Retail Management Exam Notes

World of sell retailing the set of business activities that adds value to the harvest-festivals and serve sold to consumers for their personal pulmonary tuberculosis or family use * Retailer a business that sells produces and/or run to consumers for their personal or family use * Supply Chain set of firms that puff and delicatessen food for thoughtver goods and services to consumers * Wholesalers engage in buying, taking title to, lots storing, and physically handling goods in large quantities and then reselling the goods to retail merchants and other businesses * upright piano Integration that a form performs more than one set of activities in the carry on, as occurs when a retailer engages in wholesaling activities by operating its make distribution centers to supply its stocks *Backward Integration when a retailer performs some(a) wholesaling and manufacturing activities, much(prenominal) as operating warehouses or designing private-label swop wherefore are retai lers needed? 1. Provide an mix of merchandises and services 2. Breaking quite a little 3. Holding inventory 4. Providing services Corporate Social Responsibility (CSR) an shaping voluntarily taking responsibility for the impact of its activities on its employees, customers, community and the purlieu * Intratype Competition opposition between same type of retailers * Intertype Competition competition between retailers that sell similar ware using different types of inserts, such as snub and department stores *Scrambled Merchandising When retailers mountain pass deal not typically associated with their type of store * Retail Strategy how the retailer plans to focus its resources to accomplish its objectives 1. Target market, or markets, toward which the retailer will send out its efforts 2. The nature of the merchandise and services the retailer will come toer to pay the needs of the target market 3. How will the retailer will material body a long-term advantage over i ts competitors * Ethics principles governing individuals and companies that spend a penny appropriate behavior and indicate what is right or wrong Ch. 2 Types of Retailers Variety number of merchandise bur differ in the modification and concoction of merchandised offered- Breadth of Merchandise * Assortment number of different circumstances offered in a merchandise category- Depth of Merchandise* Stock-Keeping Unit(SKU) each different item of merchandise * Conventional Supermarket large self-service retail food store pass groceries, meat, and produce, as wells as nonfood items, such as wellness and beauty aids and general merchandise- stock about 30000 SKUs * expressage Assortment Supermarkets or Extreme-Value Food Retailers stock about 200 SKUs * Power Perimeter fresh-merchandise along the outer walls of a supermarket, that include dairy, meat, floral, produce, deli and coffee bar * Fresh Supermarkets smaller and more convenient than a traditional supermarket and have less spa ce devoted to packaged goods * handsome Trade practice of purchasing from factories that pay campaigners a living wage, and offer other benefits like onsite medical treatment * Locavore Movement focuses on trim carbon footprint caused by transportation of food throughout the realness * Supercenters large 185000 sq ft that combine a supermarket with a full-line discount store Ex.Wal-Mart * Hypermarkets 100000 to 300000 sq ft combine food (60 to 70%) and general merchandise (30 to 40%) * Warehouse Clubs retailers that offer limited and irregular assortment of food and general merchandise with little service at deplorablely prices for last consumers and small businesses * Convenience broths provide a limited change and assortment of merchandise at a convenient location in 3000 to 5000 sq ft stores with speedy checkout * Department Stores retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for di splaying merchandise * Full-Line price reducing Stores retailers that offer a broad variety of merchandise, limited service and low prices Ex.Wal-Mart, Target, Kmart * Specialty Stores concentrate on a limited number of praiseful merchandise categories and provide a high level of service Ex. capital of Seychelles Secret * Drugstores concentrate on health and personal grooming merchandise * Category Specialists big-box stores that offer a barrow but deep assortment of merchandise Ex. Bass Pro Shops * Category Killers offering complete assortment, using their category dominance and buying power * Extreme- Value Retailers small discount stores that offer a limited merchandise assortment at low prices Ex. Dollar Tree * Off-Price Retailers or Closeout Retailers offer an inconsistent assortment of spot name merchandise at a significant discount off the manufacturers suggested retail price(MSRP) Ex. T. J.Maxx * Closeouts end-of-season merchandise that will not come back the undermentio ned season * Irregulars merchandise that has minor mistakes in construction * Outlet Stores off-price retailers owned by manufacturers or retailers * Factory Outlets own by manufacturers Ex. Coach * Retail Chain company that operates multiple retail units under common possession and usually has centralized decision making for defining and implementing its strategy * Franchising contractual agreement between a franchisor and a franchisee that allow the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor Ch. 3 Multichannel Retailing Multichannel Retailers retailers that sell merchandise or services through more than one channel * Retail fetch the way a retailer sells and delivers merchandise and services to its customers* Internet Retailing, Online Retailing, electronic Retailing or E-Tailing a retail channel in which the offering of products and services for sale is communicated to customers over the internet * Catalog Channel a nonstore retail channel in which the retail offering is communicated to customers through a catalog mailed to customers * Direct Selling a retail channel in which salespeople interact with customers face-to-face in a convenient location, each at the customers home or at work * Multilevel System independent businesspeople serve as accomplish distributors, recruiting other people to become distributors in their network * Pyramid organization develops when the firm and its computer program are designed to sell merchandise and services to other distributors rather than to end users * Television Home Shopping a retail channel in which customers watch a television program demonstrates merchandise and then place orders for that merchandise, usually by telephone, via the internet, or via the TV remote* Infomercials 30 to 60 minutes that mix entertainment with product demonstrations and then solicits orders placed by telephone * Direct-Response Advertising 1 to 2 minute advertisements on TV and radio that describe products and provide an chance for consumers to order them * Automated Retailing a retail channel in which merchandise or services are stores in a appliance and dispensed to customers when they deposit cash or use a trust card * Vending Machines automated retailing machines, placed at convenient, high-traffic locations * Benefits of Store Channel 1. Touching and Feeling Products 2. Personal Service 3. Risk reduction 4. Immediate Gratification 5. Entertainment and social interaction 6. Browsing 7. bullion Payment * Benefits of Cataloging 1. precaution 2. Convenience 3.Ease of use * Benefits of Internet Shopping 1. Safety 2. Convenience 3. Broad and deep assortments 4. Extensive and timely information 5. Personalization * Risks in Electronic Shopping 1. Security of credit card transactions on the internet 2. Privacy violations * Disintermediation when a manufacturer sells directly to consumers and bypassing retailers * Channel Migration consumers stas h away information about products on their channel and then buying the product from a competitor Ch. 4 Customer buying Behavior * Buying Process steps consumers go through when buying a product or services, begins when customers recognize an unsatisfied need *Utilitarian Needs obtain to accomplish a specific task * Hedonic Needs shop for pleasure entertainment, emotional and recreational experiences * Cross-Shopping buying both premium and cheap merchandise or patronizing both expensive, status-oriented retailers and price-oriented retailers * Internal Sources information in customers memory names, images, past experiences * External Sources info provided by ads and other people * Every day-low-pricing policy assure customers that that wont find an item at a lower price at a different store the next time they shop for it * Multiattribute strength Model based on the notion that customers see a retailer, a product, or a channel as a collection of attributes or characteristics