View
- Term
- Definition
- Both Sides
Study
- All (42)
Shortcut Show
Next
Prev
Flip
MKT 230: CHAPTER 16
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
|