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Bronis Verhage
ISBN: 9789001818661
http://www.marketingfundamentals.noordhoff.nl
© 2017 Noordhoff Uitgevers bv
GLOSSARY
Chapter14 Retailing
Retailing All activities involved in selling products and services directly to ultimate
consumers for their personal, family or household use.
Sorting Assembling an range of products from various suppliers that a retailer wants
to sell, reflecting his decision about the appropriate depth and width of the product
assortment.
Wheel of retailing Model that describes how new types of retailers with low prices
gradually – through upgrading – add value, providing opportunities for innovative
stripped-down retailers to enter the market and challenge established companies.
Low-margin retailing strategy Strategy by retailers who offer products and services at
discount prices and with minimal levels of service, targeting a target market of priceconscious consumers.
Service retailing strategy Strategy by retailers – such as upscale specialty stores – that
involves having a narrow assortment of high priced quality products with an emphasis
on a high level of service.
Merchandise mix - Total set of all product lines and products that a retailer offers for
sale.
Specialty store Relatively small-scale store offering a narrow range of product lines
with a great deal of product depth.
Specialization – Offering a narrow variety of merchandise mix (such as health food)
while appealing to a specific consumer segment (e.g. health conscious consumers).
Convenience store A small shop, located in or near a residential area that carries a
limited assortment of food products and high-turnover convenience goods.
Supermarket Large food store that carries a limited range of non-food products,
combining self-service, low prices, volume sales and one-stop grocery shopping.
Scrambled merchandising The sale of items not usually associated with a retail
establishment's primary lines in order to generate more traffic (Scrambled retailing).
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Hypermarket Huge retail outlet that offers both supermarket and discount store
shopping in one location (Superstore).
Supercentre A combination of a supermarket and discount department store that is
not as mammoth as a hypermarket.
Department store A large, service-oriented retail institution that carries a wide
product mix of shopping and specialty goods, and offers a deep selection in product
categories – with related product lines organized into separate departments –such as
apparel, cosmetics, and household products.
Shop in the shop Department store layout in which customers make purchases and
pay within each department, rather than at a central checkout area.
Anchor position Placement of large, well-known retail stores at opposite ends or at
the midpoint of a shopping centre, creating pedestrian traffic and serving as an
attracting force to draw consumers to the centre.
Discount store Large retail store carrying various product lines at lower prices than
department stores, made possible by offering limited customer services (Discounter).
Variety store Small version of a department store, but offering fewer services and
targeting the mass market with an extensive range of low-priced products.
Warehouse club Adaptation of a discount store in which products are offered in bulk
and displayed in boxes or on pallets (Wholesale club).
Factory outlet store Retail store operated by a manufacturer of a national brand to
dispose of surplus stock or clearance merchandise.
Limited-line store Retail store that offers an extensive assortment of models within
one product line or (such as Ikea) a few related lines and targets price-conscious
consumers.
Category killer A special type of specialty or limited-line store that offers a huge
selection of products in a single product line (e.g. electronics) at low prices.
Non-store retailing Any method a company uses to create an exchange without
requiring a customer to visit a store, such as online sales.
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Direct selling The marketing of products and services to ultimate consumers through
personal interactions and sales presentations at home or in the workplace.
Party plan A retailing strategy in which a direct seller, such as Tupperware, attends a
get-together at a host customer’s home to demonstrate products and take orders.
Network marketing A special form of direct selling in which a ‘master distributor’
recruits independent agents, resells the company’s merchandise to these distributors
and makes a commission on their sales to consumers (Multilevel marketing).
Pyramid scheme Illegal network in which the initial distributors profit by selling
merchandise to other distributors, with most of the products never reaching the
ultimate consumer.
Street peddling Individuals selling snacks and food items from pushcarts in the
streets, temporary stalls set up in open markets, or from their vans or trucks.
Destination store Store with an established image and an attractive product
assortment that consumers deliberately visit.
Planned shopping centre Group of retail stores, designed, coordinated, and marketed
– with a balanced tenancy – to shoppers in a geographic trade area in order to satisfy
specific customers’ needs.
Balanced tenancy Different stores in a shopping centre complementing each other in
the variety and quality of their merchandise.
Neighborhood shopping centre The smallest type of shopping centre with a
supermarket to provide convenient shopping for consumers who live within a few
minutes’ commute (Strip centre).
Community shopping centre A type of shopping centre offering shopping and
specialty products and designed to draw five times as many people as a neighborhood
centre.
Regional shopping centre – Large shopping centre with at least three department
stores and 100 specialty stores that attract many shoppers willing to drive a great
distance to find products and services not available in their home towns (Mall).
Factory outlet mall Non-traditional shopping centre with discount and factory outlet
stores selling excess merchandise, with some offering upscale merchandise.
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Power centre Shopping centre near a regional mall without a traditional anchor
department store, but with several category killers and off-price stores.
Off-price retailer Stores that purchase manufacturers’ overruns, returns, seconds and
off-season products for resale to consumers at about half the price of department
stores.
Lifestyle centre A combination of an outdoor urban shopping area and a
neighborhood park landscaped with fountains, plazas, park benches, and stages for live
concerts, featuring upscale stores, restaurants and theatres as well as luxury
condominiums, townhouses and office parks.
E-commerce A company’s efforts to boost online sales by using marketing principles
to guide potential buyers to its website.
E-marketing Any marketing activity – using digital technologies, such as an interactive
computer system as well as DVDs, instant messaging, videoconferencing and
interactive store kiosks to achieve e-commerce, such as buyer analysis, pricing,
distributing, promoting and positioning products and services to specific target markets
over the Internet.
E-retailing The e-marketing efforts directed towards ultimate consumers, a key
component of most retailers’ strategies (Electronic retailing, online retailing).
Online marketing Using an interactive computer system to connect sellers and buyers
electronically (Internet marketing)
Brick-and-mortar Traditional ‘street-side’ business – such as a book store – that deals
with its customers face to face in a company-owned or rented store or office, and
competes with web-based businesses that have lower operating costs and more
flexibility.
Brick-and-click Multi-channel retailer that has both a retail store and an online store.
Pure-click Internet-only retailer that only conducts business online, but is better able
to develop a tailored marketing strategy for its target markets than traditional brickand-mortar firms (Click-only firm, dot-com).
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Interactive marketing Buyer-seller communication system over the Internet in which
a buyer specifies what product he is interested in (thus controlling the information that
he wants to receive), and the seller immediately sends that information.
Corporate chain A commonly owned and controlled large group of stores with
centralized purchasing and decision making that sell the same products (Retail chain).
Retail cooperative A group of retailers with a central buying organization (at the
wholesale level) and a common store name to conduct joint promotion campaigns to
help them compete with chains.
Voluntary chain A retail organization in which a wholesaler formally agrees with a
group of independent retailers to use a common (brand) name, and to participate in
bulk buying and joint merchandising.
Franchise organization The various companies that – within a franchise system – work
together to achieve their goals.
Franchise Contractual arrangement between a parent company or franchiser and a
number of franchisees who, as independent businesspeople, buy the right to own and
operate – in accordance with strict guidelines – one or more units in the franchise
organization to sell certain products or services under an established trade name.
Business-format franchising A form of franchise agreement in which the franchiser
sells franchisees the right to use its format or approach to doing business and provides
step-by-step operational and decision making guidelines (Retail franchising).
Key account management Management of a company’s most important customers
(Major or national account management).
Key account A large account that receives special treatment from a vendor’s
marketing or sales executives
Key account manager The person responsible for coordinating the company’s sales
efforts directed toward a major retail account so that this customer can limit his
interaction with the company’s sales people in different territories..
Dual target market approach A manufacturer’s efforts to tailor his marketing strategy
not only to the ultimate consumer (through product management), but also to large
retail customers (key account management)
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Global account management Sales force structure that coordinates product and
service delivery across the globe to various subsidiaries of multinational customers.
Fun shopping Consumer buying behavior focusing on an enjoyable shopping
experience, in which prices are of minor importance.
Low margin retailing strategy Retailing strategy that offers products at discount
prices and a low level of customer service, resulting in low profit margins for the
retailer.
Service retailing strategy Retailing strategy that offers products at premium prices,
and a high level of customer service, resulting in high profit margins for the retailer.
Retail marketing A broad range of marketing activities, including analysing
competitors and customers’ shopping behaviour, developing a store format and
positioning strategy to attract and serve the target market, and using a consistent,
integrated retailing mix to gain customer loyalty.
Store format The retail store’s product assortment and market positioning that
reflects the retailer’s strategic choice to appeal to a carefully selected target market of
customers with specific needs and shopping expectations (Store concept).
Store image How a store is defined in a shopper's mind, based on its physical
characteristics, retailing mix, and a combination of the customer’s expectations and
impressions.
Atmospherics A retail store’s use of floor layout, lighting, sounds, scents, and other
design elements that influence consumers’ perceptions and make the store feel
‘right’(Ambience).
Retailing mix The six Ps of the retailing mix used to create the store format and
develop a positive store image: the Product, Promotion, Price, Place, Personnel and
Presentation that a retailer can combine in different ways to attract consumers.
Category management – Marketing strategy in which a single person is responsible for
an SBU that consists of all products in a product category that the target customers
may view as substitutes for a particular item, allowing him to better evaluate buying
patterns and new market trends.
Presentation One of the Ps in the retailing mix –which includes the store’s ambience
which is key in attracting the target market and defining the store image.
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2017 Noordhoff Uitgevers bv
Retail life cycle The emergence, growth, and decline in market share of new retail
forms that can be categorized into four stages: early growth, accelerated development,
maturity, and decline.
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