Ch.15 Retailing, Direct Marketing, Wholesaling
physical distribution objectives
- meeting customer service standards - reduce total distribution costs - reduce cycle time (the time needed to complete a process)
intermodal transportation
2+ transportation modes used in combination
public warehouse
a business that leases storage space and related physical distribution facilities to other firms
private warehouse
a company-operated facility for storing and shipping products
electronic data interchange (EDI)
a computerized means of integrating order processing with production, inventory, accounting, and transportation
television home shopping
a form of selling in which products are presented to television viewers, who can buy them by calling a toll0free number and paying with a credit card
specialty-line wholesaler
a full-service wholesaler that carries only a single product line or a few items within a line
general-line wholesaler
a full-service wholesaler which offers extensive assortments within a few product lines
general-merchandise wholesaler
a full-service wholesaler with a wide, but shallow product mix
superstore
a giant retail outlet that carries food and nonfood products found in supermarkets, as well as most routinely purchased consumer products (Wal-Mart Supercenters, Super Kmart Centers)
wheel of retailing
a hypothesis holding that new retailers usually enter the market as low-status, low-margin, low-price operators but eventually evolve into high-cost, high-price merchants
department store
a large retail organization characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management (Macy's)
distribution center
a large, centralized warehouse that focuses on moving rather than storing goods
supermarket
a large, self-service store that carries a complete line of food products, along with some nonfood products
warehouse club
a large-scale, members-only establishment that combines features of cash-and-carry wholesaling with discount retailing (Costco, Sam's Club)
drop shipper
a limited-service wholesaler that takes title to goods and negotiates sales but never actually takes possession of products
cash-and-carry wholesaler
a limited-service wholesaler whose customers pay cash and furnish transportation
sales branches
a manufacturer-owned intermediary that sells products and provides support services to the manufacturer's sales force
sales office
a manufacturer-owned operation that provides services normally associated with agents
full-service wholesaler
a merchant wholesaler that performs the widest range of wholesaling functions
limited-service wholesaler
a merchant wholesaler that provides some services and specializes in a few functions
general-merchandise retailer
a retail establishment that offers a variety of product lines that are stocked in considerable depth
warehouse showroom
a retail facility in a large, low-cost building with large on-premise inventories and minimal services (IKEA)
category management
a retail strategy of managing groups of similar, often substitutable products produced by different manufacturers
discount store
a self-service, general-merchandise store offering brand name and private products at low prices (Wal-Mart, Target)
neighborhood shopping center
a shopping center usually consisting of several small convenience and specialty stores
community shopping center
a shopping center with one or two department stores, some specialty stores, and convenience stores
convenience store
a small self-service store that is open long hours and carries a narrow assortment of products, usually convenience items
off-price retailer
a store that buys manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts (Ross, Marshalls)
traditional specialty retailer
a store that carries a narrow product mix with deep product lines (Foot Locker, Radio Shack)
hypermarket
a store that combines supermarket and discount store shopping in one location (Wal-Mart hypermarkets and alike popular in other countries)
direct-response marketing
a type of marketing in which a retailers 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
outlet shopping center
a type of shopping center that features discount and factory outlet stores carrying manufacturer brands
power shopping center
a type of shopping center that features off-price and small stores combined with category killers
lifestyle shopping center
a type of shopping center that is typically open-air and features upscale specialty, dining, and entertainment stores
regional shopping center
a type of shopping center with large department stores, the wide product mix, and the deep product lines of all shopping centers
superregional shopping center
a type of shopping center with the largest department stores, the widest product mix, and the deepest product lines of all shopping centers
rack jobber
a type of specialty-line wholesaler that owns and maintains display racks in stores
category killer
a very large specialty store that concentrates on a major product category and competes on the basis of low prices and enormous product availability (Home Depot, Barnes & Noble)
catalog showroom
a warehouse showroom in which consumers use catalogs to place orders for products, which are then filled directly in the warehouse area and picked up by buyers in the showroom
mail-order wholesaler
a wholesaler who uses catalogs instead of a sales force to sell products to retail and business buyers
physical distribution
activities used to move products from producers to consumers and other end users
retailing
all transactions in which the buyer intends to consume the product through personal, family, or household use
commission merchant
an agent that receives goods on consignment from local sellers and negotiates sales in large, central markets
franchising
an arrangement in which a supplier (franchiser) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration
manufacturers' agent
an independent intermediary that represents 2+ sellers and usually offers customers complete product lines
merchant wholesaler
an independently owned business that takes title to goods, assumes ownership risks, and buys and resells products to other wholesalers, business customers, or retailers
wholesaler
an individual or organization that sells products that are bought for resales, for making other products, or for general business operations
broker
an intermediary that brings buyers and sellers together temporarily
selling agent
an intermediary that markets a whole product line or a manufacturer's entire output
agent
an intermediary that represents either buyers or sellers on a permanent basis
just-in-time (JIT)
an inventory management approach in which supplies arrive just when needed for production or resale
freight forwarder
an organization that consolidates shipments from several firms into efficient lot sizes
retailer
an organization that purchases products for the purpose of reselling them to ultimate consumers
outsourcing
contracting physical distribution tasks to third parties that do not have managerial authority within the marketing channel
inventory management
developing and maintaining adequate assortments of products to meet customers' needs
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
truck wholesaler
limited-service wholesaler that transports products directly to customers for inspection and selection
Types of Agents (3)
manufacturers' agent selling agent commission merchant
direct selling
marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace
materials handling
physical handling of tangible goods, supplies, and resources
online retailing
retailing that makes products available to buyers through computer connections
scrambled merchandising
the addition of unrelated product lines to an existing product mix, particularly fast-moving items that can be sold in volume
warehousing
the design and operation of facilities for storing and moving goods
transportation
the movement of products from where they are made to where they are used
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
order processing
the receipt and transmission of sales order information (when efficient, contributes to physical distribution objectives)
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 resales, for making other products, or for general business operations