LESSON 1 Flashcards
is a business that sells products and/or services to consumers for personal or family use.
Retailing
is the path used to get a product from the manufacturer or creator to the end user. It is how the customer gets their product after purchase, which often includes intermediaries..
Distribution channel
buys products with the objective of selling them later at a high price.
Reseller
a person or organization that buys goods or services from a store or business.
Customer
Four distribution channel
Manufacturing
Wholesaler
Retailer
Customer
is the creation or production of goods with the help of equipment, labor, machines,tools, and chemical or biological processing or formulation.
Manufacturing
is a person or company that sells large quantities of goods, often at low prices, to retailers.
Wholesaler
is a person or business that sells goods to the public in small quantities for immediate use or consumption.
Reseller
person who buys a product or service for personal or family use.
Customer
Types of distribution channel
Direct
Indirect
Hybrid
channel allows the consumer to make purchases from the manufacturer. This ______, or short channel, may mean lower costs for consumers because they are buying directly from the manufacturer.
Direct
channel allows the consumer to buy the goods from a wholesaler or retailer. ___ channels are typical for goods that are sold in traditional brick-and-mortar stores.
Indirect
distribution channels use both direct channels and indirect channels. A product or service manufacturer may use both a retailer to distribute a product or service and may also make sales directly with the consumer. A manufacturer might sell an item on its e-commerce website, but then an intermediary delivers the physical product to the customer.
Hybrid
How retailers add value
Breaking in Bulk
Holding inventory
Providing assortment
Offering services
Keep inventory so that products will be available when consumers want them.
Keeping inventories
Buy in large quantities then offer to consumer in smaller quantities
Breaking bulk
Enables customer to choose from a wide selection of brands, designs, sizes, colors and prices in one location.
Providing assortment
Provide services that make it easier to buy and use products.
Offering services
is the different types of product lines and products that the retailer offers for sale. Decisions regarding the assortment of products include its width and depth.
Merchandise assortment
is another important consideration for a retailer. The store’s physical layout and atmosphere should be properly planned to suit the target market and induce customers to buy.
Store design and display
A retailer’s price policy plays an important role in positioning. In formulating price policies, retailers must consider their target market, product, service assortment, and competition. Although all retailers would like to charge high markups and achieve high volume, they are rarely achievable simultaneously.
Pricing
Besides typical customer services, modern retailers may offer such services as home delivery, credit, and conversation. A retailer can use service mix as a key tool of non-price competition for differentiating him from others.
Customer service
all the tools you use to communicate with your customers or potential customers. This could be through advertising, social media, product packaging, direct marketing, websites, events, exhibitions
Communication mix
A retailer’s ____ is the keep to its ability to attract customers and succeed in business. The costs of building or leasing store premises have a significant bearing on the retailer’s profits
Location
