chapter 14

vertical marketing system

a centrally managed distribution channel resulting from vertical channel integration

chain retailer

a company that operates more than one retail outlet

carrier

a firm that offers transportation services

independent retailer

a firm that operates only one retail outlet

television home shopping

a form of selling in which products are presented to television viewers, who can buy them by calling a toll free number and paying with a credit card

superstore

a large retail store that carries not only food and non food products ordinarily found in supermarkets but also additional product lines

warehouse club

a large scale member only establishment that combines features of cash and carry wholesaling with discount retailing

supermarket

a large self service store that sells primarily food and household products

middleman (marketing intermediary)

a marketing organization that links a producer and user within a marketing channel

merchant middleman

a middleman that actually takes title to products by buying them

limited service wholesaler

a middleman that assumes responsibility for a few wholesale services only

retailer

a middleman that buys from producers or other middlemen and sells to consumers

specialty line wholesaler

a middleman that carries a select group of products within a single line

commission merchant

a middleman that carries merchandise and negotiates sales for manufacturers

general merchandise wholesaler

a middleman that deal in a wide variety of products

agent

a middleman that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis

functional middleman

a middleman that helps in the transfer of ownership of products but does not take title to the product

full service wholesaler

a middleman that performs the entire range of wholesaler functions

merchant wholesaler

a middleman that purchases goods in large quantities and then sells them to other wholesalers or retailers and to institutional, farm, government, professional, or industrial users

wholesaler

a middleman that sells products to other firms

broker

a middleman that specializes in a particular commodity, represents either a buyer or a seller, and is likely to be hired on a temporary basis

limited line wholesaler

a middleman that stocks only a few product lines but carries numerous product items within each line

neighborhood shopping center

a planned shopping center consisting of several small convenience stores and specialty stores

regional shopping centers

a planned shopping center containing large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes even hotels

community shopping center

a planned shopping center that includes one or two department stores and some specialty stores, along with convenience stores

warehouse showroom

a retail facility in a large, low cost building with large off premises inventory and minimal service

catalog showroom

a retail outlet that displays well known brands and sells them at discount prices through catalogs within the store

department store

a retail store that 1, employs 25 or more persons 2, sells at least home furnishings, appliances, family apparel and household linens and dry goods, each in different parts of the store

discount store

a self service general merchandise outlet that sells products at lower than usual prices

channel of distribution

a sequence of marketing organizations that directs a product from the producer to the ultimate user

convenience store

a small food store that sells a limited variety of products but remains open well beyond normal business hours

off price retailer

a store that buys manufacturers' seconds, overruns, returns, and off season merchandise for resale to consumers at deep discounts

traditional specialty store

a store that carries a narrow product mix with deep product lines

direct response marketing

a type of marketing in which a seller advertises a product and makes it available, usually for a short period, through mail, telephone, or online orders

catalog marketing

a type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or the internet

non store retailing

a type of retailing whereby consumers purchase products without visiting a store

category killer

a very large specialty store that concentrates of a single product line and competes in the basis of low prices and product availability

ordering process

activities involved in receiving and filling customers purchase orders

physical distribution

all the activities concerned with the efficient movement of products from the producer to the ultimate user

lifestyle shopping center

an open air environment shopping center with upscale chain specialty stores

contract carrier

available for hire by one or several shippers, they do not serve the general public

private carrier

carrier who is owned and operated by the shipper

manufacturers sales branch

essentially a merchant wholesaler that is owned by a manufacturer

manufacturers sales office

essentially a sales agent owned by a manufacturer

direct channel

includes no marketing intermediaries; producer to consumer

supply chain management

long term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers

traditional channel

producer to wholesaler to retailer to consumer is known as the _________ _________ because many consumer goods pass through wholesalers to retailers

piggyback

railroads and truck carriers have teamed up to provide a form of transportation called ________________

online retailing

retailing that makes products available to buyers through computer connections

materials handling

the actual physical handling of goods, on warehouses as well as during transportation

vertical channel integration

the combining of two or more stages of a distribution under a single firms management

stock out costs

the costs of sales lost when items are not in inventory

holding costs

the costs of storing products until they are purchased or shipped to customers

direct selling

the marketing of products to consumers through face to face sales presentations at home or in the workplace

telemarketing

the performance of marketing related activities by telephone

inventory management

the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock out costs

warehousing

the set of activities involved in receiving and storing goods and preparing them for reshipment

transportation

the shipment of products to customers

intensive distribution

the use of all available outlets for a product

automatic vending

the use of machines to dispense products

selective distribution

the use of only a portion of the available outlets for a particular product in each geographic area

exclusive distribution

the use of only a single retail outlet for a product in a large geographic area

direct marketing

the use of the telephone, internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or the internet

freight forwarders

they pick up shipments from the shipper, ensure that the goods are loaded on selected carriers, and assume responsibility for safe delivery of the shipment to their destinations

category management

through ________ _________, the retailers asks a supplier in a particular category how to stock the shelves.

common carrier

transportation firm whose services are available to all shippers

corporate

vertical marketing system in which actual ownership is the vehicle by which production and distribution are joined

contractual

vertical marketing system in which cooperative arrangements are the rights and obligations of channel members are defined by contracts or other legal measures

administered

vertical marketing system in which one of the channel members dominates the other members, perhaps because of its large size

private warehouse

warehouse that is owned and operated by a particular firm, can be designed to serve the firms specific needs

public warehouse

warehouse that offers their services to all individuals and firms