Retail Marketing – Marketing 4250 – Donald Meyer – Exam 1 – Flashcards
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Retailing
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A set of business activities that adds value to the products & services sold to consumers for their personal of family use
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Retailer
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A business that sells products &/or services to consumers for personal or family use. Apart of the Place (Distribution) Channel.
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4 P's of Marketing
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Promotion, Place (Distribution), Price, & Product
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Supply Chain
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A set of firms that make & deliver a given set of goods & services to the ultimate consumer
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Distribution Channel
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Manufacturing -> Wholesaler -> Retailer -> Consumer
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Vertical Integration
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Firm performs more than one set of activities in the channel. EX. Retailer invests in wholesaling or manufacturing
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Backward Integration
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Retailer performs some distribution & manufacturing activities. EX. JCPenney sells Arizona Jeans (Private Label)
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Forward Integration
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Manufacturers undertake retailing activities EX. Ralph Lauren (New York Jones, Liz Claiborne) operate their own stores
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How Retailers Add Value
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Provide Assortment, Break Bulk, Hold Inventory, & Offer Services
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Provide Assortment
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Buy other products at the same time
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Break Bulk
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Buy a product in quantities customers want
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Hold Inventory
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But a product at a convenient place when you want it
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Offer Services
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See it before you buy; get credit; layaway
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Corporate Social Responsibility
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The voluntary actions taken by a company to address the ethical, social, & environmental impacts of its business operations, in addition to the concerns of its stakeholders
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U.S Distribution Channels
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Have the greatest retail density, greatest concentration on large retail firms, is large enough to operate their own warehouses, eliminating the need for wholesaling, & the combo of large store and large firms make for an effect system
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Strategic Decisions
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Made infrequently, long-term, Require significant investment, & not easily reversed EX. Store location, organizational design, management information systems, & customer service
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Retail Strategy
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Identify the target market, identify the product & service mix, & identify a long-term sustainable competitive advantage
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Decision Variables for Retailers
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Customer Service, Merchandise Assortment, Location (Very Important), Communication Mix, Pricing, & Store Design/Display
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Inventory Investment Cost
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A retailer must have backup stock for each SKU in addition to holding the inventory
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Expensive
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Physical Stores + Inventory + Service
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Competition from Discount Stores
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Efficient Distribution, Lower Costs, & Lower Prices
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Changing Consumption Patterns
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Time Pressure, Eating Out More, & Meal Solutions
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Conventional Supermarket Survival Plan
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Emphasize fresh perishables, provide a better in-store experience, offer more private label brands, & target health conscious & ethnic consumers
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Warehouse Clubs
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Offer a limited & irregular assortment of food & general merchandise with little service at low prices, use low costs locations, inexpensive store design, little customer service, & low inventory holding costs by carrying a limited assortment of fast selling items. 15% max markup
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Three Tiers of Department Stores
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First: Upscale, high fashion with exclusive designer merchandise & excellent customer service EX. Nordstrom, Neiman Marcus, Saks Second: Modestly priced merchandise with less customer service EX. Macy's Third:Value oriented caters to more price conscious customer EX. Sears, Kohl's, JCPenney
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Intangability
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Problems in evaluating service quality by the consumer (pre) & the provider (post)
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Simultaneous Production & Delivery
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Create & deliver at the same time, quality control
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Perishability
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Cannot save, store, or resell (airplane seat); Matching supply & demand is hard (Movie Matinee)
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Inconsistency of The Offering
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Performed by people so no two services are identical; Importance of HR management
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Retail Ownership
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Independent/Single store establishments, Corporate Retail Chains, & Franchises
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Multi-Channel Retailer
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A retailer that sells merchandise or service through more than one channel. By using a combination of channels, retailers can exploit the unique benefits provided by each channel.
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M-Commerce
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Selling & buying of products by means of wireless mobile devices
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Increase of Multiple Channels
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Customers want to interact in different ways, each channel offers a unique set of benefits for customers, increase "share of wallet", & increase sales & profitability
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Internet Channel
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Broader selection, more & better info to evaluate merchandise, personalization, & info for solving problems, not juts merchandise characteristics
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E-Commerse Gifts
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Saves time, effort in packing, & effort in delivery
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E-Commerce Services
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No shipping problems
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"Look & See"
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Satisfies consumer inquiry
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"Touch & Feel"
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When you need to handle, try on
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Conversion Rates
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Percent of consumers who buy the product after viewing it
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Market Segments
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Actionable, Identifiable, Substantial, & Reachable
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Actionable
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Semilar needs/seek similar benefits?
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Identifiable
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Determine segment size/find them?
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Substantial
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Large enough?
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Reachable
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Ways to market them?
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Geo Demographic Segmentation
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A marketer who knows your geography (available at the city block level), your demographics, & your lifestyle can predict with very high certainty how you will vote, what products you will buy, & where you will shop
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Stages in Buying Process
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1. Recognition 2. Information Search 3. Evaluation 4. Choice 5. Visit Store/Internet 6. Loyalty
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Utilitarian Needs
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Satisfies when purchases accomplish a specific task. Shopping needs to be easy, & effortless like a grocery or convince store (NEED)
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Hedonic Needs
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Satisfied when purchases accomplish a need for entertainment, emotional, & recreational experience as in department stores or specialty stores (WANT)
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Cross Shopping
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The pattern of buying both low & high priced items (Old Navy flip flops & $400 Italian shoes)
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Internal Sources of Info
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Past Experiences & Memory
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External Sources of Info
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Consumer reports, advertising, word of mouth, internet, & social media
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Multiattribute Attitude Model
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Customers see a retailer, product or service as a collection of attributes or characteristics. They Predict a customers evaluation of a retailer, product, or service based on its performance on relevant attributes & the importance of those attributes to the customer.
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Consideration Set
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The set of alternatives the customer evaluates when making a selection
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Top-Of-Mind Awareness (A-T-U)
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Mind stores on same area, promotions/PR/ads, get exposure on each engines like Google, & try to be at the top of a webpage
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Satisfaction
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A post-consumption evaluation of how well a store or product meets or exceeds customer expectations
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Buying Decisions
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Extended problem solving, limited problem solving, & habitual decision making
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Extended Problem Solving
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Financial, physical, & social risks
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Financial Risks
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Purchasing expensive products or services
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Physical Ricks
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Purchases that will affect consumer's health & safety
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Social Risks
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Consumers will believe product will affect how others view them
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Limited Problem Solving
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Purchase decisions process involving moderate amount go effort & time. Majority of customer decisions involve this
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Habitual Problem Solving
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Purchase decision process involving little or no conscious effort. For not important purchases
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Brand Loyalty
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Committed to a specific brand & may switch retailers to buy brand
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Store Loyalty
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Committed to a specific retailer, & would be reluctant to switch retailers
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Reference Group
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One of more people whom a person uses as a basis of compassion for beliefs, feelings, & behaviors
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Taret Market
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The market segment(s) toward which the retailer plans to focus its resources & retail mix
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Retail Format
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The nature of the retailers operations - its retail mix
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Sustainable Competitive Advantage
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A long term advantage over the competition
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Retail Branding
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Stores use brand (store's name & store brands - private label brands) to build consumer loyalty
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Retail Brand
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Can create an emotional tie with customers that build their trust & loyalty, & facilitates store loyalty because it stands for a predictable level of quality
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Globally Sustainable Competitive Advantage
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Low cost, efficient operations, string private label brands, fashion reputation, & category dominance
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Successful Global Retailing
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Globally sustainable competitive advantage, adaptability, global culture, & financial resources
