CH03 Strategic Planning Flashcards
retail strategy
- 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
situation analysis
- 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?
opportunities
Marketplace openings that exist because other retailers have not yet capitalized on them
threats
Environmental and marketplace factors that can adversely affect retailers if they do not react to them
objectives
Long-run and short-run performance targets a retailer hopes to attain
organizational mission
A retailer’s commitment to a type of business and to a distinctive role in the marketplace
sole proprietorship
Unincorporated retail firm owned by one person
partnership
Unincorporated retail firm owned by 2 or more persons, each with a financial interest
corporation
A retail firm that is formally incorporated under state law; it is a legal entity apart from its officers
goods/service categories
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
image
Represents how a given retailer is perceived by consumers and others
positioning
How consumers and others view the retailer in the way it wants to be perceived
mass merchandising
A positioning approach where retailers offer a discount or value-oriented image, a wide or deep merchandising selection, and large store facilities
(eg. costco)
niche retailing
When retailers identify specific customer segments and deploy unique strategies to address the desires of those segments rather than the mass market
bifurcated retailing
Retailing split into 2 sections; mass marketing and niche marketing
target market
The customer group sought by a retailer
mass marketing
- Selling goods and services to a broad spectrum of consumers
- Eg. conventional supermarkets, drugstore retailers
concentrated marketing
- A marketing approach that series in on one specific group
- Eg. a small upscale men’s shoe store
differentiated marketing
Aiming 2 or more distinct consumer groups with different retailing approaches for each group
competitive advantages
The distinct competencies of a retailer relative to competitors
controllable variables
- Aspects of a business that the retailer can directly affect
- Eg. store location, managing business, merchandise management and pricing
- Communicating with customers
uncontrollable variables
- Variables to which the retailer must adapt
- Eg. Consumers, competition, technology, economic conditions
tactics
Short-run decisions are decisions made and enacted for each controllable part of the retail strategy
control
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)
feedback
Signals or cues about the success of a retail strategy
