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ght to sell products in exchange for some type of consideration ? Franchiser furnishes equipment, buildings, management knowhow, and marketing assistance. ? Franchisee supplies labor and capital and operates the business by the provisions of the franchise agreement. 18 Copyright 169。 Houghton Mifflin Company. All rights reserved. Direct Marketing (cont’d) ? DirectResponse Marketing – A type of marketing that occurs when a retailer advertises a product and makes it available through mail or telephone orders ? Telemarketing – The performance of marketingrelated activities by telephone 14 Copyright 169。 Houghton Mifflin Company. All rights reserved. Major Types of Retail Stores (cont’d) ? Specialty Retailers – Traditional specialty retailers ? Also called ―limitedline‖ and ―singleline‖ retailers ? Carry a narrow product mix with deep product lines (., pet supplies) ? Have higher costs and higher margins ? Provide more product selection (firstline brands), product expertise, and high levels of personal service 10 Copyright 169。 Houghton Mifflin Company. All rights reserved. Major Types of Retail Stores ? GeneralMerchandise Retailers – A retail establishment that offers a variety of product lines – Department stores ? Large retail anizations characterized by wide product mixes and anized into separate departments to facilitate marketing efforts and internal management – Discount stores ? Selfservice, general merchandise stores offering brand name and private brand products at low prices 6 Copyright 169。Part Six Distribution Decisions 17 Retailing and Direct Marketing Objectives 1. To understand the purpose and function of retailers in the marketing channel 2. To identify the major types of retailers 3. To understand direct marketing and two other forms of nonstore retailing 4. To examine major types of franchising and the benefits and weaknesses of franchising 5. To explore strategic issues in retailing 2 Copyright 169。 Houghton Mifflin Company. All rights reserved. 5 Copyright 169。 Houghton Mifflin Company. All rights reserved. Major Types of Retail Stores (cont’d) ? GeneralMerchandise Retailers (cont’d) – Warehouse showrooms ? Retail facilities in large, lowcost buildings with large onpremise inventories and minimal services – Catalog showrooms ? A form of warehouse showroom where consumers can shop from a catalog and products are stored out of buyers’ reach 9 Copyright 169。 Houghton Mifflin Company. All rights reserved. Direct Marketing (cont’d) ? Catalog Marketing – A type of marketing in which an anization provides a catalog from which customers can make selections and plac