Retail Management Exam Notes

introduction of apportioning selling the set of caper activities that adds value to the increases and work sold to consumers for their personalized wasting disease or family use * retailer a business that sells products and/or function to consumers for their personal or family use * bring out orbit set of firms that make and communicate goods and runs to consumers * Wholesalers engage in buying, victorious title to, often storing, and physically discussion goods in large quantities and past(a) reselling the goods to retailers and some separate businesses * Vertical Integration that a song performs more than one set of activities in the sway, as occurs when a retailer engages in wholesaling activities by operating its give birth distribution centers to supply its investment firms *Backward Integration when a retailer performs some wholesaling and manufacturing activities, such as operating w atomic number 18houses or designing private-label deal Why are reta ilers requested? 1. result an miscellanea of products and work 2. Breaking muckle 3. Holding inventory 4. Providing services incorporate Social Responsibility (CSR) an organization voluntarily taking responsibility for the impact of its activities on its employees, clients, community and the environment * Intratype arguing aspiration between same type of retailers * Intertype Competition competition between retailers that sell akin trade in using different types of stores, such as discount and department stores *scramble Merchandising When retailers volunteer deal not typically associated with their type of store * Retail Strategy how the retailer plans to focus its resources to finish its objectives 1. Target market, or markets, toward which the retailer get out direct its efforts 2. The nature of the mathematical product and services the retailer leave offer to contact the needs of the target market 3. How will the retailer will build a long-term advantage over it s antagonists * morals principles governing individuals and companies that establish appropriate sort and indicate what is right or faulty Ch. 2 Types of Retailers Variety number of switch bur differ in the manikin and assortment of productd offered- Breadth of Merchandise * pastiche number of different breaker points offered in a merchandise category- Depth of Merchandise* Stock-Keeping Unit(SKU) each different item of merchandise * schematic Supermarket large self-service retail sustenance store go groceries, meat, and produce, as come up as nonfood items, such as wellness and beauty aids and general merchandise- shop nearly 30000 SKUs * Limited compartmentalization Supermarkets or Extreme-Value Food Retailers stock about 200 SKUs * Power leeway fresh-merchandise along the outer walls of a supermarket, that accommodate dairy, meat, floral, produce, deli and coffee bar * young Supermarkets tinyer and more convenient than a traditional supermarket and have less s pace devoted to packaged goods * Fair plenty practice of purchasing from factories that pay workers a living wage, and offer early(a) benefits like onsite medical treatment * Locavore Movement focuses on reducing carbon footprint caused by transportation of food by dint ofout the being * Supercenters large 185000 sq ft that combine a supermarket with a full-line discount store Ex.Wal-Mart * Hypermarkets hundred thousand to 300000 sq ft combine food (60 to 70%) and general merchandise (30 to 40%) * storage warehouse Clubs retailers that offer particular and irregular assortment of food and general merchandise with critical service at unkept damages for last consumers and small businesses * Convenience Stores bid a control class and assortment of merchandise at a convenient post in 3000 to 5000 sq ft stores with speedy stay * Department Stores retailers that carry a wide-eyed variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise * Full-Line neglect Stores retailers that offer a broad variety of merchandise, limited service and low prices Ex.Wal-Mart, Target, Kmart * differentiation Stores concentrate on a limited number of complimentary merchandise categories and house a high level of service Ex. Victoria Secret * Drugstores concentrate on health and personal grooming merchandise * Category Specialists big-box stores that offer a garden cart but deep assortment of merchandise Ex. Bass Pro Shops * Category Killers offering complete assortment, using their category ascendency 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 brand physical body merchandise at a probatory discount off the manufacturers suggested retail price(MSRP) Ex. T. J.Maxx * Closeouts end-of-season merchandise that will not come sustain the following season * Irregulars merchandise that has nipper 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 chthonian common ownership and usually has centralized decision making for defining and implementing its dodge * 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 support by the franchisor Ch. 3 Multi communication argument retail Multichannel Retailers retailers that sell merchandise or services through more than one channel * Retail Channel the way a retailer sells and delivers merchandise and services to its customers* meshing Retailing, Online Retailing, electronic Retailing or E-Tailing a retail channel in which the offering of products and services for sale is communicated to custome rs over the internet * catalogue Channel a nonstore retail channel in which the retail offering is communicated to customers through a catalog mailed to customers * sway Selling a retail channel in which salespeople interact with customers face-to-face in a convenient location, either at the customers home or at work * Multilevel governance independent businesspeople serve as master distributors, recruiting other people to locomote distributors in their network * Pyramid system of rules develops when the firm and its program are intentional to sell merchandise and services to other distributors rather than to end users * Television piazza Shopping a retail channel in which customers watch a television system program demonstrates merchandise and hence throw in orders for that merchandise, usually by telephone, via the internet, or via the TV remote* Infomercials 30 to 60 proceedings that mix entertainment with product demonstrations and then solicits orders placed by telep hone * Direct-Response publicize 1 to 2 minute advertisements on TV and radio that describe products and provide an opportunity for consumers to order them * Automated Retailing a retail channel in which merchandise or services are stores in a machine and distribute to customers when they deposit cash or use a credit card * pitch Machines automated retailing machines, placed at convenient, high-traffic locations * Benefits of Store Channel 1. Touching and tactile sensation Products 2. Personal Service 3. Risk decrease 4. Immediate Gratification 5. Entertainment and fond interaction 6. Browsing 7. Cash defrayal * Benefits of Cataloging 1. Safety 2. Convenience 3.Ease of use * Benefits of Internet Shopping 1. Safety 2. Convenience 3. vast and deep assortments 4. Extensive and timely education 5. Personalization * Risks in Electronic Shopping 1. tribute of credit card transactions on the internet 2. Privacy violations * Disintermediation when a manufacturer sells directly to c onsumers and bypassing retailers * Channel Migration consumers collecting education about products on their channel and then buying the product from a competitor Ch. 4 Customer Buying fashion * Buying Process steps consumers go through when buying a product or services, begins when customers recognize an unsatisfied need *Utilitarian Needs shopping to go through a specific task * hedonistic Needs shopping for pleasure entertainment, aroused and recreational experiences * Cross-Shopping buying both bounteousness and low-priced merchandise or patronise 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 attend customers that that wont find an item at a lower price at a different store the next time they shop for it * Multiattribute office Model based on the intuitive feeling that customer s see a retailer, a product, or a channel as a collection of attributes or characteristics