13. Retailing and Wholesaling Flashcards
A business whose sales come primarily from retailing
Retailer
All activities involved in selling goods or services directly to final consumers for their personal, non-business use
Retailing
A retail store that carries a narrow product line with a deep assortment within that line
Speciality store
A retail organisation that carries a wide variety of product lines—each line is operated as a separate department managed by specialist buyers or merchandisers
Department store
Large, low-cost, low-margin m, high-volume, self-service store that carries a wide variety of grocery and household products
Supermarket
A small store, located near a residential area that is open long hours seven days a week and carries a limited line if high-turnover convenience goods
Convenience store
A store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, non-food items and services
Superstore
Giant speciality store that carries a very deep assortment of a particular line and is staffed by knowledgable employees
Category killer
A retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume
Discount store
Retailer that buys at less-than-regular wholesale prices and sells at less than retail
e.g. factory outlets, independents, warehouse clubs
Off-price retailer
Off-price retailer that is either owned and run by entrepreneurs or is a division if a larger retail corporation
Independent off-price retailer
Off-price retailing operation that is owned and operated by a manufacturer and that normally carries the manufacturer’s surplus, discontinued or irregular goods
Factory outlet
Off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing and a hodgepodge of other goods at deep discounts to members who pay annual membership fees
Warehouse clubs
Two or more outlets that are commonly owned and controlled
Chain store
A contractual association between a manufacturer, wholesaler or service organisation (a franchisor) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system
Franchise
What are the elements of the retailer marketing mix?
Product and service assortment
Prices
Promotion
Place (location)
A group of retail businesses planned, developed, owned and managed as a unit
Shopping centre
A concept of retailing that states that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced
Wheel-of-retailing concept
New retail forms and shortening of life cycles Growth of non-store retailing Retail convergence Rise of mega retailers Growing importance of retail technology Global expansion of major retailers Retail stores as communities or hangouts
Future of retailing
All activities involved in selling goods and services to those buying for resale or business use
Wholesaling
A form engaged primarily in wholesaling activities
There are three major groups
Wholesaler
Independently owned business that takes title to the merchandise it handles
Merchant wholesaler
A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation
Broker
A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions and does not take title to goods
Agent
Wholesaling by sellers or buyers themselves rather than through independent wholesalers
Manufacturers’ sales branches and offices
