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					Topics for Discussion
Retailing  Wholesaling  Market Logistics


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Faculty of Management Studies MBA-MS 04-06 Marketing Management

Four Levels of Retail Service
Self-service  Self-selection  Limited-service  Full-service
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Faculty of Management Studies MBA-MS 04-06 Marketing Management

Retail Positioning Map
Broad

Breadth of product line

MANGO

FOOD WORLD

BC SEN

HALDIRAMS

Narrow
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High

Faculty of Management Studies MBA-MS 04-06 Marketing Management

Value added Low

Classification Of Retailer Types
Store Type
Specialty Stores
Department Stores Supermarkets Convenience Stores Discount Stores

Length and Breadth of Product Assortment
Narrow Product Line, Deep Assortment
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 Broad Product Line, Low Margin, High Volume Inexpensive, Overruns, Irregulars, and Leftover Goods

Off-Price Retailer
Superstores

Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services
Faculty of Management Studies MBA-MS 04-06 Marketing Management

Catalog Showroom
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Broad Selection, Fast Turnover, Discount Prices

Types of NonStore Retailing
NonStore Retailing Accounts for More Than 12% of All Consumer Purchases, and is trending up.

Direct Selling

Direct Marketing

Automatic Vending

Buying Services
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Faculty of Management Studies MBA-MS 04-06 Marketing Management

Wheel of Retailing
Mid Price Mid Status Mid Margin
Low Price Low Status Low Margin

High Price High Status High Margin

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Faculty of Management Studies MBA-MS 04-06 Marketing Management

Why are Wholesalers Used?

Management Services & Advice
Market Information

Selling and Promoting
Buying and Assortment Building

Wholesaler
Risk Bearing

Functions

Bulk Breaking

Financing

Warehousing

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Transporting Faculty of Management Studies MBA-MS 04-06 Marketing Management

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
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Faculty of Management Studies MBA-MS 04-06 Marketing Management

Logistics Systems
Costs
Minimize Costs of Attaining Logistics Objectives

Order Processing
Submitted Processed Shipped

Logistics

Transportation
Water, Truck, Rail, Pipeline & Air

Functions

Warehousing
Storage Distribution

Inventory
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When to order Faculty of Management Studies How much to order MBA-MS 04-06 Just-in-time Marketing Management

Transportation Modes
Nation’s largest carrier, cost-effective for shipping bulk products, piggyback

Rail

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, Faculty of Management Studieslow-bulk items
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Checklist for ChoosingTransportation Modes
1. Speed.

2. Dependability.
4. Availability.

3. Capability. 5. Cost.

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Faculty of Management Studies MBA-MS 04-06 Marketing Management

Rating Transportation Modes
Speed
(Door-todoor delivery time)

Dependability (Meeting Schedules on Time)

Capability (Ability to Handle Various Products)

Availability (No. of Geographic Points Served)

Cost
(Per TonMile)

Rail Water Truck Pipeline

3 4 2 5

4 5 2 1

2 1 3 5

2 4 1 5

3 1 4 2

Air
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1

3

4

3

5

Faculty of Management Studies MBA-MS 04-06 Marketing Management

Review
Retailing  Wholesaling  Market Logistics
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Faculty of Management Studies MBA-MS 04-06 Marketing Management

Thank You…!!!

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Faculty of Management Studies MBA-MS 04-06 Marketing Management


				
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