordering Warehousing Inventory
  • 56. Selling & Promotions Warehousing Transportation Financing Risk Bearing Market Information
  • 57. How should orders be handled? Where should Stock be located? How much stock be held? How should goods be shipped?
  • 58.
  • 59. Managing Retailing, Wholesaling, and Logistics Chapter 16 Maynard Anthony A. Cruz Group 5
  • 60. Types of Major Retailers  Specialty Store
  • 61. Types of Major Retailers  Supermarket
  • 62. Types of Major Retailers  Convenience Store
  • 63. Types of Major Retailers  Discount Store
  • 64. Types of Major Retailers  Department Store
  • 65. Types of Major Retailers  Off-price Retailer
  • 66. Types of Major Retailers  Superstore
  • 67. Types of Major Retailers  Catalog Showroom
  • 68. Levels of Retail Service  Full service
  • 69. Levels of Retail Service  Self-selection
  • 70. Levels of Retail Service  Limited service
  • 71. Levels of Retail Service  Self service
  • 72. Retail Positioning Map Broad Rustan’s SM Narrow High Low
  • 73. Retail Positioning Map  Broad  High
  • 74. Retail Positioning Map  Broad  Low
  • 75. Retail Positioning Map  Narrow  High
  • 76. Retail Positioning Map  Narrow  Low
  • 81. Characteristics of Franchises  Franchisor owns a trade or service
  • 82. Characteristics of Franchises  In return for royalty payments the trade or service is licensed to Franchisees
  • 83. Characteristics of Franchises  Franchisees pay for the right to be part of the system
  • 84. Characteristics of Franchises  Franchisor provides its Franchisees with a system for the business
  • 85. Location Decision  Central Business District  Community Shopping Centers  Shopping Strips  Regional Shopping Centers  Location within a larger store
  • 86. Location Decision  Central Business District
  • 89. Location Decision  Regional Shopping Centers
  • 90. Location Decision  Location within a larger store
  • 91. Types of Wholesalers  Merchant  Specialized  Full-service  Limited-service  Brokers & Agents  Manufacturers
  • 92. Retailer’s Marketing Decisions  Target market  Product assortment  Procurement  Prices  Services  Store atmosphere  Store activities  Communication  Locations
  • 93. Wholesaling Functions  Selling & Promoting  Warehousing  Transportation  Financing  Risk bearing  Buying  Bulk breaking  Market information  Management services & counseling
  • 94. Transportation Factors  Cost  Speed  Frequency  Capability  Dependability  Traceability  Availability
  • 95. Managing Retailing, Wholesaling, and Logistics Chapter 16 Maynard Anthony A. Cruz Group 5