Halden Zimmermann: Philip Kotler Marketing Summary, Chapters 15 and 16 pt 3

Chapter 16: Managing Retailing, Wholesaling and Logistics

An emphasis has been placed on the functions performed by intermediary organizations in delivering value to customers. Retailer is an intermediary party involved in selling goods and services directly to end consumers for personal or non business use. Several major successful companies come under retailing business. Businesses can perform retailing activities in three forms. Firstly, they could be store retailers which are categorized in following forms: specialty store, departmental store, supermarket, convenience store, drug store, discount store, extreme value or hard discount store, off price retailer, superstore and catalog showroom. Secondly, retailing could also be performed through non store retailing which is growing in trend more than store retailing. Non store retailing falls in four main categories: direct selling, direct marketing, automatic vending and buying service. Thirdly, corporate retailing organizations are those retailers which have gained the benefits of economies of scale, greater purchasing power, wider brand recognition and consist of highly trained and motivated employees. They include: corporate chain stores, voluntary chain, retailer cooperative, consumer cooperative, franchise organization and merchandising conglomerate.halden zimmermann

There have been a number of developments in the retailing environment which contributed towards its efficiency such as new retail forms and combinations, growth of intertype competition, store and non store retailing competition, emergence of giant retailers, decline of middle market retailers, increasing investment in technology, global profile of major retailers and growth of shopper marketing. As a result of these updated trends and changes in the environment, marketing decisions are now based on the factors which include: target market, channels, product assortment, procurement, prices, services and store atmosphere, store activities and experiences, communications and experiences. Moreover, retailers are involved in developing their own private label brands as they find it more profitable to do so. This strategy also allows retailers to differentiate from competitors.


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