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44 terms

Ch 16 - retail

STUDY
PLAY
retailing
all transactions where buyer intends to consume product
personal, family, household
retailer
purchase products to resell to ULTIMATE customers
stores, direct selling, direct marketing, vending machines
critical link b/w producers & consumers
general merchandise retailers
variety of product lines, considerable depth
department stores
wide product mixes, employ 25+ ppl
service oriented!
most sales from apparel, accessories, cosmetics
gen merch store
discount stores
self-service, BRAND names & private brands at low P
lower margins for more volume
appliances, housewares, clothes, toys
general merch store
convenience store
small self-service store, open long hrs, narrow assortment of products
primary product is "convenience"
supermarkets
large, self-service stores, food & non-food
lower P than grocery stores
superstores
carry food & non-food products
4x bigger than supermarkets
combo of discount stores & supermarkets "features"
hypermarkets
combine supermarket & discount store shopping in 1 location
larger than superstores
NOT successful in U.S.
warehouse clubs
members only
WHOLESALING & DISCOUNT retail
to keep P down, they have few services, lack ambience, aisles for forklifts
warehouse showrooms
retail facilities in large, low-cost buildings
min services
costs are lower b/c some marketing functions are shifted to consumer
specialty retailer
narrow product mix, deep product lines
traditional specialty retailer
(specialty)
have high costs in proportion to sales, satisfying customers may mean carrying products w/ low turnover
category killers
(specialty)
large specialty store concentrating on a major product category & competing for low P & product availability
off-price retailers
buy mfr's seconds, overruns, returns, & off-season production runs @ below-WHOLESALE P
sell to consumer @ deep discounts
estb. l-t relationships w/ suppliers to ensure regular flow
consumer purchases
result of social influences & psych factors
neighborhood shopping centers
small convenience & specialty stores.
consider their target market to be consumers w/in 10 min
product mixes are ESSENTIAL products
community shopping centers
include 1-2 department stores, several specialty & convenience stores
wide range of product mix & deep product lines
regional shopping centers
have the largest department stores, extensive product mixes, deep product lines
150K+ consumers in their target markets
ppl drive distance to find products (mall)
supperregional shopping centers
widest & deepest product mixes
have skating rinks, amusement centers, upscale restaurants
lifestyle shopping center
open-air shopping center (oak brook)
upscale dining, specialty, entertainment stores
architecture is important
power shopping centers
combine OFF-PRICE stores & SMALL stores w/ CATEGORY KILLERS
factory outlet malls
discount & factory outlet stores, want to avoid conflict w/ retailers of their products
retail positioning
i.d.-ing an unserved or underserved market segment & serving it, so it distinguishes retailer fin the mind of the consumers
atmospherics
physical element in a store's design that appeal to consumers' emotions
encourages buying
category management
managing group of similar, substitutable products made by diff mfrs
direct marketing
use telephone& non-personal media to communicate product
then, the consumer buys it through mail, telephone, or Internet
direct-response marketing
when retailer advertises a product & makes it available through mail or telephone
direct selling
"door-to-door"
marketing of products to ultimate consumers through face-to-face sales presentations
franchising
right to sell products for $
advantages:
1) more successful than independent outlets
2) start a business w/ limited capital, and benefit from others' business experience
disadvantages:
1) franchiser can dictate
2) franchisee gives up some control
merchant wholesalers
(wholesale)
independent businesses, assume risks w/ ownership, buy & resell to other wholesalers
general-merchandise wholesaler
(wholesale)
carry wide product mix but limited depth w/in product lines
general-line wholesalers
(wholesale)
carry few products but extensive assortment of products
specialty-line wholesalers
(wholesale)
narrowest range of products, usually single product line
rack jobbers
(wholesale)
full-service, specialty-line wholesalers that own and maintain display racks in supermarkets, etc.
limited-service wholesaler
(wholesale)
provide few services, take title to merchandise but don't deliver, grant credit, etc.
cash-and-carry wholesaler
(limited-service wholesaler)
intermediaries pay cash and do their own transportation
truck wholesalers
(limited-service wholesaler)
"truck-jobbers"
transport limited line of products directly to costumer
drop shippers
(limited-service wholesaler)
"desk-jobbers"
take title to goods but NEVER actually take possession of products
mail-order wholesalers
(limited-service wholesaler)
use catalogs instead of salesforce
agents
represent either buyers/sellers on a permanent basis
brokers
intermediaries temporarily employed by buyers or sellers
manufacturer's agents
independent intermediaries who rep 2+ sellers
sales branches
mfr-owned intermediaries that sell products & provides support to mfr's salesforce