Marketing Chapter 13

Front 1

1

Back 1

ddfs

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Retailing

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All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

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Retailers

Back 3

businesses whose sales come primarily from retailing

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Nonstore retailing

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selling to final consumers through direct mail, catalogs, telephone, internet, tv home shopping shows, etc.

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Category Killers

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Giant specialty store that carries a very deep assortment of a particular line and is staffed by knowledgeable employees

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Discount Stores

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Sells standard merchandise at lower prices by accepting lower margins and selling higher volume.

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Off Price Retailers

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Buy at less than regular wholesale prices and sell at less than retail prices

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Factory Outlets

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Off price retailing operations that are owned and operated by a manufacturer that normally carries the manufacturer’s surplus, discontinued, or irregular goods

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Independent off-price retailers

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Either are owned and run by entrepreneurs or are divisions of larger retail corporations

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Warehouse clubs

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(ex. Sam’s Club, Costco) are off price retailers that sell a limited selection of brand name items and a hodgepodge of other goods at deep discounts to members who pay annual membership fees.

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Chain Stores

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Two or more outlets that are owned and controlled in common, have central buying and merchandising and sell similar lines of merchandise.

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Voluntary Chain

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a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising ex. Independent Grocers Alliance

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Retailer cooperative

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a group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conducts joint merchandising and promotion efforts. Ex. Ace hardware

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Franchises

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A contractual association between a manufacturer, wholesaler, or service organization (franchiser) and independent business people (franchisees) who buy the right to own and operate one or more units of the franchise system. Es. McDonalds, Subway, Jiffy Lube, 7-Eleven

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Merchandising conglomerates

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Corporations that combine several different retailing forms under central ownership. Ex. Target Corporation which operates Marshall Fields, Target, Mervyns and Target.direct

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Shopping center

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Group of retail businesses planned, developed, owned and managed as a unit.

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Wheel-of-retailing concept

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A concept of retailing that states that new types of retailers usually begin as low-margin, low-price, low status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced.

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Retail Convergence

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Merging of consumers, products, prices and retailers

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Wholesaling

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All activities involved in selling goods and services to those buying for resale or business use.

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Wholesalers

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Those firms engaged primarily in wholesaling activity

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Selling and promoting

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Wholesalers’ sales forces help manufacturers reach many small customers at a low cost. The wholesaler has more contacts and is often more trusted by the buyer than the distant manufacturer

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Buying and assortment building

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Wholesalers can select items and build assortments needed by their customers, thereby saving the consumers much work.

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Bulk-breaking

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Wholesalers save their customers money by buying in carload lots and breaking bulk (breaking large lots into small quantities).

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Warehousing

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Wholesalers hold inventories, thereby reducing the inventory costs and risks of suppliers and customers

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Merchant wholesalers

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independently owned business that takes title to the merchandise it handles

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Broker

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a wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiations

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Agents

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represent buyers or sellers on a more permanent basis

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Manufacturers’ sales branches and offices

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wholesaling by sellers or buyers themselves rather than through independent wholesalers.