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40 terms

Marketing 650 (CH.16)

STUDY
PLAY
retailing
the set of business activities that add value to products and services sold to consumers for their personal or family use
choosing, identifying, facilitating, managing
four factors for establishing a relationship with retailers
multichannel strategy
where retailers sell in more than one channel
vertically integrated, brand strength, relative power
level of difficulty a manufacturer has in getting retailers to purchase its products is determined by the degree to which the channel is_______(3 things)______________
distribution intensity
number of channel members to use at each level of marketing channel,
intensive, exclusive, selective
three levels of distribution intensity
intensive distribution
designed to get products into as many as possible, most consumer packaged goods companies use this (pepsi, P&G, kraft)
exclusive distribution
granting exclusive geographic territories to one or very few retail customers so no other customers in the territory can sell a particular brand, assures that most appropriate retailers represent their products
selective distribution
uses a few selected customers in a territory, helps a seller maintain an image and control flow of merchandise into an area
56
conventional supermarkets now only account for __ percent of food sales
conventional supermarket
self service food store offering groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise, perishables account for 50 percent of sales, 30,000skus
limited assortment supermarkets (extreme value food retailers)
only have 2,000SKUS, aldi and save a lot, offer only one to two brands andsizes, designed to maximize efficiency and reduce costs, offer merchandise at 40-60% less price
supercenters
fastest growing retail category, large stores that combine a supermarket with a full line discount store
warehouse clubs
large retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses
convenvience stores
provide a limited variety and ssortment of merchandise at a convenient location in 2-3000 square foot stores with speedy checkout, modern version of neighborhood momandpop grocery/general store
department stores
retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise (nordstrom, macys)
upsscale high fashion chains, modestly priced with less service, price conscious customers
three tiers of department store
full line discount stores
retailers that offer a broad variety of merchandise, limited service and low prices, offer private label and manufacturer brands, typically less fashion oriented than brands in dept. and specialty stores (walmart, target)
specialty stores
concentrate on a limited number of complementary merchandise categories and prove high level of service in relatively small stores, very specific market segments with narrow assortments and sales experts
drugstores
specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise (walgreens, cvs, rite aid)
category specialists (big box retailers)
discount stores that offer a narrow but deep assortment of merchandise, often use self service approach,
home improvement center
largest category killer, is a category specialist offering equipment and material used by do it yourselfers and contractors to make home improvements
extreme value retailers
small, full line discount stores that offer a limited merchandise assortment at very low prices (family dollar and dollar general), maintain low costs by buying from manufacturers who have excess merchandise
off price retailers (close out)
offer an inconstistent assortment of brand name merchandise at low prices (marshalls, tjmaxx), sell brand name and designer label merchandise at 20-60% less than dept store prices through their unique buying and merchandising practices
irregulars
merchandise that has minior mistakes in construction
outlet stores
off price retailers owned by manufacturers or specialty stores or department store chains
factory outlets
owned by manufacturers
storage
retailers provide this function to help between customers and manufacturers
cooperative advertising
defray the costs of advertising by paying all or a portion of the advertsiing production and media costs
share of wallet
the percentage of the customers pruchases made from that particular retailer
ability to use 5 senses
greatest benefit given by stores
virtual communities
networks of people who seek info, products, and services and communicate with one another about specific issues
social shoppers
seek not just info for future use but also an enhanced emotional connection with other participants during the shopping experience
personalization
most signifiant potential benefit of the internet channel
online chat
provides customers with the opportunity to click a button at any time and have an instant messaging email or voice conversation with a customer service rep
cookie
small computer program that provides identifying info installed on your hard drive
conversion rates
percentage of consumers who buy the product after viewing it, increasd by image enhancing technologies
security of credit, privacy violations
risks in electronic shopping
multichannel retailers
retailers that use some combo of stores, catalogs, and the internet
disintermediation
occurs when a manufacturer sells directly to consumers, bypassing retailers