Retailing and Wholesaling Quiz

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.