Chapter 3 Flashcards
Situation analysis
a candid evaluation of the opportunities and threats facing a prospective or existing retailer
opportunities
marketplace openings that exist because other retailers have not yet capitalized on them
threats
environmental and marketplace factors that can adversely affect retailers
ex: Netflix is a threat to movie theater business
organizational mission
retailer’s commitment to a type of business and to a distinctive role in the marketplace
sole proprietorship
an unincorporated retail firm owned by one person
partnership
an unincorporated retail firm owned by two or more persons, each with a financial interest. Partners share benefits, profits, risks, and costs
corporation
a retail firm that is formally incorporated under state law
It may be subject to double taxation (company earnings and stockholder dividends), faces more government rules, can require a complex process when established, may be viewed as impersonal, and may separate ownership from management
goods/service category
the line of business
ex: automotive group, food group, bowling alleys
image
how a given retailer is perceived by consumers and others
positioning
a retailer devises its strategy in a way that projects an image relative to its retail category and its competitors and that elicits a positive consumer response
mass merchandising
a positioning approach whereby retailers offer a discount or value-oriented image, a wide and/or deep merchandise selection, and large store facilities
appeal to a broad customer market and attract a lot of customer traffic
ex: Walmart, Dick’s Sporting Goods
niche retailing
retailers identify specific customer segments and deploy unique strategies
Niching creates a high level of loyalty and shields retailers from more conventional competitors
ex: Babies R Us
bifurcated retailing
Firms that are neither competitively priced nor particularly individualistic may have more difficulty competing in a world with both mass merchandising and niching
target market
the customer group sought by a retailer
mass marketing
selling goods and services to a broad spectrum of consumers
concentrated marketing
zeroing in on one specific group
differentiated marketing
aiming at two 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
the aspects of business the firm can directly affect
uncontrollable variables
the aspects of a business which the retailer must adapt to
control
retail audit
systematic process for analyzing the performance of a retailer
feedback
signals or cues to success or failure
ex: employee turnover
