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Chapter12RetailingandWholesaling12-1Chapter12RetailingandWhRoadMap:PreviewingtheConceptsExplaintherolesofretailersandwholesalersinthedistributionchannel.Describethemajortypesofretailersandgiveexamplesofeach.Identifythemajortypesofwholesalersandgiveexamplesofeach.Explainthemarketingdecisionsfacingretailersandwholesalers.2RoadMap:PreviewingtheConcWhatisRetailing?

Retailing

IncludesalltheActivitiesInvolvedinSellingGoodsorServicesDirectlytoFinalConsumersforTheirPersonal,NonbusinessUse.3WhatisRetailing?RetailingRetailingcanbedoneinstores(storeretailing)oroutofastore(nonstoreretailing)suchas:Directmail,Catalogs,Telephone,Homeshoppingshows,Internet.4RetailingRetailingcanbedone

AmountofServiceSelf-Service,Limited-ServiceandFull-ServiceRetailerProductLineLengthandBreadthoftheProductAssortmentRelativePricesPricingStructurethatisUsedbytheRetailerRetailOrganizationsIndependent,Corporate,orContractualOwnershipOrganizationClassificationofRetailing5ProductLineRetailOrganizatiSelf-ServiceRetailersProvideFeworNoServicestoShoppersi.e.BestBuyLimited-ServiceRetailersProvideOnlyaLimitedNumberofServicestoShoppersi.e.SearsFull-ServiceRetailersRetailersthatProvideaFullRangeofServicestoShoppersi.e.NeimanMarcusClassificationofRetailing:

AmountofService6Self-ServiceLimited-ServiceClSpecialtyStoresDepartmentStoresSupermarketsConvenienceStoresSuperstoresDiscountStoresNarrowProductLine,DeepAssortmenti.e.TheLimitedorAthlete’sFootWideVarietyofProductLinesi.e.Clothing,HomeFurnishingsi.e.SaksFifthAvenueWideVarietyofFood,Laundry,&HouseholdProductsi.e.KrogerLimitedLineofHigh-TurnoverConvenienceGoodsi.e.7-ElevenLargeAssortmentofRoutinelyPurchasedFood,NonfoodProductsi.e.TargetStandardMerchandiseatLowerPricesi.e.Wal-MartOff-PriceRetailersChangingCollectionofHigher-QualityGoodsataReducedPricei.e.T.J.MaxxClassificationofRetailing:

ProductLine(Tab.12-1)Store Description7SpecialtyStoresDepartmentStoGiantsuperstorescalledcategorykillersareanemergingtrend.Answerthefollowingquestions:Howisacategorykillerdifferentfromothertypesofretailers?Whyhasthisformofretailinggrownsorapidly?

8GiantsuperstorescalledcategVoluntaryChainFranchiseOrganizationsRetailerCooperativesMerchandisingConglomeratesClassificationofRetailing:

RetailOrganizationCorporateChain9VoluntaryFranchiseRetailerMeRetailerMarketingDecisions(Fig.12-1)10RetailerMarketingDecisions(Considerthefollowingthoughtquestion,formatananswer,pairwiththestudentonyourright,shareyourthoughtswithoneanother,andrespondtoquestionsfromtheinstructor.Howdoretailersestablishapositioninthemarketplace?11ConsiderthefollowingthoughtProductAssortment

BrandofMerchandiseMerchandisingEventsProductDifferentiationStrategiesServicesMixKeyToolofNonpriceCompetitionforSettingOneStoreApartFromAnotherStore’sAtmosphere

PhysicalLayout“Feel”ThatSuitstheTargetMarketandMovesCustomerstoBuyProductAssortmentandServicesDecisions12ServicesMixStore’sAtmospherePriceDecisionsTargetMarket,Product&ServiceAssortment,CompetitionPlaceDecisionsShoppingCenters,CentralBusinessDistricts,PowerCenters,orOnlineShoppingPromotionDecisionsUsingAdvertising,PersonalSelling,SalesPromotion,PublicRelations,&DirectMarketingtoReachCustomersLocation,Location,Location!Retailer’sPrice,Promotion,andPlaceDecisions13PriceDecisionsPlaceDecisionsMallofAmericaTheMallofAmerica“megamall”containsmorethan:520specialtystores,49restaurants,7-acreindoorthemepark,UnderwaterWorldfeaturinghundredsofmarinespecimens,Andatwo-storyminiaturegolfcourse.14MallofAmericaTheMallofAmeTheFutureofRetailingNewRetailFormsandShorteningRetailLife-CyclesGrowthofNonstoreRetailingIncreasingIntertypeCompetitionRiseoftheMegaretailersGrowingImportanceofRetailTechnologyGlobalExpansionofMajorRetailersRetailStoresas“Communities”or“Hangouts”15TheFutureofRetailingNewRetWhatisWholesaling?

Wholesaling

IncludesalltheactivitiesInvolvedinSellingGoodsandServicestoThoseBuyingforResaleorBusinessUse.16WhatisWholesaling?WholesalerFunctionsManagementServices&AdviceSelling&PromotingMarketInformationBuying&AssortmentBuildingRiskBearingBulk-BreakingTransportationFinancingWarehousingWholesalersareOftenBetteratPerformingOneorMoreoftheFollowingChannelFunctions:WhyareWholesalersUsed?17WholesalerManagementSelling&TypesofWholesalersManufacturers’SalesBranchesandOfficesWholesalingbySellersorBuyersThemselvesRatherThanThroughIndependentWholesalers.MerchantWholesalerIndependentlyOwnedBusinessthatTakesTitletotheMerchandiseitHandles.Agents&BrokersTheyDon’tTakeTitletotheGoods,andTheyPerformOnlyaFewFunctions.18TypesofWholesalers18WholesalerMarketingDecisions(Fig.12-2)19WholesalerMarketingDecisionsMustConstantlyImproveTheirServicesandReduceCostsDistinctionBetweenLargeRetailersandWholesalersBlursWholesalersWillContinuetoIncreasetheServicesProvidedWholesalersAreBeginningtoGoGlobalTrendsinWholesaling20MustConstantlyImproveTheirRestStop:ReviewingtheConceptsExplaintherolesofretailersandwholesalersinthedistributionchannel.Describethemajortypesofretailersandgiveexamplesofeach.Identifythemajortypesofwholesalersandgiveexamplesofeach.Explainthemarketingdecisionsfacingretailersandwholesalers.21RestStop:ReviewingtheConcChapter12RetailingandWholesaling12-22Chapter12RetailingandWhRoadMap:PreviewingtheConceptsExplaintherolesofretailersandwholesalersinthedistributionchannel.Describethemajortypesofretailersandgiveexamplesofeach.Identifythemajortypesofwholesalersandgiveexamplesofeach.Explainthemarketingdecisionsfacingretailersandwholesalers.23RoadMap:PreviewingtheConcWhatisRetailing?

Retailing

IncludesalltheActivitiesInvolvedinSellingGoodsorServicesDirectlytoFinalConsumersforTheirPersonal,NonbusinessUse.24WhatisRetailing?RetailingRetailingcanbedoneinstores(storeretailing)oroutofastore(nonstoreretailing)suchas:Directmail,Catalogs,Telephone,Homeshoppingshows,Internet.25RetailingRetailingcanbedone

AmountofServiceSelf-Service,Limited-ServiceandFull-ServiceRetailerProductLineLengthandBreadthoftheProductAssortmentRelativePricesPricingStructurethatisUsedbytheRetailerRetailOrganizationsIndependent,Corporate,orContractualOwnershipOrganizationClassificationofRetailing26ProductLineRetailOrganizatiSelf-ServiceRetailersProvideFeworNoServicestoShoppersi.e.BestBuyLimited-ServiceRetailersProvideOnlyaLimitedNumberofServicestoShoppersi.e.SearsFull-ServiceRetailersRetailersthatProvideaFullRangeofServicestoShoppersi.e.NeimanMarcusClassificationofRetailing:

AmountofService27Self-ServiceLimited-ServiceClSpecialtyStoresDepartmentStoresSupermarketsConvenienceStoresSuperstoresDiscountStoresNarrowProductLine,DeepAssortmenti.e.TheLimitedorAthlete’sFootWideVarietyofProductLinesi.e.Clothing,HomeFurnishingsi.e.SaksFifthAvenueWideVarietyofFood,Laundry,&HouseholdProductsi.e.KrogerLimitedLineofHigh-TurnoverConvenienceGoodsi.e.7-ElevenLargeAssortmentofRoutinelyPurchasedFood,NonfoodProductsi.e.TargetStandardMerchandiseatLowerPricesi.e.Wal-MartOff-PriceRetailersChangingCollectionofHigher-QualityGoodsataReducedPricei.e.T.J.MaxxClassificationofRetailing:

ProductLine(Tab.12-1)Store Description28SpecialtyStoresDepartmentStoGiantsuperstorescalledcategorykillersareanemergingtrend.Answerthefollowingquestions:Howisacategorykillerdifferentfromothertypesofretailers?Whyhasthisformofretailinggrownsorapidly?

29GiantsuperstorescalledcategVoluntaryChainFranchiseOrganizationsRetailerCooperativesMerchandisingConglomeratesClassificationofRetailing:

RetailOrganizationCorporateChain30VoluntaryFranchiseRetailerMeRetailerMarketingDecisions(Fig.12-1)31RetailerMarketingDecisions(Considerthefollowingthoughtquestion,formatananswer,pairwiththestudentonyourright,shareyourthoughtswithoneanother,andrespondtoquestionsfromtheinstructor.Howdoretailersestablishapositioninthemarketplace?32ConsiderthefollowingthoughtProductAssortment

BrandofMerchandiseMerchandisingEventsProductDifferentiationStrategiesServicesMixKeyToolofNonpriceCompetitionforSettingOneStoreApartFromAnotherStore’sAtmosphere

PhysicalLayout“Feel”ThatSuitstheTargetMarketandMovesCustomerstoBuyProductAssortmentandServicesDecisions33ServicesMixStore’sAtmospherePriceDecisionsTargetMarket,Product&ServiceAssortment,CompetitionPlaceDecisionsShoppingCenters,CentralBusinessDistricts,PowerCenters,orOnlineShoppingPromotionDecisionsUsingAdvertising,PersonalSelling,SalesPromotion,PublicRelations,&DirectMarketingtoReachCustomersLocation,Location,Location!Retailer’sPrice,Promotion,andPlaceDecisions34PriceDecisionsPlaceDecisionsMallofAmericaTheMallofAmerica“megamall”containsmorethan:520specialtystores,49restaurants,7-acreindoorthemepark,UnderwaterWorldfeaturinghundredsofmarinespecimens,Andatwo-storyminiaturegolfcourse.35MallofAmericaTheMallofAmeTheFutureofRetailingNewRetailFormsandShorteningRetailLife-CyclesGrowthofNonstoreRetailingIncreasingIntertypeCompetitionRiseoftheMegaretailersGrowingImportanceofRetailTechnologyGlobalExpansionofMajorRetailersRetailStoresas“Communities”or“Hangouts”36TheFutureofRetailingNewRetWhatisWholesaling?

Wholesaling

IncludesalltheactivitiesInvolvedinSellingGoodsandServicestoThoseBuyingforResaleorBusinessUse.37WhatisWholesaling?WholesalerFunctionsManagementServices&AdviceSelling&PromotingMarketInformationBuying&AssortmentBuildingRiskBearingBulk-BreakingTransportationFinancingWa

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