chapter 13 marketing

independent off-price retailer

(off-price retailer) either independently owned and run or are divisions of larger retail corporations

warehouse club (aka wholesale club or membership warehouses)

(off-price retailer) sells a limited selection of brand name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees. (costo, sams club, BJs)

corporate chains

(retail organization) two or more outlets that are commonly owned and controlled. Advantages over independents: 1. their size allows them to buy in large quantities at lower prices and gain promotional economies. 2. they can hire specialists to deal with areas such as pricing, promotion, merchandising, inventory control, and sales forecasting. ^ this caused many indep. to band together and become chains.

price decisions (retailer)

- retailers seek either high markups on lower volume (specialty stores) or low markups on higher volume (mass merchandise and discount stores). must fit its target market/positioning/product/service/competition - must also decide on the extent to which they will use sales and other promotions

the top 10 discount retailers - walmart, kmart, target, and khols - opened in what year?

1962

retailer

a business whose sales come primarily from retailing

category killer

a giant specialty store that carries a very deep assortment of a particular line. CHAIN STORES CRUSH THE COMPETITION WITH DEEP ASSORTMENT AND ATTRACTIVE PRICES - VERY LARGE SPECIALTY STORES

retailer cooperative

a group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.

supermarkets

a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products. * most frequently visited type of retail store

discount store

a retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume.

off-price retailers

a retailer that buys at less-than-regular wholesale prices and sells at less than retail

service retailers

a retailer whose product line is actually a service (ex:hotels, airlines, banks, college, movie theater) * growing faster than product retailers

specialty stores

a retails store that carries a narrow product line with a deep assortment within that line.

convenience stores

a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high turnover convenience goods.

voluntary chains

a wholesaler sponsored group of independent retailers that engage in group buying and common merchandising

five promotion tools

advertising, personal selling, sales promo, PR, direct & social media marketing

wholesaling

all the activities involved in selling goods and services to those buying for resale or business use. - buy from producers and sell mostly to retailers, industrial consumers, and other wholesalers.

retailing

all the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

types of retailers can be classified as:

amount of service they offer, breadth and depth of their product lines, the relative prices they charge, and how they are organized.

merchant wholesaler

an independently owned wholesale business that takes title to the merchandise it handles * largest single group of wholesalers, account for 50% of all wholesaling. * full service / limited service

factory outlet

an off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods.

Wholesalers fall into three major​ groups: merchant​ wholesalers, ________, and​ manufacturers' and​ retailers' branches and offices.

brokers and agents

__________________ were the main form of retail clusters until the 1950s

central business districts

high-low pricing

charging higher prices on an everyday basis, coupled with frequent sales and other price promotions, to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices.

omnichannel buyers

consumers who make little distinction between in-store and online shopping, and for whom the path to a retail purchase runs across multiple channels - A particular purchase for these buyers might consist of researching a product online and buying it from an online retailer without ever stepping foot into a store.

regional shopping center

largest and most dramatic shopping center, has from 50 to 100+ stores including 2 or more department stores.

​A small, open-air mall with upscale​ stores, convenient​ locations, and nonretail​ activities, such as a​ playground, skating​ rink, hotel, dining​ establishments, and a movie​ theater, is an example of​ a(n) ________.

lifestyle center

types of wholesalers: (3)

merchant wholesalers, brokers and agents, manufacturers and retailers branches and offices.

strip malls/ neighborhood shopping centers

most common. 5-15 stores. convenient for consumers, contain several service stores as well.

superstore

much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services. * supercenters= combo of food at discount stores

power center

new form. huge unenclosed shopping centers consisting of a long strip of retail stores including large free standing stores (walmart, home depot) which each have their own entrance & parking lot

Overstock.com, a Web seller that buys​ furniture, clothing,​ electronics, and more from a variety of producers at​ less-than-regular wholesale prices and then charges customers less than​ retail, is​ a(n) ________.

off-price retailer

retailers must decide on three major product variables:

product assortment, services mix, store atmosphere

Limited service retailers

provide more sales assistance because they carry more shopping goods about which customers need information. high operating costs=higher prices

department stores

retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers.

stores atmosphere

retailers want to create a unique store experience. one that suits target market and moves customers to buy. * experiential retailing (customers can experience the stores goods before buying them, stores are an environment to be experienced by the people) * more and more stores are digitalizing the in-store experience (merging the digital and physical world) * colors are also chosen wisely

Amount of Service types (3):

self-service, limited service, full service

self-service retailers

serve customers who are willing to perform their own locate-compare-select process to save time or money. This is the basis of all discount operations and is typically used by retailers selling convenience goods, and nationally branded fast moving shopping goods.

​________ retailers in the United States are growing faster than product retailers.

service

________ involves using​ in-store promotions and advertising to extend brand equity to​ "the last​ mile" and encourage favorable​ point-of-purchase decisions.

shopper marketing

Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise​ online?

showrooming

lifestyle center

smaller, open-air malls with upscale stores, convenient locations, non retail activities (playground, hotel, dining..)

"First Moment of Truth"

the critical three to seven seconds that a shopper considers a product on a store shelf (with online and mobile shopping, this concept no longer takes place only in stores)

retail convergence

the merging of consumers, products, prices, and retailers. = greater competition and greater difficulty in differentiating the product

product assortment (retailer)

the retailer should differentiate while matching target shoppers expectations. examples: highly targeted product assortment, offer merchandise that none else carries

showrooming

the shopping practice of coming into a retail store showrooms to check out merchandise and prices, but instead buying from online, sometimes while in the store.

zero moment of truth

when consumers begin the buying process by searching for and learning about products online

manufacturers and retailers branches and offices

wholesaling operations conducted by sellers or buyers themselves rather than operating through independent wholesalers. separate branches and offices can be dedicated to either sales or purchasing.

place decisions (retailer)

LOCATION - important to be accessible to the target market. most stores today cluster together to increase their customer pulling power and give consumers convenience of one-stop shopping.

Franchise

contractual association between a manufacturer, wholesaler, or service organization (franchisor) and independent businesspeople (franchisee) who buy the right to own and operate one or more unites in the franchise system. * the main diff. between a franchise and other contractual systems (voluntary and retail chains) is that they are normally based on some unique product or service, a method of doing business, or the trade name/patent *take up about 45% of all retail sales in the U.S.

A​ ________ is a small​ store, located near a residential area that is open long hours seven days a week and carries a limited line of​ high-turnover goods.

convenience store

​________ are two or more outlets that are commonly owned and controlled.

corporate chains

Four types of retail organizations

corporate chains, voluntary chains, retailer cooperations, franchise organizations.

​________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

discount stores

service mix

ex: retailers invite customers to ask questions or consult service reps in person or over phone.

brokers and agents

facilitate buying and selling for which they earn a commission on the selling price. generally specialize by product line or customer type broker: wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation. agent: a wholesaler who represents buyers or sellers on a relatively perm basis, performs only a few functions, and does not take title to goods.

shopper marketing

focusing the entire marketing process on turning shoppers into buyers as they approach the point of sale, whether during in-store, online, or mobile shopping.

shopping center

group of retail businesses built on a site that is planning, developed, owned and managed as a unit.

community shopping center

has 15-50 retail stores. contains a branch of a department store or variety store, a supermarket, specialty store, professional offices, and sometimes a bank

full-service retailers

high-end, specialty stores and first class department stores assist customers in every phase of the shopping process. carry more specialty goods for which customers need or want assistance or advice.

three types of off-price retailers:

independent, factory outlets, warehouse clubs