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Questions and Answers
What is one of the primary functions performed by wholesalers?
What is one of the primary functions performed by wholesalers?
What is the main source of revenue for Costco?
What is the main source of revenue for Costco?
Which type of promotional strategy does Costco primarily rely on?
Which type of promotional strategy does Costco primarily rely on?
Which statement best describes the breadth and depth of Costco's product assortment?
Which statement best describes the breadth and depth of Costco's product assortment?
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How does Costco's co-founder view advertising?
How does Costco's co-founder view advertising?
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Which feature is characteristic of Costco's product offerings?
Which feature is characteristic of Costco's product offerings?
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What is meant by the term 'distribution strategy'?
What is meant by the term 'distribution strategy'?
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Which brand is owned by Costco as a private label?
Which brand is owned by Costco as a private label?
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What is the primary focus of shopper marketing?
What is the primary focus of shopper marketing?
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Which of the following best describes omni-channel retailing?
Which of the following best describes omni-channel retailing?
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Which type of wholesaler takes ownership of the goods?
Which type of wholesaler takes ownership of the goods?
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What role do retail technologies play in the retailing sector?
What role do retail technologies play in the retailing sector?
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What distinguishes brokers and agents from merchant wholesalers?
What distinguishes brokers and agents from merchant wholesalers?
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Which characteristic is essential for classifying retailers?
Which characteristic is essential for classifying retailers?
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What effect has increased online buying had on physical retail stores?
What effect has increased online buying had on physical retail stores?
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What is the primary role of manufacturers’ and retailers’ branches and offices in wholesaling?
What is the primary role of manufacturers’ and retailers’ branches and offices in wholesaling?
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Study Notes
RETAILING AND WHOLESALING
- Retailing involves selling goods or services directly to consumers for personal use.
- Retailers can be classified based on the amount of service offered, breadth and depth of product lines, relative prices charged, and organizational structure.
- Major store retailer types include specialty stores, department stores, supermarkets, and convenience stores.
- Superstores meet consumers' total needs for food and nonfood items.
- Discount stores offer standard merchandise at lower prices.
- Off-price retailers sell merchandise at less-than-regular wholesale prices.
SHOPPER MARKETING
- Shopper marketing focuses on turning shoppers into buyers throughout the entire sales process, whether in-store, online, or mobile.
- Marketing efforts are coordinated around the consumer's entire buying journey.
- Marketers adopt a "micro" approach.
OMNI-CHANNEL RETAILING
- Omni-channel retailing creates a seamless cross-channel buying experience.
- It integrates in-store, online, and mobile shopping.
- The path to purchase runs across multiple channels.
- Increased online buying reduces the need for physical stores.
RETAIL TECHNOLOGY
- Retail technologies are crucial competitive tools.
- Data is collected and analyzed for consumer insights.
- Customers can interact with virtual assistants, try on clothing virtually, and customize products online.
- Retailers are merging physical and digital worlds to create experiential retailing environments.
- Technology links retailers with manufacturers, warehouses, distribution centers, and shipping.
WHOLESALING
- Wholesaling involves selling goods and services to those buying for resale or business use.
- Wholesalers are categorized into merchant wholesalers, brokers and agents, and manufacturers' and retailers' branches and offices.
- Merchant wholesalers take ownership of goods and handle financing, storage, delivery, and promotions.
- Brokers and agents facilitate buying and selling without taking ownership.
- Manufacturers' and retailers' branches and offices conduct wholesaling operations through their own channels.
CHANNEL FUNCTIONS PERFORMED BY WHOLESALERS
- Wholesalers handle selling and promoting, bulk breaking, warehousing, transportation, financing, risk bearing, market information, management services, and buying/assortment building.
COSTCO WHOLESALE
- Costco is one of the biggest global brands specializing in good-quality items at low prices.
- It is the third largest retailer globally.
- Most retail revenue is generated from membership sales.
- It's based on a warehouse club concept (developed in 1976).
- It doesn't advertise on TV.
MERCHANDISE ASSORTMENT
- Costco offers food courts, bakeries, optical, electronics, clothing, personal care brands, and private label brands (e.g., Kirkland Signature).
- The core product is good quality manufactured brands at a discounted price.
COMMUNICATIONS MIX
- Costco's communication strategy is focused on customer loyalty and word-of-mouth.
- It employs samples and demos, and relies on YouTube for advertising.
- It avoids TV advertising, citing that it costs too much.
BREADTH AND DEPTH OF PRODUCT ASSORTMENTS
- Breadth refers to the number of categories of merchandise.
- Depth refers to the number of similar types of merchandise within a category.
DISCUSSION: DISTRIBUTION STRATEGY
- Distribution strategy details the methods and channels used to deliver a company's products.
- Retailers should consider whether selling through additional/existing channels could increase sales.
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Description
Test your knowledge on retailing and wholesaling concepts, including the types of retailers and shopper marketing strategies. This quiz will cover key aspects of omni-channel retailing and how it enhances the consumer buying experience. Perfect for students of marketing and business!
