MARK 3321 – Chapter 14 – Marketing Channels and Retailing

Retailer
A channel intermediary that sells mainly to consumers
Factory outlet
An off-price retailer that is owned and operated by a manufacturer
Chain store
A store that is part of a group of the same stores owned and operated by a single organization
Automatic vending
The use of machines to offer goods for sale
Cooperative relationships
A relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals
Destination store
A store that consumers purposely plan to visit
Franchisee
an individual or business that is granted the right to sell another party’s product
Retailing mix
A combination of the six Ps – product, place, promotion, price, presentation, and personnel – to sell goods and services to the ultimate consumer
Data mining
The process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior
Integrated relationships
A relationship between companies that is tightly connected, with linked processes across and between firm boundaries and high levels of trust and inter-firm commitment
Strategic alliance channels
A cooperative agreement between business firms to use the other’s already established distribution channel
Channel Power
The capacity of a particular marketing channel member to control or influence the behavior of other channel members
Franchisor
The originator of a trade name, product, methods of operations, and the like that grants operating rights to another party to sell its product
Dual/multiple Distribution
The use of two or more channels to distribute the same product to target markets
Agents and brokers
Wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
Atmosphere
The overall impression conveyed by a store’s physical layout, decor, and surroundings
Channel partnering
The joint effort of all channel members to create a channel that serves customers and creates a competitive advantage
Intensive distribution
A form of distribution aimed at having a product available in every outlet where target customers might want to buy it
Channel conflict
A clash of goals and methods between distribution channel members
Direct marketing (direct response marketing)
Techniques used to get consumers to make a purchase from their home, office, or other non-retail setting.
Online retailing or e-tailing
A type of shopping available to consumers with personal computers and access to the Internet
Merchant wholesalers
An institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them.
Vertical conflict
A channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer
Retailing
All the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use.
Channel members
All parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
Time utility
The increase in customer satisfaction gained by making a good or service available at the appropriate time
Layout
The internal design and configuration of a store’s fixtures and products
Nonstore retailing
shopping without visiting a store
Scrambled merchandising
The tendency to offer a wide variety of nontraditional goods and services under one roof
Selective distribution
A form of distribution achieved by screening dealers to eliminate all but a few in any single area
Marketing channel (channel of distribution)
A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
Exchange utility
The increased value of a product that is created as its ownership is transferred
Place utility
The usefulness of a good or service as a function of the location at which it is made available
Direct retailing
The selling of products by representatives who work door-to-door, office-to-office, or at home sales parties
Arm’s-length relationships
A relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service
Telemarketing
The use of the telephone to sell directly to consumers
Horizontal conflict
A channel conflict that occurs among channel members on the same level
Independent retailer
A retailer owned by a single person or partnership and not operated as part of a larger retail institution
Shop-at-home tv network
A specialized form of direct-response marketing where shows display merchandise for purchase over the phone with a credit card.
Form utility
the elements of the composition and appearance of a product that make it desirable
Exclusive distribution
A form of distribution that establishes one or a few dealers within a given area
Channel captain
A member of a marketing channel that exercises authority and power over the activities of other channel members
Direct channel
A distribution channel in which producers sell directly to consumers
Gross margin
The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted
Franchise
A relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee
Non-traditional channels
Non-physical (often electronic) channels that facilitate the unique market access of products and services
M-commerce
The ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services
Channel control
A situation that occurs when one marketing channel member intentionally affects another member’s behavior
The ________ is the pipeline through which products, their ownership, communication, financing and payment, and risk flow to the consumer.
a. marketing channel (this one)
b. value chain
c. market force
d. innovation pipeline
The intermediaries that operate between manufacturers and retailers are known as
a. resellers.
b. agents and brokers.
c. consumers.
d. merchant wholesalers. (this one)
Firms that sell primarily to consumers are known as:
a. merchants.
b. retailers. (this one)
c. distributors.
d. wholesalers.
________ functions include transportation, storage, accumulation and allocation of assets.
a. Distribution
b. Transactional
c. Logistics (this one)
d. Facilitating
Dell computers are available directly from the producer, or from retail outlets such as Best Buy. This is an example of:
a. strategic channel alliance.
b. dual distribution. (this one)
c. industrial distribution.
d. wholesaler channel.
The loosest form of relationship among channel members is:
a. integrated relationship.
b. cooperative relationship.
c. exclusive relationship.
d. arm’s-length relationship (this one)
Vertical conflict within a marketing channel occurs primarily between:
a. agents and brokers.
b. consumers and employees.
c. competitors.
d. manufacturer and retailers (this one)
The Starbucks Coffee Company owns and operates thousands of stores in the United States. These stores are:
a. independent retailers.
b. chain stores. (this one)
c. specialty stores.
d. franchises.
A store that sells only children’s books can best be described as a(n)
a. department store.
b. off-price retailer.
c. specialty store. (this one)
d. supermarket.
Stores that dominate a narrow merchandise segment, such as electronics, are known as:
a. category killers. (this one)
b. factory outlets.
c. supercenters.
d. dominant retailers
________ is the use of the telephones to sell directly to consumers
a. Telemarketing (this one)
b. Direct retailing
c. Direct mail
d. Vending
________ refers to the assortment of products that a store offers.
a. Breadth
b. Depth
c. Length
d. Width (this one)
During the holiday season, Toys ‘R’ Us opened several Holiday Express stores, small temporary locations that can best be described as:
a. store within a store.
b. regional malls.
c. pop-up shops. (this one)
d. lifestyle centers.
Elements that affect a store’s atmosphere include:
a. fixtures.
b. merchandise density.
c. sounds.
d. odors.
e. All of the above. (this one)
________ allows consumers to buy products using their PDAs or mobile phones
a. E commerce
b. M-commerce (this one)
c. Interactivity
d. Wireless Internet
_____________ are wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers or manufacturers.
Agents and brokers
TJ Maxx, HomeGoods and Tuesday Morning are examples of _________, which means they sell at prices 25% or more below traditional department store prices.
off-price retailers
_______ are all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.
Retailing
___________ alliances enable companies to use another manufacturers already established channel
Strategic channel