MKTG 308 - Chapter 13
Terms
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- Factors involved in Choosing a community for a retail site location
- Economic Growth, Potential, Competition and Geography
- Suggestion Selling
- A common practice among most retailers, seeks to broaden customers' original purchases with related items.
- Automatic Vending
- The use of machines to offer goods for sale e.g. soft drink, candy or snack vending machine
- Direct Response Marketing
- Another term for Direct Marketing
- Buyer
- A department head who not only selects the merchandise for his or her department but may also be responsible for promotion and personnel
- Off-Price Retailer
- Sells at prices 25% or more below traditional department store prices because it pays cash or its stock and usually does not ask for return privileges. Purchases manufacturer's overruns at cost or even less e.g Big Lots, TJ Maxx, Marshalls
- New Developments in Retailing
- Interactivity and M-Commerce
- Telemarketing
- The use of the telephone to sell directly to consumers
- Depth
- The number of different brands offered within each assortment.
- Specialty Stores
- Have the most concentrated product assortments, usually carrying single or narrow product lines but in considerable depth e.g. Hallmark card stores
- Franchisee
- Party that pays the franchisor for the right to use its name, product or business methods.
- Franchise
- A continuing relationship in which a franchiser grant to a franchisee the business rights to operate or to sell a product
- Retailing Mix
- A combination of the six Ps: product, place, price, promotion, presentation and personnel to sell goods and services to the ultimate consumer
- Supermarket
- A large departmentalized, self service retailer that specializes in food and some non-food items
- Categories of Non-Store Retailing
- Automatic Vending; Direct Retailing; Direct Marketing; Electronic Retailing
- Classification of Retail Ownership
- Independent, Part of Chain or Franchise outlet.
- Warehouse Membership Clubs
- Establishment that sell a limited selection of brand name appliances, household items and groceries; usually in bulk from warehouse outlets on a cash and carry basis to members only e.g. Sam's Club, BJs and Costco
- Exclusive Clothing Stores
- Retailers that offers high levels of service providing alterations, credit, delivery, consulting, liberal return policies, layaway, gift wrapping and personal shopping.
- Determining the Target Market
- Prerequisite to creating the retailing mix
- Categories of Discount Stores
- Full-Line Discount Stores; Specialty Discount Stores; Warehouse Clubs; Off-Price Discount Retailers
- Vending
- Most pervasive retail business in the United States
- Franchisor
- Party that originates the trade name, product, methods of operation etc.
- Direct Mail
- The most efficient or the least efficient retailing method, depending on the quality and effectiveness of the mailing list.
- M-Commerce (Mobile E-Commerce)
- Enables consumers using wireless mobile devices to connect to the internet and shop
- Restaurant
- Establishment that straddles the line between retailing and service establishments
- Category Killers
- Specialty discount stores that heavily dominate their narrow merchandise segment.
- Direct Marketing
- The techniques used to get consumers to make a purchase from their home, office or other non-retail setting including direct mail, catalogs and mail order, telemarketing and electronic retailing.
- Full Line Discount Store
- Establishment that offers consumers very limited service and carry much broader assortment of well known, nationally branded "hard goods," Including housewares, toys, automotive parts, hardware, sporting goods, and garden items as well as clothing, bedding and linens e.g Wal-Mart.
- Trading Up and Suggestion Selling
- Two common selling techniques used for training sales people
- Options in choosing a site
- Freestanding store; Shopping Center or Mall
- Positioning
- The strategy used to influence how consumers perceive one product in relation to all competing products
- Variables retailers use in the competitive market place
- Level of service, product assortment and price
- Level of Services
- Can be classified on a continuum from full service to self serve.
- E-tailing
- Another term for online retailing
- Franchises
- Owned and operated by individuals but are licensed by a larger supporting organization, such as Subway and Quiznos.
- Mass Merchandising
- Retailing strategy whereby retailers use moderate to low prices on large quantities of merchandise and lower levels of service to stimulate high turnover of products.
- Atmosphere
- The overall impression conveyed by a store's physical layout, décor and surroundings. The main element of a store's presentation.
- Data Mining
- A complex mathematical model to help retailers make better product mix decisions
- Category Killers
- Term for Specialty Discount Stores
- Electronic Retailing
- Includes the 24hr, shop at home television networks and online retailing
- Product and Trade Name Franchising
- Type of franchising where a dealer agrees to sell certain products provided by a manufacturer or a wholesaler. This approach has been used most widely in the auto and truck, soft drink bottling, tire and gasoline service industries e.g. a local tire retailer may hold a franchise to sell Michelin tires
- Specialty Discount Store
- Store that offers a nearly complete selection of single line merchandise and use self service, discount prices, high volume and high turnover to their advantage e.g. Circuit City
- Gross Margin
- What the retailer makes as a percentage of a sales after the cost of goods sold is subtracted.
- Online Retailing or E-tailing
- Type of shopping available to consumers with personal computers and access to the Internet.
- Independent Retailers
- Retailers owned by a single person or partnership and not operated as part of a larger retail institution. Local florists and ethnic food markets typically fit this classification
- Non-store Retailing
- Shopping without visiting a store
- Freestanding Stores
- Also called Destination Stores which are stores that consumers purposely plan to visit
- Department Store
- Establishment that carries a wide variety of shopping and specialty goods, including apparel, cosmetics, house-wares, electronics, and sometimes furniture
- Retailing
- All the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use.
- Specialty Store
- Not only a type of store but a method of retail operations, namely specializing in a given type of merchandise. Typically carries a deeper but narrower assortment of specialty merchandise than a department store. Examples are William Sonoma, Foot Locker, and the Children's Place.
- Direct Retailing
- The selling of products by representatives, who work door to door, office to office or at home parties e.g. Avon and Pampered Chef
- Means by which Target Markets in Retailing is Defined
- Demographics, Geographics, Psychographics
- Mass Merchandisers
- Another term for full line discounters
- Product Assortment/ Merchandise Mix
- Another term for Product Offering
- Business Format Franchising
- Ongoing business relationship between a franchisor and a franchise.
- Most Influential Factors in Creating a Store's Atmosphere
- Employee type and density; Merchandise type and density; Fixture type and density; Sound; Odors; Visual Factors
- Discount Store
- Retailer that competes on the basis of low prices, high turnover and high volume.
- Component of the Retail Promotion Strategy
- Advertising; Public Relations and Publicity and Sales Promotion. The goal is to help position the store in consumers' minds.
- Width
- The assortment of products offered
- Factory Outlets and Warehouse Club
- Retailers that offer virtually no service.
- Factory Outlet
- Off price retailer that is owned and operated by a manufacturer. It carries only one line of merchandise - its own.
- Chain Stores
- Owned and operated as a group by a single organization. Under this form of ownership, many administrative tasks are handled by the home office for the entire organization. Gap and Starbucks are examples of this.
- Classification of Retail Operations
- Can be classified to its ownership, level of service, product assortment and price
- Forms of Franchises
- Product and trade name franchising and Business format franchising
- Supercenter
- Establishment that combines a full line of groceries and general merchandise with a wide range of services, including pharmacy, dry cleaning, portrait studios, photofinishing hair salons, optical shops, and restaurants - all in one location e.g. Target.