retailing and wholesaling

5498 words 22 pages
CHAPTER 11
Retailing and Wholesaling

Previewing The Concepts: Chapter Objectives

1. Explain the roles of retailers and wholesalers in the distribution channel
2. Describe the major types of retailers and give examples of each
3. Describe the major types of wholesalers and give examples of each
4. Explain the marketing decisions facing retailers and wholesalers

Just the Basics

Chapter Overview

This chapter is a continuation of the prior chapter on marketing channels; it provides more detail on retailing and wholesaling, two very important concepts in the value delivery network.

Retailers can be classified according to several characteristics, including the amount of service they offer, the breadth and depth of
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Independent off-price retailers either are independently owned and run or are divisions of larger retail corporations.
2. Factory outlets—manufacturer-owned and operated stores—sometimes group together in factory outlet malls and value-retail centers.
3. Warehouse clubs (or wholesale clubs or membership warehouses), operate in huge, drafty, warehouse-like facilities and offer few frills.

Use Key Terms Discount Store, Off-Price Retailer, Independent Off-Price Retailers, Factory Outlet, and Warehouse Club here.
Use Chapter Objective 2 here.

Organizational Approach (Table 11.2)

Use Discussing the Issues 3 here.

Chain stores are two or more outlets that are commonly owned and controlled.

They have many advantages over independents.

Their size allows them to buy in large quantities at lower prices and gain promotional economies.
They can hire specialists to deal with areas such as pricing, promotion, merchandising, inventory control, and sales forecasting.

There are three forms of contractual associations:

1. Voluntary chain—a wholesaler‑sponsored group of independent retailers that engages in group buying and common merchandising.
2. Retailer cooperative—a group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conducts joint merchandising and promotion efforts.
3. Franchise— The main difference between franchise organizations and other contractual

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