Chapter 14: Wholesaling, Retailing, and Physical Distribution Flashcards
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catalog marketing
a type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or internet
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neighborhood shopping center
a planned shopping center consisting of several small convenience and specialty stores
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agent
a middleman that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis
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vertical marketing system (VMS)
a centrally managed distribution channel resulting from vertical channel integration
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administered VMS
type of VMS where one of the channel members dominates the other members; channel members collaborate of production and distribution; control rests with individual channel members
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corporate VMS
type of VMS where production and distribution are joined by actual ownership
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carrier
a firm that offers transportation services
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limited-line wholesaler
a middleman that stocks only a few product lines but carries numerous product items within each line
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department store
a retail store that 1) employs 25 or more persons and 2) sells at least home furnishings, appliances, family apparel, and household linens and dry goods, each in a different part of the store
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full-service wholesaler
a middleman that performs the entire range of wholesaler functions
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traditional specialty store
a store that carries a narrow product mix with deep product lines
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functional middleman
a middleman that helps in the transfer of ownership of products but does not take title to the products
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direct channel
channel of distribution without marketing intermediaries
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warehousing
the set of activities involved in receiving and storing goods and preparing them for reshipment
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direct-response marketing
a type of marketing in which a seller advertises a product and makes it available, usually for a short time period, through mail, telephone, or online orders
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commission merchant
a middleman that carries merchandise and negotiates sales or manufacturers
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warehouse club
a large-scale members-only establishment that combines features of cash-and-carry wholesaling with discount retailing
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manufacturer’s sales branch
essentially a merchant wholesaler that is owned by a manufacturer
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order processing
activities involved in receiving and filling customers’ purchase orders
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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
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transportation
the shipment of products to customers
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Category management
A phenomenon that is becoming common for mass merchandisers, supermarkets, and convenience stores where the retailer ask a supplier how to stock the shelves; retailers and suppliers claim this process delivers maximum efficiency
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exclusive distribution
the use of only a single retail outlet for a product in a large geographic area
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materials handling
the actual physical handling of goods, in warehouses as well as during transportation
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chain retailer
a company that operates more than one retail outlet
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regional shopping center
a planned shopping center containing large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes even hotels
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manufacturer’s sales office
essentially a sales agent owned by a manufacturer
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supply-chain management
long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers
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warehouse showroom
a retail facility in a large, low-cost building with a large on-premises inventory and minimal service
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broker
a middleman that specializes in a particular commodity, represents either a buyer or a seller, and is likely to be hired on a temporary basis
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discount store
a self-service general-merchandise outlet that sells products at lower-than-usual prices
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traditional channel
channel where products go from the producer to wholesaler to retailer to consumer
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retailer
a middleman that buys from producers or other middlemen and sells to consumers
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inventory management
the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs
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selective distribution
the use of only a portion of the available outlets for a product in each geographic area
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community shopping center
a planned shopping center that includes one or two department stores and some specialty stores, along with convenience stores
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convenience store
a large self-service store that sells primarily food and household products
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automatic vending
the use of machines to dispense products
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specialty-line wholesaler
a middleman that carries a select group of products within a single line
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lifestyle shopping center
an open-air-environment shopping center with upscale chain specialty stores
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direct selling
the marketing of products to customers through face-to-face sales presentations at home or in the workplace
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superstore
a large retail store that carries not only food and nonfood products ordinarily found in supermarkets but also additional product lines
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intensive distribution
the use of all available outlets for products
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off-price retailer
a store that buys manufacturers’ seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts
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nonstore retailing
a type of retailing whereby consumers purchase products without visiting a store
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contractual VMS
type of VMS where contracts or other legal measures define cooperative arrangements and the rights and obligations of channel members
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independent retailer
a firm that operates only one retail outlet
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catalog showroom
a retail outlet that displays well-known brands and sells them at discount prices through catalogs within the store
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telemarketing
the performance of marketing-related activities by telephone
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physical distribution
all the activities concerned with the efficient movement of products from the producer to the ultimate user
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online retailing
retailing that makes products available to buyers through computer connections
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direct marketing
the use the telephone, internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or internet
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vertical channel integration
the combining of two or more stages of a distribution channel under a single firm’s management
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category killer
a very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability
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wholesaler
a middleman that sells products to other firms
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merchant middleman
a middleman that actually takes title to products by buying them
