Marketing DSM Chapter 12

network marketing
a system in which a master distributor recruits other people to become distributors, sells the company’s product to the recruits, and receives a commission on all the merchandise sold by the people recruited
characteristic of perishability
adjusting pricing to influence demand
merchandise mix
total set of all products offered for sale by a retailer
general merchandise discount store
retailer that offers a broad assortment of items at low prices with minimal service
hypermarkets
retailers that are several times larger than other stores and offer virtually everything from grocery items to electronics
factory outlet stores
carry a limited selection from a single manufacturer. Examples include Gap Outlet and Coach Outlet
supermarkets
carry a large selection of food items and a limited selection of general merchandises
box stores
carry a limited selection of food items, many of which are store brands
department stores
carry a large selection of many product lines
retailing
final stop on the distribution path, in which organizations sell goods and services to consumers for their personal use
direct selling
an interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise
B2C e-commerce
an online exchange between companies and individual customers
retailtainment
the use of retail strategies that enhance the shopping experience and create excitement, impulse purchases, and an emotional connection with the brand
idea marketing
a strategy that seeks to gain market share for a concept, philosophy, belief, or issue
place marketing
any activity that seeks to attract new businesses, residents, or visitors to a town, state, country, or some other site
party-plan system
sales technique that relies heavily on people getting caught up in the “group spirit,” buying things they would not normally buy if they were alone
service or act
performance exchanged from producer to user without ownership rights
reliabilty
the ability to provide what was promised dependably and accurately
retail borrowing
the consumer practice of purchasing a product with the intent to return the nondefective merchandise for a refund after it has fulfilled the purpose for which it was purchases
perishability
makes it impossible to store for later sale or consumption
servicescape
the environment in which a service is delivered and where the firm and the customer interact
shrinkage (mentioned in ch 1)
loss experienced by a retailer due to shoplifting, employee theft, and damage to merchandise
merchandise breadth
# of different product lines available
merchandise assorment
the range of products a store sells
merchandise depth
the variety of choices available for each specific product line
-Toys “R” Us
-Best Buy
example of a category killer
-carries a large selection of items in one or a few product lines
7-eleven
example of convenience store
-Costco
-BJ’s
example of warehouse store
-Walmart
-Kmart
example of a general merchandise discount store
point of sale (POS) systems
collect sales data and connect directly into the store’s inventory-control system
nonstore retailing
any method used to complete an exchange with a product end user that does not require a customer visit to a store
leased department
a department within a larger retail store that an outside firm rents
customer profiling
the act of tailoring the level of customer service based on a customer’s perceives ability to pay
wheel-of-retailing hypothesis
a theory that explains how retail firms change, becoming more upscale as they go through their life cycle