Chapter 15 MKTG

Warehouse Showrooms

Retail facilities in large, low cost buildings with large on-premises inventory and minimal services. EX: IKEA

Discount Stores

Self-service, general merchandise stores that offer brand-name and private-brand products at low prices. Discount stores accept lower profit margins than conventional retailers in exchange for high sales volume. EX: Walmart, Target

Atmospherics

The physical elements in a store's design that appeal to customer's emotions and encourage buying. This help create an image and position a retailer.

Non store retailing

The selling of products outside the confines of a retail facility. EX: catalog marketing, direct response marketing, telemarketing, television home shopping, and online retailing.

Automatic Vending

The use of machines to dispense products

What are the three types of specialty retailers?

Traditional specialty retailers, category killers, and off-price retailers.

Wholesaling

Transactions in which products are bought for resale, for making other products, or for general business operations. This does not include exchanges with the ultimate customer.

Retailer

an organization that purchases products for the purpose of reselling them to ultimate customers

Commission Merchants

Agents that receive goods on consignment form local sellers and negotiate sales in large, central markets.

What are the 8 types of general-merhandise retailers?

Department store, Discount store, convenience store, supermarket, superstore, hypermarket, warehouse club, and warehouse showroom.

What are the two categories of merchant wholesalers?

Full service and Limited service

Limited line Wholesalers

Full service wholesalers that carry only a few product lines but many products within those lines. This would be like groceries, lighting fixtures, or oil well drilling equipment.

Speciality line wholesalers

Full service wholesalers that carry only a single product line or few items within a product line.

General Merchandise

Full service wholesalers with a wide product mix but limited depth within product lines. They deal with products such as drugs, non perishable foods, cosmetics, detergents, and tobacco.

Rack Jobbers

Full service, speciality line wholesalers that own and maintain display racks in stores. They specialize in non food items with high profit margins, such as health and beauty aids, books, magazines, hosiery, and greeting cards.

Selling Agents

Intermediaries that market a whole product line or a manufacturers entire output

Department Stores

Large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management. They have to have at least 25 employees. These are distinctly service oriented. Department stores are usually found in most places with a population over 50,000. This would be like macys, sears, and jcpenney.

Warehouse clubs

Large scale, members only establishments that combine features of cash and carry wholesaling with discount retailing. These places offer few services comapared to other types. They also have minimal advertising. EX: Sams club, Cosco

Supermarkets

Large, self service stores that carry a complete line of food products, along with some non food products. These places are arranged by department. EX: Kroger, publix, and safeway.

Mail Order Wholesalers

Limited Service Wholesalers that sell products through catalogs.

Truck Wholesalers

Limited Service Wholesalers that transport products directly to customers for inspection and selection. They are often small operators who own and drive their own trucks. They have regular routes, calling on retailers and other institutions to determine their needs.

Drop Shippers

Limited service wholesalers that take title to goods and negotiate sales but never actually take procession of products. They forward orders from retailers, business buyers, or other wholesalers to manufacturers and arrange for carload shipments of items to be delivered directly from producers to these consumers. They arrange responsibility for products during the entire transportation, including costs of any unsold goods.

Sales branches

Manufacturer owned intermediaries that sell products and provide support services to the manufacturer's sales force.

Full service wholesalers

Merchant wholesalers that perform the widest range of wholesaling. Customers rely on them for product availability, suitable product assortments, breaking large quantities into smaller ones, financial assistance, and technical advice and service.

Limited Service Wholesalers

Merchant wholesalers that provide some services and specialize in a few functions Limited Service Wholesalers take title to merchandise, but do not often deliver merchandise, grant credit, provide marketing information, store inventory, or plan ahead for customer's future needs.

What are the different types of shopping centers?

Neighborhood, community, regional, superregional, lifestyle, power, and outlet centers.

Agents

intermediaries that represent either buyers or sellers on a permanent basis.

Location is the least flexible variable of the marketing mix.

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Direct Selling

the marketing of products to ultimate customers through face to face sales presentations at home or in the workplace.

Television Home shopping

A form of selling in which products are presented to television viewers, who can them buy them by calling a toll free number and paying with a credit card. This is like the home shopping channel.

General-Merchandise Retailer

A retail establishment that offers a variety of product lines that are stocked in considerable depth.

Category Management

A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers. This is how like supermarkets determine where like items will be in their store to maximize sales for all products.

Direct Response Marketing

A type of marketing in which a retailer advertises a product and makes it available through mail or telephone orders. EX: television commercials offering exercise equipment, cosmetics, or household cleaning products through a toll free number, and a newspaper or magazine advertisement for a series of children's books available by filling out a form in the ad or calling a toll free number.

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.

Power Shopping Center

A type of shopping center that combines off-price stores with category killers. This would be like factory mall outlets.

What are the three things that full service wholesalers are classified into?

General merchandise, limited line, and speciality line wholesalers.

What are the two types of retailers?

General-merchandise retailers and specialty retailers.

Superstores

Giant Retail outlets that carry food and non food products found in supermarkets, as well as most routinely purchased consumer products. Superstores combine the features of discount stores and supermarkets and generally carry about four times as many items as supermarkets. EX: Walmart Supercenters, Target Supercenters.

Retailing Positioning

Identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of customers in the segment. EX: H&M is positioned as a low priced fashion forward retailer. However, in an effort to be associated with fair business practices, the chain announced that prices would increase to allow the retailer to pay its employees a living wage, repositioning itself as a socially responsible retailer-- not just a very low priced one.

Brokers

Intermediaries that bring buyers and sellers together temporarily

What are the five characteristics of warehouse showrooms?

Large, low cost buildings, warehouse materials handling technology, vertical merchandise displays, large on premise inventories, and minimal services. EX: IKEA

Sales Offices

Manufacturer owned operations that provide services normally associated with agents. Unlike sales branches, they dont carry inventory.

What are the three types of wholesalers?

Merchant wholesalers, agents and brokers, and manufacturer's sales branches and offices.

Online Retailing

Retailing that makes products available to buyers through computer connections.

Off-price retailers

Stores that buy manufacturers seconds, overruns, returns, and off season merchandise for resale to customers at deep discounts. EX: TJ max, Marshalls, and Burlington coat factory.

Traditional Speciality retailers

Stores that carry a narrow product mix with deep product lines. Speciality retailers commonly sell shopping products as apparel, jewelry, sporting goods, fabrics, computers, and pet supplies. Speciality stores may usually offer better selections and more sales expertise than department stores, thier main compeititors. They try to attract customers in specific market segments. EX: footlocker. sunglass hut

Direct Marketing

The use of the internet, telephone, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or the internet. This is a type of non store retailing.

What are the four types of limited service wholesalers?

cash and carry wholesalers, truck wholesalers, drop shippers, and mail order wholesalers.

Specialty Retailers

have narrow and deep assortments of products compared to general merchandise retailers.

Telemarketing

the performance of marketing related activities by telephone.

What are the three types of specialty retailers?

traditional specialty retailers, category killers, and off-price retailers.

Cash and Carry Wholesalers

usually handle a limited line of products with a high turnover rate, such as groceries, building materials, and electrical or office supplies.

Supperregional shopping center

A type of shopping center with the widest and deepest product mixes that attract customers from many miles away. EX: Mall of America

Manufacturers agents

Independent intermediaries that represent two or more sellers and usually offer customers complete product lines.

Convenience Store

A small self service store that is open long hours and carries a narrow assortment of products usually convenience items. Convenience items would be like soft drinks, snacks, newspapers, tobacco, and gasoline. EX: 711

Lifestyle Shopping Center

A type of shopping center that is typically open air and features upscale speciality, dining , and entertainment stores. This would be like the woodlands outdoor mall.

Neighborhood shopping centers

A type of shopping center usually consisting of several small convenience and speciality stores. Their target market of customers live withing two to three miles of their stores or ten minutes driving time. Most of their products are essential products.

Regional Shopping centers

A type of shopping center with the largest department stores, widest product mixes, and deepest product lines of all shopping centers. THey have well cordinated mangament and marketing activities. EX: Shopping malls

Community Shopping Centers

A type of shopping center with tow or more department stores, some specialty stores, and convenience stores. These have wide product mixes and deep product lines.

Retailing

All transactions in which the buyer intends to consume the product through personal, family, or household use.

Merchant Wholesalers

Independently owned businesses that take title to goods, assume ownership risks, and buy and resell products to other wholesalers, business customers, or retailers.

Hypermarkets

stores that combine supermarket and discount store shopping in one location. These are larger than superstores. They offer 45,0000 to 60,000 different types of products. These stores are generally too large for time constrained U.S shoppers. EX: Carrefour

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. These stores are referred to as category killers because they expand rapidly and gain sizable market shares, taking business away from smaller, higher cost retail outlets. EX: Home depot, lowe's, barnes and nobles, and toys r us.

Franchising

An arrangement in which a supplier (franchisor ) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration. The franchisor may receive a percentage of total sales in exchange for furnishing equipment, buildings, management know how, and marketing assistance to the franchisee.

Wholesaler

An individual or organization that sells products that are bought for resale, for making other products, or for general business operations.