Chap 14 Flashcards
1
Q
Define retailing
A
Represents all the activities directly related to the sale of goods and services to the ultimate consumer for personal, non business use.
2
Q
What does retailing enhanced?
A
The quality of our daily lives in countless ways
3
Q
Who are we doing business with when we shop for groceries, hair care, clothes, books, or other products and services?
A
Retailers
4
Q
What does the goods and services provided by retailers mirror?
A
The diverse needs, wants, and trends of modern society
5
Q
What sector does the US economy depends heavily on?
A
Retail sector
6
Q
How can retail establishment be classified?
A
In several ways: such as type of ownership, level of service, product assortment, and price.
7
Q
What are the different type of retailers
A
- département store
- specialty store
- supermarket
- drugstore
- convenience store
- full-line discount store
- specialty discount store
- warehouse club
- off-price retailer
- restaurant
8
Q
What forms does the retail opener ship takes?
A
- independently owned
- part of a chain
- franchise outlet
9
Q
How many form can retail ownership take?
A
1-3 forms which are ( independently owned, part of a chain, franchise outlet)
10
Q
Independent retailer
A
Is owned by a person or group and is not operated as part of a larger network.
- single store within a local community (around the world)
11
Q
Chain store
A
Is a group of retailers (one or more brand names) opened and operated by a single organization.
Ex: The Gap and Starbucks
12
Q
Franchise
A
Is a retail business where the operator is granted a license to operate and sell a product under the brand name of a larger supporting organizational structure.
Ex: Subway
13
Q
Franchiser
A
Originates the trade name, product, methods of operation, and so on.
14
Q
Franchisee
A
Pays the franchisor the right to use its name, product, and business methods, and take advantages of the franchisor’s brand equity and operational expertise.
15
Q
What are the most successful franchises?
A
Increasingly services retailers
16
Q
What service level does retailers provide?
A
From full service to self-service
17
Q
Retailers like exclusive clothing store offers___
A
Very high or even customized service level.
Provide alteration, delivery, return policies, gift-wrap…
18
Q
What is the level of service retailers (like factory outlets and warehouse) offers___
A
Virtually no service
19
Q
What is at the low end of the service continuum?
A
Retailers may take the form of a product kiosk or vending machine
20
Q
What is the other way retailers can be categorized?
A
By the width and depth of their product lines
21
Q
Width refers___
A
To the assortment of products offered
22
Q
Depth refers___
A
To the number of different brands offered within each assortment
23
Q
Does specialty store have the thinnest product assortments? True or False.
A
True - usually carrying single or narrow product lines that are considerably deep.
24
Q
Gross Margin
A
How much the retailer makes as a % of sales after the cost of the goods sold is subtracted.
25
How often can price change?
Day to day or even minute to minute
26
Department stores
A store housing several departments under one roof
ex: JCPenny and Macy's
- each department acts as a separate profit center
27
Specialty stores
A retail store specializing in a given type of merchandise
- carry a deeper but narrower assortment of merchandise within a single category of interest.
- salesclerks knowledgeable
ex: the children place, foot locker
28
Supermarkets
A large, departmentalized, self-service retailer that specialized in food in some nonfood items
- Supermarkets being replaced by superstores
29
Drugstores
A retail store that stocks pharmacy-related products and services as its main draw
- also carry cosmetics, health and beauty aids, cards, toys, and more.
- added services: 24H drive-through windows, low-cost health clinics
30
Convenience store
A miniature supermarket carrying only a limited line of high-turnover convenience goods
- Location near residential areas
31
Discount stores
A retailer that competes on the basis of low prices, high turnover, and high volume
- classified in several major categories
32
Full-line discount stores
A discount store that carries a vast depth and breadth of product within a single product category
- ex: Walmart -> limited service and carry wast known branded goods (toys, clothing, garden..)
33
Super-centers
a large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise (pharmacies, dry cleaning, optical shops..)
- ex: Target
34
Specialty discount stores
A retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover
- ex: Foot Locker
35
Category killer
A large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category
-ex: Best Buy (dominates its narrow merchandise segment)
36
warehouse club
A large, no-frills retailer that sells bulk quantities of merchandise to customers at volume discount prices in exchange for a periodic membership fee
- ex: Costco, Sam's Club
37
off-price retailers
A retailer that sells a price 25% or more below traditional department store prices because it pays cash for its stock and usually doesn't ask for return privileges
- ex: Ross, Marshall's
- they sell manufacturer overrun, irregular merchandise, overstock that they purchase at or below cost
38
Factory outlet
An off-price retailer is owned and operated by a manufacturer
- carries one line of merchandise -> its own
39
Used goods retailers
a retailer whereby items purchased from one of the other types of retailers are resold to different customers
- turns customers into suppliers
- can be either brick-and-mortar locations (Goodwill) or electronics marketplaces (ThredUP)
40
restaurants
a retailer that provides both tangible products - food and drink- and valuables services - food preparation and presentation.
- most resto are specialty retailers -> they concentrate their menu offering on a distinctive type of cuisine
- ex: Olive Garden Italian restaurant
41
each operating model can be summarized as what?
a set of guiding principles
42
Nonstore retailing is____
Enables customers to shop without visit a physical store location
43
What convenience does non-store retailing offers?
Adds a level of convenience for customers who wish to shop from their current locations
44
What are the major forms of non-store retailing?
- automatic vending
- direct retailing
- direct marketing
- internet retailing (or e-tailing)
45
Automatic vending
Entails the use of machine to offer goods for sale
Ex: soft drink, candy, or snack vending machines
46
What type of product does the vending machine sells today?
- dvd
- digital cameras
- perfumes
- ice cream
47
What type of audience did automatic vending allowed marketers to tap into?
Customers seeking luxury items on the go
48
What is SST?
Self-service technologies
49
Self-service technologies (SST)___
Comprise a form of automatic vending where services are the primary focus
Ex: pay at the pump gas station, automatic teller machines, movie ticket kiosks
50
Direct retailing
Representatives sells products door-to-door, in office, or at in-home sales parties.
Ex: Mary Kay, Avon
51
What does many direct seller host?
Digital parties on social media.
| -people can shop from home
52
Direct Marketing (DM)
Includes techniques used to elicit purchase from consumer’s homes, offices, and other convenient locations
53
What are some common Dm techniques?
- telemarketing
- direct mail
- mail-order catalogs
54
What are the different direct marketing forms?
- telemarketing
- direct mail
- microtargeting
- shop-at-home television networks
- online retailing (or e-tailing)
- sharing economy
55
Telemarketing is___
A form of DM that employés outbound and inbound telephone contacts to sell directly to consumers
56
Direct mail
- can be efficient or inefficient, it all depends on the quality of the mailing list and the effectiveness of the mailing piece.
- delivery of advertising or marketing materials to recipient of postal or electronic mail
57
Micro-targeting is based on what?
Data analytics of census data, lifestyles patterns, financial information, and past purchase and credit history allows direct mailers to pick out those most likely to buy their products
** data goal is to isolate potential customers with great precision
58
Is micro-targeting a good told for online retailing? True or False
True
59
Shop-at-home television networks is___
Produce television shows that display merchandise to home viewers.
- can phone in their orders directly on toll-free line and shop with their credit cards.
60
Online retailing (or e-tailing)
Enables a customers to shop over the internet and have items delivered directly to her door
Ex: Amazon
61
Has sharing economy emerged as a more efficient exchange of resources? True or False
True
62
What are sharing economy?
The way connected consumers exchange goods and services with each other through a digital marketplace
Ex: Craigslist
63
What is social shopping
Consumer use social media application as shopping platforms
64
How is retail marketing developed?
based on the goal established by stakeholders and the overall strategic plans developed by company leadership
65
what does strategic retailing goal focus on?
- total sales
- reducing COGS
- improving financial ratios (on assets and equity)
66
what are the tactical strategies that retailers use to obtain their goals?
- a sale
- updating decor
- launching a new advertising campaign
67
what is the 1st task in retail strategy?
define the target market
68
What is the process of a target market
- start: market segmentation
69
How are targets market in retailing defined?
- demographic
- geographic boundaries
- psychographics
70
retailing mix
A combination of the 6Ps (product, promotion, place, price, presentation, and personnel) to sell goods and services to the ultimate consumer
- so the 4Ps of marketing mix + presentation and personnel
71
product
- 1st element of the retailing mix
- other names: product assortment or merchandise mix
- a question of the width and depth of product assortment
72
promotion
- ads, publicity and sales promotion
- goal: position store/website in the customer mind
- opening are orchestrated
- a risk associated with promo: brand cannibalization
73
brand cannibalization
the reduction of sales for one brand as the result of the intro of a new product or promotion of a current product by another brand
74
what are the two reasons why brand cannibalization is dangerous for the retailer?
- 1st: the retailer incurs significant expense in executing the promotion itself
- 2nd: the promotion creates inaccurate sales forecasts for both the promoted and cannibalized product
75
place
- location is important
- location affect growth
-
76
destination store
A store that consumer purposely plan to visit prior to shopping
- a website can also be it
ex: Amazon -> product, Google -> research
77
price
- value based pricing another pricing strategy.
- value based pricing focuses on the value of the product to the consumer more than the cost of the product to the supplier
- a key element in a retail store
- higher price indicates the level of quality and helps reinforce the prestigious image of retailers (ex: Dior)
- discounters / off-price retailers offer a good value for the money (ex: target)
78
presentation
- helps determine the store's image and position the retail store in the consumer's mind
- ex: retailer that wants to position itself as upscale would use lavish presentation
79
atmosphere
the overall impression conveyed by a store's physical layout, decor, and surroundings
ex: relaxed feeling, luxury, friendly vs cold attitude
80
employee type and density
- employee general characteristics (ex: friendly, service oriented, knowledgable...)
- density: number of employees in the store based on the space available
81
merchandise type and density
- ex: Nordstrom carries the best brand names and displays them in a neat arrangement
- discounters / off-price retailers crowded into small spaces
82
fixture type and density
- elegant, trendy, glass ...
83
sound
- music pleasant, or not affect the store atmosphere (stay longer, buy more or not )
84
odors
- stimulate or detract from sales
| - good odors spend more
85
visual factors
- colors create a mood or focus attention
86
layout
the internal design and configuration of a store's fixtures and products
- use all the store space effectively
87
Market basket analysis
tech used to sift through the data collected by their point of purchase scanning equipment
ex: Walmart -> where to stock product for customer convenience
88
Personnel
- salespeople persuade shoppers to buy
| - trained in two ways: trading up and suggestion selling
89
what are the two ways salespeople are trained?
trading up and suggestion selling
90
trading up
persuading a customer to buy a higher-priced item than they originally intended to buy
91
suggestion selling
seeks to broaden customer's original purchase with related items
92
what is the most challenging element in the retail mix?
Providing great customer service
93
what are the 4 main areas of services distribution
- minimizing wait times
- managing service capacity
- improving service delivery
- establishing channel-wide network coherence
94
minimizing wait time
minimize time customer wait in line
95
managing service capacity
if don't have the capacity to meet demand -> turn down service or expand capacity
96
improving service delivery
different distribution channels
97
establishing channel-wide network coherence
some service firm find it better to standardize their service quality across regions to maintain brand image
98
ways to address retail product/service failures
- notify the customer in advance of stockout and give the reason
- return policies
- product recall
99
big data analytics
the process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior
100
beacons
a device that sends out connecting signals to customer smartphones & tablets in order to bring them into a retail store or improve their shopping experience
101
shopper marketing
a retailing trend that employs market data to best serve customers as they prepare to make a purchase
102
shopper analytics
used to dig deeply into customer's shopping attitudes, perceptions, emotions, and behaviors to change market offering
103
what does shopper marketing focus on?
1st: understanding how a brand's target consumer behave as a shopper in different channels
