MKT 230: CHAPTER 16
42 Cards in this Set
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Retailing
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all transactions in which the buyer plans to consume product through personal, family, or household use
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Retailer
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organization that purchases products for purpose of reselling them to ultimate consumers
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Importance of Retailing in U.S.
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-20% of all U.S. employees work in retail
-over 1 million
-majority of personal income spent in retail establishments
-critical link between ultimate consumers and producers
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General Merchandise Retailers (8)
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-department stores
-discount stores
-convenience stores
-supermarkets
-superstores
-hypermarkets
-warehouse clubs
-warehouse showrooms
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Department Stores
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large retail organizations with wide product mixes, employ at least 25 people
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Discount Stores
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self-service, general merchandise outlets that regularly offer brand name and private brand products at low prices
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Convenience Stores
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small self-service stores that are open for long hours and carry a narrow assortment of products, usually convenience items, as well as services such as ATMs
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Supermarkets
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large, self-service stores that carry a complete line of food products with some non-food products
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Superstores
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Giant retail outlets that carry products ordinarily found in supermarkets, but also routinely purchased consumer products
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Hypermarkets
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combine supermarket and discount store shopping in one location
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Warehouse Clubs
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large-scale, members-only selling operations combining cash-and-carry wholesaling and discount retailing
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Warehouse Showrooms
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retail facilities in large, low-cost buildings with warehouse materials-handling technology, vertical merchandise displays, large on-premises inventories, and minimal services
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Types of Retail Store Locations
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-free standing structures
-business districts
-shopping malls and centers
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Factors Affecting Retail Store Location
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-location of intended target market
-kinds of products sold
-competitors' locations
-availability of transportation and ease of movement to/from site
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Atmospherics
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physical elements in a store's design that appeal to consumers' emotions and encourage buying
-exterior (storefront, entrances, displays)
-interior (lighting, wall/floor coverings)
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Category Management
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retail strategy of managing groups of similar/substitutable products made by DIFFERENT MANUFACTURERS
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Direct Marketing
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use of telephone, internet, and nonpersonal media to communicate product/organizational information to customers
-Nonstore retailing: selling of products outside confines of retail facility
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Catalog Marketing
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occurs when an organization provides a catalog from which customers make selections and place orders via mail, telephone, or internet
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Telemarketing
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performance of marketing-related activities by telephone
-laws more restrictive
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Online Retailing
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-make products available through computer connection
-upscale and hard-to-find items
-online security is a problem
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Automatic Vending
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use of machines to dispense products selected by customers
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Franchising
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ARRANGEMENT in which a supplier (franchiser) grants a dealer (franchisee) the RIGHT TO SELL PRODUCTS IN EXCHANGE for some type of CONSIDERATION
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Franchising Advantages
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-enables franchisee to start business w/ limited capital to benefit from business experience of others
-more successful than independent outlets
-franchiser can dictate aspects of business
-franchiser gains fast product distribution through franchise arrangements
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Franchising Disadvantages
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-franchisee must pay to use franchiser's name, products, and assistance
-franchisee gives up control when entering franchise agreement
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Wholesaling
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all transactions in which products are bought for resale, for making other products, or for general business operations
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Wholesaler
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individual or organization that sells products which are bought for resale, making other products, or general business operations
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Full-Service Wholesalers
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-general merchandise
-limited line
-specialty line
-rack jobbers
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General Merchandise Wholesalers
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-wide product mix
-limited depth with product lines
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Limited Line Wholesalers
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-few product lines
-assortment of products within those lines
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Specialty Line Wholesalers
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-offer narrowest range of products
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Rack Jobbers
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-full service
-specialty line
-own/maintain display racks in supermarkets, drugstores, discount, and variety stores
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Limited-Service Wholesalers
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-cash and carry
-truck
-drop shippers
-mail order
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Cash-and-Carry Wholesalers
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intermediaries whose customers pay cash and furnish transportation
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Truck Wholesalers
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transport limited line of products directly to consumers for on-the-spot inspection and selection
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Drop Shippers
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take title to goods and negotiate sales but NEVER TAKE ACTUAL POSSESSION of products
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Mail-Order Wholesalers
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Use catalogs instead of sales forces to sell products to retail/business customers
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Brokers
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intermediaries TEMPORARILY EMPLOYED by buyers or sellers in order to unite buyers and sellers
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Agents
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represent either buyers or sellers on a PERMANENT basis
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Types of Agents
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-manufacturers' agents
-selling agents
-commission merchants
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Manufacturers' Agents
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independent intermediaries who represent sellers and usually offer customers complete product lines
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Selling Agents
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market either all of a specified product line or a manufacturer's entire output
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Commission Merchants
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Receive goods on consignment from local sellers and negotiate sales in large, central markets
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