Chap 15** Flashcards
When did discount stores (Target, Walmart) show up in the market?
1950s
What is the hypothesis that each new type of retailer gains a competitive foothold by offering lower prices than current suppliers charge, the result of reducing or eliminating services?
Wheel of retailing
What is the basis of developing retail strategy?
- Selecting target market
- Developing retailing mix to satisfy the chosen market
What are things to consider in selecting a target market?
- size of market
- profit potential of the market
- level of competition
- Demo, psycho and geographic factors
What are things to consider when developing merchandise mix?
- Needs and preferences
- Competitive environment
- Overall profitability of each product line and category
What does SKU stand for? (offering within a product line)
stock-keeping unit
What are nonrefundable fees grocery retailers receive from manufacturers to secure shelf space for new products?
slotting allowances
Things to consider for developing customer service
- attracting and retaining target customers to increase sales and profits
- services that retailers provide
.comp coffee, restrooms, child care
Price strategy?
- prices reflect a retailers marketing objectives and policies
What is a markup?
amount a retailer adds to the cost of a product to determine its selling price
What is a markdown?
amount by which a retailer reduces the original selling price of a product
Depend on what factors is location strategy developed?
- type of merchandise
- retailers financial resources
- characteristics of the target market
- site availability
Promotional Strategy - things to remember
- sales people play important role with: selling up and suggestion selling
- communicating sales, new products
A combination of physical characteristics and amenities that contribute to a store’s image is called?
Atmospherics
- includes exterior and interior decor
A convenience retailer focuses marketing on what?
- accessible locations
- extended store hours
- rapid checkout services
- adequate parking facilities
What is a store called that handles only part of a single product line?
Specialty store
A retailer that offers a large assortment of products within on product line or a few related lines is called?
limited line retailer
What is a category killer?
retailer that offers huge selections and low prices in single product lines.
- Bass Proshop
- Barnes and Noble
- ToysRUs
A series of limited line and specialty stores under one roof is called a ______ ?
Department store
Warehouse club?
Costco, Sams Club, BJs
*The concept of the wheel or retailing attempts to explain:
the patterns of change in the life of retailing. ?
*A lifestyle center is a type of planned shopping center that:
offers a combination of shopping, live entertainment, movie theatres, restaurants, decorative fountains and much more in an attractive outdoor enivornment
*Which of the following is an example of a specialty store?
A men’s shoe store
What is selling up vs suggestion selling?
Pushing a product that is more expensive then the one the customer is looking at.
