RMG 200 Flashcards
midterm study
chapter 1
WHAT IS RETAIL
Definiton ( retail + retailer), biggest challenge
WHAT IS RETAIL?
*Definition - set of business activities that adds value to the products and services sold to consumers for their personal or family use
( over 500 billion dollar industry in canada)
*
WHAT IS A RETAILER?
*Business that sells products and/or services to consumers for personal or family use
Does not have to be sold in a physical store
Does not have to be a product *
RETAILERS BIGGEST CHALLENGE
To have the** right merchandise **at the right price at the right time and in the **right quanitites **
chapter 1
RETAILERS ROLE IN A DISTRUBTION CHANNEL
definitions + what they do
Definition - *set of firms that facilitates the movement of products from the point of production to the point of sale to the ultimate consumer *
- Provides markets for producers to sell their merchandise and are also the final business in a distribution challen that links manufacturers to consumers
chapter 1
FUNCTIONS OF A RETAILER
Retailers provide important information that increase the value of the products and services they sell to consumers
(Facilitate the distribution of those products and services for those who prodive them)
- Provding an assortment of products and services
- Breaking bulk
- Holding inventory
- Providing services and services
chapter 1
GLOBAL RETAILERS
summary + companies
Average revuene for foreign operations for the big ten is 25.8 percent of overal income
Worldwide retail revenue 4.7 trillion, the ten largest companies represent 32.2 percent of share in the world market
( Walmart, amazon, canadian tire)
chapter 1
RETAIL MANGEMENT PROCESS
Understanding, Competiors Customers, Retailers
UNDERSTANDING
Retail mangers need to understand their environment, customers and competition before they develop and implement strategies
COMPITETORS
Primary compitietors are those with the same format
- Intratype competition (loblaws..sobeys)
- Intertype competition (amazon…walmart)
- Scrambled merchandising ( joe fresh jewlery at shoppers)
CUSTOMERS
Second factor in micro environment is cumsters, needs change at an ever increasing rate
REATILERS
Respond to broad demographic and lifestyle trends in out society, as the growth in the elderly and minority segments of canadian population and increasing importance og shopping convienves to the rising of two income families
chapter 1
RETAIL STRATEGIES
summary + key strategic analysis
How the firms plans to focus uts resources to accomplish its objectives
The target market ot markets towards which the retailer will direct its efforts
The nature of the merchandise andor service the retailer will offer to the safety needs of the target market
How the retailer will build a long term strategic compititve advantage over compeitiors
KEY STRATEGIES
- Market staregy
- Finical objectives
- Location strategy
- Organzational design
- Human resource and
- management strategies
- Retail information and supply
- chain management systems
- Customer relationship management
chapter 1
IMPLEMENTING RETAIL STRATEGY
Management develops a retail mix that is focused to the needs of the target market
Retail mix includes the decision variables use to influences a customers purchase
Elements in retail mix include types of merchandise and services, pricing, the communication program and store convenience + hr programs
chapter 1
7p’s of marketing mix
Product- types of merchandising / services offered (intenisty, assortment)
Place- length of channels, hybrid channel approaches, types of distribution channels (movement, flow of goods through the distribution channels)
Physical- theme of the store, emotional attachment customer derviers from the store, laypur, design a measure of what is like to shop the store (atmosphere, climate, the vibe of the store)
Price- value perception pricing strategies (quailitey value price)
People- product knowledge and policies getting customers in and out effecientyly (knowledgeable employees, well trained)
Promotion - public relations, sales promotion, advertsing, direct marketing, personal selling (promotional communication mix)
Process- ensure consistent behaviors and performance focus on internal process reducing variability (standards, processing systems workflow and protocols)
chapter 1
ETHICS AND LEGAL CONSIDERATION
summary + ethics tests
WHAT ARE ETHICS
Ethics are the principles governing the behaviour of individuals and companies to establish appropriate behaviour and indicate what is wrong
TESTS OF ETHICS
**The publicity test **
Would i want to see this action that im about to do on the front page of vogue
**The moral test **
What would the person i admire the most do in this situation
The admired observer test
Would the person i admire the most be proud of me in the situation
**Transparency test **
Could i give a clear reason for my action being honest and transparent
**
The person in the mirror test **
Will i be able to look at myself in the mirror and respect the person i see
**The golden rule test **
Would i like to be on the receiving end of this action and its potential consequences
chapter 1
what is non store retailing
sold through the interent, avon, watching netflix, sold through catouluges
chapter 1
vertical intergration
when the firm performs more than one set of activites in the channel
chapter 1
backward intergration
when retailer perfoms some distrubtion and manufacturing activites (opperating ware house or designer labels)
chapter 2
DIVERISTY OF RETAIL FROMATS
Buying local, going green, new age of marketing,
Retail is changing evolving and adapting ocnstantly
Many stores sell many retail categories + online
summary
INDUSTRY COMPETITION
Small number of large retailers controlling retail categories
Walmart canadian tire, shoppers drugmart, holt renfrew, hudsons bay and weston group
chapter 2
4 RETAIL CHARCHTERISTICS
- types of merchanidse/service offered
- breadth and depth of merchandise offered
- level of customer services
- price of merchanidse
chapter 2
breadth vs depth
summarys + cost of offering
Depth - number of items within each product line
Breadth - number of different product lines
**COST OF OFFERING BREADTH AND DEPTH OF MERCHANIDSE AND SERVICE
**
Stocking a deep assortment is appealing to customers but costly for retailers
When a retailer offers many SKU inventory investment increases because the retailers must hsve backup stock for each SKU
Services attract customers to the retailer but they are costly
TYPES OF RETAILERS
General merchandise
Includes discount stores, speciality stores, category specialists, department stores, drug stores, off price, retailers and value retailers
Food retailers
Includes supermarkets, big box food, retailers convenience stores
Non-store formats
Includes electronics retailers, catalouge, direct retailers, direct selling, tv home shopping, vending machines
Services retailing
Includes airlines, pet grooming, diet centres
