Exam 13: Retailers, Wholesalers, and Direct Marketers

Markup is the amount a retailer adds to the product's cost to determine the net profit rate to be earned when it is sold.

The components of retailing strategy must work together to create an image that appeals to a store's target market.

Why are atmospherics important to retailers? Do all retailers need the same level of atmospherics?

Sales branches carry inventories and process orders.

Advantage Sales & Marketing (ASM), a wholesale intermediary, represents national food manufacturers and is mainly responsible for sales and merchandising at the retail level, as well as providing feedback to the manufacturers. ASM does NOT take title, nor does it deliver products. How can this company best be described?

What type of store, facing high operating costs, has fought back against increasing competition by closing certain departments and becoming more decentralized?

The wheel of retailing describes the cycle of stores moving back and forth from rural/suburban areas to urban areas, based on the shifting trends in demographics.

Why might retailer-owned buying groups perform wholesale functions?

Trade fairs and merchandise marts are exhibitions for manufacturers' products where the buyer comes to the seller that is exhibiting at the event.

Match each item to the statement or sentence listed below. a.stock-keeping unit (SKU) b.markup c.markdown d.retail convergence e.scrambled merchandising f.atmospherics g.broker h.general merchandise retailer i.category killer j.rack jobber k.supercentre l.auction house m.specialty store n.retailers o.mass merchandiser p.truck jobber q.direct marketing r.drop shipper s.planned shopping centre t.wheel of retailing -A(n) _____ typically handles only part of a single product line.

There are more than 10,000 different consumer specialty mail-order catalogues that find their way into Canadian homes annually.

Match each item to the statement or sentence listed below. a.stock-keeping unit (SKU) b.markup c.markdown d.retail convergence e.scrambled merchandising f.atmospherics g.broker h.general merchandise retailer i.category killer j.rack jobber k.supercentre l.auction house m.specialty store n.retailers o.mass merchandiser p.truck jobber q.direct marketing r.drop shipper s.planned shopping centre t.wheel of retailing -describes a situation in which similar merchandise is available from multiple retail outlets distinguished by price more than any other factor.

What types of utility are wholesaling intermediaries creating when they make a product available at a convenient location at the moment it is needed?

What is scrambled merchandising?

How do retailers identify target markets? Explain the major strategies by which retailers reach their target markets.

The easiest method of classifying retail stores is by product category.

Direct mail is one of the more costly methods of direct marketing, but it can effectively reach target markets, personalize messages, and produce measurable response rates.

What was sold through the world's first vending machines?

Vending machines and convenience stores are not affected by the wheel of retailing because their strategy for customer satisfaction is based on location and convenience, not pricing.

Who is the intermediary most commonly used in the distribution of such products as tobacco, used cars, artwork, fur, livestock, and fruit?