YPRIMAR – CHAPTER 8: RETAILING, WHOLESALING, AND DIRECT MARKETING RETAILING 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 Major types of retail stores: 1. General merchandise retailer – a retail establishment that offers a variety of product lines that are stocked in considerable depth  Department store – large retail organizations characterized by wide product mixes and organized into separate departments to facilitate marketing and internal management  Discount store – self-service, general merchandise, stores that offer brand name and private brand products at low prices  Convenience store – a small self-service store that is open long hours and carries a narrow assortment of products, usually convenience items  Supermarkets – large, self-service stores that carry a complete line of food products, along with some nonfood products  Superstore – giant retail outlets that carry food and nonfood products found in supermarkets, as well as most routinely purchased consumer products  Hypermarket – 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 retailing  Warehouse showrooms – retail facilities in large, lowcost buildings with large on-premises inventories and minimal services 2. Specialty retailers – a retail establishment that offers substantial assortments in a few product lines  Traditional specialty stores – 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 off-season merchandise for resale to consumers at deep discounts STRATEGIC ISSUES IN RETAILING A. Location of retail stores Types of planned shopping centers:  Neighborhood shopping centers – shopping centers usually consisting of several small convenience and specialty stores  Community shopping centers – shopping centers with one or two department stores, some specialty stores, and convenience stores Source: Marketing, 2013 ed. (Ferrell, Hult, & Pride) v3.0  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 center – 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 B. Retail positioning – identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment C. Store image – a functional and psychological picture in consumers’ mind  Atmospherics – the physical elements in a store’s design that appeal to consumers’ emotions and encourage buying D. Category management – a retail strategy of managing groups of similar, often substitutable products produced by different manufacturers DIRECT MARKETING AND DIRECT SELLING Direct marketing – the use of the telephone, Internet, and nonpersonal media to introduce products to consumers, who then can purchase them via mail, telephone or the Internet Nonstore retailing – the selling of products outside the confines of a retail facility Forms of direct marketing:  Catalog marketing – a type of marketing in which an organization provides a catalog from which customers make selections and place order 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 of products to ultimate consumers through face-to-face sales presentations at home or in the workplace Automatic vending – the use of machines to dispense products FRANCHISING Franchising – an arrangement in which a supplier (franchiser) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration Prepared by: Acidera, Jaypaul O.

or for general business operations Merchant wholesalers – independently owned businesses that take title to goods. & Pride) v3. specialty-line wholesalers that own and maintain display racks in stores  Limited-service wholesalers – merchant wholesalers 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 or truck jobbers – limited-service wholesalers that transport products directly to customers for inspection and selection  Drop shippers or desk jobbers – limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products  Mail-order wholesalers – limited-service wholesalers that sell products through catalogs AGENTS AND BROKERS Agents – intermediaries that represent either buyers or sellers on a permanent basis  Manufacturers’ agent – independent intermediaries that represent two or more sellers and usually offers customers complete product lines  Selling agents – intermediaries 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.0 Prepared by: Acidera. for making other products. or for general business operations Wholesaler – an individual or organization that sells products that are bought for resale. (Ferrell.WHOLESALING Wholesaling – transactions in which products are bought for resale. for making other products. 2013 ed. 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 new product lines but 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. central markets Brokers – intermediaries that bring buyers and sellers together temporarily MANUFACTURERS’ SALES BRANCHES AND OFFICES Sales branch – manufacturer-owned intermediaries that sell products and provide support services to the manufacturer’s sales force Sales offices – manufacturer-owned operations that provide services normally associated with agents Source: Marketing. Hult. assume ownership risks and buy and sell products to other wholesalers. Jaypaul O. .

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