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41 Cards in this Set

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Wholesalers
those persons or establishments that sell to retailers and/or organizational buyers for industrial, institutional, and commercial use, but do not sell in significant amounts to ultimate consumers.
Standard Stock list
requires that all stores in a retail chain stock the same merchandise
Optional Stock list
allows each store the flexibility of tailoring its merchandise mix to local tastes and demands
Micro-target marketing
merchandise selection is tailored to the local market
Category captain
a vendor who helps the retailer manage its limited shelf space by determining “what kind” and “how many” units of a specific product to carry on the shelves in each store
Gross margin percentage
shows how much gross margin a retailer makes as a percentage of sales
Gross margin
equals net sales minus the cost of goods sold
Operating expenses
the costs a retailer incurs in running a business, other than the cost of merchandise
Inventory turnover
refers to the number of times per year, on average, that a firm sells its inventory
Central Business District (CBD)
an unplanned shopping area that sprang up around the geographic point where public transportation systems converged (historically, most retailers located)
Secondary Business District (SBD)
a shopping area that is smaller than the CBD and that revolves around at least one department or variety store at the intersection of two major streets
Neighborhood Business District (NBD)
a shopping area that evolves to satisfy the convenience- oriented shopping needs of a neighborhood and generally contains several small stores, with the major retailer being either a supermarket or a variety store
Balanced tenancy
stores complement each other in merchandise offerings
Anchor stores
a dominant large-scale store that is expected to draw customers to the center
Freestanding retailers
a retailer that is not physically connected to other retailers but instead has an individual building and parking area
Wheel of retailing theory
a pattern of competitive development in retailing that states that new types of retailers enter the market as low-status, low-margin, low-price operators. However, as they meet with success, these new retailers gradually acquire more sophisticated and elaborate facilities, thereby becoming less efficient and vulnerable to new types of low-margin retail competitors that progress through the same pattern
Retail life cycle
a description of competitive development in retailing that assumes that retail institutions pass through an identifiable cycle that includes four distinct states: introduction, growth, maturity, and decline
Store-based retailers
operate from a fixed location that requires consumers to travel to the store to view and select merchandise and/or services
Non-store-based retailers
attempt to reach the consumer at home, work, or any place other than a store where they might be susceptible to purchasing (ex. Internet)
Category killers
carry such a large amount of merchandise in a single category at such good prices that they make it impossible for customers to walk out without purchasing what they need
Scrambled merchandising
the handling of merchandise lines based solely on the profitability criterion without regard to the consistency of the product or merchandise mix
Retail Mix
a retailer’s combination of merchandise, prices, advertising, location, customer services, selling, and store layout and design that is used to attract customers.
Atmospherics
the use of merchandise, level of service offered by employees, fixtures, floor layout, sound, and odor to influence customers’ perceptions.
Store compatibility
when two compatible, or very similar, businesses locate near each other, they will show an increase in sales volume greater than what they would have achieved if they were located apart from each other.
Shrinkage
refers to reduction of merchandise through theft, loss, and/or damage
Category Management
a process of managing and planning all SKUs within a product category as a distinct business so that the store can optimally use shelf space to generate the highest profits.
SKU (stock keeping unit)
refers to a distinct merchandise item in the retailer’s merchandise assortment
Manufacturers’ sales branches
are sales outlets owned by the manufacturer (include sales outlets which carry full inventory and sales offices which do not carry inventory)
Merchant wholesalers
independent firms which purchase a product from a manufacturer, take title to that product, and resell it to other manufacturers, wholesalers, or retailers, but not to the final customer
Full-service merchant wholesaler
provide a wide range of services for retailers and business purchasers
General merchandise wholesalers
full-service merchant wholesalers that carry a complete line of nonperishable items
Single-line wholesalers
full-service merchant wholesalers that carry a particular line of goods
Specialty wholesalers
full-service merchant wholesalers that carry a rather limited range of items
Industrial distributors
name for full-function merchant wholesalers in the industrial-goods market
Limited-service merchant wholesalers
perform only a few services for manufacturers or other customers, or they perform all of them on a more restricted basis than do full-service wholesalers
Drop-shippers (desk jobbers)
limited-service merchant wholesalers which pass on customer orders with instructions that the manufacturer ship directly to a location specified by the customer. No warehouse, inventory, or physical possession. May not have sales force or large promotions. Used in handling bulky goods in car-lot quantities
Cash-and-carry wholesalers
limited-service merchant wholesalers which do not provide customers with credit or delivery. Usually no sales force.
Truck jobbers (wagon jobbers)
limited-service merchant wholesalers that use their truck as a warehouse.
Rack jobbers
limited-service merchant wholesalers which maintain racks stocked with merchandise at the retailer’s location
Agents/brokers
independent middlemen who bring buyers and sellers together, provide market information to one or both parties, but never take title to the merchandise. Most work for the seller, but some work for buyers
Manufacturers’ agents
independent middlemen who handle a manufacturer’s marketing functions by selling part or all of a manufacturer’s product line in an assigned geographic area