MKT 337 Exam3

Retailing

Selling products/services directly to final consumers

Wholesaling

Selling products to businesses (not final consumers)

Wholesalers

Businesses that mainly sell to retailers or other organizations

Corporate chain

A company that owns multiple retail stores

Franchise operation

A system where individuals run stores using a company’s brand and rules

General stores

Old-style stores that sold many different types of products

Single-line stores

Stores that sell one category of products (e.g., only shoes)

Limited-line stores

Stores that sell a narrow range within a category

Specialty shop

Small store focused on a specific product type with high service

Department stores

Large stores with many product departments (clothing, home goods, etc.)

Convenience (food) stores

Small stores with limited items for quick purchases (e.g., snacks, gas)

Automatic vending

Selling products through machines

Door-to-door selling

Selling products directly at customers’ homes

Mass-merchandising concept

Selling at low prices to increase sales volume

Supermarkets

Large self-service grocery stores

Mass-merchandisers

Large stores selling many products at low prices (e.g., Walmart)

Supercenters (hypermarkets)

Very large stores combining grocery + general merchandise

Warehouse club

Membership-based store with low prices and limited service (e.g., Costco)

Stockturn rate

How many times inventory is sold and replaced in a year

Online retailers

Stores that sell mainly on the internet

Social commerce

Buying products directly through social media platforms

Wheel of retailing theory

New retailers start cheap, then become more expensive over time

Scrambled merchandising

When stores sell products outside their usual category

Manufacturers’ sales branches

Warehouses owned by producers to sell their own products

Merchant wholesalers

Wholesalers that take ownership of products

Service wholesalers

Provide full services (storage, delivery, etc.)

General merchandise wholesalers

Sell a wide variety of products

Single-line (general-line) wholesalers

Sell one broad product line

Specialty wholesalers

Focus on a narrow product line

Limited-function wholesalers

Provide fewer services to lower costs

Cash-and-carry wholesalers

Customers pay cash and transport goods themselves

Drop-shippers

Arrange delivery directly from producer to customer

Truck wholesalers

Deliver products directly to retailers using trucks

Rack jobbers

Manage product displays in retail stores

Catalog wholesalers

Sell through catalogs or online ordering

Agent wholesalers

Arrange sales but don’t own products

Manufacturers’ agent

Represents several producers

Export agents

Help sell products to other countries

Import agents

Help bring products into a country

Brokers

Bring buyers and sellers together for a commission

Export brokers

Help with international selling

Import brokers

Help with international buying

Selling agents

Handle all marketing for a producer

Combination export manager

Acts as an export department for firms

Auction companies

Sell goods through bidding

Basic sales tasks

The three main types of selling work: getting, taking, and supporting sales

Order getters

Salespeople who find new customers and persuade them to buy

Order-getting

The process of creating new sales and building new relationships

Order takers

Salespeople who work with current customers and process purchases

Order-taking

Routine selling to repeat customers and maintaining relationships

Supporting salespeople

Salespeople who help sales but don’t directly close deals

Missionary salespeople

Promote products and build goodwill (don’t take orders)

Technical specialists

Experts who explain complex product details

Customer service reps

Help customers solve problems after purchase

Team selling

Multiple people work together to sell to one customer

Major accounts sales force

Special sales team for big, important customers

Telemarketing

Selling using the phone

Inside sales force

Salespeople who sell remotely (phone, email, video)

Sales territory

Geographic area assigned to a salesperson

Job description

Written explanation of what a salesperson is supposed to do

Sales quota

Sales target a salesperson is expected to achieve

Prospecting

Finding potential customers

Sales presentation

Explaining and demonstrating a product to a customer

Prepared sales presentation

Scripted, standardized sales pitch

Close

The moment when the salesperson asks for the order (final step)

Consultative selling approach

Focus on understanding customer needs and offering solutions

Selling formula approach

Following a structured step-by-step sales method

Advertising agencies

Companies that create and manage ads for other businesses

Advertising allowances

Money given to retailers/wholesalers to help pay for advertising

Cooperative advertising

When producers and retailers share advertising costs

Product advertising

Advertising focused on selling a specific product

Institutional advertising

Advertising that promotes a company’s image or reputation

Pioneering advertising

Introduces a new product and builds demand for it

Competitive advertising

Promotes one brand over competitors

Direct competitive advertising

Tries to get customers to buy immediately

Indirect competitive advertising

Focuses on benefits to influence future buying

Comparative advertising

Compares a brand directly with competitors

Reminder advertising

Keeps a brand in customers’ minds

Advertising media

The channels used to deliver ads (TV, internet, radio, etc.)

Pay-per-click

Advertisers pay only when someone clicks their ad

Retargeting

Showing ads to people based on their past online behavior

Click-through rate (CTR)

Percentage of people who click on an ad

Influencers

People with large followings who promote products on social media

Copy thrust

The main message or idea of an advertisement

Corrective advertising

Ads used to fix false or misleading previous advertising

Trade promotion

Promotions aimed at retailers/wholesalers to encourage them to sell a product

Price

The amount of money customers pay for something of value

Target return objective

A goal to earn a specific level of profit (like % of sales)

Profit maximization objective

Trying to earn as much profit as possible

Benefit corporation

A company that aims to help society/environment, not just make profit

B Corporation (B Corp) certification

Certification showing a company meets high social and environmental standards

Sales-oriented objective

Focus on increasing sales or market share instead of profit

Status quo objectives

Keeping prices stable and avoiding competition

Nonprice competition

Competing using things other than price (quality, service, brand, etc.)

Administered prices

Prices set intentionally by managers (not left to market forces)

One-price policy

Same price for all customers

Flexible-price policy

Different prices for different customers

Dynamic pricing

Prices change based on demand, time, or customer behavior

Skimming price policy

Start with a high price, then lower it over time

Penetration pricing policy

Start with a low price to gain market share quickly