Exam 27: Marketing Channels and Retailing

A common practice among most retailers that seeks to broaden customers' original purchases with related items is called:

Carl represents a manufacturer of floor coverings and gets paid a commission for finding buyers and linking them up with the manufacturer.Carl is an example of a merchant wholesaler.

The three basic functions channel intermediaries perform are:

Which type of retail store specializes in a given type of merchandise?

The person who called Alisa last night and tried to sell her double-paned windows for her home was using outbound telemarketing.

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.Many Walmart stores have a full line of groceries and general merchandise with a wide range of services,such as a pharmacy,portrait studio,optical shop,and bank.Walmart is an example of which type of discount store?

Marketers can precisely target their customers according to demographics,geographics,and psychographics with:

Channel conflict:

The six Ps of the retailing mix are product,place,price,promotion,personnel,and planning.

_____ carry a limited line of high-turnover,high-priced goods and resemble miniature supermarkets.These self-service stores are typically located near residential areas and are open long hours,seven days a week.

One important reason channel members are included between producers and users is the concept of specialization and division of labor.Define these concepts and explain their roles in channels of distribution.

Compare and contrast trading up and suggestion selling.

There are several types of retail stores,each offering a different product assortment,service level,and price level,according to the shopping preferences of its customers.Name eight types of retailers.For each type,indicate the level of service,product assortment,and level of price.

Toys "R" Us sells a huge assortment of toys and children's books at greatly reduced prices.It offers customers few services and competes on the basis of moderate to low prices on the large quantities of merchandise it stocks.Toys "R" Us is an example of a:

Apple Stores Apple, Inc. opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries. Many of the Apple Stores are inside malls, but Apple also has several freestanding stores, which they call their flagship stores, with each looking a little different on the outside. These are located in New York City, Boston, Los Angeles, Chicago, San Francisco, Montreal, Tokyo, and Osaka. The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store. Inside, they have long tables displaying products ranging from the iMac, MacBook Air, iPods, printers, cameras, and other accessories. All these products are accessible to customers who can try them out and ask various questions of informed associates. The walls are mostly metallic, and the signs are all backlit. All stores have a Genius Bar where customers can receive technical advice or set up service and repair for their products. To address the needs of the many iPod users, some stores, such as the New York store, have set up a separate iPod Bar where customers can get their own technical assistance. They also have an iMac station for kids who want to try out games and learning products and a theater for workshops, product training sessions, and special presentations. Apple introduced the handheld Easy Pay system where customers don't have to wait in line to purchase products. With a simple click of a paperless, handheld credit card scanner, the employee brings the cash register to the customer. Items can be rung up anywhere on the show room floor. Apple plans to open several more stores in the years to come. Apple also has its online store. At its Web site, a customer can order any Mac or iPod product, plus a large variety of accessories. In addition to its product offerings, a customer can watch a demonstration of how products work or check out the latest Mac ads or news. -Refer to Apple Stores.Apple has the Genius Bar,the backlit signs,the Apple products themselves,the modern metallic walls and spiral staircases in its stores.These are all work together to convey the store's:

Diaz John Diaz immigrated to Tallahassee from Cuba in the 1980s. He set up a coffee shop called Diaz in a small upper-middle-class neighborhood. It rapidly became popular because of the wonderful coffee it brewed. Soon Diaz was selling the finest coffees from around the world, plus coffee-making necessities such as grinders and brewers. Within ten years, Diaz was operating a lucrative mail-order business in addition to his coffee shop. Upon entering the shop, the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee. Marble-topped tables are set in cozy nooks with overstuffed chairs. Bookshelves on one wall hold books about coffee for patrons to read while they sip. The smell is intoxicating to a real coffee lover. Coffee drinkers can take home a pound when they leave. The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300 per pound Kopi Luwak from Sumatra. -Refer to Diaz.Customers of Diaz's coffee shop can purchase coffee,coffee makers,mugs,chocolate,music CDs,and all sorts of unique gift items.Diaz is practicing:

Define channel power,channel control,channel leadership,and channel partnering and explain how these four terms are related.

Another name for an anchor store is a:

A retail operation that has a 90,000-square-foot facility and houses a florist,baker,bank,craft shop,photo finisher,dry cleaner,and pharmacy under the same roof as grocery and household items would be called a:

A situation that occurs when one marketing channel member intentionally affects another member's behavior is called: