Chapter 13

A ____ is a small store open near a residential area, long hours, 7 days a week, and carries a limited line of high turn over goods.

convenience store

____ are two or more outlets that are commonly owned and controlled.

corporate chains

Management services and advice

involves wholesalers helping retailers train their sales clerks, improve store layouts, and set up accounting and inventory control systems.

Department stores

larger stores that are organized into many separate departments and offer many product lines

____ are retailers that offer sales assistance because they carry more shopping goods that customers might need more information.

limited service retailers

Any institutions included retailers, wholesalers, and ____ do retailing.

manufacturers

showrooming

many shoppers now check out merchandise at physical-store showrooms but then buy it online using a computer or mobile device, sometimes while in the store.

Which type of store is much larger than regular supermarket and offers a large assortment of routinely purchased food products nonfood items, and services?

super store

Market information

involves the wholesaler providing information to suppliers and customers about competitors, new products, and price developments

Selling and promoting

involves the wholesaler's sales force helping the manufacturer reach many smaller customers at lower cost

Today, ____ are flourishing due to the increased use of market segmentation and market targeting.

specialty stores

Megaretailers

- With their size and buying power, can offer better merchandise selections, good service, and strong price savings to consumers. -As a result, they grow even larger by squeezing out their smaller, weaker competitors. -Have shifted the balance of power between retailers and producers.

Marketing mix decisions:

-Product -Price -Promotion -Place

Major product variable decisions include:

-Product assortment -Services mix -Store atmosphere

Segmentation, targeting, differentiation, positioning decisions:

-Size of customer -Type of customer -Need for service

Green retailing

Environmentally sustainable practices -Store design, construction, operations -Product assortment -Recycling made easier -Package and distribution

Factory outlets

At these centers, dozens of outlet stores offer prices as much as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular goods.

Wholesalers

Firms engaged primarily in wholesaling activities. -Wholesalers buy mostly from producers and sell mostly to retailers, industrial consumers, and other wholesalers. - As a result, many of the nation's largest and most important wholesalers are largely unknown to final consumers.

_____ are the most common type of agent wholesaler.

Manufacturers' agents (also called manufacturers' representatives)

_____ must fit the target market and positioning, product and service assortment, competition, and economic factors.

Price Policy. -High markup on lower volume -Low markup on higher volume

_____ have become critically important as competitive tools.

Retail technologies

_____ involves the rise of mass merchandisers and specialty superstores, the formation of vertical marketing systems, and a rash of retail mergers and acquisitions.

The rise of megaretailers

Retailer cooperatives

a group of independent retailers that band together to set up a joint-owned, central wholesale operation and conduct joint merchandising and promotion effort

shopping center

a group of retail businesses planned, developed, owned, and managed as a unit.

Wholesaling

all the activities involved in selling goods and services to those buying for resale or business use

Franchises

are contractual associations between a manufacturer, wholesaler, or service organization (a franchisor) and independent business people (franchisees) who buy the right to own and operate one or more units in the franchise system. -Franchises now command about 45 percent of all retail sales in the United States. -These days, it's nearly impossible to stroll down a city block or drive on a city street without seeing a McDonald's, Subway, Jiffy Lube, or Holiday Inn.

Central business districts

are located in cities and include department and specialty stores, banks, and movie theaters. These districts are declining.

Merchant wholesalers

are the largest group of wholesalers (account for roughly 50 percent of all wholesaling).

Supermarkets

are the most frequently visited type of retail store. . Today, however, they are facing slow sales growth because of slower population growth and an increase in competition from discounters

Brokers

bring buyers and sellers together and assist in negotiations.

off-price retailers

buy at less-than-regular wholesale prices and charge consumers less than retail. The three main types of off-price retailers are independents, factory outlets, and warehouse clubs.

Specialty stores

carry narrow product lines with deep assortments within those lines.

Home depot and pet smart are examples of _____.

category killers

____ sell standard merchandise at lower prices by accepting low margins and selling high volumes.

discount stores

Retailers connect brands with consumers in the ____ phases of the buying process.

final

Service retailers

firms that primarily sell services rather than merchandise. Service retailers in the United States are growing faster than product retailers. (hotels and motels, banks, airlines, restaurants, colleges, hospitals, movie theaters...)

Which type of retailer usually caries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process?

full service retailer

Retailing

includes all the activities in selling goods or services directly to final consumers for their personal, nonbusiness use.

Independent off-price retailers

independently owned and run or are divisions of larger retail corporations (TJ Maxx and Marshalls)

Segmentation targeting, differentiation, and positioning

involve the definition and profile of the market so the other retail marketing decisions can be made.

Everyday low pricing (EDLP)

involves charging constant, everyday low prices and offering few sales or discounts.

Retail convergence

involves the merging of consumers, producers, prices, and retailers, creating greater competition for retailers and greater difficulty differentiating offerings

Buying and assortment building

involves the selection of items and building of assortments needed by customers, saving the customers work.

Risk bearing

involves the wholesaler absorbing risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence

Bulk breaking

involves the wholesaler buying in large quantities and breaking into smaller lots for customers.

Warehousing

involves the wholesaler holding inventory, reducing its customers' inventory cost and risk.

Superstores

much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services.

____ creates a seamless cross channel buying experience that integrates instore, online, and mobile shopping.

omnichannel retailing

Warehouse clubs

operate in huge, drafty, warehouse-like facilities and offer few frills. (also known as wholesale clubs or membership warehouses such as Costco, Sam's Club)

High-low pricing

pricing involves charging higher prices on an everyday basis, coupled with frequent sales and other price promotions.

Agents

represent buyers or sellers on a more permanent basis.

Which of the following would be considered a service retailer?

restaurants

____ includes all the activities involved in selling products or services directly to consumers for their personal or nonbusiness use.

retail

As a result of the great success of corporate chains, many independent stores choose to ban together in either a voluntary chain or ____.

retailer cooperative

____ is a type of service offered by most retailers who serve customers that are willing to preform their own locate-compare-select process to save money.

self service

discount store

sells standard merchandise at lower prices by accepting lower margins and selling higher volume. (Target, Kmart, or Walmart)

____ involves using in store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions.

shopper marketing

Convenience stores

small stores that carry a limited line of high-turnover convenience goods. After several years of stagnant sales, these stores are now experiencing growth.

category killers

specialty discount stores that heavily dominate their narrow merchandise segment (Best Buy, Home Depot, and PetSmart)

____ are facing slow sales growth because of the slower population growth, increased competition, and the rapid growth of out of home eating.

supermarkets

"First Moment of Truth"

the critical three to seven seconds that a shopper considers a product on a store shelf.

Corporate chains

two or more outlets that are commonly owned and controlled. -They have many advantages over independents. -Size allows them to buy in large quantities at lower prices and gain promotional economies

Which of the following is an offprice retailer that operates in a huge warehouse like facility and offers few frills?

warehouse clubs

Voluntary chains

wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising.