marketing ch. 15

Category management

a retail strategy of managing groups of similar, often substitutable, products produced by different manufacturers

Category killers

a very large specialty store concentrating on a major product category and competing on the basis of low prices and product availability ex.) home depot

Wholesaling

all transaction in which products are bought for resale, for making other products, or for general business operations

Retailing

all transactions in which the buyer intends to consumer the product through personal, family, or household use; can occur in stores, through direct selling, vending machines, and online

Franchising

an arrangement in which a supplier, or franchiser, grants a dealer, or franchisee the right to sell products in exchange for some type of consideration

Wholesaler

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

Retailer

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

Off price retailers

buy manufacturers seconds, overruns, returns and offseason production runs at below wholesale prices for resale to consumers at deep discounts ex.) factory outlets

Traditional specialty retailers

carry a narrow product mix with deep product lines. they are sometimes called "limited line retailers" ex.) the limited

General merchandise wholesalers

carry a wide product mix but offer limited depth within product lines

Limited line wholesalers

carry few product lines but offer an extensive assortment of products within those lines

Power shopping centers

combine off price stores with category killers

Hypermarkets

combine supermarket and discount store shopping in one location ex.) carrefour

Community shopping centers

contain one or two department stores, some specialty stores and convenience stores

Super regional shopping centers

contain the widest and deepest product mixes

Regional shopping centers

feature the largest department stores, widest product mixes and deepest product lines of all shopping centers

Rack jobbers

full service, specialty line wholesalers that own and maintain display racks in supermarkets, drugstores and discount and variety stores

Superstores

giant retail outlets that carry products ordinary found in supermarkets, but also routinely purchased consumer products ex.) wal mart supercenters

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

Manufacturers agents

independent intermediaries who represent sellers and usually offer customers complete product lines

Merchant wholesalers

independently owned businesses that take title to goods, assume risks associated with ownership and generally buy and resell products to other wholesalers, business customers, or retailers

Brokers

intermediaries temporarily employed by buyers or sellers ignored to unite buyers and sellers

Cash and carry wholesalers

intermediaries whose customers pay cash and furnish transportation

Direct selling

it is the marketing of products to ultimate consumers through face to face sales presentations at home or in the workplace

Department stores

large retail organizations with wide product mixes; employ at least 25 people ex.) macys, sears, jc penny

Warehouse clubs

large scale, members only selling operations combining cash and carry wholesaling and discount retailing ex.) sams club, cosco

Supermarkets

large, self service stores that carry a complete line of food products as well as some nonfood products ex.) kroger, safeway, publix

Interior atmospherics

lighting, wall and floor coverings, store fixtures

Online retailing

makes products available through computer connections

Sales branches

manufacturer owned intermediaries that sell products and provide support to the manufacturers sales force

Sales office

manufacturer owned operations that provide services normally associated with agents

Selling agents

market either all of a specified product line or a manufacturers entire output; perform every wholesaling function except taking title to product

Direct response marketing

occurs when a retailer advertises a product and makes it available through mail or telephone orders

Catalog marketing

occurs when an organization provides a catalog from which customers make selections and place orders via mail, telephone, or the internet

General merchandise retailers

offer a variety of product lines, stocked in considerable depth

Specialty line wholesalers

offer the narrowest range of products

Full service wholesalers

perform the widest possible range of wholesaling functions; handle either consumer or business products and provide various marketing services to their customers

Store image

projecting a functional and psychological picture that appeals to the target market

Limited service wholesalers

provide fewer marketing services than full-service wholesalers and specialize in just a few functions, passing on the rest of the functions to customers or other intermediaries

Commission merchants

receive goods on consignment from local sellers and negotiate sales in large, central markets

Agents

represent either buyers or sellers on a permanent basis

Warehouse showrooms

retail facilities in large, low cost buildings with warehouse materials handling technology, vertical merchandise displays, large on premises inventories, and minimal services ex.) IKEA

Discount stores

self service, general merchandise outlets that regularly offer brand name and private brand products at low prices ex.) wal mart, target, k mart

Convenience stores

small self service stores that are open long hours and carry a narrow assortment of products, usually convenience items, as well as services such as automatic teller machines ex.) 7 eleven, circle k

Exterior atmospherics

storefront, displays, entrances

Drop shippers

take title to goods and negotiate sales but never take actual possession of products

Telemarketing

the performance of marketing related activities by telephone - can help generate sales leads, improve customer service, accelerate payments on past due accounts, raise funds for nonprofit organizations and gather marketing data

Atmospherics

the physical elements in a stores design that appeal to consumers emotions and encourage buying

non store retailing

the selling of products outside the confines of a retail facility

Automatic vending

the use of machines to dispense products selected by customers - it is one of the most impersonal forms of retailing - machines need only a small amount of space and no sales personnel - equipment is expensive and requires servicing and repair

Direct marketing

the use of telephone, internet and non personal media to communicate product and organizational information to customers

Truck wholesalers

transport a limited line of products directly to customers for on the spot inspection and selection

Lifestyle shopping centers

typically open air and feature upscale stores

Mail order wholesalers

use catalogs instead of sales forces to sell products to retail and business customers

Neighborhood shopping center

usually consist of several small convenience and specialty stores