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42 terms

Basic Marketing Ch. 13

MKT 320F Test #3
STUDY
PLAY
Retailing
Covers all of the activities involved in the sale of products to final consumers.
General Stores
Carried anything they could sell in reasonable volume- were the main retailers in the U.S.
Single-Line or Limited-Line Stores
Stores that specialize in certain lines of related products rather than a wide assortment.
Specialty Shop
A type of conventional limited-line store- is usually small and has distinct "personality." Sell certain types of shopping products such as high-quality sporting goods, exclusive clothing, cameras, or even antiques.
Department Stores
Larger stores that are organized into many separate departments and offer many product lines. Each department is like a separate limited-line store and handles a wide variety of a shopping product, such as men's wear or housewares.
Mass-merchandising Concept
Which says that retailers should offer low prices to get faster turnover and greater sales volumes—by appealing to larger markets.
Supermarkets
Large stores specializing in groceries with self service and wide assortments.
Discount Houses
Offered "hard goods" (camera's, TV's, and appliances) at substantial price cuts to customers who would go to the discounter's low-rent store, pay cash, and take care of any service or repair problems themselves.
Mass Merchandisers
Large, self-service stores with many departments that emphasize "soft goods" (housewares, clothing, and fabrics) and staples (like health and beauty aids) but still follow the discount house's emphasis on lower margins to get faster turnover.
Supercenters (hypermarkets)
Very large stores that try to carry not only food and drug items but all goods and services that the consumer purchases routinely.
Convenience (food) stores
A convenience-oriented variation of the conventional limited-line food stores.
Automatic Vending
Selling and delivering products through vending machines.
Door-to-door Selling
A salesperson going directly to the consumer's home.
Telephone and Direct-mail Retailing
Allow consumers to shop at home— usually placing orders by mail or a toll-free long-distance telephone call and charging the purchase to a credit card.
Wheel of Retailing Theory
New types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices. Then they're threatened by new low-status, low-margin, low-price retailers—and the wheel turns again.
Scrambled Merchandising
Carrying any product lines they think they can sell profitably.
Corporate Chain
A firm that owns and manages more than one store. Often many stores.
Cooperative Chains
retailer-sponsored groups—formed by independent retailers—that run their own buying organizations and conduct joint promotion efforts.
Voluntary Chains
Wholesaler-sponsored groups that work with "independent" retailers.
Franchise Operation
The franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units.
Wholesaling
Concerned with the activities of those persons or establishments that sell to retailers and other merchants, or to industrial, institutional, and commercial users, but that do not sell in large amounts to final consumers.
Wholesalers
Firms whose main function is providing wholesaling activities.
Manufactures' Sales Branches
Warehouses that producers set up at separate locations away from their factories.
Merchant Wholesalers
Own (take title to) the products they sell. Often specialize by certain types of products or customers.
Service Wholesalers
Are merchant wholesalers that provide all the wholesaling functions. Within this basic group are three types: (1) general merchandise, (2) single- line, and (3) specialty.
General Merchandise Wholesalers
Are service wholesalers that carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics, and automobile equipment.
Single-line (or general-line) wholesalers
Are service wholesalers that carry a narrower line of merchandise than general merchandise wholesalers.
Specialty Wholesalers
Are service wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers.
Limited-function wholesalers
Provide only some wholesaling functions.
Cash- and- and carry wholesalers
Operate like service wholesalers-except that the customer must pay cash.
Drop-Shippers
Own (take title to) the products they sell-but do not actually handle, stock, or deliver them. They get orders and pass them on to producers.
Truck Wholesalers
Specialize in delivering products that they stock in their own trucks.
Rack Jobbers
Specialize in hard-to-handle assortments of products that a retailer doesn't want to manage—and usually display the products on their own wire racks.
Catalog wholesalers
Sell out of catalogs that may be distributed widely to smaller industrial customers or retailers that might not be called on by other wholesalers.
Agent Wholesalers
Are wholesalers who do not own the products they sell. Their main purpose is to help in buying and selling. Normally specialize by customer type and by product or product line.
Manufactures' Agent
Sells similar products for several noncompeting producers—for a commission on what is actually sold.
Export or Import Agents
Manufactures' agents who specialize in international trade.
Brokers
Brings buyers and sellers together. Usually have a temporary relationship with the buyer and seller while a particular deal is negotiated.
Export and Import Brokers
Specialize in bringing together buyers and sellers from different countries.
Selling Agents
take over the whole marketing job of producers—not just the selling function.
Combination Export Manager
A blend of manufacturers' agent and selling agent—handling the entire export function for several producers of similar but noncompeting lines.
Auction Companies
Provide a place where buyers and sellers can come together and bid to complete a transaction.