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