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, low-cost 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  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 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-toface 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 WHOLESALING 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 sell 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 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, 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, central markets Brokers – intermediaries that bring buyers and sellers together temporarily

MANUFACTURERS’ SALES BRANCHES AND OFFICES DIRECT MARKETING AND DIRECT SELLING Sales branch – manufacturer-owned intermediaries that sell products and Direct marketing – the use of the telephone, Internet, and nonpersonal media provide support services to the manufacturer’s sales force to introduce products to consumers, who then can purchase them via mail, Sales offices – manufacturer-owned operations that provide services normally telephone or the Internet associated with agents Nonstore retailing – the selling of products outside the confines of a retail facility Source: Marketing, 2013 ed. (Ferrell, Hult, & Pride) v3.0 Prepared by: Acidera, Jaypaul O.

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