Marketing Chapter 13 Flashcards Preview

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Flashcards in Marketing Chapter 13 Deck (50):
1

Retailing

includes all the activities in selling products or services directly to final consumers for their personal, non business use

2

Retailers

are businesses whose sales come primarily from retailing

3

Self-service retailers

serve customers who are willing to perform their own locate-compare-select process to save money. They include: walmart and supermarkets

4

Limited service retailers

provide more sales assistance b/c they carry more shopping goods about which customers need more information. Ex. Sears and JC Penny

5

Full service retailers

assist customers in every phase of the shopping process, resulting in higer costs that are passed on to the customer as higher prices. Includes department stores and speciality stores

6

Specialty stores

narrow product lines with deep assortment

7

Department stores

wide variety of product lines

8

convenience stores

limited line of higher-turnover goods

9

superstore

Non- Food goods

10

Discount stores

sell standard merchandise at lower prices by accepting lower margins and selling higher volume

11

Independent off-price retailers

either are owned and run by entrepreneurs or are division of larger retail corporations

12

Off Price retailers

by at less than regular wholesale prices and charge customers less than retail

13

Factory Outlets

are producer-operated stores. The link on this slide is to a premium factory outlet mall.

14

Warehouse clubs

large warehouse-like facilities with few frills and offer ultra low prices

15

Corporate Chains

are two or more outlets that are commonly owned and controlled
-size allows them to buy in large quantities at lower prices and gain promotional economies
-Sears
-CVS

16

Voluntary Chains

wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising
-IGA
-Western Auto

17

Retailer Cooperatives

is a group of independent retailers that band together to set up a joint-owned, central wholesale operation and conduct joint merchandising and promotion effort
-Ace Hardware
-Associated Grocers

18

Franchise Organizations

are based on some unique product or service;on a method of doing business; or on the trade name, good will, or patent that the franchiser has developed
ex. mcdonalds

19

Retailer Marketing Decision
Retail Strategy

Segmentation targeting, differentiaition, and positioning
involves the definition and profile of the marekt so the other retail marketing decision can be made

20

Retailer Marketing Decision
Product assortment and service

include:product assortment
services mix
store atmosphere

21

Product assortment

should differentiate the retailer while matching target shoppers' expectations
-private or national brands
-merchandising events
-highly targeted product assortment

22

Service Mix

should serve to differentiate the retailers from the competition with customers support

23

Store Atmosphere

is the physical layout that makes moving around the store hard or easy

24

Price Policy

must fit the target market and positioning, product and service assortment and competition
-high markup on lower volume
-low markup on higher volume

25

high-low pricing

involves charging higher prices on everyday basis, coupled with frequent sales and other prices promotions

26

Everyday Low Prices

involves charging constant, everyday low prices with few sales and discounts

27

why would a retailer engage in high-low pricing

in most cases it is to increase store traffic, clear out unsold merchandise, creat a low price image, or attract customers who will buy other goods a full price

28

Central business districts

are located in cities and include department and specialty store, banks, and movie theaters

29

Shopping Center

a group of retailed businesses planned developed, owned, and managed as a unit

30

Wheel-of-retailing concept

states that many new types of retailing forms begin as low margin, low price, low status operations, and challenge established retailers, As they succeed they upgrade their facilities and offer more services, increasing their cost and forcing them to increase prices, eventually become the retailers they replaced

31

Growth of non retailing includes

mail order, television, phone or online

32

Retail convergence

involves the merging of consumers, producers, prices, and retailers, creating greater competition for retailers and greater difficulty differentiating offerings

33

The rise of mega retailers involves

the rise of merchandisers and specialty superstores, the formation of vertical mrketing systems and a rash of retail mergers and acquisitions
-superior info systems
-buying power
-large selection

34

growing importance of retail technology

provides better forecasts, inventory control, electronic ordering, transfer of information, scanning, online transaction processing, improved merchandise handling system, and the ability to connect with customers

35

Wholesaling

includes all activites involved in selling goods and services to those buying for resale or business use

36

Selling and Promoting

involves the wholesaler's sale force helping the manufacturer reach many smaller customers at a lower cost

37

Buying Assortment

building involves the selection of items and building of assortments needed by their customers, saving the customers work

38

Bulk Breaking

involvs the wholesaler buying in lrge quantity and breaking it into smaller lots of customers

39

Warehousing

involves the wholesaler holding inventory, reducing its customers' inventory cost and risk

40

Transportation

involvrs the wholesaler providing quick delivery due to its proximity to the buyer

41

Financing

involves the wholesaler providing credit and financing suppliers by ordering earlier and paying on time

42

Risk Bearing

involes the wholesaler absorbing risk by taking title an bearing the cost of theft, damage, spoilage, and obsolescence

43

Market information

involves the wholesaler providing information to suppliers and customers about competitors, new products, and price developments

44

Management Services and Advice

involves the wholesalers helping retailers train their sales clerk, improve store layouts and set up accounting and inventory control systems

45

Merchant Wholesalers

the largets group of wholesalers include:
-Full Service wholesalers who provide a full set of services
-limited service wholesalers who provide few services and specialized functions

46

Brokers and Agents

do not take title, perform a few functions and specialize by product line and customer type
-Brokers bring buyers and sellers together and assists in negotiations
-agents represent buyers or sellers

47

Manufacturer's sales branches and office

is a form of wholesaling by sellers or buyers themselves rather than through independent wholesalers

48

Wholesaler marketing decision

target marketing and position decisions
size of customers
type of customers
need for service

49

Marketing mix decisions

product
price
promotion
place

50

Trends in Wholesaling: Challenges

Resistance to prices increases
fewer suppliers
changing customers needs
adding value by increasing efficiency and effectiveness