Takes title to the goods it handles functions of

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- takes title to the goods it handles Functions of Wholesaling Intermediaries : Creating utility; except Form Time utility - Making products available for sale when consumers want to purchase them Place utility - Helping deliver goods and services for purchase at convenient locations Ownership (or possession) utility - Involves smooth exchange of title to the products from producers or intermediaries to final purchasers Direct Marketing - a distribution channel consisting of direct communication to a consumer or business recipient Generates orders & sales leads that may result in future orders Nonstore - retailing activities as direct mail & selling, direct-response retailing, etc. Retailers base key decisions on two fundamental steps in the marketing strategy process: Selecting a target market Developing a retailing mix to satisfy the chosen market Retailing - Activities involved in selling merchandise to ultimate consumers Retailers act as both customers and marketers in their channels Markups - Amount a retailer adds to the cost of a product to determine its selling price Markup is influenced by two factors: o Services performed by the retailer o Inventory turnover rate Markdowns - Amount by which a retailer reduces the original selling price of a product Atmospherics - Combination of physical characteristics and amenities that contribute to a store’s image; Includes: exterior and interior décor Slotting Allowances - Nonrefundable fees grocery retailers receive from manufacturers to secure shelf space for new products Stock Keeping Unit (SKU) - Offering within a product line such as a specific size of liquid detergent Category Management
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Seeks to improve retailer’s product performance through coordinated buying, merchandising, and pricing of an entire product line Category management evaluates performance according to each product category Categories that underperform may be dropped even if they are strong brands Classification by Shopping Effort Convenience retailers - Focus marketing appeals on accessible locations, extended store hours, rapid checkout service, and adequate parking facilities Shopping stores - Offer potential customers the chance to compare pricing, assortment, and quality levels Specialty retailers - Combine carefully defined product lines, services, and reputations in attempts to persuade consumers to expend considerable effort to shop at their stores Classification by Form of Ownership Chain stores o Groups of retail outlets that operate under central ownership and management and handle the same product lines o Volume purchases allow chains to pay lower prices than their independent rivals must pay Independent retailers o Generate about $4.5 trillion in retail sales every year and account for about 12% of all business establishments in the United States o Traditional advantage is friendly, personalized service Classification by Product Lines Specialty stores o Handles only part of a single product line that it stocks in considerable depth or variety
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