marketing ch. 17
Encouraging new bicycling enthusiasts
Aaron has designed innovative accessories for hard-core bicycling enthusiasts. He knows where and how he will make them, and he needs to turn his attention to the getting the products to the customers. As he chooses retail partners, which of the following is LEAST important in this process?
exclusive
Anbinh Fashions is launching a new line of one-of-a-kind designer jewelry. Each piece is handcrafted, and production volumes will be very low. To emphasize the unique nature of this jewelry, Anbinh Fashions will probably choose _________ distribution.
personalized offerings
Andy purchased a number of books from Amazon.com, and he learned to trust the recommendations made to him. More than once he was pleasantly surprised at the books and authors he discovered this way. In this case, Amazon.com was creating value for Andy through
a complete assortment in a specific category at low prices
As a type of retailer, category specialists are fierce competitors using
location, location, and location
As the old cliché claims, the three most important things in retailing are
off-price retailers
Because of the way __________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store.
provide personalized and meaningful product information
Benefits of the traditional retail store as a channel includes the ability to
CRM database
Benton manages a building supply company. He wants to invite twenty of his most valuable building contractor customers to a golf outing and party. Benton will likely use the firm's ___________ to identify these customers.
a multichannel strategy
Bertone's Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog, and also to sell its products online. Bertone's is adopting:
category specialist
Bertone's Office Supplies has large stores resembling warehouse environments, with racks stocked from floor to ceiling with different types of office supplies. Its assortment of office supplies is the largest in town, and their prices are low. Bertone's is a(n)
convenience store
Brian, an industrial equipment sales rep, purchases a quick snack to eat on the way to work. He buys lunch while on the road visiting customers, and grabs bread and milk on the way home. Brian probably does the majority of this shopping at a
exclusive
Heartland Plantation produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. Heartland will likely choose __________ distribution intensity.
promotion
Henri wants customers in his specialty tobacco store to feel at home, as if they were in their personal smoking den. He uses lighting, music, and soft chairs to create a "look and feel" that will get customers to relax and return. Henri is focusing on
convenience stores
If a food manufacturer had a full range of products, in a number of different container sizes, which kind of store would the company probably NOT choose as a retailing partner?
selective
If a manufacturer wasn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be __________ distribution.
off-price retailers
If you were a marketer for a clothing manufacturer and you wanted to improve revenues from irregulars, production overruns, and returns, you would be attracted to using
a specialty store
If you're a manufacturer, and you want to showcase your product in a store that has a narrow but deep selection of merchandise and where sales associates can assist customers with their selections, you'd likely choose
manufacturers
In the past, __________ dominated supply chains.
service retailer
In which of the following categories would a dry cleaning business be placed?
increase the share of wallet from their best customers
Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer's website. The retailer is using the information to
perform many different channel functions themselves
John used to work for a large, well-known retailer. He left that company to work for a much smaller company, and in doing so, he discovered that the channel functions were handled very differently in the smaller firm. Looking back at his experience, he noticed that larger firms
focus on increasing sales to their best customers
Jordan directs her salespeople to increase their "share of wallet." Jordan is directing her salespeople to
in-store promotions
Kim wants to maximize sales to the customers who walk into her store. Of the following, Kim will most likely focus on
where their target customers expect to find their products
Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, while manufacturers need to know
department stores
Kohl's, JCPenney, and Bloomingdales are examples of
customers to try before they buy
Many retail golf stores have driving ranges, some with backdrops showing famous golf courses. These driving ranges allow
How likely is it for certain retailers to carry this product?
Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie's first consideration?
staples
Of the following, the best example of a category killer is
the amount of merchandise that can be carried in a physical store
One of the greatest constraints faced by store-based retailers—and one that the Internet channel can address—is
the right mix of merchandising and services
One of the most fundamental activities of retailers is to provide __________, satisfying the needs of their target market
products that are complicated or expensive
Personal selling is particularly important for retailers selling
storage
Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing
the insights of store personnel
Retailers can gain valuable knowledge about their customers from the transaction process and from
in-store kiosks or self-checkout lanes
Retailers in expensive resort areas often find it difficult to hire quality salespeople. In a situation like this, some retailers augment or even replace the sales and customer service functions with
sits at the end of
Retailing __________ the supply chain.
adds value to products and services sold to final consumers
Retailing is defined as the set of business activities that
meets the consumers
Retailing is where marketing
intensive
Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this is consistent with the company's overall strategy, it will choose __________ distribution.
walmart
Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products. __________ dominates this category with the vast majority of supercenters in the United States.
they sell to customers for their personal use
The key factor distinguishing retailers from other members of the supply chain is that
loyal customers through loyalty programs
The knowledge retailers can gain from their store personnel and customer relationship management databases is valuable for developing
large retailers
Today, __________ dominate supply chains.
which competitors they should collaborate with
Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the following EXCEPT
the same way
Traditionally, retailers treated all their customers
An SKU represents a unique inventory item in a store
What is the primary function of a stock keeping unit (SKU)?
intensive
When Creative Pen Company designed a new pen that was particularly comfortable to use, it wanted to, literally, get the pen in the hands of as many consumers as possible. Creative Pen will probably choose __________ distribution for its new product.
M-commerce
When a company offers consumers the ability to make purchases via a smart phone, this is known as
lowering production costs
Which of the following is NOT one of the broad factors manufacturers must consider when establishing a strategy for getting their products into the hands of the ultimate customer?
business-to-business requests for proposals (RFPs)
Which of the following is NOT one of the typical outlets used by retailers?
The manufacturer overestimated demand or has a great deal of returned merchandise from other retailers
Which of the following represents the BEST reason a manufacturer of high-end products might consider selling products in a warehouse club?
jewelry store
Which of the following retail stores would emphasize personal selling the most as part of the firm's promotional efforts?
intensive distribution
Which of the following strategies is designed to place products in as many outlets as possible?
extreme value retailers
Which type of store is small and offers a limited merchandise assortment at very low prices?
online chats
While it is relatively easy to offer customers Internet options like a FAQ page and an e-mail address to answer questions, some companies are using an interactive approach to address customers' questions while they are visiting the websites. These firms are using ___________ to provide the customer with enhanced customer service.
consumers
Wholesalers sell to all of the following EXCEPT
department stores
__________ are combating competitive pressures by increasing the amount of exclusive and private label merchandise, strengthening customer loyalty programs, and expanding their online presence.
convenience stores
__________ are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local markets, opening locations closer to where consumers work and shop, and adding new services.
extreme value retailers
__________ are likely to target low-income consumers who demand national brands, but cannot afford to buy large-sized packages.
store credit cards and gift cards
__________ are subtle forms of promotion that encourage shopping in retailers' stores.
off-price retailers
__________ can purchase merchandise at one-fifth to one-fourth of the original wholesale prices because they do not ask the suppliers for advertising allowances or markdown adjustments.
Multichannel retailing
__________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise.
Extreme value retailers
__________ offer a limited assortment of general merchandise at very low prices and are often found in lower-rent locations.
extreme value retailers
__________ reduce costs and maintain low prices by buying opportunistically from manufacturers with excess inventory, offering limited assortments of household goods, groceries, as well as health and beauty aids.
the use of price private label brands
. One product strategy used by retailers to differentiate themselves from competitors is
use supply chain intermediaries
Generally, the larger and more sophisticated the channel member, the less likely that it will
emphasize fresh, locally sourced perishables
. Paul's family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Paul wants to apply what he recently learned as a marketing major and he has recommended that his family's business should
increase their share of wallet
. Retailers focusing on increasing sales to their best customers are attempting to
fill-line discount stores
. Retailers that offer a broad variety of merchandise, limited services and low prices are known as
mass media advertising
. Retailers use __________ to get customers into their stores.
pricing promotions
. Retailers' coupons, rebates, and online discounts are types of
more value to their best customers
. Today, most successful retailers concentrate on providing
in-store promotions
. Unusual and exciting displays like Bass Pro Shops' climbing wall and stocked aquarium are examples of
selective
. __________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area.
off-price retailers
. __________ offer an inconsistent assortment of brand-name merchandise at low prices.
service retailer
.Johan owns an oil-change business called Oil Only. He changes oil in cars—and that is all he does. What kind of retail business is this?
extreme value retailers
. Higher-income consumers visiting __________ feel like they are on a treasure hunt, searching for a bargain.
specialty stores
. If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you'd like to sell your product through
department shop
. If you walk into a __________, you will likely find a broad variety of merchandise, deep assortment, and customer service, with everything divided into what appears to be a collection of specialty shops.
competitors can purchase and sell many of the same popular brands
. It is often difficult for retailers to distinguish themselves from their competitors through the merchandise they carry because
shop in traditional retail stores
. Janelle is shopping for a unique outfit for a special benefit dinner dance. She wants it to sparkle and shine, but still feel light, silky, and comfortable. For the highest satisfaction, Janelle likely should
the purchases she had made
. Mira purchased some eyeliner from an Internet-based beauty supply house, and now she often receives online recommendations for other products from the same cosmetics line. These recommendations were probably the result of
accepting cash payments
. One advantage of a retail store that is NOT shared with an Internet channel is
a competitive advantage that few rivals can duplicate
. Because many consumers choose stores based on proximity to their workplaces or homes, great locations are
a lower level of service
. Compared to conventional supermarkets, warehouse clubs have
service retailer
Carol's Studio, located in a shopping mall, offers zumba dance classes for all ages. Carol's Studio is known as a(n)
M-commerce
Chandra owns a pet sitting service. He recently paid a web developer to build a special version of his company website for use on smartphones. Customers will now be able to easily place orders for pet sitting on their cell phones. This is an example of
intensive, exclusive, and selective
Distribution intensity is commonly divided into three levels:
convenient locations
For brick-and-mortar retailers, when making decisions regarding "place," a key ingredient to success is
both their in-store environment and their mass media communications
For retailers, promotion refers to
general merchandise
Full-line discount, category specialist, and specialty stores are all types of __________ retailers.