Week 1-Retailing

Question 1

What is retailing?

Answer 1

Is the set of business activities that adds value to products and services sold to consumers for their personal or family use. Is a business that sells products and/or services to consumers for their personal or family use.

Question 2

The retailer’s role in a supply chain

Answer 2

Supply Chain is a set of firms that make and deliver goods and services to consumers.

Question 3

Retailers create value

Answer 3

undertaken by channel members to provide benefits to customers, they also increase the cost of products and services.
Providing an assortment of products and services: offering an assortment enables customers to choose from a wider selection of products, brands, sizes, and prices at one location.
Breaking bulk: is important to both manufacturers and consumers. It allows manufacturers to produce and ship merchandise efficiently and in large quantities at one time, but enables consumers purchase merchandise they want in smaller quantities.
Holding inventory: products will be available when they need more.
Providing services: retailers provide services that make it easier for customers to buy and use products.

Question 4

Costs of Channel Activities

Answer 4

retailers increase the benefits that consumers receive from their products and services.

Question 5

Example of a supply chain

Answer 5

Manufacturer, wholesaler, retailers, and consumer.

Question 6

Role in Development Economies

Answer 6

when consumers spend more money buying goods and services from retailers, a country’s economy flourishes. However, if consumers feel uncertain about their financial future and decide to refrain, then the economy slows down.

Question 7

Role in Developing Economies-The Bottom of the Pyramid

Answer 7

serving the needs of people living at the lowest end of the income distribution. Serving these people also provides an important social benefit: reducing worldwide poverty.

Question 8

Role in Society

Answer 8

some retailers are realizing that their responsibility includes considering the needs and objectives of all of its STAKEHOLDER.

Question 9

Stakeholders

Answer 9

which are the broad set of people who might be affected by a firm’s actions, from current and prospective customers, etc.

Question 10

Corporate Social Responsibility (CSR)

Answer 10

involves an organization voluntarily engaging in business practices that meet or exceed the ethical and legal expectations of its stakeholders.

Question 11

Conscious marketing

Answer 11

sense of purpose for the firm higher than simply making a profits by selling products and services
Encompasses four overriding principles:
1. Recognition of the retailing firms greater purpose
2. Consideration of stakeholders and their interdependence
3. The presence of conscious leadership, creating a corporate culture
4. The understanding that decisions are ethically based: ethics is concerned with distinguishing between right and wrong actions and decisions.

Question 12

Evolution of the Retail Industry

Answer 12

the retail industry is dominated by large, national, and even international retail firms. The development of information systems is one of the forces facilitating the growth of large retail firms. Before the availability of morderán information systems, it was difficult for retailers to lower costs through scale economies, and larger retailers had limited advantages over small local or regional retailers.

Question 13

Role of information system

Answer 13

Retailers convert these raw data into information that managers can use to make better decisions. Many retailers use customer data to identify their best customers and target customized promotions to them.

Question 14

Management Opportunities

Answer 14

retailers are hiring and promoting the best and brightest. Our managers need to be comfortable with new technologies, information and supply chain management systems, and international business as well as managing a diverse workforce and buying merchandise.

Question 15

Entrepreneurial Opportunities

Answer 15

retailing also provides opportunities for people who wish to start their own business.

Question 16

Understanding the World of Retailing-Section 1

Answer 16

retail managers need to know the environment in which they operate before they can develop and implement effective strategies.

Question 17

1. The macro environment

Answer 17

impacts include technological, social, and ethical/legal/political factors

Question 18

2. The micro environment

Answer 18

focus specifically on its competitors and customers
Competitors: competition between the same type of retailers is called INTRATYPE COMPETITION. When retailers offer merchandise not typically associated with their type of stores, the result is SCRAMBLED MERCHANDISING. And this increases INTERTYPE COMPETITION, or competition among retailers that sell similar merchandise using different types of retail outlets.

Question 19

Customers

Answer 19

retailers must understand why customers shop, how they select a store, and how they select among that store’s merchandise.

Question 20

Retail Strategy identifies

Answer 20

1. The target market, or markets, towards which the retailers will direct its efforts.
2. The nature of the merchandise and services the retailers will offer to sastify the need of the target market
3. How the retailer will develop unique assets that enable it to achieve long term advantage over its competitors.

Question 21

Strategic Decision Areas

Answer 21

the key strategic decisions a retailer makes are defining its target market and its financial objectives. Strategic assets are location, Human Resources, information and supply chain systems, supply chain organization, and customer loyalty.

Question 22

The retail mix

Answer 22

is a set of decisions retailers make to satisfy customer needs and influence their purchase decisions. Including the types of merchandise and services offered, merchandise pricing, advertising and promotional programs, store design, merchandise display, assistance to customers provided by salespeople, and convenience of the store’s location

Question 23

Section 3

Answer 23

focuses on implementation decisions made by buyers and section 4 focuses on decisions made by store managers

Question 24

Section 4

Answer 24

Managers in the merchandise management area decide how much and what types of merchandise to buy, what vendors to use and how to interact with them, the retail prices to set, and how to advertise and promote merchandise. Must decide how to recruit, select and motivate sales associates, where and how merchandise will be displayed, and the nature of services to provide for customers.