1. 16
Managing Retailing,
Wholesaling, and
Logistics
Marketing Management, 13 th 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?
Copyright © 2009 Pearson Education, Inc. Publishing as

3. Q#1
Which activity defines retailing?
a. Farmer sells his vegetable crops to Rustans
Supermarket.
b. Vcoach Bong buys his favorite rootbeer without ice
from Jollibee.
c. Mang Inasal chicken is supplied by an undisclosed
farm somewhere in Bulacan.
d. Planet Cable hired the services of XXXgroup for
their cable and internet installation.
e. Veco paper supplies paper products to National
Bookstore

4. What is Retailing?
Retailing includes all the activities involved
in selling goods or services directly to final
consumers for personal, nonbusiness
use.
Copyright © 2009 Pearson Education, Inc. Publishing as

5. Q#1
Which activity defines retailing?
a. Farmer sells his vegetable crops to Rustans
Supermarket.
b. Vcoach Bong buys his favorite rootbeer without ice
from Jollibee.
c. Mang Inasal chicken is supplied by an undisclosed
farm somewhere in Bulacan.
d. Planet Cable hired the services of XXXgroup for
their cable and internet installation.
e. Veco paper supplies paper products to National
Bookstore

6. Q#2
ALL are types of store retailer
except…
a. SM Department stores
b. Starbucks
c. Mini stop
d. Mercury Drug
e. Nescafe Coffee Vendo Machine

7. Table 16.1 Major STORE
Retailer Types
 Specialty store  Discount store
--starbucks  Off-price retailer
 Department store  Superstore
-- sm department  Catalog showroom
store  Drugstore
 Supermarket
-- mercury drug
 Convenience store
--mini stop
Copyright © 2009 Pearson Education, Inc. Publishing as

8. Types of Nonstore
Retailing
 Direct selling – AVON , NATASHA
 Direct marketing – HOME TV SHOPPING,
ONLINE SHOPPINE
 Automatic vending – NESCAFE COFFEE
VENDO MACHINE
 Buying service – SM ADVANTAGE
CARD, ATENEO BLUE CARD
Copyright © 2009 Pearson Education, Inc. Publishing as

9. Q#2
ALL are types of store retailer
except…
a. SM Department stores
b. Starbucks
c. Mini stop
d. Mercury Drug
e. Nescafe Coffee Vendo Machine

10. Table 16.2 Major Types of
Corporate
Retail Organizations
 Corporate chain store
 Voluntary chain
 Retailer cooperative
 Consumer cooperative
 Franchise organization
 Merchandising conglomerate
Copyright © 2009 Pearson Education, Inc. Publishing as

11. Q#3 Which of the following
is not true? Franchising is .
a. a tightly knit group of enterprises whose systematic
operations are planned, directed, and controlled by
the operation’s franchisor.
b. The franchisor owns a trade or service mark and
licenses it to franchisees in return for royalty
payments
c. The franchisee pays for the right to be part of the
system
d. The franchisor provides its franchisees with a
system for doing business
e. None of the above

12. What is a Franchising
System?
A franchising system is a system of
individual franchisees, a tightly knit group of
enterprises whose systematic operations are
planned, directed, and controlled by the
operation’s franchisor.
Copyright © 2009 Pearson Education, Inc. Publishing as

13. 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
Copyright © 2009 Pearson Education, Inc. Publishing as

14. Q#3 Which of the following
is not true? Franchising is..
a. a tightly knit group of enterprises whose systematic
operations are planned, directed, and controlled by
the operation’s franchisor.
b. The franchisor owns a trade or service mark and
licenses it to franchisees in return for royalty
payments
c. The franchisee pays for the right to be part of the
system
d. The franchisor provides its franchisees with a
system for doing business
e. None of the above

15. Identify samples of new retail
forms and combinations
a. Bookstore + coffee shop
b. Gas station + food stores
c. Supermarket + fitness club
d. Mall and buss station with peddler carts on
the aisle
e. All of the above

16. Changes in the
Retail Environment
 New retail forms and combinations
 Growth of intertype competition
 Competition between store-based and non-
store-based retailing
 Growth of giant retailers
 Decline of middle market retailers
 Growing investment in technology
 Global profile of major retailers
Copyright © 2009 Pearson Education, Inc. Publishing as

17. Identify samples of new retail
forms and combinations
a. Bookstore + coffee shop
b. Gas station + food stores
c. Supermarket + fitness club
d. Mall and buss station with peddler carts on
the aisle
e. All of the above

18. Q#4 Which of the following is the most
important aspect of retailers
marketing decisions.
a. Procurement
b. Prices
c. Services
d. Target market
e. Product assortment

19. Retailers’ Marketing
Decisions
 Target market – until it defines and profiles the target
market, the retailer cannot make consistent decisions about
product assortment, store décor, advertising and media, price
and service levels.
 Product assortment
 Procurement
 Prices
 Services
Copyright © 2009 Pearson Education, Inc. Publishing as

20. Q#4 Which of the following is the most
important aspect of retailers
marketing decisions.
a. Procurement
b. Prices
c. Services
d. Target market
e. Product assortment

21. Retailers’ Marketing Decisions
(cont.)
 Store atmosphere
 Store activities
 Communications
 Locations
Copyright © 2009 Pearson Education, Inc. Publishing as

22. Private Label Brands
 Private labels are ubiquitous
 Consumer accepts private labels
 Private-label buyers come from all
socioeconomic strata
 Private labels are not a recessionary
phenomenon
 Consumer loyalty shifts from manufacturers
to retailers
Copyright © 2009 Pearson Education, Inc. Publishing as

23. Q#5 Wholesaling includes all activities in
selling ___ & ____, to those who buy for ___ or
____.
a. Goods & services, personal or non-business
use
b. Goods & services, resale or business use
c. Foods & merchandise, resale or business
use
d. Merchandise & service, personal and
business use.
e. Non of the above

24. Wholesaling is….
 Wholesaling includes all activities in selling
GOODS & SERVICES , to those who buy
for RESALE or BUSINESS USE.

25. Q#5 Wholesaling includes all activities in
selling ___ & ____, to those who buy for ___ or
____.
a. Goods & services, personal or non-business
use
b. Goods & services, resale or business use
c. Foods & merchandise, resale or business
use
d. Merchandise & service, personal and
business use.
e. Non of the above

26. Q#6 Which is not a
wholesaling activity?
a. Farmer sells his vegetable crops to Rustans
Supermarket.
b. Vcoach Bong buys his favorite rootbeer without ice
from Jollibee.
c. Mang Inasal chicken is supplied by an undisclosed
farm somewhere in Bulacan.
d. Planet Cable hired the services of XXXgroup for
their cable and internet installation.
e. Veco paper supplies paper products to National
Bookstore

27. Wholesaling is….
 Wholesaling includes all activities in selling
GOODS & SERVICES , to those who buy
for RESALE or BUSINESS USE.

28. Wholesaling Functions
 Selling and  Transportation
promoting  Financing
 Buying and  Risk bearing
assortment building  Market information
 Bulk breaking  Management
 Warehousing services and
counseling
Copyright © 2009 Pearson Education, Inc. Publishing as

29. Q#6 Which is not a
wholesaling activity?
a. Farmer sells his vegetable crops to Rustans
Supermarket.
b. Vcoach Bong buys his favorite rootbeer without ice
from Jollibee.
c. Mang Inasal chicken is supplied by an undisclosed
farm somewhere in Bulacan.
d. Planet Cable hired the services of XXXgroup for
their cable and internet installation.
e. Veco paper supplies paper products to National
Bookstore

30. What are
Integrated Logistics Systems?
An integrated logistics system (ILS)
includes materials management, material
flow systems, and physical distribution, aided
by information technology.
Copyright © 2009 Pearson Education, Inc. Publishing as

31. Q#7 When an order is processed where do
you store finished goods until they are sold?
a. Inside your house
b. In the walk in chiller
c. In the warehouse
d. Inside the delivery truck
e. None of the above

32. Market Logistics Decisions
 How should orders be handled? – order
processing
 Where should stock be located? -
warehousing
 How much stock should be held? - inventory
 How should goods be shipped? -
transportation
Copyright © 2009 Pearson Education, Inc. Publishing as

33. Q#7 When an order is processed where do
you store finished goods until they are sold?
a. Inside your house
b. In the walk in chiller
c. In the warehouse
d. Inside the delivery truck
e. None of the above