MAR 3023 Ch 13
Wholesale merchants
sell primarily to retailers. General merchandise wholesalers carry several merchandise lines, whereas general line wholesalers carry one or two lines in great depth.
Industrial distributors
sell to manufacturers rather than to retailers.
Three major groups of wholesalers
1. Merchant wholesalers. 2. brokers and agents. 3. Manufactures and retailers branches and offices.
A retailer cooperative
A group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.
Retailer cooperative
A group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.
Franchise organization
A is a contractual association between a franchisor (a manufacturer, wholesaler, or service organization) and franchisees (independent business people who buy the right to own and operate one or more business units in the franchise system).
Convenience store
A relatively small store located near residential areas, open long hours seven days a week, and carrying a limited line of high-turnover convenience products at slightly higher prices. 7-11 Eleven, Stop-N-Go and Circle K.
Specialty store
A store that carries a narrow product line with a deep assortment. Examples- Sephora, Sunglass Hut, Williams Sonoma
Discount store
A store that carries standard merchandise sold at lower prices with lower margins and higher volumes. Examples, Kohls, Walmart, Target.
Off-price retailer
A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail. Examples - TJ Max, Costco, Sam's Club.
A voluntary chain
A wholesaler-sponsored group of independent retailers engaged in group buying and merchandising
Voluntary chain
A wholesaler-sponsored group of independent retailers engaged in group buying and merchandising
Examples of promotion decisions
Advertising, personal selling, sales promotion, public relations, and direct marketing are promotion decisions.
Promotion decisions
Advertising, personal selling, sales promotion, public relations, and direct marketing.
Wholesaling
All of the activities involved in selling goods and services to those buying them for resale or business
Specialty store
Carries narrow product lines with deep assortments
Aspects of the place decision
Choosing locations that are accessible to the target market in areas that are consistent with the retailer's positioning are aspects of the place decision.
Place decision
Choosing locations that are accessible to the target market in areas that are consistent with the retailer's positioning.
Shortening retail life cycles
Current trend retailer is currently facing
An example of price decision
Deciding on either high markups on lower volume or low markups on higher volume is an example of a price decision. A retailer's price policy must fit its target market and positioning, product and service assortment, the competition, and economic factors.
Price decision
Deciding on either high markups on lower volume or low markups on higher volume. A retailer's price policy must fit its target market and positioning, product and service assortment, the competition, and economic factors.
An example of product assortment
Deciding on store atmosphere is a major part of a product variable, and is an example of a product assortment and services decision. The retailer's product assortment should differentiate it while matching target shoppers' expectations
Product assortment and services decision
Deciding on store atmosphere is a major part of a product variable. The retailer's product assortment should differentiate it while matching target shoppers' expectations
Full service retailers
Have higher operating costs.
Trail behind Asian and European retailers in globes expansion
How do American firms fare in the global retail sector
Products and services they offer
How do wholesalers add value?
Cost plus, usually standard markup like 20%
How do wholesalers handle pricing?
Product assortment, services mix, and store atmosphere
In segmenting and targeting, a retailer must make what product decisions
Three types of off price retailer stores
Independents, warehouse clubs, and factory outlets
Create more sustainable products and packing in conjunction with producers
Method that retailers use to present a more sustainable image?
Manufactures representatives
Most common type of agent wholesaler
Limited-service wholesalers
Offer fewer services than full-service wholesalers.
Limited-service wholesalers
Offer fewer services than other wholesalers.
Supercenter
Offers discount merchandise in addition to groceries
Full-service wholesalers
Provide a full line of services: carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance.
Wholesale merchants
Sell primarily to retailers and provide a full range of services.
Industrial distributors
Sell to manufacturers rather than to retailers. They provide several services, such as carrying stock, offering credit, and providing delivery.
Category killer
Store that sells only lights and light bulbs but in every shape and size and are sourced from scores of manufacturers
Greater lengthening of the channel distribution
The factor of marketplace that is creating an advantage for marketing managers
Product assortment, services mix, and store atmosphere
Three major product variables that retailers face.
Corporate chain
Two or more outlets that are commonly owned and controlled. Corporate chains appear in all types of retailing, but they are strongest in department stores, discount stores, food stores, drugstores, and restaurants.
In the channels
Where are wholesalers feeling increasing pressure?
Full-service wholesalers
provide an entire line of services. These include carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance.
