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47 Cards in this Set

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Retail strategy (definition)
a statement identifying:
1. retailers target market
2. the format the retialer plans to use to satisfy the target market's needs
3. the bases on which the retailer plans to build a sustainable competitive advantage
Target Market
(definition)
the market segement(s) toward which the retailer plans to focus its resources and retail mix
Retail Format
(definition)
describes the nature of the retailer's opperations that it will use to satisy the needs of the target market
Retail Mix
(defintion)
type of merchandise and services offered, pricing policy, advertising and promotion programs, store design and visual merchandising, typical locations, and customer services
Sustainable Competitive Advantage
(definition)
the advantage the retailer has over its competition that is not easily copied by competitors and thus can be maintained over a long period of time
Retailing Concept
(defintion)
a ratail management orientation that focuses on determining the needs of the retailer's target market and satisfying those needs more effectively and efficiently than competitors do
Successful retailers are consumer _____________.
centric
Retail Market
(defintion)
a group of consumers with similar needs (a market segment) and a group of retailers that satisfy those needs using a similar retail format
How can market segments be defined?
in terms of the customers' geographic location, demographics, lifestyle, buying situation, or benefits sought
The final element in a retail strategy is _______________________.
a retailers approach to building a sustainable competitive advantage.
What are three approaches for developing a sustainable competitive advantage?
1. building strong relationships with customers
2. building strong relationships with suppliers
3. achieving efficient internal operations
Customer Loyalty
(definition)
it means that customers are committed to buying merchandise and services from a particular retailer
Loyalty means __________.
customers will be reluctant to patronize competitive retailers
Some activities that retailers engage in to build loyalty are: (4)
1. developing a strong brand image
2. having clear and consistent positioning
3. providing outstanding customer service
4. undertaking customer relationship management (CMR) programs
Branding
Retailers build customer loyalty by developing a well-known, attractive image of their brand, their name.
Strong brand images facilitate customer loyalty because ___________.
they reduce the risks associated with purchases, assure customers that they will recieve a consistant level of quailty and satisfaction, and it can also create an emotional tie with the customer.
A retailers brand image reflects its ________________ strategy.
positioning
Positioning
(definition)
the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors
A __________ map is frequently used to represent the customer's image and preferences for retailers.
perceptual
Perceptual maps are developed so that the _________________.
distance between two retailers' positions ont he map indicates how similiar the stores appear to customers.
Customer Relationship Management (CMR) Programs
(definition)
(also called loyalty of frequent shopper programs)
are activities that focus on identifying and building loyalty with a retailer's most valued customers.
____________ Programs typically involve offering customers rewards based on the amount of services or merchandise they purchase.
Customer Relationship Management (CMR)
_________________ is the most important factor determining which store a customer patronizes.
Location
Location is a _________ ____________ _____________ because it is not easily duplicated.
sustainable competitive advantage
Four types of growth opportunities:
1. Market Penetration
2. Market Expansion
3. Retail Format Development
4. Diversification
Market Penetration
(definition)
a growth opportunity directed toward existing customers using the retailer's present retailing format
Cross-selling means ____________________.
sales associated in one department attempt to sell complementary merchandise from other departments to their customers.
Vertical integration describes ________________.
diversification by retailers into wholesaling or manufacturing.
By strengthening relationships with each other, both __________ and ___________ can develop mutually beneficial assets and programs that will give the retailer-vendor pair an advantage over competing pairs.
retailers, vendors
Direct Investment Entry Strategy
(definition)
This occurs when a retail firm invests in and owns a retail operation in a foreign country.
______________________ entry strategy requires the highest level of investment and exposes the retailer to the greatest risks, but it also has the highest potential returns.
Direct Investment
Joint Venture Entry Strategy
(definition)
its formed when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared.
A _________________ strategy reduces the entrants risks. Problems can arise if the partners disagree or the government places restrictions on the preparation of profits.
Joint Venture
Strategic Alliance Entry Strategy
(definition)
a collaborative relationship between independent firms
Franchising Entry Strategy
(definition)
offers the lowest risk and requires the least investment. However, the retailer has limited control over the retail operations in foreign countries.
Strategic Retail Planning Process
Step #1
Define the Business of the Mission:
The mission statement is a broad description of a retailers objectives and the scope of activities it plans to undertake
Strategic Retail Planning Process
Step #2
Conduct a Situation Audit:
A situation audit is an analysis of the opportunities and threats in the retail environment and the strengths and weaknesses of the retail business relative to its competitors.
Strategic Retail Planning Process
Step #3
Identify Strategic Opportunities
Strategic Retail Planning Process
Step #4
Evaluate Strategic Opportunities (that have been identified in the situation audit):
The evaluation determines the retailer's potential to establish a sustainable competitive advantage and reap long-term profits from the opportunities being evaluated
Strategic Retail Planning Process
Step #5
Establish Specific Objectives and Allocate Resources:
these specific objectives have three components:
1. the performance sought, including a numerical index against which progress may be measured
2. a time frame within which the goal is to be achieved
3. the level of investment needed to achieve the objective
Strategic Retail Planning Process
Step #6
Develop a Retail Mix to Implement the Strategy:
Its to develop a retail mix for each opportunity in which an investment will be made a control and evaluate performance.
Strategic Retail Planing Process
Step #7
Evaluate Performance and Make Adjustments:
If the retailer fails to meet its objectives, reanalysis is required
Freestanding Sites
retail locations for an individual, isolated store unconnected to other retailers.
Strategic Retail Planning Process
Step #5
Establish Specific Objectives and Allocate Resources:
these specific objectives have three components:
1. the performance sought, including a numerical index against which progress may be measured
2. a time frame within which the goal is to be achieved
3. the level of investment needed to achieve the objective
Strategic Retail Planning Process
Step #6
Develop a Retail Mix to Implement the Strategy:
Its to develop a retail mix for each opportunity in which an investment will be made a control and evaluate performance.
Strategic Retail Planing Process
Step #7
Evaluate Performance and Make Adjustments:
If the retailer fails to meet its objectives, reanalysis is required
Freestanding Sites
retail locations for an individual, isolated store unconnected to other retailers.