Total logistics cost
Expenses associated with transportation, warehousing, order processing
the ability of logistics management to satisfy the customer in terms of time, dependability, communication and convenience
What are the three ways to classify retail outlets?
Form of ownership, level of service, and merchandise line
depth of product line vs breadth of product line
depth = carry a large number of each product displayed on shelf
Breadth = large assortment of different products
Part of breadth of product line
Offering a lot of unrelated product lines
form of scrambled merchandising
Has everything you need under one roof. usually cheep
Retail positioning matrix
Y axis breadth of product line x axis value added. Compares different retail outlets
Includes the activities related to managing the store and the merchandise in the store.
Includes retail pricing, store location, retail communication, and merchandise
Breakage or theft, becomes an issue for retailers trying to maintain low prices.
selling brand-name merchandise at lower than regular prices.
ex. tj max and ross
These retail outlets by from manufacturers with excess inventory.
three types of variations of off-price retailing
ex. sams or costco
ex. gap factory store
Single price retailers
ex. dollar store
coupons, samples, and displays
Approach to managing merchandise
Assigns a manager to select products that consumers in a market segment might view as substitutes for each other, with the objective of sales and profits.
retail life cycle
proccess of growth and decline retail outlets experience
sell products through different channels, such as catalogs, television home shopping, and online retailing
combining different promotional elements
promotional elements are
1)inform buyers about product benefits
2) persuade them to try it
3) remind them later about the elements