Objectives Retailing Wholesaling Market Logistics C2000 Prentice Hall
©2000 Prentice Hall Objectives Retailing Wholesaling Market Logistics
Four Levels of retail service Self-service Self-selection Limited-service Full-service C2000 Prentice Hall
©2000 Prentice Hall Four Levels of Retail Service Self-service Self-selection Limited-service Full-service
Classification Of Retailer Types Store Type Length and Breadth of Product Assortment Specialty Stores Narrow Product Line, Deep assortment Department Stores Wide variety of Product Lines i.e. Clothing, Home Furnishings Household items Supermarkets Wide Variety of Food, Laundry, Household Products Convenience stores Limited Line of High-Turnover Convenience Goods Discount stores Broad Product Line, Low Margin, High Volume offPrice Retailer Inexpensive, Overruns, Irregulars, and Leftover Goods Superstores Large Assortment of Routinely Purchased Food& Nonfood Products Plus Services Catalog showroom Broad Selection. Fast Turnover Discount Prices C2000 Prentice Hall
©2000 Prentice Hall Classification Of Retailer Types Specialty Stores Department Stores Supermarkets Convenience Stores Off-Price Retailer Superstores Catalog Showroom Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items Wide Variety of Food, Laundry, & Household Products Limited Line of High-Turnover Convenience Goods Inexpensive, Overruns, Irregulars, and Leftover Goods Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services Broad Selection, Fast Turnover, Discount Prices Narrow Product Line, Deep Assortment Store Type Length and Breadth of Product Assortment Discount Stores Broad Product Line, Low Margin, High Volume
Types of Non Store Retailing Direct Selling IStore Retailing Accounts for more than 12% of All Consumer Purchases, and is trending Direct Marketing Automatic Vending Buying Services C2000 Prentice Hall
©2000 Prentice Hall Types of NonStore Retailing Direct Selling Direct Marketing Buying Services NonStore Retailing Accounts for More Than 12% of All Consumer Purchases, and is trending up. Automatic Vending
Wheel of Retailing Mid Price Mid status Mid Margin Low Price Low Status Low Margin High Price High Status High Margin C2000 Prentice Hall
©2000 Prentice Hall Low Price Low Status Low Margin Mid Price Mid Status Mid Margin High Price High Status High Margin Wheel of Retailing
Why are Wholesalers Used? Management Selling and Services Advice Promoting Market Buying and Information Assortment Building Wholesaler Functions Risk Bearing Bulk Breaking Financing Warehousing Transporting C2000 Prentice Hall
©2000 Prentice Hall Why are Wholesalers Used? Wholesaler Functions Management Services & Advice Selling and Promoting Market Information Buying and Assortment Building Risk Bearing Bulk Breaking Transporting Financing Warehousing
Goals of the Logistics System Provide a Targeted Level of Customer Service at the least cost Maximize profits not sales Higher Distribution Costs/ Higher Customer Service Levels Lower Distribution Costs/ Lower Customer Service Levels C2000 Prentice Hall
©2000 Prentice Hall Goals of the Logistics System • Provide a Targeted Level of Customer Service at the Least Cost. • Maximize Profits, Not Sales. Higher Distribution Costs/ Higher Customer Service Levels Lower Distribution Costs/ Lower Customer Service Levels
Logistics Systems Costs Order Processing Minimize costs of Submitted Attaining Logistics Processed Objectives Shipped Logistics Transportation Functions Warehousing Water, Truck, Storage Rail Distribution Pipeline Air Inventory When to order How much to order Just-in-time C2000 Prentice Hall
©2000 Prentice Hall Inventory When to order How much to order Just-in-time Costs Minimize Costs of Attaining Logistics Objectives Warehousing Storage Distribution Order Processing Submitted Processed Shipped Logistics Functions Transportation Water, Truck, Rail, Pipeline & Air Logistics Systems
Transportation Modes Rail Nations largest carrier, cost-effective for shipping bulk products, piggyback Truck Flexible in routing time schedules, efficient for short-hauls of high value goods Water for shipping bulky, low-valu goods, slowest form Pipeline Ship petroleum, natural gas, and chemicals from sources to markets Air High cost, ideal when speed is needed or to ship high-value, low-bulk items C2000 Prentice Hall
©2000 Prentice Hall Rail Nation’s largest carrier, cost-effective for shipping bulk products, piggyback Truck Flexible in routing & time schedules, efficient for short-hauls of high value goods Water Low cost for shipping bulky, low-value goods, slowest form Pipeline Ship petroleum, natural gas, and chemicals from sources to markets Air High cost, ideal when speed is needed or to ship high-value, low-bulk items Transportation Modes
heckist for choo Transportation ode Speed 2. Dependability. 3. Capability. 4. Availability. C2000 Prentice Hall
©2000 Prentice Hall 1. Speed. 2. Dependability. 3. Capability. 4. Availability. Checklist for Choosing Transportation Modes