Retailing and Wholesaling

Flashcards about retailing, types of retailers and wholesalers, and marketing strategies.

Retailing

Activities involved in selling goods or services directly to consumers for their personal use.

Retailer

Business whose sales come primarily from retailing.

Shopper marketing

Focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale.

Omni-channel retailing

Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.

Self-service retailers

Serve customers who are willing to perform their own locate-compare-select process

Limited-service retailers

Carry more shopping goods about which customers need information and provide more sales assistance

Full-service retailers

Carry more specialty goods and assist customers in every phase of the shopping process

Specialty store

A store that carries a narrow product line with a deep assortment.

Department store

A store that carries several product lines—typically clothing, home furnishings, and household goods—with each line operated as a separate department managed by specialist buyers or merchandisers..

Supermarket

A relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumer’s total needs for grocery and household products.

Convenience store

A relatively small store located near residential areas, open 24/7, and carrying a limited line of high-turnover convenience products at slightly higher prices.

Superstore

A very large store that meets consumers’ total needs for routinely purchased food and nonfood items.

Discount store

A store that carries standard merchandise sold at lower prices with lower margins and higher volumes.

Off-price retailer

A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail.

Corporate chain

Two or more outlets that are commonly owned and controlled.

Voluntary chain

Wholesaler-sponsored group of independent retailers engaged in group buying and merchandising.

Retailer cooperative

Group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

Franchise organization

Contractual association between a franchisor and franchisees who buy the right to own and operate units in the franchise system.

Everyday low pricing (EDLP)

Pricing strategy of charging consistently low prices with few or no temporary price discounts.

High-low pricing

Charging higher prices on an everyday basis, coupled with frequent sales and other price promotions.

Shopping center

Group of retail businesses built on a site that is planned, developed, owned, and managed as a unit

Wholesaling

Involves all the activities in selling goods and services to those buying for resale or business use

Wholesaler

A firm engaged primarily in wholesaling activities

Merchant wholesalers

Independently owned businesses that take title to all merchandise handled.

Brokers and agents

Do not take title to goods; their main function is to facilitate buying and selling for a commission.

Manufacturers’ and retailers’ branches and offices

Wholesaling operations conducted by sellers or buyers themselves rather than through independent wholesalers.

Cash-and-carry wholesalers

Sell to retailers and businesses from their own warehouses. Customers typically transport the goods themselves.

Truck wholesalers

Sell and deliver directly from their trucks, often perishable items.

Drop shippers

Do not handle the product. They receive orders and pass them on to the manufacturer, who then ships the product directly to the customer.

Rack jobbers

Serve grocery and drug retailers, mostly handling nonfood items. They set up displays, price goods, and keep inventory records.

Selling agents

Have contractual authority to sell a manufacturer’s entire output.

Purchasing agents

Generally have a long-term relationship with buyers and make purchases for them, often receiving, inspecting, warehousing, and shipping the goods to the buyers.

Broker

Brings buyers and sellers together and assists in negotiation.