MKT test 4

Category management

a retail strategy of managing groups of similar, often substitutable products produced by different manufacturers (having products that make sense together and the way you manage them)

Retail positioning

identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment (what underserved market segment are there that you can fix)

Warehouse clubs

large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing

Warehouse showrooms

retail facilities in large, low-cost buildings with large, on-premises inventories and minimal services (ikea)

Hypermarkets

stores that combine supermarket and discount store shopping in one location

agents and brokers

wholesalers who: bring together the manufactors and retailers ±Agents - intermediaries that represent either buyers or sellers on a permanent!! basis ±Brokers - intermediaries that bring buyers and sellers together temporarily!!

services that wholesalers proved to retailers

°Assist with distribution component of marketing strategy °Help retailers select inventory °Negotiate final purchases °Help look for and coordinate supply sources °Providing consistent, wide-range of products -distribute from producer to retailer

Limited Service Wholesalers (3 types)

°Cash-and-carry wholesalers - limited-service wholesalers whose customers pay cash and you provide your own transportation ±Truck wholesalers - limited-service wholesalers that transport products directly to customers for inspection and selection ±Drop shippers - limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products

Location of Retail Stores: Types of shopping centers (4)

°Neighborhood shopping centers(strip malls) - a type of shopping center usually consisting of several small convenience and specialty stores °Regional shopping centers(malls) - a type of shopping center with the largest department stores, widest product mixes, and deepest product lines of all shopping centers °Superregional shopping centers(mall of America) - a type of shopping center with the widest and deepest product mixes that attract customers from many miles away (attract people from miles away) °Lifestyle shopping center(upscale brands) - a type of shopping center that is typically open air and features upscale specialty, dining, and entertainment

Store image (atmosphere and image)

±Atmospherics - the physical elements in a store's design that appeal to consumers' emotions and encourage buying ±Image - a functional and psychological picture in the consumer's mind

Category killer (def and characteristics)

±Category killer - a very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability (office depot) ±Characteristics: °Expand rapidly and gain sizable market shares °Have experienced pressure from online retailing

wholesalers (4 classification criteria) (2 types)

±Classification criteria: °Independently owned or owned by a producer °Whether it owns the products it handles °Range of services provided °Breadth and depth of product lines ±Types of wholesaling establishments: °Merchant wholesalers °Agents and brokers

Convenience store (def and characteristics)

±Convenience store - a small, self-service store that is open long hours and carries a narrow assortment of products, usually convenience items (ex. 7/11) ±Characteristics: °The primary product is convenience. °Usually open 24 hours a day and 7 days a week °Stock about 500 items °National chains and family-owned independent stores

Department stores (def and characteristics)

±Department stores - large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management ±Characteristics: °At least 25 employees °Product lines organized in departments

±Direct marketing (nonstore retailing, online retailing)

±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 °Accounts for 8.5% of the U.S. GDP ±Nonstore retailing - the selling of products outside the confines of a retail facility °Accounts for an increasing percentage of total retail sales ±Online retailing: ± retailing that makes products available to buyers through Internet connections -------------------°42% of retail sales

Direct selling

±Direct selling - marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace (sales people come to our homes)

±Discount stores (def and characteristics and Extreme-value stores)

±Discount stores - self-service, general-merchandise stores that offer brand-name and private-brand products at low prices (ex walmart without groceries) ±Characteristics: °Accept lower profit margins than conventional retailers in exchange for high sales volume °Carry a wide, but carefully selected, assortment of products ±Extreme-value stores - retailers that are a fraction of the size of conventional discount stores and typically offer very low prices on smaller size name-brand nonperishable household items (ex. dollar general)

Franchising

±Franchising - an arrangement in which a supplier (franchisor)(mcdonalds) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration ±Franchisor!! receives a percentage of sales for supplying: °Equipment and buildings °Management know-how and marketing assistance ±Franchisee: °Supplies labor and capital °Operates the franchised business °Abides by the provisions of the franchise agreement

two types of retailers

±General-merchandise retailer - a retail establishment that offers a variety of product lines that are stocked in considerable depth and you can physically go to Specialty Retailers ±Offer substantial assortments in a few product lines ±Emphasize narrow and deep assortments

General-merchandise retailer (def and 8 types)

±General-merchandise retailer - a retail establishment that offers a variety of product lines that are stocked in considerable depth and you can physically go to ±Types of general-merchandise retailers: °Department stores °Discount stores °Convenience stores °Supermarkets °Superstores °Hypermarkets °Warehouse clubs °Warehouse showrooms

Full Service Wholesalers (2 types)

±General-merchandise wholesalers - full service wholesalers with a wide product mix but limited depth within product lines ±Limited-line wholesalers - full servicewholesalers that carry only a few product lines but many products within those lines

2 types of agents

±Manufacturers' agents - independent intermediaries that represent two or more sellers and usually offer customers complete product lines (agents for the manufacture) ±Selling agents - intermediaries that market a whole product line or a manufacturer's entire output

±Merchant wholesalers - (2 types)

±Merchant wholesalers - independently owned businesses that: °Take title to goods °Assume ownership risks °Buy and resell products to other wholesalers, business customers, or retailers ±Two broad categories: °Full service °Limited service

Off-price retailers (def and characteristics)

±Off-price retailers - stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts (marshalls) ±Characteristics: °Offer limited lines of national-brand and designer merchandise °Charge 20-50% less than department stores for comparable merchandise °Perform well in recessionary times °Establish long-term relationships with suppliers

Specialty Retailers (def and 3 types)

±Offer substantial assortments in a few product lines ±Emphasize narrow and deep assortments ±Despite their name, do not sell specialty items ±Types of specialty retailers: °Traditional specialty retailers °Category killers °Off-price retailers

Retailing vs Retailer

±Retailing - all transactions in which the buyer intends to consume the product through personal, family, or household use(shopping) ±Retailer - an organization that purchases products for the purpose of reselling them to ultimate consumers (company)

4 things to consider before you start a store

±Strategic issues: °Location °Retail positioning °Store image °Category management

Supermarkets (def and characteristics)

±Supermarkets - large, self-service stores that carry a complete line of food products, along with some non-food products (HEB) ±Characteristics: °Arranged by department for maximum efficiency in stocking and handling products °Central checkout facilities °Offer lower prices than smaller neighborhood grocery stores °Provide additional services such as check cashing

Superstores (def and characteristics)

±Superstores - giant retail outlets that carry food and non-food products found in supermarkets, as well as most routinely purchased consumer products ±Characteristics: °Combine features of discount stores and supermarkets °Carry about four times as many items as supermarkets °Offer additional services, such as dry cleaning, auto repair, check cashing, and bill paying °To cut handling and inventory costs, tall shelving displays entire assortments of products. °Sales volume is two to three times that of supermarkets.

Traditional specialty retailers (def and characteristics)

±Traditional specialty retailers - stores that carry a narrow product mix with deep product lines (victoria secret) ±Characteristics: °Commonly sell shopping products such as apparel, jewelry, sporting goods, fabrics, computers, and pet supplies °Purchase limited lines in large quantities °Offer better selections and more sales expertise than department stores

Wholesaling vs Wholesaler

±Wholesaling(transactions) - transactions in which products are bought for resale, for making other products, or for general business operations °Does not include exchanges with ultimate consumers ±Wholesaler (organization) - an individual or organization that sells products that are bought for resale, for making other products, or for general business operations ±Transactions include goods and services. ±Can include supply-chain management activities