Agb 404 Test 2

Front 1

Retail strategy (definition)

Back 1

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

Front 2

Target Market
(definition)

Back 2

the market segement(s) toward which the retailer plans to focus its resources and retail mix

Front 3

Retail Format
(definition)

Back 3

describes the nature of the retailer's opperations that it will use to satisy the needs of the target market

Front 4

Retail Mix
(defintion)

Back 4

type of merchandise and services offered, pricing policy, advertising and promotion programs, store design and visual merchandising, typical locations, and customer services

Front 5

Sustainable Competitive Advantage
(definition)

Back 5

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

Front 6

Retailing Concept
(defintion)

Back 6

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

Front 7

Successful retailers are consumer _____________.

Back 7

centric

Front 8

Retail Market
(defintion)

Back 8

a group of consumers with similar needs (a market segment) and a group of retailers that satisfy those needs using a similar retail format

Front 9

How can market segments be defined?

Back 9

in terms of the customers' geographic location, demographics, lifestyle, buying situation, or benefits sought

Front 10

The final element in a retail strategy is _______________________.

Back 10

a retailers approach to building a sustainable competitive advantage.

Front 11

What are three approaches for developing a sustainable competitive advantage?

Back 11

1. building strong relationships with customers
2. building strong relationships with suppliers
3. achieving efficient internal operations

Front 12

Customer Loyalty
(definition)

Back 12

it means that customers are committed to buying merchandise and services from a particular retailer

Front 13

Loyalty means __________.

Back 13

customers will be reluctant to patronize competitive retailers

Front 14

Some activities that retailers engage in to build loyalty are: (4)

Back 14

1. developing a strong brand image
2. having clear and consistent positioning
3. providing outstanding customer service
4. undertaking customer relationship management (CMR) programs

Front 15

Branding

Back 15

Retailers build customer loyalty by developing a well-known, attractive image of their brand, their name.

Front 16

Strong brand images facilitate customer loyalty because ___________.

Back 16

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.

Front 17

A retailers brand image reflects its ________________ strategy.

Back 17

positioning

Front 18

Positioning
(definition)

Back 18

the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors

Front 19

A __________ map is frequently used to represent the customer's image and preferences for retailers.

Back 19

perceptual

Front 20

Perceptual maps are developed so that the _________________.

Back 20

distance between two retailers' positions ont he map indicates how similiar the stores appear to customers.

Front 21

Customer Relationship Management (CMR) Programs
(definition)

Back 21

(also called loyalty of frequent shopper programs)
are activities that focus on identifying and building loyalty with a retailer's most valued customers.

Front 22

____________ Programs typically involve offering customers rewards based on the amount of services or merchandise they purchase.

Back 22

Customer Relationship Management (CMR)

Front 23

_________________ is the most important factor determining which store a customer patronizes.

Back 23

Location

Front 24

Location is a _________ ____________ _____________ because it is not easily duplicated.

Back 24

sustainable competitive advantage

Front 25

Four types of growth opportunities:

Back 25

1. Market Penetration
2. Market Expansion
3. Retail Format Development
4. Diversification

Front 26

Market Penetration
(definition)

Back 26

a growth opportunity directed toward existing customers using the retailer's present retailing format

Front 27

Cross-selling means ____________________.

Back 27

sales associated in one department attempt to sell complementary merchandise from other departments to their customers.

Front 28

Vertical integration describes ________________.

Back 28

diversification by retailers into wholesaling or manufacturing.

Front 29

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.

Back 29

retailers, vendors

Front 30

Direct Investment Entry Strategy
(definition)

Back 30

This occurs when a retail firm invests in and owns a retail operation in a foreign country.

Front 31

______________________ entry strategy requires the highest level of investment and exposes the retailer to the greatest risks, but it also has the highest potential returns.

Back 31

Direct Investment

Front 32

Joint Venture Entry Strategy
(definition)

Back 32

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.

Front 33

A _________________ strategy reduces the entrants risks. Problems can arise if the partners disagree or the government places restrictions on the preparation of profits.

Back 33

Joint Venture

Front 34

Strategic Alliance Entry Strategy
(definition)

Back 34

a collaborative relationship between independent firms

Front 35

Franchising Entry Strategy
(definition)

Back 35

offers the lowest risk and requires the least investment. However, the retailer has limited control over the retail operations in foreign countries.

Front 36

Strategic Retail Planning Process
Step #1

Back 36

Define the Business of the Mission:

Hint 36

The mission statement is a broad description of a retailers objectives and the scope of activities it plans to undertake

Front 37

Strategic Retail Planning Process
Step #2

Back 37

Conduct a Situation Audit:

Hint 37

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.

Front 38

Strategic Retail Planning Process
Step #3

Back 38

Identify Strategic Opportunities

Front 39

Strategic Retail Planning Process
Step #4

Back 39

Evaluate Strategic Opportunities (that have been identified in the situation audit):

Hint 39

The evaluation determines the retailer's potential to establish a sustainable competitive advantage and reap long-term profits from the opportunities being evaluated

Front 40

Strategic Retail Planning Process
Step #5

Back 40

Establish Specific Objectives and Allocate Resources:

Hint 40

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

Front 41

Strategic Retail Planning Process
Step #6

Back 41

Develop a Retail Mix to Implement the Strategy:

Hint 41

Its to develop a retail mix for each opportunity in which an investment will be made a control and evaluate performance.

Front 42

Strategic Retail Planing Process
Step #7

Back 42

Evaluate Performance and Make Adjustments:

Hint 42

If the retailer fails to meet its objectives, reanalysis is required

Front 43

Freestanding Sites

Back 43

retail locations for an individual, isolated store unconnected to other retailers.

Front 44

Strategic Retail Planning Process
Step #5

Back 44

Establish Specific Objectives and Allocate Resources:

Hint 44

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

Front 45

Strategic Retail Planning Process
Step #6

Back 45

Develop a Retail Mix to Implement the Strategy:

Hint 45

Its to develop a retail mix for each opportunity in which an investment will be made a control and evaluate performance.

Front 46

Strategic Retail Planing Process
Step #7

Back 46

Evaluate Performance and Make Adjustments:

Hint 46

If the retailer fails to meet its objectives, reanalysis is required

Front 47

Freestanding Sites

Back 47

retail locations for an individual, isolated store unconnected to other retailers.