MKTG 409 Chapter 15

General Merchandised Wholesalers

A category of Full-Service wholesaler. Full-service wholesaler with a wide product mix but limited depth within product lines. Deal with drugs, nonperishable foods, cosmetics, detergents, tobaccos.

Category Management

A retail strategy of managing groups of similar, often substitutable, products produced by different manufacturers.

Convenience Stores

A type of General-Merchandising Retailer. A small self-service store that is open long hours and carries a narrow assortment of products, usually convenience items. Example: 7-Eleven

Superstores

A type of General-Merchandising Retailer. Giant retail outlets that carry good and non-good products found in supermarkets, as well as most routinely purchased consumer products. Examples: Walmart Supercenters, SuperTarget

Department Stores

A type of General-Merchandising Retailer. Large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management. Examples: Macy's, Sears, JCPenny

Supermarkets

A type of General-Merchandising Retailer. Large, self-service stores that carry a complete line of food product, along with some nonfood products. Examples: HEB, Kroger

Warehouse Clubs

A type of General-Merchandising Retailer. Large-Scale members-only establishments that combine features of cash-and-carry wholesaling with discount retailing. Examples: Costco, Sam's Club

Warehouse Showrooms

A type of General-Merchandising Retailer. Retail facilities in large, low-cost buildings with large on-premises inventories and minimal services. Example: IKEA

Discount Stores

A type of General-Merchandising Retailer. Self-service, general-merchandise stores that offer brand-name and private-brand products at low prices. Examples: Walmart, Target

Hypermarkets

A type of General-Merchandising Retailer. Stores that combine supermarket and discount store shopping in one location. Example: Carrefour

Category Killers

A type of Specialty Retailer. A very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability. They expand rapidly and gain sizable market shares, taking business away from smaller, higher-cost retail outlets. However, just as category killers have taken business away from traditional specialty retailers, online retailing has taken market share away from category killers in recent years. Examples: Home Depot, Lowe's, Staples, Barnes & Nobles, Best Buy

Traditional Speciality Retailers

A type of Specialty Retailer. Sometimes called Limited-Line Retailers or Single-Line Retailers. Stores that carry a narrow product mix with deep product lines. Examples: Gap, Sunglass Hut, Foot Locker

Off-Price Retailers

A type of Specialty Retailer. Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts. Examples: TJ Maxx, Marshalls, Burlington Coat Factory

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 tail, telephone, or the Internet.

Direct Marketing

A type of non store retailing. The use of the telephone, Internet, and non personal media to introduce products to customers, who can then purchase them via mail, telephone, or the Internet. Direct Marketing can occur through online retailing, catalog marketing, direct-response marketing, telemarketing, and television home shopping.

General Merchandise Retailer

A type of retail store. A retail establishment that offers a variety of product lines that are stocked in considerable depth. The primary types of general-merchandising retailers are department stores, discount stores, convenience stores, supermarkets, superstores, hypermarkets, warehouse clubs, and warehouse showrooms.

Power Shopping Center

A type of shopping center that combines off-price stores with category killers.

Lifestyle Shopping Center

A type of shopping center that is typically one air and features upscale speciality, dining, and entertainment stores. The Domain in Austin.

Community Shopping Center

A type of shopping center with one or two department stores, some specialty stores, and convenience stores.

Regional Shopping Center

A type of shopping center with the largest department stores, widest product mixes, and deepest product lines of all shopping centers. Many shopping malls are regional shopping centers.

Super-Regional Shopping Center

A type of shopping center with the wised and deepest product mixes that attract customers from many miles away. The Mall of America is an example.

Retailing

All transactions which the buyer intends to consume the product through personal, family, or household use.

Neighborhood Shopping Center

Also called strip malls. A type of shopping center usually consisting of several small convenience and specialty stores.

Merchant Wholsalers

Also called wholesaler, jobber, distributor, assembler, exporter, and importer. Independently owned businesses that take title to goods, assume ownership risks, and buy and resell products to other wholesalers, business customers, or retailers.

Extreme Value Stores

Also known as dollar stores. Alternative to Discount Stores. Retailers that are a fraction of the size of conventional discount stores and typically offer very low pricers on smaller size name-brand nonperishable household items. Examples: Dollar General, Dollar Tree

Franchising

An arrangement in which a supplier (franchiser) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration.

Wholesaler

An individual or organization that sells products that are bought for resale, for making other products, or for general business operations. Types: Merchant Wholesalers, Agents and Brokers, and Manufacturers' Sales Branches and Offices.

Retailer

An organization that purchases products for the purpose of reselling them to ultimate consumers.

Location of Retail Stores

Business District or Shopping Centers. Pop Up Retailers and Sharing Space. Different Types of Shopping Centers: Neighborhood, Community, Regional, Super-regional, Lifestyle, Power, and Outlet Centers.

Drop Shippers

Desk Jobbers Limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products.

Specialty Retailers

Emphasize narrow and deep assortment of products. Do not sell specialty items (except when specialty goods complement the overall product mix). Instead, they offer substantial assortments in a few product lines. Three Types: Traditional Specialty Retailers, Category Killers, and Off-Price Retailers.

Multichannel Retailing

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

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-Time Wholesalers

Full service wholesalers that carry only a few product lines but many products within those lines. Groceries, lighting fixtures, oil-well drilling equipment.

Specialty-Line Wholesalers

Full-service wholesalers that carry only a single product line or a few items within a product line. Rack jobbers. Health and beauty aids, books, magazines, hosiery, and greeting cards.

Rack Jobbers

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

Retail Positioning

Identifying an unserved or underserved market segment and serving it through 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.

Brokers

Intermediaries that bring buyers and sellers together temporarily. Do not take title to products and are compensated with commissions for negotiating exchanges between sellers and buyers. Food Brokers, Real Estate Brokers, Other Brokers

Selling Agents

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

Agents

Intermediaries that represent either buyers or sellers on a permanent basis. Do not take title to products and are compensated with commissions for negotiating exchanges between sellers and buyers. Manufacturers' Agents, Selling Agents, and Commission Merchants

Truck Wholesalers

Limited-Service Wholesalers that transport products directly to customers for inspection and selection. Also called truck jobbers. Small operators who own and drive their own trucks.

Mail-Order Wholesalers

Limited-service wholesalers that sell products through catalogs.

Cash-and-Carry Wholesalers

Limited-service wholesalers whose customers pay cash and furnish transportation. Limited line of products with a high turnover rate. Groceries, building materials, and electrical or office supplies.

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.

Direct Selling

Marketing Products to ultimate consumers through dace-to-face sales presentations at home or in the workplace.

Full-Service Wholesaler

Merchant wholesalers that perform the widest range of wholesaling functions. Categorized as General-Merchandise, Limited-Line, and Specialty-Line Wholesalers.

Limited-Service Wholesalers

Merchant wholesalers that provide some services and specialize in a few functions. Four typical limited-service wholesalers: Cash-and-Carry Wholesalers, Truck Wholesalers, Drop Shippers, and Mail-Order Wholesalers.

Online Retailing

Retailing that makes products available to buyers through computer connections. Amazon

Beacons

Send real-time messages and offers to customers with Bluetooth-enabled smartphones.

Webrooming

Shoppers researching products online and then head to the nearest store to make the actual purchase.

Commission Merchants

Sometimes called factor merchants. Agents that receive goods on consignment from local sellers and negotiate sales in large, central markets.

Strategic Issues in Retailing

Store location, technology, retail positioning, store image, and category management are used strategically by retailers.

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. A form of direct marketing.

Automatic Vending

The use of machines to dispense products.

Wholesaling

Transactions in which products are bought for resale, for making other products, or for general business operations.