Marketing Ch. 15 Pt. I

In order to justify direct-response marketing, a product really needs to be priced above

$20

The target market of a regional shopping center typically includes at least ____ people.

150,000

With respect to retailing, what is the "party plan"?

A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.

What type of retailing began with Montgomery Ward in the late 1800s?

Catalog marketing

What are the three types of nonstore retailing

Direct marketing, direct selling, and vending

An example of an emerging type of power shopping center might contain

Michael's, Office Depot, T.J. Maxx, and Best Buy.

Which retail store invests the most in atmospherics?

Neiman Marcus

have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars.

Outlet shopping centers

Norah operates an upscale shop that does both pet grooming and human manicures and pedicures. She is reaching a market segment with people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Norah appear to have addressed?

Retail positioning

What is a potential disadvantage of direct selling?

Some customers view direct selling negatively.

Which of the following offers the widest product mixes and the deepest product lines?

Superregional shopping center

Which type of retail outlet can have up to 200,000 square feet?

Superstores (200,000)

Which of the following is not an advantage of franchising for the franchisee?

The franchisee gives up a certain amount of control when participating in a franchise agreement.

Category killers

Very large specialty stores that concentrate on a major product category and compete on the basis of low prices and broad product availability Examples of category killers include Home Depot (home improvement chain), Staples (office-supply chain), and PetSmart (pet supply chain).

Greg chooses to have his hunting equipment store in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is

a free-standing structure.

Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's

atmospherics

Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n)

catalog marketer.

A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called

category management.

Specialty retailers

commonly sell such shopping products as apparel, jewelry, sporting goods, fabrics, computers, and pet supplies.

In Cara's hometown, there is a mall with a small Sears store, a Macy's department store, a couple of fast-food restaurants, a few specialty shops, and some convenience stores. The mall features seasonal sidewalk sales and boat shows. This mall is most likely a ____ shopping center.

community (Cara's)

Compared with other types of retailers, department stores compete mainly on the basis of

customer services.

As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred

department stores

All of the following are types of direct marketing except

direct selling

The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the workplace is called

direct selling.

When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using

direct-response marketing.

An arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration is

franchising

After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a

hypermarket

Category killers compete primarily on the basis of

low prices and enormous product availability

Lucas is planning a distribution strategy for his business. He is considering using direct marketing, direct selling, and automatic vending, which are all examples of ____ retailing.

nonstore

Tupperware, Sarah Coventry, Amway, and Avon sell products outside the confines of retail facilities. They are ____ retailers.

nonstore

The selling of merchandise outside the confines of actual facilities is generally called

nonstore retailing.

Stores that are in a manufacturers' *outlet* mall, such as Ralph Lauren, Tommy Hilfiger, Clarks Shoes, and Samsonite Luggage are most appropriately classified as a(n)

off-price

Stores that buy manufacturers' seconds, overruns, returns, and off-season production run at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called

off-price retailers.

shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n)

outlet shopping center.

Shopping centers include

outlet, power, lifestyle, superregional, regional, neighborhood, and community

A shopping center containing a Macy's, Sears, and JCPenney as well as dozens of specialty shops, restaurants, and entertainment is most likely a

regional shopping center

Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called

retail positioning

In contrast to industrial products, consumer products are often purchased because of

social influences

Off-price retailers and category killers are both

speciality retailers (both)

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)

specialty retailer. (shoes)

A narrow product mix with a deep product line would most likely be carried by

specialty retailers. (product mix)

Off-price retailers

stores that buy manufacturers' seconds, overruns, returns, and off-season production runs at below-wholesale prices for resale to consumers at deep discounts. They offer limited lines of national-brand and designer merchandise, usually clothing, shoes, or housewares. Examples of category killers include T.J. Maxx, Marshalls, Stein Mart, and Burlington Coat Factory.

traditional specialty retailers

stores that carry a narrow product mix with deep product lines

Kroger, Safeway, and Publix are all considered

supermarkets

Aidan is getting ready to move to campus for his freshman year of college. To get the products he needs for his dorm room, he goes to a store that sells household goods such as plastic containers, sheets, and towels. The store also sells items such as shampoo, deodorant, and toothpaste. Aidan has most likely gone to a

superstore (aidan)

A large retailer selling food and most routinely purchased consumer products is a

superstore (retailer)

When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ____ is being used.

television home shopping

Many cities are revitalizing their downtown areas by bringing in new retail establishments. They are building new civic structures, passing ordinances that encourage the restoration of historic buildings, and developing mixed-use structures that include retail, residential, and other uses. These areas are best described as

traditional business districts.

Direct marketing

use of telephone, Internet, and nonpersonal media to communicate product and organizational information to customers, who can purchase products via mail, telephone, or the Internet.

Levitz Furniture locates in huge, low-cost buildings; maintains large, on-premises inventories; and offers minimum service. Levitz is a

warehouse showroom.