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automatic vending
the use of an electronic device that dispenses a product
cash-and-carry wholesalers
wholesalers that offer a limited line of fast-moving goods that they sell to retailers for cash
category killers
large superstores, most often chains stores, that are bigger, cheaper, and more convenient than competitors
category management
grouping similar products into categories based on customer usage
central business district (CBD)
the commercial and business center of a given city or town
convenience store
a small retail business that stocks a limited range of everyday items such as groceries, snacks, soft drinks, tobacco, toiletries, and lottery tickets
department stores
larger retailers that have separated areas—or departments—for similar product lines
digital wallets
software-based systems that allow for secure transactions
direct mail
solicited or unsolicited advertising of products and services to prospective customers through the mail
direct selling
a marketing strategy that involves selling products and services directly to the consumer in a non-retail setting
discount store
retailer that sells a broad range of products at lower prices than competitors
drop shippers
a wholesaler business model where retailers use suppliers to ship products directly to the end consumer
factory outlets
retailers that offer overstocked merchandise at discounted prices
false or misleading advertising
an unethical marketing practice by which consumers are given false or misleading information about a product or service
freestanding retail locations
store retailers that are not attached to any other retailer or establishment
full-service wholesalers
wholesalers that offer retailers the most complete range of services, such as buying, selling, storage, transportation, sorting, and financing
general-merchandise (full-line) wholesalers
wholesalers that offer an extensive list of merchandise for sale
gross margin
net sales minus the cost of goods sold
intermediaries
companies that act as liaisons between the buyer and seller
keystone pricing
a pricing strategy that doubles the price from the wholesaler or manufacturer
limited-service wholesalers
wholesalers that offer a limited range of services to retailers to increase value
maintained markup
the actual markup on the merchandise that is sold to the consumer
manufacturer’s agents
independent contractors who act as salespeople for multiple manufacturers to sell similar (but not competing) products to retailers
markdown
a price decrease for a product that is at the end of its life cycle or season
markup
the amount added to the cost retailers purchase goods for
merchandise
the goods that are being offered for sale by a retailer
merchant wholesalers
wholesalers that engage in buying, storing, and physically handling products in large quantities and selling those products in smaller quantities to retailers
non-store retailers
retailers that operate outside of traditional brick-and-mortar locations
off-price retailers
retailers that provide high-quality goods at lower prices
omnichannel marketing
utilization of multiple distribution channels
omnichannel strategy
manufacturer strategy that uses multiple distribution channels to distribute a product
online retailing
a business model that allows consumers to search and purchase products remotely over the Internet
original markup
the markup a business has decided upon at the onset of the offering, which includes planned sales and overhead
product traceability
the ability to track all processes for a product from the procurement of raw materials to production, consumption, and disposal
rack jobbers
wholesalers (or manufacturers) that agree with retailers to display and sell a product in a retail store
regional shopping centers
commonly referred to as “malls”; collection of stores that offer general merchandise or fashion-oriented offerings
retailing
the process of selling goods and services to consumers
social commerce
a blend of e-commerce and social media
specialty stores
retailers that focus on selling a single type of product or a single product line
specialty wholesalers
wholesalers that focus on a limited line of products but carry the line in some depth
store retailer
a traditional brick-and-mortar establishment where products are displayed for customers to purchase
strip malls
classified by an attached row of retail stores offering both products and services
supermarket
retailer that mostly focuses on a product mix of grocery items but also carries household and personal items and offers limited services
superstores
very large retailers that have characteristics of both supermarkets and department stores
telemarketing
the attempted sale, or marketing, of goods and services to potential customers via telephone
television home shopping
a business practice in which products or services are sold via television
truck jobbers
wholesalers that make calls to retailers carrying goods on a truck
warehouse clubs
retailers that sell goods in bulk at discounted prices
wholesaling
the business of buying goods in bulk at a discount from a manufacturer or other distribution channel member and selling them retailers for a higher price
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