Test 4 Flashcards
nonstore retailing
distributor of product to consumer through means other than brick and mortar retail.
quick response
promotes response to consumer demand, encourages business partnership, shortens business cycle from raw materials to the consumer.
chain
Organization owned and operates several retail units that sell similar lines of merchandise with a standard method and function under a centralized organizational structure. Feature- centralized buying, centralized distribution, shared brands, standardized store décor and layout
Franchise
Parent company gives franchisee the exclusive right to distribute a well-recognized brand name in a specific market are as well as assistance with organization, visual merchandising, training and management. In return the franchisee pays the parent company a franchise payment.
leased department
A department in a retail store that is rented to an outside party, Pays the store a percent of sales as rent
vertical compant
Retail establishment characterized by consumer ownership. ADV: Lower costs, Consumer participation, Educational services, and Group decision-making DA: Lack of retail experience, Unpaid labor, Group decision making
specialty store
focus on a specific type of merchandise, carrying one category of merchandise, focus on merchandise for a well defined target audience, carrying only one brand.
Department store
: large retailer that divides their function and their merchandise into sections or departments, fashion oriented merchandise assortment, variety of services for customers, merchandise offered at full mark up, at least 50 employees, operates in store large enough to be shopping center anchor.
Discount store
Sells brand name merchandise at less than traditional retail prices & includes apparel merchandise at the mass or budget price zones. (ex: target, Wal-Mart, Kmart)
hypermarket/superstore
upgraded supermarkets that combine the elements of a supermarket and a department store by offering a wide range of merchandise including food, electronics, clothing and accessories, furniture, and garden items. Self service merchandise strategy- visual displays that assist consumers in selecting the right style and size are common.
buyer club/warehouse
goods at a discounted price by reducing operating expenses & combining their warehouse & retail operations. Merchandise may be obtained through an extended marketing channels (ex: sams club, Costco, home depot, lowes)
off-price chain
Specializes in selling national brands, designer collections, or promotional goods at discount prices.
factory outlet
sell their own seconds irregulars or overrun as well as merchandise produced specifically for the outlet stores.
isolated store
freestanding retail outlet located on either highway or a street. No adjacent retailers to share traffic.
unplanned business district
two or more stores are in close proximity in such a way that the total arrangement or mix of stores is due to prior long-range planning. Stores locate based on what is best for them not the district. Types of unplanned business include: Central business district, Secondary business district, Neighborhood business district, and String
regional mall
large, planned shopping center, geographically dispersed market, 1 or 2 department stores and 50-150 smaller retailors, people travel less than 20 mins too
megamall
1 mill square feet of retail space, multiple anchor stores, several hundred specialty stores, food court and entertainment facilities.
community shopping center
moderate size with a branch department store (traditional or discount) or category killer. Assortment of shopping or convince stores (10-20 min drive)
markup in dollars
the difference between the cost of merchandise and the selling price, which is the same as gross margin. ( SP=C+M) SP= selling price per unit C= cost of merchandise M=mark up
advertising
Is a paid, nonpersonal communication through various media by business firms, nonprofit organizations, and individuals who are in some way identified in the advertising message and who hope to inform or persuade members of a particular audience: includes communication of products, services, institutions, and ideas. Ex: Internet, newspaper, radio, television, and printed circulars.
publicity
is non-paid-for communications of information about the company or product, generally in some media form. EX: macy’s thanksgiving parade and local retail support various civic and educational groups.
personal selling
involves a face-to-face interaction with the consumer, in terms of convenience and accessibility, better than the competition. EX: salesperson convincing you to buy something at the mall
sales promotion
involves the use of media and nonmedia marketing pressure applied for a predetermined, limited period of time at the level of consumer, retailer, or wholesaler in order to simulate trail, increase consumer demand, or improve product availability. EX: premiums, frequent buyer programs, coupons, in-store displays, contest/ sweepstakes, product demonstrations, and sampling.(rpg38-39)
newspaper
Most frequently used ADV: local, low technical level is required to create advertisement, short interval between the time copy is written and the ad appears DA: Even if the consumer was exposed to the newspaper it doesn’t mean they read or even saw the ad, life of a single newspaper is short, person spend little time with each issue and the time spent is spread over many items, poor reproduction quality – little visual appeal, and if retailor has a specific target market much of its advertising money is wasted because newspapers have a broad appeal.
