The document discusses various topics related to retailing, wholesaling, and logistics. It describes different types of retailers, levels of retail service, and forms of non-store retailing. It also covers changes in the retail environment, retailers' marketing decisions, store atmosphere design, tips to increase in-store sales, the growth of private label brands, wholesaling functions, supply chain management, market logistics, logistics decisions, determining optimal order quantity, and factors considered for transportation.

1. 16
Managing Retailing,
Wholesaling,
and Logistics
1

2. Table 16.1 Major Retailer Types
 Specialty store
 Department store
 Supermarket
 Convenience store
 Discount store
 Off-price retailer
 Superstore
 Catalog showroom
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3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-3
Levels of Retail Service
 Self service
 Self selection
 Limited service
 Full service

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Nonstore Retailing
 Direct selling
 Direct marketing
 Automatic vending

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Changes in the
Retail Environment
 New retail forms and combinations
 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
 Growth of shopper marketing

6. Retailers’ Marketing Decisions
 Target market
 Product assortment
 Procurement
 Prices
 Services
 Store atmosphere
 Store activities
 Store experiences
 Communications
 Location
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7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-7
Store Atmosphere
 Walls
 Lighting
 Signage
 Product placement
 Floors
 Surface space
 Music
The Fornarina flagship store
features award-winning retail
design.

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Tips for Increasing Sales
in Retail Space
 Keep shoppers in the store
 Honor the transition zone
 Don’t make them hunt
 Make merchandise available to the reach and
touch
 Note that men do not ask questions
 Remember women need space
 Make checkout easy

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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

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Private Labels

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Wholesaling Functions
 Selling and
promoting
 Buying and
assortment building
 Bulk breaking
 Warehousing
 Transportation
 Financing
 Risk bearing
 Market information
 Management
services and
counseling

12. Supply Chain Management
Supply chain management starts before
physical distribution and means strategically
procuring the right inputs (raw materials,
components, and capital equipment);
converting them efficiently into finished
products; and dispatching them to the final
destinations.
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13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-13
Market Logistics
 Sales forecasting
 Distribution
scheduling
 Production plans
 Finished-goods
inventory decisions
 Packaging
 In-plant
warehousing
 Shipping-room
processing
 Outbound
transportation
 Field warehousing
 Customer delivery
and servicing

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Market Logistics Decisions
 How should orders be handled?
 Where should stock be located?
 How much stock should be held?
 How should goods be shipped?

15. Figure 16.1 Determining Optimal
Order Quantity
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16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16-16
Transportation Factors
 Speed
 Frequency
 Dependability
 Capability
 Availability
 Traceability
 Cost