mindtap chap 14

rack jobbers

Anjali Ravi and Sofia Samilpa are starting a business where they own and stock display racks in supermarkets, discount stores, and drugstores with current magazines. Ravi and Samilpa's business would best be described as _______.

specialty-line wholesaler

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

wholesaling

Cardinal Health 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 _______.

extreme-value stores

Dollar General, Dollar Tree, Big Lots, and 99¢ Only Stores are best described as _______.

direct selling

Joan is taking time out from her career as a marketing manager to be a stay-at-home mom. To supplement her family's income, she has recently arranged to host parties at her home for Pampered Chef. During these parties, she demonstrates Pampered Chef kitchen products to invited friends and former colleagues and gives them an opportunity to purchase Pampered Chef products. This is best described as _______.

category killer

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(n) _______.

franchising

Kaylee has entered into an arrangement in which she can sell branded products, benefit from a national promotion program, and obtain equipment, buildings, management know-how, and marketing assistance in exchange for a percentage of her sales. This is best described as _______.

marketing analytics

Land's End mines the data obtained from all customer interactions on its website using _______ tools in order to better understand customers' needs and to make recommendations to them.

broker

Lyle founded a salsa manufacturing plant in his hometown of El Paso, Texas. Sales have been good, and demand for his products has 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) _______.

direct-response marketing

National Geographic sent Ray his monthly magazine. It 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 _______.

traditional specialty retailer

Phydeaux & Friends is an independent retailer that carries deep product lines of pet supplies. This small, locally-owned store is best classified as a(n) _________.

Department store

Refer to Scenario 14.1. Based upon the information about Nicole's store, what type of store do you think it is?

community shopping center

Refer to Scenario 14.1. Nicole 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 located her shop in a _______.

franchising

Refer to Scenario 14.1. 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 _______.

atmospherics

Refer to Scenario 14.2. The Tuscany theme Jordynn adopts, including photos of Italian scenes and Italian-style architecture, is part of Olive Garden's _______.

multichannel retailing

Refer to Scenario 14.3. Now that Delilah is selling her pottery in her store, through a catalog, and online, she is engaging in _______.

retail positioning

Refer to Scenario 14.3. 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 _______.

off-price retailer

Ross Dress for Less is a retail chain that buys manufacturers' seconds, overruns, returns, and off-season production runs of apparel at below-wholesale prices for resale to consumers at deep discounts. Ross stores offer limited lines of national-brand and designer apparel and accessories. Consumers appreciate the ability to purchase name-brand goods at discounted prices, and the stores do particularly well during economic downturns. Ross is best classified as a(n) _______.

Television home shopping

Sahana has become well known for her beautiful jewelry creations. For years, she sold her jewelry in her downtown farmer's market as well as on Etsy.com. Sahana's Etsy sales were slow until she hired a professional photographer to take better pictures of her items using herself or friends as models. Sahana feels like she could make and sell more jewelry but isn't sure what retail format would best allow her to demonstrate her jewelry items and show them off. What type of retailing would you recommend that Sahana try next?

retailing

Scenario 14.1. 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 added more product lines including luggage, beauty products, and even some housewares and electronics. 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. Refer to Scenario 14.1. Based upon the description, Nicole is engaging in _______.

Loss of some control

Scenario 14.2. 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. Refer to Scenario 14.2. What is one of the disadvantages Jordynn encountered by opening a franchise instead of her own restaurant?

catalog marketing

Scenario 14.3. 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 to open up another channel of distribution. Refer to Scenario 14.3. Based on her criteria, Delilah should probably use _______.

hypermarket

The United Kingdom's largest supermarket chain 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 _______.

beacons

When Malcolm walks into his local American Eagle store, he gets a message on his smartphone announcing that T-shirts in the store are 25 percent off today. This illustrates the use of _______.

retailing

When Olive Garden sells wine to its customers in the restaurant, this is an example of _______.