Marketing Chapter 16 Key Terms

breadth of product line

The variety of different product items a store carries.

brokers

Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales.

category management

An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category.

central business district

The oldest retail setting, usually located in the community’s downtown area.

community shopping center

A retail location that typically has one primary store (usually a department store branch) and often 20 to 40 smaller outlets, serving a population of consumers who are within a 10- to 20-minute drive.

depth of product line

The store carries a large assortment of each product item.

form of ownership

Distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet.

hypermarket

A form of scrambled merchandising, which consists of a large store (more than 200,000 square feet) that offers everything in a single outlet, eliminating the need for consumers to shop at more than one location.

intertype competition

Competition between very dissimilar types of retail outlets that results from a scrambled merchandising policy.

level of service

Describes the degree of service provided to the customer from three types of retailers: self-, limited-, and full-service.

manufacturers’ agents

Agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Also called manufacturers' representatives.

merchandise line

Describes how many different types of products a store carries and in what assortment.

merchant wholesalers

Independently owned firms that take title to the merchandise they handle.

multichannel retailers

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television home shopping, and online retailing.

off-price retailing

Selling brand-name merchandise at lower than regular prices.

power center

A retail location consisting of a huge shopping strip with multiple anchor (or national) stores.

regional shopping center

A retail location consisting of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores.

retail life cycle

The process of growth and decline that retail outlets, like products, experience, consisting of the early growth, accelerated development, maturity, and decline stages.

retail positioning matrix

A matrix that positions retail outlets on two dimensions: breadth of product line and value added, such as location, product reliability, or prestige.

retailing

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.

retailing mix

The activities related to managing the store and the merchandise in the store, which include retail pricing, store location, retail communication, and merchandise.

scrambled merchandising

Offering several unrelated product lines in a single store.

shopper marketing

The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store.

strip mall

A retail location consisting of a cluster of neighborhood stores to serve people who are within a 5- to 10-minute drive.

telemarketing

Using the telephone to interact with and sell directly to consumers.

wheel of retailing

A concept that describes how new forms of retail outlets enter the market.

Stockturn formula

COGS/Average Inventory at cost

Same-store sales growth

((total net sales current-net sales of new current stores)-previous total sales)/previous total sales