MKTG 321: CH 16

television home shopping

a form of selling in which products are presented to tv viewers, who can buy them by calling a toll free number and paying with a cc direct marketing

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 substitute products produced by different manufacturers

direct response marketing

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

neighborhood shopping center

a type of shopping center usually consisting of several small convenience and specialty stores; target market is people who live close; essential products mostly

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; has evolved over last 20 years; specialty retailer

commission merchant

agents that receive goods on consignment from local sellers and negotiate sales in large, central markets; also called factor merchants; power with pricing and terms of sale

wholesaling

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

franchising

an arrangement in which a supplier grants a dealer the right to sell products inn exchange for some type of consideration

retailer

an organization that purchases products for the purpose of reselling them to ultimate consumers; critical link between producers and end consumers

hypermarket

combination supermarket and discount store; larger than superstore

warehouse showroom

facility in a large, low-cost building with large on premises inventories and minimal service 5 basic characteristics: large, low cost buildings; warehouse materials handling technology; vertical merchandise displays; large on premise inventories; minimal services

rack jobbers

full service wholesaler & specialty line own and maintain display racks in supermarkets, drugstores and discount store; mostly nonfood items

limited line wholesaler

full service wholesaler; carry only a few product lines but offer an extensive assortment of products within those lines

specialty line workers

full service wholesaler; offer the narrowest range of products, usually a single product line or a few items within product line

general merchandise wholesaler

full service wholesaler; wide product mix but limited depth within product lines

store image

functional and psychological picture the customer has of the store; includes store environment, merchandise quality, service quality

superstore

giant outlet offering all food and nonfood products found in supermarket, as well as most routinely purchased products

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 segments

retailing

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

manufacturers agent

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

merchant wholesalers

independently owned businesses take title to good assume risk associated with ownership buy and resell products to other wholesalers, business customers or retailers also called: jobber, distributor, assembler, exporter, and importer

wholesaler

individual or organization that sells products that are bought for resale, make other products or general business operations; resells to reseller, government or institutional users;

brokers

intermediaries that bring buyers and sellers together temporarily

selling agent

intermediaries that market a whole product line or a manufacturers entire output; often used in place of marketing departments

agents

intermediaries that represent either buyers or sellers on a permanent basis

department store

large organization offering a wide product mix and organized into separate departments

warehouse club

large-scale members only establishments combining cash and carry wholesaling with discount retailing

location of retail store

least flexible of issues but most important

drop shippers

limited service wholesaler; also called desk jobbers take title to products and negotiate sales but dont actually take possession assume responsibility through the whole transaction

cash and carry wholesalers

limited service wholesaler; intermediaries whose customers (usually small business) pay cash and furnish transportation; limited line of products with high turnover rate

truck wholesalers

limited service wholesaler; sometimes called truck jobbers; transport limited line of products directly to customers for on the spot inspection and selection

mail-order wholesaler

limited service wholesaler; use catalogs instead of sales people to sell products to retail and business buyers

sales offices

manufacturer owned operations that provide services normally associated with agents

sales branch

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

direct selling

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

limited service wholesalers

merchant wholesalers; provide fewer marketing service than full service but specialize in just a few; take title

factory outlet malls

offer discount and factory outlet stores that carry traditional manufacturer brands; manufacturers own these stores; promotional efforts are the heart of these shopping centers

what all do wholesalers do?

pay for transporting goods reduce a producers warehousing expenses by holding inv extend credit and assume losses from buyers who are credit risks are a source of working capital serve as conduits for information within the mktg channel ton of others

online retailing

retailing that makes products available to buyers through computer connections; direct marketing

supermarket

self service store offering complete line of food products and some nonfood products

discount store

self-service general merchandise store offering brand-name and private-brand products at low prices

superregional shopping center

shopping center with the widest and deepest product mixes that attract customers far from their home; have special attractions besides just stores;

convenience store

small self service store offering narrow product assortment in convenient locations

off-price retailers

stores that buy manufacturers seconds, overruns, returns and off-season merchandise for resale to consumers tat deep discounts; specialty retailer;

traditional specialty retailers

stores that carry a narrow product mix with deep product lines; sometimes called limited line retailers; specialty store

telemarketing

the performance of marketing related activities over the phone direct marketing

atmospherics

the physical elements in a stores design that appeal to customers emotions and encourage buying; help create an image and position a retailer

nonstore retailing

the selling of products outside the confines of a retail factory direct marketing

catalog marketing

type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, phone or online; efficient and convenient for customers and can cut costs but its inflexible, provides limited service and is only effective for certain products direct marketing

full service wholesaler

type of merchant wholesaler; perform the widest possible range of wholesaling functions; general merchandise, limited line and specialty line

power shopping center

type of shopping center that combines off-price stores and category killers

lifestyle shopping center

type of shopping center that is typically open air and features upscale specialty, dining and entertainment stores; often near rich neighborhoods; architecture is important since they are "mini-cities"

community shopping center

type of shopping center with one or two department stores some specialty stores and convenience stores;

regional shopping center

type of shopping center with the largest department stores, widest product mixes, and deepest product lines of all shopping centers; more likely to be national chains

automatic vending

use of machines to dispense products; less than 2% of all sales

direct marketing

use of the telephone, internet and nonpersonal media to communicate product and organizational information to customers, who can then purchase products via mail, phone, or online; type of nonstore retailing; can occur through catalog marketing, direct-response, telemarketing, television home shopping, and online

agents and brokers

vs. merchant wholesaler dont take title compensated with commissions for negotiating exchanges