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Key Terms

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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