CH03 Strategic Planning

Question 1

retail strategy

Answer 1

• The overall plan/framework of action that guides a retailer
• One year in duration
• Outlines mission, goals, consumer market, overall and specific activities, and control mechanisms

Question 2

situation analysis

Answer 2

• A candid evaluation of the opportunities and threats facing a prospective or existing retailer. Answers 2 main questions:
  1. What is the firm’s current status?
  2. In which direction should it be heading?

Question 3

opportunities

Answer 3

Marketplace openings that exist because other retailers have not yet capitalized on them

Question 4

threats

Answer 4

Environmental and marketplace factors that can adversely affect retailers if they do not react to them

Question 5

objectives

Answer 5

Long-run and short-run performance targets a retailer hopes to attain

Question 6

organizational mission

Answer 6

A retailer’s commitment to a type of business and to a distinctive role in the marketplace

Question 7

sole proprietorship

Answer 7

Unincorporated retail firm owned by one person

Question 8

partnership

Answer 8

Unincorporated retail firm owned by 2 or more persons, each with a financial interest

Question 9

corporation

Answer 9

A retail firm that is formally incorporated under state law; it is a legal entity apart from its officers

Question 10

goods/service categories

Answer 10

Durable goods stores
- Automotive group
- Furniture and appliances group
- Lumber, building, and hardware group
- Jewelry stores

Nondurable goods stores
- Apparel group
- Food group
- General merchandise group
- Gasoline service stations

Service establishments (personal)
- Laundry and dry cleaning
- Beauty/barber shops
- Funeral services
- Health-care services

Service establishments (amusement)
- Movie theaters
- Bowling alleys
- Dance halls
- Golf courses

Service establishments (repair)
- Automobile repair
- Car washes
- Consumer electronics repair
- Appliance repairs

Service establishments (hotel)
- Hotels
- Motels
- Trailer parks
- Camps

Question 11

image

Answer 11

Represents how a given retailer is perceived by consumers and others

Question 12

positioning

Answer 12

How consumers and others view the retailer in the way it wants to be perceived

Question 13

mass merchandising

Answer 13

A positioning approach where retailers offer a discount or value-oriented image, a wide or deep merchandising selection, and large store facilities
(eg. costco)

Question 14

niche retailing

Answer 14

When retailers identify specific customer segments and deploy unique strategies to address the desires of those segments rather than the mass market

Question 15

bifurcated retailing

Answer 15

Retailing split into 2 sections; mass marketing and niche marketing

Question 16

target market

Answer 16

The customer group sought by a retailer

Question 17

mass marketing

Answer 17

• Selling goods and services to a broad spectrum of consumers
• Eg. conventional supermarkets, drugstore retailers

Question 18

concentrated marketing

Answer 18

• A marketing approach that series in on one specific group
• Eg. a small upscale men’s shoe store

Question 19

differentiated marketing

Answer 19

Aiming 2 or more distinct consumer groups with different retailing approaches for each group

Question 20

competitive advantages

Answer 20

The distinct competencies of a retailer relative to competitors

Question 21

controllable variables

Answer 21

• Aspects of a business that the retailer can directly affect
• Eg. store location, managing business, merchandise management and pricing
• Communicating with customers

Question 22

uncontrollable variables

Answer 22

• Variables to which the retailer must adapt
• Eg. Consumers, competition, technology, economic conditions

Question 24

tactics

Answer 24

Short-run decisions are decisions made and enacted for each controllable part of the retail strategy

Question 25

control

Answer 25

A phase in which a semiannual or annual review of the company takes place (retail audit = the systematic process for analyzing the performance of a retailer)

Question 26

feedback

Answer 26

Signals or cues about the success of a retail strategy