Retailing and Wholesaling Flashcards
(Retailing)
“First moment of truth”
the critical three to seven seconds that a shopper considers a product on a store shelf.
(Types of Retailers)
Amount of Service Classifications
Self-service = serve customers who are willing to perform their own locate
-compare-select process to save money. They
include Wal-Mart and supermarkets.
Limited service = provide more sales assistance because they carry more
shopping goods about which customers need more information. For example, IKEA.
Full service = assist customers in every phase of the shopping process,
resulting in higher costs that are passed on to the
customer as higher prices. Examples include
department stores and specialty stores.
(Types of Retailers)
Relative Price Classifications
Discount stores
Off-price retailers
Factory outlets
Warehouse clubs
(Types of Retailers)
Organizational Approach- Franchises
are contractual associations between a manufacturer, wholesaler, or service organization (a franchisor) and independent business people (franchisees) who buy the right to own and operate one or more units in the franchise system.
Promotion Decision
= Advertising = Personal selling = Sales promotion = Public relations = Direct marketing
(Retailing Trends and Developments)
The growing importance of retail technology
provides better forecasts, inventory control, electronic ordering, transfer of information, scanning, online transaction processing, improved merchandise handling systems, and the ability to connect with customers.
(Retailing Trends and Developments)
Green Retailing
Environmentally sustainable practices • Store design, construction, operations • Product assortment • Recycling made easier • Package and distribution
(Wholesaling)
Management services and
advice
involves wholesalers helping retailers train their sales clerks, improve store layouts, and set up accounting and inventory control systems.
(Wholesaling)
Types of Wholesalers
Merchant wholesalers
Brokers and agents
Manufacturers’ and retailers’ branches and offices
(Wholesaling)
Merchant wholesalers
the largest group of wholesalers and include:
- Full-service wholesalers that provide a full set of services
- Limited service wholesalers that provide few services and specialized functions
(Wholesaling)
Brokers and agents
do not take title, perform a few
functions, and specialize by product line or customer type.
• Brokers bring buyers and sellers together and
assist in negotiations.
• Agents represent buyers or sellers.
(Wholesaling)
Manufacturers’ and retailers’ branches and offices
are a form of wholesaling by sellers or buyers themselves, rather than through independent
wholesalers.
