Intro To Marketing: Chapter 12

Party Plan System

A sales technique that relies heavily on people getting caught up in the "group spirit", buying things they would normally not buy if they were alone.

Retail Borrowing

A third source of shrinkage that is an unethical consumer practice. Refers to the return of no defective merchandise for a refund after it has fulfilled the purpose for which it was purchased.

Specialty Stores

Have narrow and deep inventories. They do not sell a lot of product lines, but they offer a good selection of brands within the lines they do sell.

Pyramid Schemes

Illegal scams that promise consumers or investors large profits from recruiting others to join the program rather than from any real investment or sale of goods to the public.

Point-of-Sale (POS) Systems

These devices contain computer brains that collect sales data and connect directly into the store's inventory-control system.

Place Marketing

These strategies regard a city, state, country or other locale as a brand. Marketers use the marketing mix to create a suitable identity so that consumers choose this brand over competing destinations when they plan their travel.

Green River Ordinances

They prohibit door-to-door selling unless prior permission is given by the household.

Merchandise Depth

Variety of choices available within each specific product line. Shallow vs. deep assortment. (P. 369).

Department Stores

Sell a broad range of items and offer a deep selection organized into different sections of the store.

Intangibles

Services and other experience-based products that we can't touch.

Shrinkage

The term retailers use to describe stock losses due to shoplifting, employee theft, and damage to merchandise.

Automatic Reordering Systems

Activated when inventories reach a certain level.

Services

Acts, efforts, or performances exchanged from producer to user without ownership rights.

Merchandise Breadth

Aka variety, is the number of different product lines available. Narrow vs. broad assortment. (P. 369).

Retailtainment

All about marketing strategies that enhance the shopping experience. Retailers from Disney to Bass Pro Shops create excitement, impulse purchase, and an emotional connection with the brand through Retailtainment.

Factory Outlet Store

Another discount retailer. Manufacturer owns these stores. Sell of defective merchandise of excess inventory.

Multilevel Marketing or Network Marketing

Another form of direct selling. A master distributor recruits other people to become distributors. They sell the company's product to the recruits, and then receives a commission on all merchandise sold by the people he or she recruits.

Nonstore Retailing

Any method a firm uses to complete an exchange that does not require a customer to visit a store.

Convenience Stores

Carry a limited number of frequently purchased items, including basic food products, newspapers, and sundries. They cater to consumers willing to pay a premium for the ease of buying staple items close to home. Convenience stores meet the needs of those who are pressed for time, who buy items in smaller quantities, or who shop at irregular hours.

Box Stores

Food stores that have a limited selection of items, few brands per item, and few refrigerated items. They are open fewer hours than supermarkets, are smaller, and carry fewer items than warehouse clubs. Items are displayed in open boxes and customers bag their own purchases. ALDI is an example.

Hypermarkets

Combine the characteristics of warehouse stores and supermarkets. A European invention, these are huge establishments several times larger than other stores. They offer one-stop shopping, often for over 50,000 items, and feature restaurants, beauty salons, and children's play areas.

Leased Departments

Departments within a larger retail store that an outside firm rents. Allows larger stores to offer a broader variety of products than they would otherwise carry. In-store banks, photographic studios, etc.

Supermarkets

Food stores that carry a wide selection of edible and no edible products.

Supercenters

Larger stores that combine an economy supermarket with other lower-priced merchandise.

Intangibility

Means costumers can't see, touch, or smell good service. We can't inspect or handle services before we buy them.

Disintermediation

Means removing the "middleman" and thus eliminating the need for costumers to interact with people at all. Used to minimize the potentially negative effects of bad service encounters and to save or labor costs.

Inseparability

Means that it is impossible to divide the production of a service from the consumption of that service.

Variability

Means that over time, even the same service that the same individual performs for the customer changes-even only in minor ways. It's rare when you get exactly the same cut from a hairstylist each time you visit him or her.

Warehouse Clubs

Newer version of the discount store. Do not offer any of the amenities of a full-service store. Customers buy many of the products in larger-than-normal packaging and quantities. Costco, Sams Club.

Off-Price Retailers

Obtain surplus merchandise from manufacturers and offer brand-name, fashion-oriented goods at low prices. T.J. Maxx, Home Goods.

Direct Selling

Occurs when a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise. Major product categories for direct selling included home/family care products (such as cleaning products), wellness products (such as weight loss products) personal care products (such as cosmetics, jewelry, and skin care products), and services.

General Merchandise Discount Stores

Offer a broad assortment of items at low prices and with minimal service and are the dominant outlet for many products. Target, k-mart, Walmart. Appeal to price-conscious shoppers who want easy access to a lot of merchandise.

Combination Stores

Offer consumers food and general merchandise in the same store.

Merchandise Mix

One of the most important strategic decisions makes is what to sell. Because what the retailer sells is central to its identity, one way we describe retailers is in terms of their merchandise mix.

Wheel-of-Retailing Hypothesis

One of the oldest and simplest explanations for how retail firms change. It's a theory that explains how retail firms change, becoming more upscale as they go through their life cycle.

Category Killer

One type of specialty store that has become especially important in retailing. It's a very large specialty store that carries a vase selection of products in its category. Home Depot, Staples, Toys R Us are examples.

B2C e-commerce

Online exchange between companies and individual consumers.

Virtual Experiential Marketing

Online marketing strategy that uses enhancements, including colors, graphics, layout and design, interactive videos, contests, games, and giveaways to engage experiential shoppers online.

Variety Stores

Originated as the five-and-dime or dime stores. Carry a wide variety of inexpensive items from kitchen gadgets to toys to candy and candles. Dollar Tree.

Idea Marketing

Refers to strategies that seek to gain market share for a concept, philosophy, belief, or issue.

Perishability

Refers to the characteristic of a service that makes it impossible to store for later saw or consumption-it's a case of use it or lose it.

Experiential Shopper

Regard shopping as entertainment. When the retail experience includes surprise, excitement, and a unique experience, experiential shoppers are more likely to make impulsive purchase decisions.

Pop-Up Stores

Retail experiences that "pop up" one day and then disappear after a period of one day to a few months. Low-cost, builds consumer interest, create buzz, and tests marketing products and locations. Seasonal pop-up stores are opened to sell Halloween costumes, Christmas gifts and decorations, and fireworks, etc.

Merchandise Assortment

Selection of products they sell. Merchandise assortment has two dimensions: breadth and depth.

Perpetual Inventory Unit Control System

Stores may use this system to keep a running total on sales, returns, transfers to other stores, and so on.

Servicescape

The environment in which the service is delivered and where the firm and the customer interact. It's the actual physical facility where the service is performed, delivered, and consumed.

Retailing

The final stop on the distribution path-the process by which organizations sell goods and services to consumers for their personal use.

Service Encounter

The interaction between the customer and the service provider.

Customer Profiling

The level of customer service is tailored based on a customer's perceived ability to pay.

Capacity Management

The process by which organizations adjust their services in an attempt to match supply with demand. This strategy may mean adjusting the product, or it may mean adjusting the price.