Exam 27: Marketing Channels and Retailing

A(n)_____ is a continuing relationship in which an individual or business grants business rights to operate or sell a product to another individual or business.

James wants to open a small store that caters to the model railroad hobbyist.The store would sell model trains,scenery,accessories,and books on the subject of model railroading.Which of the following types of stores would most likely support an effective launch of his business idea?

W.W.Grainger,Inc.is one of the world's largest business-to-business distributors of equipment,component parts,and supplies in the United States and Canada.It has ownership title to over 220,000 products,which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers.W.W.Grainger is an example of a(n):

Caterpillar,the manufacturer of tractors and other earthmoving equipment,has an extremely high market share,which means customers seek the dealers out regardless of where they are.There are approximately 50 Caterpillar dealers in the United States--one in each state.From this information,you can surmise that Caterpillar uses _____ distribution.

Emily has just opened a health food store that sells organic foods,herbal supplements,and environmentally friendly products.Because it will be a specialty store,she should have a broad product assortment with moderately low prices.

A specialty store is not only a type of store but also is a method of retail operations.Describe the specialty store strategy.Then name two examples of specialty stores.

One of the new developments in retailing is m-commerce.The "m" in m-commerce stands for:

M-commerce is a type of managed commerce in which both buyer and seller end the transaction with a win-win feeling.

_____ is defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal,nonbusiness use or consumption.

Large retailers such as Target and Walmart and sellers of shopping goods such as automobiles and furniture often use _____ for their locations.

As products move through the marketing channel,channel members provide specialization and division of labor,overcome discrepancies,and provide contact efficiency.

Color can be used by retailers to create a mood or focus customer attention on a particular product.

Exclusive distribution increases direct competition among a great number of retailers.

A marketing channel is a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.

Walmart Walmart, the world's largest retailer by revenue, announced that it will get back to its founder's roots by initiating more price cuts. Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins. CEO Mike Duke assuaged critics by saying Walmart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold. -Refer to Walmart.Most Walmart stores are not located in shopping centers but rather are buildings all by themselves.This type of location is referred to as a:

_____ refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for convenience.

Each department in a department store is usually treated as a different _____ center and central management sets broad policies about the types of merchandise carried and prices.

A retail clothing store in a small northwest Georgia community is the sole distributor of Spanx brand hosiery in the region.How does this form of market coverage benefit the retailer? How does it benefit the manufacturer?

The first task of developing a retail strategy is to:

Intermediaries must perform three basic functions.Name these functions and describe the activities involved in each function.