Marketing Ch. 12

Front 1

retailing

Back 1

All of the activities involved in the sale of products to final consumers

Front 2

retailer's product

Back 2

The retailer's whole offering - assortment of goods and services, advice from salesclerks, convenience, etc.

Front 3

reasons why consumer's choose a retailer

Back 3

convenience, product selection, fairness in dealings, helpful information, prices, social image, and shopping atmosphere

Front 4

retail strategy

Back 4

carefully set policies about all of these needs, because each of them can be a source of competitive advantage. Consumer needs also relate to segmentation and positioning, because different retailers emphasize different strategies

Front 5

department store

Back 5

larger stores that are organized into many separate departments and offer many product lines; combine many limited-line stores and specialty shops

Front 6

specialty shop

Back 6

a type of conventional limited-line store, that is usually small and has a distinct “personality” or shopping environment, usually sell shopping products, and focus on a narrow target market with better service, knowledgeable salespeople, and a unique assortment

Front 7

mass-merchandisers

Back 7

large, self-service stores with many departments that emphasize “soft goods” and staples, with low prices and lower margins to get faster turnover. Mass-merchandisers have also led the way in streamlining distribution with technology. Most of their growth today comes from international expansion

Front 8

supermarkets

Back 8

large stores specializing in groceries with self-service and wide assortments. Survival is based on efficiency—high volume and low costs

Front 9

supercenters/hypermarkets

Back 9

very large stores that carry groceries and meet all routine needs for goods and services

Front 10

convenience stores

Back 10

carry limited assortments of fast moving items and are located conveniently near people’s homes; goods cost 10 to 20% more than at supermarkets

Front 11

automatic vending

Back 11

Automatic vending is selling and delivering products through vending machines. Vending machines are convenient, and the business has grown, but it only accounts for about 1.5 percent of U. S. retail sales

Front 12

online shopping v. in-store

Back 12

Internet customers are younger, better educated, and tend to be from more upscale circumstances. With web shopping, convenience takes on new meanings because people can shop at home or while at work. The shopper controls the pace of shopping, the location of the “store,” and the amount of information sought. online has much more information, usually solo rather than in groups

Front 13

four approaches for retailers going online

Back 13

1. supplement their stores, 2. compliment their stores/catalogues, 3. focus on specific needs of target market, or 4. more efficient than competitors (for online-only firms)

Front 14

changing/evolving retailers

Back 14

retailers start as low-status, low-margin, low-price operators and then as they grow they add more services, higher operating costs and prices; also product life cycle process applies to retailers

Front 15

scrambled merchandising

Back 15

retailer carries any product lines that will sell profitably, even if they are outside the retailer’s traditional lines of business

Front 16

corporate chain

Back 16

a firm that owns and manages more than one store (Wal-Mart, Best-Buy)

Front 17

cooperative chain

Back 17

retailer-sponsored groups formed by independent retailers that cooperate on promotions while running their individual stores separately (True Value Company)

Front 18

voluntary chain

Back 18

wholesaler-sponsored groups that may contract with independent retailers to standardize common operating procedures, storefronts, names, and joint promotions

Front 19

franchise operation

Back 19

Franchisor develops a marketing strategy and the retail franchise holders carry out the strategy in their own units by contract (Subway)

Front 20

wholesaling

Back 20

Activities of persons or establishments (wholesalers) that sell to retailers, other merchants, business users or institutional users, but do not sell in large amounts to final consumers

Front 21

wholesalers changing over time

Back 21

Technologies and the Internet are making it easier for producers and consumer to connect without using a wholesaler. Not all wholesalers are progressive, and perhaps some will go out of business.

Front 22

merchant wholesalers

Back 22

own the product they are distributing, the most numerous type of wholesalers

Front 23

agent middlemen

Back 23

wholesalers who do not own the product they sell

Front 24

types of merchant wholesalers

Back 24

service wholesalers provide all wholesaling functions, limited function merchant wholesalers provide only some wholesaling function

Front 25

SW: general merchandise wholesaler

Back 25

They carry a wide variety of nonperishable items

Front 26

SW: single-/general- line wholesalers

Back 26

They carry a narrower line, usually specializing in serving a single or limited product line for business or consumer marketers

Front 27

SW: specialty wholesaler

Back 27

These carry a very narrow range of products and offer specialized technical knowledge related to that area

Front 28

LFM: cash and carry wholesaler

Back 28

They operate like service wholesalers except that customers must pay cash

Front 29

LFM: drop shipper

Back 29

They take title but do not handle products. Instead, they arrange for other buyers who then deliver the goods

Front 30

LFM: truck wholesaler

Back 30

They specialize in delivering products—at a cost--that they stock in their own trucks

Front 31

LFM: rack jobbers

Back 31

They sell hard to handle assortments of products, usually presented by the jobber on their own point-of-purchase display racks

Front 32

LFM: catalog wholesaler

Back 32

They sell out of catalogs that are distributed widely to smaller customers. Thus, they can reach outlying areas

Front 33

AM: manufacturer's agents

Back 33

They sell similar products for several noncompeting producers and receive a commission on sales. Such agents are free-wheeling sales reps who can easily add product lines from a variety of producers to meet the customer’s needs. Export or import agents are basically manufacturers’ agents specializing in international trade.

Front 34

AM: brokers

Back 34

They provide information and bring buyers and sellers together. Their distinction is that their relationship with buyers and sellers tends to be temporary, lasting only while the deal is negotiated. Export and import brokers specialize in bringing together buyers and sellers from different countries

Front 35

AM: selling agents

Back 35

They take over the whole marketing job of producers. They have control over pricing, selling, and advertising, operating as the producers’ marketing manager. A combination export manager is a blend of manufacturers’ agent and selling agent

Front 36

AM: auction companies

Back 36

They speed up the sale, by providing a place where buyers and sellers can complete a transaction. The Internet has spurred growth of auction companies in many lines of business.