Retail Strategies
Placing your products in as many stores as possible (or placing your stores themselves in as many locations as possible)
Ex. Snickers candy bars, Dial soap, and Sports Illustrated magazine
Intensive Distribution
Dominates its category by offering a huge variety of one type of product
Category Killer
Ex. OfficeMax, Best Buy, Toys R Us, Staples
A new product pricing strategy that aims to capture as much of the market as possible through rock-bottom prices
Penetration Pricing
All organizations, processes, and activities involved in the flow of goods from the raw materials to the final consumer
Supply Chain
Independent distributors that buy products from a range of different businesses and sell those products to a range of different customers
Independent Wholesaling Businesses
What is Exclusive Distribution?
Establishing only one retail outlet in a given area
Ex. Tesla and Raf Simons
Sells a wide selection of merchandise within a narrow category
Specialty Store
Ex. Barnes and Noble, Victoria's Secret, Bath and Body Works
Long-term discount pricing, designed to achieve profitability through high sales volume
Everyday-Low Pricing (EDLP)
Planning and coordinating the movement of products along the supply chain, from the raw materials to the final consumers
Supply Chain Management (SCM)
What are the two categories of Independent Wholesalers?
Merchant Wholesalers and Agents/Brokers
What is Selective Distribution?
Placing your products only with preferred retailers
Ex. Neiman Marcus, Jones Soda, and most brands of paintball equipment
Name a few examples of a Warehouse Club
Costco, Sam's Club
A pricing strategy designed to drive traffic to retail stores by special sales on a limited number of products, and higher everyday prices on others
High/low Pricing
A subset of supply chain management that focuses largely on the tactics involved in moving products along the supply chain
Logistics
What is a Limited Service Merchant Wholesaler?
Provide fewer services to their customers
Ex. Might warehouse products, but not deliver them
Amazon and Best Buy are a good examples of this Nonstore Retailer
Online Retailing
Offers a wide array of merchandise at significantly lower prices and with less service than most department stores
Discount Store
Ex. Target, Walmart, Kmart
Closely related to high/low pricing, loss-leader pricing means pricing a handful of items—or loss leaders—temporarily below cost to drive traffic
Loss-Leader Pricing
What are a few options for Modes of Transportation?
Planes, trains, and railroads
What is a Full Service Merchant Wholesaler?
Provide a complete array of services to the retailers or business users who typically purchase their goods
Ex. Warehousing, shipping, promotional assistance, product repairs, and credit
This channel includes all methods of selling directly to customers in their homes or workplaces
Direct Selling
Offers a wide variety of merchandise, plus (usually) a high level of service
Department Store
Ex. Nordstrom's, Macy's, Neiman Marcus
The gap between the cost and the price of an item on a per-product basis
Profit Margin
Name 3 out of the 7 considerations for Supply Chain Management
Warehousing, Materials Handling, Inventory Control, Order Processing, Customer Service, Transportation, and Security
Name the specific categories for Limited Services
Drop Shippers, Truck Jobbers, Cash and Carry Wholesalers