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

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