Marketing Test 3 Chap 15

Wholesaler?

An individual or organization that sells products that 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

Rack jobbers?

Full-service, specialty-line wholesalers that own and maintain display racks in stores

Superstores?

Giant retail outlets that carry food and nonfood products found in supermarkets, as well as most routinely purchased consumer 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 segment

Manufacturers' agents?

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

Warehouse showrooms?

Retail facilities in large, low-cost buildings with large on-premises inventories and minimal services

Extreme-value stores?

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

Off-price retailers?

Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

Traditional specialty retailers?

Stores that carry a narrow product mix with deep product lines

Hypermarkets?

Stores that combine supermarket and discount store shopping in one location

Retailers play a major role in

creating time, place, and possession and, in some cases, form utility

Lifestyle shopping center?

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

Neighborhood shopping centers?

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

Regional shopping centers?

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

Superregional shopping centers?

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

Which of the following is the best example of a rack jobber?

A vendor maintains a rack of DVDs it sells at a popular drugstore

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

Commission merchants?

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

General-merchandise retailers?

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

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

Lyle founded a salsa manufacturing plant in his hometown of El Paso, Texas. Sales have been good, and demand for his products have been high. Lyle believes there are many more potential customers for his product in different regions of the country. He would like to sell to discount stores, restaurants, supermarkets, and more. Lyle does not have much experience in the sales area, however, and he cannot afford to hire a full-time salesperson yet. Lyle turns to Tim, an independent salesperson who works for several different clients in the food industry. Tim is a specialist in his field and has a number of connections in the food industry. Lyle is sure Tim will be successful in finding companies or restaurants who will want to purchase his salsa. Tim is most likely a(n) __________.

Broker

Extreme value stores include

Dollar General, Dollar Tree, Big Lots, and 99¢ Only Stores

Multichannel retailing?

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

T/F

False Statement: In order to qualify as retailing, the transaction between buyer and seller must occur either through the Internet or a physical location. True Statement: nonstore retailing is prevalent and is not limited to the Internet. Retailing occurs through direct marketing, direct selling, etc.

Television home shopping?

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

Limited-line wholesalers?

Full-service wholesalers that carry only a few product lines but many products within those lines

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

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

Brokers?

Intermediaries that bring buyers and sellers together temporarily

Selling agents?

Intermediaries that market a whole product line or a manufacturer's entire output

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

Supermarkets?

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

Warehouse clubs (buying clubs)?

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

_____________ are designed to resemble traditional "Main Street" shopping centers and often have a central theme evidenced by the architecture.

Lifestyle shopping centers

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

Truck wholesalers (track 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 manufacturer's sales force

Sales offices?

Manufacturer-owned operations that provide services normally associated with agents

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

Direct selling?

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

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

Nonstore retailing?

The selling of products outside the confines of a retail facility

Automatic vending?

The use of machines to dispense products

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

Jordynn decides to open an Olive Garden franchise. She pays the franchise fees and opens the restaurant. Because Olive Garden is already a well-known name, Jordynn knows her chances of success are higher than if she opened her own restaurant from scratch. Jordynn hires experienced servers with great customer service skills. Jordynn would love to adopt an ancient Roman décor for her restaurant. However, she is told that her restaurant must have more of a Tuscany theme so that it remains consistent with other Olive Garden restaurants. Her restaurant becomes a major success. Jordynn's servers are especially adept at convincing patrons to purchase Olive Garden's bottles of wine. The Tuscany theme Jordynn adopts, including photos of Italian scenes and Italian-style architecture, is part of Olive Garden's _____________.

atmospherics

Delilah owns a pottery store in a small town. In recent years she has been able to expand her pottery store significantly. Demands for her pottery have grown from outside of the area, and many fans follow the photos of new designs and art pieces posted on Delilah's Facebook page. Delilah does not want to open a new location in a more urban area, but she would like her fans from outside the region to be able to order pottery easily. Additionally, some of her firm's most loyal supporters live in towns even more rural than Delilah's. Delilah is looking for a marketing distribution method that would not be too high in cost and would not require a whole lot of time. She already sells through her website, but she wants open up another channel of distribution. Based on her criteria, Delilah should probably use ____________.

catalog marketing

Joseph has a passion for quality electronics. His dream is to open up a large electronics store to compete against Best Buy. He thinks he can utilize supplier relationships to source the latest high-tech electronics at lower prices. Therefore, he thinks he can beat Best Buy on the type of products available as well as with lower price points. Joseph is most likely to open up a ___________.

category killer

Supermarkets use ____________ to allocate space for their many product categories, such as cosmetics, cereals, and soups.

category management

Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Nicole has located her very first store in a smaller shopping area where she sometimes partners with the other businesses to hold events or exhibits. Nicole chose this location because she wanted to attract customers looking for shopping or specialty products. She feels that many of the retailers in the shopping center offer products that cannot be found in the typical strip mall. Nicole has located her shop in a __________.

community shopping center

Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Based upon the information about Nicole's store, what type of store do you think it is?

department store

In terms of selling products, _______________ is the most personal and customizable form of selling, whereas _______________ is one of the least personal.

direct selling; automatic vending

National Geographic sent Ray his monthly magazine. They also sent him a form letting him know that his subscription was running out. If he acts now, he can save $5 on his purchase. All Ray has to do to renew his subscription for the upcoming year is fill out a form and mail it with a check to National Geographic. This is an example of ______________.

direct-response marketing

Which of the following is a benefit of franchising for the franchisor?

fast and selective product distribution

Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Ten years have passed since Nicole opened her first store. She has since opened two more stores, and demand remains high. Her store has been listed as one of the top stores for customer service. Nicole would like to engage in wide-scale expansion in the United States. She is looking at an option that would allow her store to gain fast and selective product distribution without incurring the high cost of constructing her own stores. However, a disadvantage to this option would be the possibility of losing some control over the new stores. Nicole is most likely considering ____________.

franchising

The supplier in the franchise relationship is known as a ___________

franchisor

The United Kingdom's largest supermarket is called Tesco. Tesco is a grocery and general merchandise retailer. In some outer city regions, Tesco has opened up stores it calls Tesco Extra, which carries all of Tesco's product ranges. These stores are known for their massive size—the largest one is 185,500 square feet. Tesco Extra is most likely to be a _____________.

hypermarket

Jordynn decides to open an Olive Garden franchise. She pays the franchise fees and opens the restaurant. Because Olive Garden is already a well-known name, Jordynn knows her chances of success are higher than if she opened her own restaurant from scratch. Jordynn hires experienced servers with great customer service skills. Jordynn would love to adopt an ancient Roman décor for her restaurant. However, she is told that her restaurant must have more of a Tuscany theme so that it remains consistent with other Olive Garden restaurants. Her restaurant becomes a major success. Jordynn's servers are especially adept at convincing patrons to purchase Olive Garden's bottles of wine. What is one of the disadvantages Jordynn encountered by opening a franchise instead of her own restaurant?

loss of some control

When Olive Garden sells wine to its customers in the restaurant, this is known as ___________.

retailing

Which of the following direct marketing methods will reach the most people, allow customers to shop from the convenience of their homes, and is one of the least expensive?

online retailing

The reason why Delilah chose to locate her one retail location in this small town was because the town has a reputation for being an "art colony." It is located off a major highway, and a lot of travelers stop in. Others are willing to travel from miles away. When Delilah looked at the market, she realized most sellers of art in the community were charging premium pricing. This worked fine for those who traveled from far away to shop for art, but most people who were just passing through on their way to another destination did not want to make such a big investment. Recognizing this, Delilah chose to price her pottery at more reasonable prices. This is an example of __________________.

retail positioning

Nicole has been wanting to open her own business for many years. After much saving and a loan from the bank, she was able to open up her own store. This store features upscale jewelry, footwear, and clothing for professional women. She uses a premium pricing strategy to demonstrate the quality of her products. As time passed, she adopted other product lines including luggage and beauty products. Nicole has developed strong relationships with suppliers so that new orders come relatively quickly. Nicole distinguishes herself from the competition with the high level of service at her store. Her workers are trained to greet customers within fifteen seconds of them entering the store. She also gives her employees permission to take whatever time needed to make sure that customer needs are met. Based upon the description, Nicole is engaging in ____________

retailing

Phil works at a wholesaler that specializes in organic, grass-fed beef. Resellers wanting to purchase from Phil's organization have few options to choose from because its beef products tend not to vary. Phil most likely works for a ___________.

specialty-line wholesaler

Cardinal Health, based in Dublin, Ohio, specializes in the distribution of pharmaceuticals and medical products. It recently completed a transaction where it provided a national hospital chain with a new supply of pharmaceuticals used to help control pain after surgery. Cardinal Health is engaging in ___________.

wholesaling