chapter 14
vertical marketing system
a centrally managed distribution channel resulting from vertical channel integration
chain retailer
a company that operates more than one retail outlet
carrier
a firm that offers transportation services
independent retailer
a firm that operates only one retail outlet
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
superstore
a large retail store that carries not only food and non food products ordinarily found in supermarkets but also additional product lines
warehouse club
a large scale member only establishment that combines features of cash and carry wholesaling with discount retailing
supermarket
a large self service store that sells primarily food and household products
middleman (marketing intermediary)
a marketing organization that links a producer and user within a marketing channel
merchant middleman
a middleman that actually takes title to products by buying them
limited service wholesaler
a middleman that assumes responsibility for a few wholesale services only
retailer
a middleman that buys from producers or other middlemen and sells to consumers
specialty line wholesaler
a middleman that carries a select group of products within a single line
commission merchant
a middleman that carries merchandise and negotiates sales for manufacturers
general merchandise wholesaler
a middleman that deal in a wide variety of products
agent
a middleman that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis
functional middleman
a middleman that helps in the transfer of ownership of products but does not take title to the product
full service wholesaler
a middleman that performs the entire range of wholesaler functions
merchant wholesaler
a middleman that purchases goods in large quantities and then sells them to other wholesalers or retailers and to institutional, farm, government, professional, or industrial users
wholesaler
a middleman that sells products to other firms
broker
a middleman that specializes in a particular commodity, represents either a buyer or a seller, and is likely to be hired on a temporary basis
limited line wholesaler
a middleman that stocks only a few product lines but carries numerous product items within each line
neighborhood shopping center
a planned shopping center consisting of several small convenience stores and specialty stores
regional shopping centers
a planned shopping center containing large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes even hotels
community shopping center
a planned shopping center that includes one or two department stores and some specialty stores, along with convenience stores
warehouse showroom
a retail facility in a large, low cost building with large off premises inventory and minimal service
catalog showroom
a retail outlet that displays well known brands and sells them at discount prices through catalogs within the store
department store
a retail store that 1, employs 25 or more persons 2, sells at least home furnishings, appliances, family apparel and household linens and dry goods, each in different parts of the store
discount store
a self service general merchandise outlet that sells products at lower than usual prices
channel of distribution
a sequence of marketing organizations that directs a product from the producer to the ultimate user
convenience store
a small food store that sells a limited variety of products but remains open well beyond normal business hours
off price retailer
a store that buys manufacturers' seconds, overruns, returns, and off season merchandise for resale to consumers at deep discounts
traditional specialty store
a store that carries a narrow product mix with deep product lines
direct response marketing
a type of marketing in which a seller advertises a product and makes it available, usually for a short period, through mail, telephone, or online 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
non store retailing
a type of retailing whereby consumers purchase products without visiting a store
category killer
a very large specialty store that concentrates of a single product line and competes in the basis of low prices and product availability
ordering process
activities involved in receiving and filling customers purchase orders
physical distribution
all the activities concerned with the efficient movement of products from the producer to the ultimate user
lifestyle shopping center
an open air environment shopping center with upscale chain specialty stores
contract carrier
available for hire by one or several shippers, they do not serve the general public
private carrier
carrier who is owned and operated by the shipper
manufacturers sales branch
essentially a merchant wholesaler that is owned by a manufacturer
manufacturers sales office
essentially a sales agent owned by a manufacturer
direct channel
includes no marketing intermediaries; producer to consumer
supply chain management
long term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers
traditional channel
producer to wholesaler to retailer to consumer is known as the _________ _________ because many consumer goods pass through wholesalers to retailers
piggyback
railroads and truck carriers have teamed up to provide a form of transportation called ________________
online retailing
retailing that makes products available to buyers through computer connections
materials handling
the actual physical handling of goods, on warehouses as well as during transportation
vertical channel integration
the combining of two or more stages of a distribution under a single firms management
stock out costs
the costs of sales lost when items are not in inventory
holding costs
the costs of storing products until they are purchased or shipped to customers
direct selling
the marketing of products to consumers through face to face sales presentations at home or in the workplace
telemarketing
the performance of marketing related activities by telephone
inventory management
the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock out costs
warehousing
the set of activities involved in receiving and storing goods and preparing them for reshipment
transportation
the shipment of products to customers
intensive distribution
the use of all available outlets for a product
automatic vending
the use of machines to dispense products
selective distribution
the use of only a portion of the available outlets for a particular product in each geographic area
exclusive distribution
the use of only a single retail outlet for a product in a large geographic area
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
freight forwarders
they pick up shipments from the shipper, ensure that the goods are loaded on selected carriers, and assume responsibility for safe delivery of the shipment to their destinations
category management
through ________ _________, the retailers asks a supplier in a particular category how to stock the shelves.
common carrier
transportation firm whose services are available to all shippers
corporate
vertical marketing system in which actual ownership is the vehicle by which production and distribution are joined
contractual
vertical marketing system in which cooperative arrangements are the rights and obligations of channel members are defined by contracts or other legal measures
administered
vertical marketing system in which one of the channel members dominates the other members, perhaps because of its large size
private warehouse
warehouse that is owned and operated by a particular firm, can be designed to serve the firms specific needs
public warehouse
warehouse that offers their services to all individuals and firms