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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


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


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


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


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


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


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


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


occurs when a manufacturer sells directly to consumers, bypassing retailers

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