Marketing Ch 15

Television home shopping

A form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card

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. important part of developing a collaborative supply chain, which enhances value for customers. Successful category management involves collecting and analyzing data on sales and consumers and sharing the information between the retailer and manufacturer

convenience store

A small self-service store that is open long hours and carries a narrow assortment of products, usually convenience items

Direct-response marketing

A type of marketing in which a retailer advertises a product and makes it available through mail or telephone orders

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

lifestyle shopping center

A type of shopping center that is typically open air and features upscale specialty stores, dining, and entertainment

Neighborhood shopping centers (strip malls)

A type of shopping center usually consisting of several small convenience and specialty stores

Community shopping centers

A type of shopping center with one or two department stores, some specialty stores, and convenience stores They draw consumers looking for shopping and specialty products not available in neighborhood shopping centers. Because these offer a wider variety of stores, they serve larger geographic areas and consumers are willing to drive longer distances to community shopping centers to shop.

Regional shopping centers

A type of shopping center with the largest department stores, widest product mixes, and deepest product lines

superregional shopping centers

A type of shopping center with the widest and deepest product mixes that attracts customers from many miles away and often has special attractions

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 They expand rapidly and gain sizable market shares, taking business away from smaller, higher-cost retail outlets. ex. Home Depot and Lowe's, Staples, Barnes & Noble, Petco and PetSmart, and Best Buy

Commission merchants (factor)

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

Retailing

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

franchising

An arrangement in which a supplier (franchisor) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration

wholesaler

An individual or an organization that sells products that are bought for resale, for making other products, or for general business operations provide financial assistance serve as conduits for information within the marketing channel, keeping producers up to date on market developments and passing along the manufacturers' promotional plans to other intermediaries. often pay for transporting goods, reduce a producer's warehousing expenses and inventory investment by holding goods in inventory, extend credit and assume losses from buyers who turn out to be poor credit risks, and can be a source of working capital when they buy a producer's output

retailer

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

multichannel retailing

Employing multiple distribution channels that complement brick-and-mortar stores with websites, catalogs, and apps where consumers can research products, read other buyers' reviews, and make actual purchases

Limited-line wholesalers

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

Specialty-line wholesalers

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

General-merchandise wholesalers

Full-service wholesalers with a wide product mix but limited depth within product lines

Rack jobbers

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

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 that represent two or more sellers and usually offer customers complete product lines. Restricted to a particular territory, a manufacturer's agent handles noncompeting and complementary products

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. (wholesaler, jobber, distributor, assembler, exporter, and importer)

brokers

Intermediaries that bring buyers and sellers together temporarily perform fewer functions than other intermediaries.

Agents

Intermediaries that represent either buyers or sellers on a permanent basis

Department stores

Large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management ex Nordstrom

Supermarkets

Large, self-service stores that carry a complete line of food products, along with some non-food items

Warehouse clubs (buying clubs)

Large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing advertising to a minimum

Mail-order wholesalers

Limited-service wholesalers that sell products through catalogs.

Drop shippers (desk jobbers)

Limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products assume responsibility for products during the entire transaction, including the costs of any unsold goods

Truck wholesalers (Truck jobbers)

Limited-service wholesalers that transport products directly to customers for inspection and selection

Cash-and-carry wholesalers

Limited-service wholesalers whose customers pay cash and furnish transportation

Sales branches

Manufacturer-owned intermediaries that sell products and provide support services to the manufacturers' sales forces

Sales offices

Manufacturer-owned operations that provide services normally associated with agents

Direct selling

Marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace ex. Amway, Avon, Herbalife, Vorwerk, and Mary Kay

Full-service wholesalers

Merchant wholesalers that perform the widest range of wholesaling functions

Limited-service wholesalers

Merchant wholesalers that provide some services and specialize in a few functions

Warehouse showrooms

Retail facilities in large, low-cost buildings with large on-premises inventories and minimal services five basic characteristics: large, low-cost buildings, warehouse materials-handling technology, vertical merchandise displays, large on-premises inventories, and minimal services

Extreme-value stores (Dollar stores & single price store)

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

online retailing

Retailing that makes products available to buyers through computer connections

Discount stores

Self-service, general-merchandise stores that offer brand-name and private-brand products at low prices. ex. Walmart & Target

Off-price retailers

Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts. charge 20 to 50 percent less than department stores offer limited lines of national-brand and designer merchandise, usually clothing, shoes, or housewares ex. T.J. Maxx, Marshalls, Stein Mart, and Burlington Coat Factory

Traditional specialty retailers (limited-line retailers)

Stores that carry a narrow product mix with deep product lines sell such shopping products as apparel, jewelry, sporting goods, fabrics, computers, and pet supplies single-line retailers: if they carry unusual depth in one product category ex. The Limited, Gap, Sunglass Hut, and Foot Locker

Hypermarkets

Stores that combine supermarket and discount store shopping in one location

Telemarketing

The performance of marketing-related activities by telephone

Atmospherics

The physical elements in a store's design that appeal to consumers' emotions and encourage buying

Vending

The use of machines to dispense products one of the most impersonal forms of retailing, and it accounts for a very small minority of all retail sales Small, standardized, routinely purchased products (e.g., snacks and drinks) are best suited for sale in vending machines because consumers buy them out of convenience.

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

Wholesaling

Transactions in which products are bought for resale, for making other products, or for general business operations Wholesalers support retailers by assisting with marketing strategy, especially the distribution component. Wholesalers can also reduce a retailer's burden of looking for and coordinating supply sources.

beacons

can send real-time messages and offers to customers with Bluetooth-enabled smartphones. They are increasingly being used in airports, sports stadiums, hotels, fast-food restaurants, and bank branches

Factory outlet malls

feature discount and factory outlet stores carrying traditional manufacturer brands, such as Polo Ralph Lauren, Nike, and Guess

Selling agents

intermediaries that market a whole product line or a manufacturer's entire output perform every wholesaling activity except taking title to products. Selling agents usually assume the sales function for several producers simultaneously, and some firms may use them in place of a marketing department.

Superstores

originated in Europe, are giant retail outlets that carry not only the food and non-food products ordinarily found in supermarkets, but routinely purchased consumer products such as housewares, hardware, small appliances, clothing, and personal-care products as well. kroger. Mejier. Supertarget

webrooming

researching products online and then head to the nearest store to make the actual purchase

Hard discounters

type of supermarket that may take back market share from discount stores. maintain a no-frills environment and have a minimal assortment of goods they can sell at very low prices. These supermarkets first emerged in Europe. Now German grocery chains Aldi and Lidl have expanded outside of Europe and into the United States. Ex Aldi