Exam 3 (ch. 11 & 12) Flashcards
All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use
Retailing
Business whose sales come primarily from retailing
Retailer
Retailers can be classified by what 4 things:
- amount of service
- product lines
- relative prices
- organizational approach
What are some characteristics of self-service retailers
- customers are willing to self-serve to save money
- discount stores
- digital retailers
What are some characteristics of limited-service retailers
- most department stores
- digital retailer
What are some characteristics of full-service retailers
- salesperson assist customers in every aspect of shopping experience
- high-end department stores
- specialty goods
What kind of product lines are in specialty stores
Narrow product lines with deep assortments
What kind of product lines are in department stores
Some variety of product lines ; each line is operated as a separate department
What kind of product lines are in supermarkets
Large, low-cost, low-margin, high-volume, self-service operations
What kind of product lines are in convenience stores
Limited line of high-turnover convenience products at slightly higher prices
What kind of product lines are in super stores
Wide variety and limited assortment
What kind of product lines are in category killers
Giant specialty stores
Luxury stores have…
…high margins
Discount stores have…
…low margins that are offset by high volume
Off-price retailers are…
…stores selling products at lower price than the full price stores (ex. TJ Maxx; Marshall’s
What organizational approach does corporate chain stores use
Multiple outlets that are commonly owned or controlled
What organizational approach does voluntary chains use
Wholesaler-sponsored groups of independent retailers
What organizational approach does retailer cooperatives use
Groups of independent retailers who buy in bulk
What organizational approach does franchise organizations use
A contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the franchise system
What are 5 retailing trends
- Growth nonstore retailing
- Global expansion of major retailers
- New retail formats introduced
- Growing importance of retail technology
- Green retailing
All activities involved in selling goods and services to those buying for resale or business use
Wholesaling
A firm engaged primarily in wholesaling activity. Intermediary which purchases products in large quantities and store them until they can be resold. Generally, sell the products they bought to other intermediaries
Wholesaler
What are 9 functions performed by wholesalers
- selling and promoting
- warehousing
- risk bearing
- buying and assortment building
- transportation
- market information
- bulk breaking
- financing
- management services and advice
What are three types of wholesalers
- Merchant wholesalers
- Brokers and agents
- Manufacturers and retailers branches and offices
Independently owned wholesaler business that takes title to the merchandise it handles
Merchant wholesalers
Bring buyers and sellers together and assist in negotiation, usually in exchange for commissions. Does not own a legal ownership of the products
Brokers and agents
Wholesaling by sellers or buyers themselves rather than through independent wholesalers
Manufacturers and retailers branches and offices
What are the 4 wholesaling trends
- need for greater efficiency
- demands for lower prices
- increased use of technology
- blurring distinction between large retailers and wholesalers
The blend of promotional tools a company uses to persuasively communicate customer value and build customer relationships
Promotion mix (AKA marketing communications mix)
What 5 tools are used in promotion mix (marketing communications mix)
- advertising
- sales promotion
- personal selling
- public relations
- direct marketing
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
Advertising
Short term incentives to encourage the purchase or sale of a product or service
Sales promotion
Personal presentation by the firms sales force for the purpose of making sales and building relationships
Personal selling
Building good relations with the company’s various public’s by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events
Public relations
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
Direct marketing
Why do company’s use advertising
Reaches the masses and is low cost per exposure
Why do company’s use personal selling
Involves personal interaction and is highly effective
Why do company’s use sales promotion
Short term to attract customer attention
Why do company’s use public relations
Gets through as news rather than sale growing attempt
Why do company’s use direct marketing
Less public; immediate and customized
What are the 4 methods for setting the budget
- affordable method
- percentage of sales method
- competitive parity method
- objective and task method
What budgeting method sets at the level they think a company can afford
Affordable method
What budgeting method is when promotion budget is a certain percentage of forecasted sales
Percentage of sales method
What budgeting method involves setting promotional budget to match competitors budgets
Competitive parity method
What budgeting method bases budget on what it wants to accomplish
Objective and task method
Percent of people in target market exposed
Reach
Number of times product is exposed
Frequency
Qualitative impact of message exposure
Impact
What media timing is evenly scheduled
Continuity
What media timing is unevenly scheduled
Pulsing
The net return on advertising investment divided by the costs of the advertising investment
Return on advertising investment
What are the 7 Public relations tools
- product placement
- news
- speeches
- written materials
- audiovisual materials
- corporate identity materials
- public service activities
