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46 Cards in this Set
- Front
- Back
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retailing
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set of busines activities that ads value to the products and services sold to consumers for their personal or family use-->invovles sale of services
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retailer
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business that sells products or services or both to consumers for their personal or family use.
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distribution channel
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set of firms that faciliatet the movement of products from the point of production to the point of sale tot he ultimate consumer
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vertical integration
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firm performs more than one set of activities in the channel, such as investments by retailers in wholesaling or manufacturing
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retailers perform functions to increase value of products and services
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-provide an assortment of products and services
-breaking bulk -holding inventory -providing services |
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breaking bulk
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to reduce transportation costs, break into smaller quantities
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holding inventory
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keep inventory so will be available.
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providing services
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offer credit
-display products -multichannel retailers |
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saturation, US, Japan, Europe
-factors that affect |
US-heavy saturation with big stores
Japan-small stores -europe-in between. northern europe similar to US. -factsr that have effect: social and political ; geography, market size -->japan, reduce unemployment-protect small businesses -lower population density in us than europe and japan -us retail market much larger than jap. and europe |
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intratype competition
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competition b/t same type of retailers
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variety
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number of different merchandise categoreies within a store or department.
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scrambled merchandising
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offering of merchandise not typically associated w/ the store type
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intertype competition
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competition b/t retailers that sell similar merchandise using different formats, such as discount and departmennt stores
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retail strategy
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how the firm plans to focus its resources to accomplish its objectives-->identify target market toward which the retailer will direct its efforts
-nature of the merchandise and services the retailer will offer -how the retail will build a long-term advnatage over competitiors |
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advantages of location
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-gain long-term competition
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technologies are part of an overall inventory mgmt system that enables retailrs to
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1. give customers a more complete selection of merchandise
2. decrease their inventory investment |
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customer relationship management
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business philosphy and set of strateiges, programs, and systems that focuses on identifying and building loyalty with a firm's most-valued customers
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retail mix
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combination of factors retailers use to satisfy customer needs and influence their purchase decisions
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4 elements of retail mix
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-type of merchandise sold
-variety and assortment of merchandise sold -level of customer service -price of the merchandise |
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North American Industry Classification System (NAICS) codes
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classifies all retail firms into a i hiearchial set of six-digit.
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warehouse clubs
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narrow assortment of relatiey inexpensive sports clothing
-offers limited assortment of food and general merchandise w/ little service at low prices to ultimate consumers and small businesses -reduce inventory holding by carrying limited assortment of fast-selling items -2 types of members: wholesale members who own small businesses, individual members who purchase for their own use |
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variety
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number of merchandise categories retailer offers--breadth of merchandise
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assortment
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number of idfferent items in a merchandise category-depth of merchandise
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if you offer many SKU
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inventory investment increase b/c reatiler must have bkacup stock for each SKU
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combination stores
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include conventional supermakrets, big-box food retailer, convenience stores-->food reatiler not really a food retailer
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conventional supermarkets
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self-service food stores offering groceries, etc. w/ limited sales of nonfood items such as health and beauty
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superstores
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larger conventional supermarkets with expanded service deli, bakery, seafood, and non food sections
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supercenters
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-150,000-220,000 square-foot stores that offer a wide variety of food (30-40 percent) and nonfood merchandise (60-70)-->Wal-mart supercenter
-->broad assortments of grocery and general merchandise under one roof. -general merchandise bought on impulse b/c main reason go is for food. - generally, merchandise has higher margins -can be inconvenient b/c too big |
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hypermarkets
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very large food (60-70%), general merchandise (30-40%)
-usually stock less than super centers -more food than merchandise (diff. from supercenters) -emphasis on fresh items -supermarket: more on dry groceries-cereal and canned |
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convenience stores
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limited variety and assortmen of merchandise at a convenient location w/ speedy checkout
-can buy quickly, consumed within 30 min. -typically receive delieveries every day -charge higher prices -most sell gas -type has been growing in Japan and Latin America b/c prefer buying in smaller quantites b/c of space constraints -trying to get into prepared foods market(higher marigns) |
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discount store
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retailer that offers a borad variety of merchandise, limted service, low prices
-intense competition from specialty stores that ofcus on single category (home depot) |
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specialty store
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concentrates on a limited number of complementary merchandise categories and provicdes a high level of service in an area typcially under 8,000 square feet
-for clothign stores: recently, weakest, slowest-growing areas b/c aging population (old peopel dont spend as much money on clothing), |
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category specialist/killers
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discount store that offers a narrow variety but deep assortment of merchandise
-low prices -intense competition as firms expand into regions origialy dominating by another firm -in response, conenctrate on reducing costs by increasing operating efficiney and acquirign smaller chains to gain scale economies |
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home improvement center
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category specialist offering equipment and material for do it yourself and contractors
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department store
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retailers that carry a braod variety and deep assortment, offer some customer services and are organized into separate departments for displaying merchandise
-similar to collection of specialty shops |
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leased department
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area in retail sotre that is leased or rented to an independent firm;
-typically responsible for all retail mix deicison invovled in operating the dept. and pays the store a percentage of its sales as rent -examples:beauty salon, shoes, jewelry, furs, etc. -sales have stagnated, market share has fallen due to increased competition from discuont stores and specialty -decline in perceived value for merchandise and services -ocurring in europe and asian as well. -response: delveop private-label and make it more up to date; try to be more fashion and reduce inventory levels |
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drugstores
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specialy stores that concnetrate on health and personal grooming merchandise
-sustained sales growth b/c aging population require more prescription drugs -competition from pharmacies in discount stores and supermarkets, intnert -response:drive-through, providng heatlh care assistance; repoire w/ customerse |
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off-price retailers
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inconsistent assortment of brand name at low price
-have unique buying and merchandising practices->b/c dont ask for advertising allowance, return privliges, markdown adjustments, or delayed payments -customers can't be sure of consistency->response:buy regular merchandise as well and sell at wholesale prices -examples:closeouts and outlet stores |
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closeout retailers
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off-price retailers that sell a braod but inconsitent assortment of general merchandise as well as paparel and soft home goods
-big lots |
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outlet sotres
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off-price retailers owned by manufacturesr or by department or specailty sotre chains ->factory outlets(way to improve sales by getting rid of irregular, production overruns, merchandise returned by retailers-->able to avoid selling markdown in the store: keep image of high-price/high quality
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value retailers
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general merchandise discoutn stores that are found in either lower-income urban or rural areas and are much smaller than traditional discount stores
-example:dollar genearl -low-income that can't afford to buy large-size packages, -vendors making specail small packages for them. -specialize in giftware, party, craft; not consumption |
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electronic retailing
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retail format in whcih the retailers communicate w/ customers and offer products and srvices for sale over the internet
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cataloug retailing
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nonstore retail format in which the retail offering is communicated to a customer through a catalg
-can be attractive b/c start-up costs are low -difficult for samller cataloug and direct-mail to compete w/ large, well-established firms that have embraced a multichannel strategy -mailing and printing costs are very high -difficult to get consumers' attention as they are mailed so many things -length of time required to desin, distribute, make it difficult to respond to new trends |
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direct-mail retailers
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communicate w/ their customers using letters and brochures
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general merchandise catalgo retaiers
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offer a braod variety of merchandise in catalogs that are preiodically mailed to their customers
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specialty catalgo retailers
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focus on specific categories of merchandise such as fruit, plants
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