Flashcards in Marketing Ch.16 Deck (33)
Form of Ownership
distinguishes outlets based on independent/corporate or contractual
level of service
describes the degree of service provided to customer
how many diff tpyes of products a store carries and in what assortment
owned just by an individual
multiple outlets under common ownership.
involve independently owned stores banded together to act like a chain
business format franchises
ex. mcdonalds, subway. Franchisor gives the whole layout. step by step prcoedures
product distribution franchises
ford dealerships, coca cola distributors. Franchisor, gives a few general guidelines. more independent
customers preform many functions durring the purchase process
provide some services like credit/merchandise return. ex. Walmart/Kmart/Target
specialy stores and department stores provide many services
depth of product line
stores carry large assortments of each item such as a shoe store offering running shoes, dress shoes and childrens shoes
specialty discount outlets
focus on one type of product ex. barnes and noble, best buy
breadth of product line
variety of different items a store carries ex. Appliances and books
General Merchandise Stores
broad product line limited depth
offering several unrelated product lines in a single store
large stores that carry everything under one roof
competition between dissimilar types of retail outlets
retail positioning matrix
positions retail outlets based on breadth of product line vs value added
retail pricing, store location, retail communication, merchandise
off price retailing
selling brand name merchandise at lower than regular prices
the use of displays, coupons , product samples and other brand communications to influence shopping enviroment
assigns a manager the responsibility for selecting all product that consumers in a segment might view substitues for each other with the objective of maximizing sales and profit in a category.
Wheel of retailing
describes how new forms of retail outlets enter the market
1. Enter as low status, low margin stores
2.Gradually add fixtures and more embellishments, price and status rise.
3.Add more services and prices and status increase further.
4. Outlet adds more services and creates new form
integrate a combination of traditional store formats and nonstore formats.
independently owned firms that take title to the merchandise they handle. Divided into full-service or limited service wholesalers
General Merchandist Wholesalers
carry a broad assortment. Preform all channel functions
Specialty Merchandise Wholesalers
narrow range of products, extensive assortment within
furnish the racks or shelves that display merchandise in retail stores, od the channel functions and sell on consignment to retailers.