Franchise

Address List – Syn: Mailing List See: Mailing List

Chain – Syn: Multiple Store See: Multiple Store

Channel of Distribution – The route a product or service follows on its way from the producer to final user. Normally used to describe the enterprises that play a role in the transfer of ownership of a product from seller to buyer.

Checkout – Frequently used term (orig.U.S.) to describe the exit and cash desk of a supermarket.

Direct mail – Any form of advertising that looks like a letter and reaches the addressee (potential consumer or prospect) via the postal services. For this purpose a mailing list is produced, purchased or leased. See also: Mailing list/Direct marketing

Direct marketing – A form of marketing that exclusively makes use of direct mail or contact over the phone. Advertising for products and services is put in the hands of prospects on the mailing list via printed material, tapes, etc. Purchase can occur by telephone or pre-printed letter. The product can be delivered to the home via the postal services or special courier. Direct marketing is the process of developing its capabilities beyond traditional boundaries due partly to the influence of the computer in handling large volumes of material. See also: Marketing/Direct mail

Direct response – The immediate answer that one gets as a result of a direct marketing campaign. The returned offer coupons represent the response. Effects are directly measurable,in contrast to, for example, response to tv commercial. Computer analysis assists in describing response by age, sex, region, etc. By such means future campaigns can be improved and effectiveness increased. See also: Direct marketing

Display – A visually pleasing normally static demonstration of products and/or advertising material which has the primary objective of attracting the prospect’s attention and accelerating and improving sales. Display material is principally found in retail outlets hanging, standing or at counter level. Advertised products are often to be found in “display packs.” Displays may often include samples that can be smelled, tested or used by potential buyers (e.g., make-up articles).

Distribution – 1. Marketing: Management and consequential activities covering the physical movement and transfer of ownership of a company’s products to the final buyer. 2. Statistics: The way in which particular events, objects or facts are located within particular population. For example, the distribution of incomes in Switzerland: there are large number of people with medium incomes, few poor people, and few very rich people.

Distributor – Person or organization responsible for the distribution of services or products. May be a retailer, mail order company, street vendor or door-to-door saleswoman. See also: Retail trade

Franchise – (chain stores/restaurants) The right given by the owner of a trade mark or trade name of a particular product or service to a third party to utilize that trade mark or name and sell the product or service. The third party is known as the franchise holder. He pays either a flat fee for this right and or/or a royalty fee per product sold per annum. The fee may include compensation to the owner for staff training, advertising and sales promotion, store design and sometimes other services, such as accountancy. Franchise outlets (e.g., McDonalds) are a fast-growing international phenomenon.
Hypermarket – An ill-conceived term for an extra large supermarket carrying a wider range of products and brands than a normal supermarket.

Level of service – The quality of service offered to the customer in a retail outlet. May be divided into various categories from simple to luxury:
1. Self-service
2. Cashier service
3. Limited service
4. Partial service
5. Full service
6. Special service

Mailing List – Syn: Address list
A list of names and addresses of potential buyers. They are specially assembled to exploit a direct mail approach. See also: Direct Mail

Merchandising – The marketing activity directed at optimizing the effectiveness of shopping displays. Often exercised by a “rack jobber.” See also: Rock jobbing

Multiple Store – Syn: Chain
Retail company that possesses at least two outlets. In general, purchasing and management advisory services are common to all outlets. Shop design is frequently standardized. The product range is more or less the same in all outlets (with regional variations).

Outlet – Syn: Point of purchase/Point of sale
Physical location of buying process. Normally a retail store. Others include department store, market stall, auction, vending machine, etc.

Point of purchase – Syn: Outlet/point of sale
See: Outlet

Rack jobbing – System of selling in the retail trade whereby the wholesaler not only supplies products to the retailer but in addition fills and tends particular shelf locations in the outlet and supplies special displays. The retailer receives commission on the turnover of these goods but has much less work with regard to this part of range. Products that lend themselves to rack jobbing are mostly well-packaged, low priced and fast moving. Examples include newspapers, light bulbs batteries.

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