Chapter 14 Marketing Foundations

retailing
all transactions in which the buyer intends to consume the product through personal, family, or household use
retailer
an organization that purchases products for the purpose of reselling them to ultimate consumers
general-merchandise retailer
a retail establishment that offers a variety of product lines that are stocked in considerable depth
department stores
large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management
discount stores
self-service, general-merchandise stores that offer brand-name and private-brand products, usually convenience items
supermarkets
large, self-service stores that carry a complete line of food products, along with some nonfood products
superstores
giant retail outlets that carry food and nonfood products found in supermarkets, as well as most routinely purchased consumer products
hypermarkets
stores that combine supermarket and discount store shopping in one location
warehouse clubs
large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount
warehouse showrooms
retail facilities in large, low-cost buildings with large, on-premises inventories and minimal services
traditional specialty retailers
stores that carry a narrow product mix with deep product lines
category killer
a very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability
off-price retailers
stores that buy manufacturers’ seconds, overruns, returns, and offseason merchandise for resale to consumers at deep discounts
neighborhood shopping centers
a type of shopping center usually consisting of several small convenience and specialty stores
community shopping centers
a type of shopping center with one or two department stores, some specialty stores, and convenience stores
regional shopping centers
a type of shopping center with the largest department stores, widest product mixes, and deepest product lines of all shopping centers
superregional shopping centers
a type of shopping center with the widest and deepest product mixes that attracts customers from many miles away
lifestyle shopping center
a type of shopping center that is typically open air and features upscale specialty, dining, and entertainment stores
power shopping center
a type of shopping center that combines off-price stores with category killers
retail positioning
identifying an unserved market segment and serving it through a strategy that distinguished the retailer from others in the minds of consumers in that segment
atmospherics
the physical elements in a store’s design that appeal to customers’ emotions and encourage buying
category management
a retail strategy of managing groups of similar, often substitutable products produced by different manufacturers
direct marketing
the use of the telephone, Internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or the Internet
nonstore retailing
the selling of products outside the confines of a retail facility
catalog marketing
a type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or the Internet
direct-response marketing
a type of marketing in which a retailer advertises a product and makes it available through mail or telephone orders
telemarketing
the performance of marketing-related activities by telephone
television home shopping
a form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card
online retailing
retailing that makes products available to buyers through computer connections
direct selling
marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace
automatic vending
the use of machine to dispense products
franchising
an arrangement in which a supplier (franchiser) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration
wholesaling
transactions in which products are bought for resale, for making other products, or for general business operations
wholesaler
an individual or organization that sells products that are bought for resale, for making other products, or for general business operations
merchant wholesalers
independently owned businesses that take title to goods, assume ownership risks, and buy and resell products to other wholesalers, business customers, or retailers
full-service wholesalers
merchant wholesalers that perform the widest range of wholesaling functions
general-merchandise wholesalers
full-service wholesalers with a wide product mix but limited depth within product lines
limited-line wholesalers
full-service wholesalers that carry only a few product lines buy many products within those lines
specialty-line wholesalers
full-service wholesalers that carry only a single product line or a few items within a product line
rack jobbers
full-service, specialty-line wholesalers that own and maintain display racks in stores
limited-service wholesalers
merchant wholesales that provide some services and specialize in a few functions
cash-and-carry wholesalers
limited-service wholesalers whose customers pay cash and furnish transportation
truck wholesalers
limited-service wholesalers that transport products directly to customer for inspection and selection
drop shippers
limited-service wholesalers that take title to goods and negotiated sales but never actually take possession of products
mail-order wholesalers
limited-service wholesalers that sell products through catalogs
agents
intermediaries that represent either buyers or sellers on a permanent basis
brokers
intermediaries that bring buyers and sellers together temporarily
manufacturers’ agents
independently intermediaries that represent two or more sellers and usually offer customers complete product lines
selling agents
intermediates that market a whole product line or a manufacturer’s entire output
commission merchants
agents that receive goods on consignment from local sellers and negotiate sales in large, central markets
sales branches
manufacturer-owned intermediaries that sell products and provide support services to the manufacture’s sales force
sales offices
manufacturer-owned operations that provide services normal associated with agents