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89 Cards in this Set
- Front
- Back
Strategy Mix is used for ? |
Identifying and understand consumers |
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Strategy mix contains ? |
Store Location Operating procedures (management styles) goods/services offered (broad/depth/qualtity/etc) pricing tactics store atmosphere customer services promotional methods: advertising, displays |
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Demographics gives insight to what ? |
consumers value now/tomorrow, how to reach them |
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Demographic data is ? |
Quantifiable, easily identifiable, measurable (market size, gender, age, income, education, retail sales) |
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Consumer lifestyle social factors: |
Culture, reference groups, social class, time utilization, household life cycle, family life cycle |
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Consumer Lifestyles Psychological Factors: |
Personality, attitudes, perceived risk, class consciousness, purchase importance |
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How psychological factors, influence outcomes? (perceived risk) example |
Factors affecting perceived risk (budget, urgency, number of alternatives) -> types of perceived risk (functional, physical, financial, social, psychological, time) -> (consumer) outcome (purchase new product, stick with old brand, talk to friends) |
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When creating a lifestyle profile consider? (FIRST 5) |
culture (norms, values, customs) social class (potential consumers lower class? social mobile?) reference groups (who do they look for advice from, differ for good categories) family lifecycle (stages of cycle are bulk customers) Time Utilization (how do people spend time? how do they feel about shopping time?) |
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When creating a lifestyle profile consider? (2ND 5) |
Personality (personality traits) Class consciousness ( status-conscious?) Attitudes (feel about the retailer) Perceived risk (risk with retailer, Which goods) Important of purchase (important are goods/services) |
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What are some modern implications of customer demographics and lifestyles ? |
Consumer sophistication and confidence Shoppers are more knowledgable and cosmopolitan more up to date on trends willing to sacrifice in other areas for style gender roles |
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A modern implication of customer demographics and lifestyles that attribute to a rise in efficiency of shopping ? |
Lack of time, people working longer hours Retailers: longer hours, on floor personnel, self checkout. |
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Some component lifestyles ? (modern implications of customer demographics and lifestyles) |
Shopping is less predictable and more individualistic, situation based shopping. |
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The consumer decision process ? |
2 parts: process and factors affecting the process stimulus, problem awareness, information search, evaluation of alternatives, purchase, post purchase behavior |
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Factors affecting the consumer decision process ? |
Demographics and Lifestyle |
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Influences of consumers purchase or non purchase (key factors in purchase act) |
retailers place of purchase (store, www, home) retailers purchase terms (price, cash vs credit) retailers good/service availability (stock on hand, delivery) |
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Risk and time - types of consumer decision making ? |
Routine decision making (low risk) Limited (medium risk) Extended (high risk) |
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Impulse purchasing 3 types ? |
Completely unplanned partially unplanned unplanned substitution |
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Types of consumer loyalty ? |
Inertia Loyalty - due to inconvenience, switching brands Mercenary Loyalty - what you give me to be loyal True loyalty - trust, shared values Cult loyalty - rejecting brand/values |
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Steps to devising a target market strategy ? |
Determine target market approach Select specific target market Study characteristics, needs Examine how customers make decisions Develop retail strategy mix |
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What makes retail shoppers tick ? |
Lifestyles, demographics, needs and desires, environmental factors, retailer actions, shopping attitudes and behaviors |
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Discretionary income = ? |
money left after taxes and buying necessities |
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When developing a target market profile a retailer should identify ? |
key consumer needs and desires motives (reasons for behaviors) |
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Attitudes towards shopping include things like ? |
Thrifting (price, convenience) Allures (fun shopping experience) Speedsters, etc |
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2 different types of Stimulus = ? |
cue (social or commercial) or a drive (physical) |
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Information search involves ? |
alternatives to solve problem and characteristics of alternatives |
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Cognitive dissonance = ? more likely when? |
that the correct decision has been made we spend more time making buying decisions |
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Types of decision making ? |
extended (full use of decision process) limited (each step but not a lot of time) routine (habit, skips steps) |
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Concentrated marketing is to ? |
1 distance customer group |
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Differentiated marketing is to ? |
two or more distinct groups |
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Location is important because ? |
hard to overcome bad location (inflexible) moving location looses customer loyalty financial 90% of sales are in store? |
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Considerations for location: |
population competition, transpiration, parking, costs, length of agreement, legal. |
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Steps in choosing a location: |
evaluate geographic area (residents and retailers) type to locate (isolated, unplanned, planed business district, shopping centre, etc) select above option. analyze alternate sites |
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Trading area is ? |
geographic area containing customers, can have trading area overlap where same customers are served by both branches. |
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Why use trading area analysis? |
discover demographics focus on promotional activities internet impact risk of competitors discovery of geographic weaknesses review of other issues |
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Geographic information system (GIS) is software which ? |
mapping with with key data for: population demographics data on purchases listing of current and proposed competition |
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3 parts of size and shape of trading area: |
Primary (50-80% of customers) - closest to store, high density of customers in population. Secondary (15-20%) Fringe (the rest) |
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when a store has a wider trading area (more travel) it can be ? |
Destination store |
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Parasite store = ? |
doesn't create its own traffic |
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Store types with largest trading area: moving down to smallest: |
Departments stores Convenience stores |
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3 computer trading area analysis models for assessing store locations: |
analog, regression, gravity |
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Riley's law is of ____ ? |
retail gravitation - traditional trading area delineation |
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Riley's law establishes ? |
point of difference - indifference between two cities or communities so that the trading area can be determined. |
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Huffs law = ? |
shopper attraction on basis of product assortment and locations, travel time to locations (sensitivity) |
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Factors to consider in evaluating retail trading areas? |
population size/characteristics availability of labor closeness to source of supply promotional facilitates (media) economic base (dominate industry, industrial structure) competitive situation availability of locations regulations |
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A saturated trading area has ? unbalanced too many or too less are called? |
proper amount of stores to satisfy need overstored and understored |
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3 types of locations ? |
Isolate store, unplanned businesses district, planned shopping centre |
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Isolated stores advantages ? |
A: no direct competition, low rental, high visibility, easy parking, excellent traffic if can generate |
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Isolated stores disadvantages ? |
Difficulty attracting customers, no cost sharing |
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Unplanned business districts include: |
CBD Secondary BD Neighborhood BD String |
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CBD strength and weaknesses ? |
S: assortment of goods, public transportation, variety of store types and positioning, high traffic. W: traffic and parking, travel time for outsiders, poor condition/image for some cities, high rent and tax |
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What is string? A and D? |
Similar product/servies, main road, congested A: lower rent/operating costs, good visibility D: low variety, higher ad costs, high travel |
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Secondary BD = ? |
unplanned, usually found by intersection of 2 major streets (city or town) |
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Neighborhood BD =? |
unplanned that appeals to convenience of single residential area. |
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Types of planned shopping centers ? |
Regional, community, neighborhood |
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Advantages and Disadvantages of planned shopping centers ? |
A: assortment, one stop, traffic, sharing costs D: limited flexibility, competition, higher rent |
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Regional Centres = ? |
Planned shopping 50-150 stores, driving time of trading area = 30 min |
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Neighborhood centres = ? |
planned shopping 5-15 stores up to 15 min driving time usually revolves around principle tenant like supermarket or drug store |
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Megamall = ? size |
1 million + sq ft |
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The optimum site location for a particular store is called? |
100% location |
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100% location is made up of? |
Pedestrian traffic Vehicular traffic Parking Transportation Store composition specific size terms of occupancy overall rating |
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Types of leases ? |
Strait (fix amount p/month) Percentage (relative to sales and profit) Graduated (increase $ over time) Net (calls for all maintenance costs to be paid for by retailer (electric, insurance, repair) Maintenance (rent will increase if owners taxes and bills increase beyond certain point) |
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Advantages of Ownership =? |
no chance of increase rent or loss of lease, mortgage is stable, flexible, |
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Advantages of Leasing = ? |
Min initial investment, less risk, access to prime sites, |
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Managing a retail business compromises 3 steps ? |
setting up organizational structure, managing personnel, managing operations |
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Managing retail considering customer (target market needs) to dos? |
Sufficient/appropriate personnel (knowledgable) store facilities branch specific to needs changing needs addressed |
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Managing retail considering employee needs to dos? |
positions challenging and satisfying promotion program participate in decision making communication fair rewards |
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Managing retail considering management needs to dos? |
easy to employ reporting, motivating levels of organization reporting to supervisor etc |
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Organizational chart illustrates ? |
hierarchal relationships and authority |
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Span of control ? |
number of people directly reporting to the next level, assumes coordination through direct supervision |
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Tall structures = ? |
When companies grow. Higher overhead costs, worse upward information, focus power to managers |
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Firms moving to flatter structures (delayering) because ? |
tall hierarchies have higher mgmt and overhead costs, less info flow and staff empowerment. |
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Problems with flatter hierarchies? |
undermines management functions, increase workload and stress, restrict management career development |
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Factors Influencing Span of Control = ? |
if we have a low number then it means we havea very tall structure |
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Mazur Plan =? |
Divides retail into 4 functional areas: merchandising publicity store management accounting and control |
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A job description consists of ? |
Title, Position reports to, objectives, duties and responsibilities, committees and meetings. |
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Strategy Mix ? change to do what? whats hardest to change? |
what retailer canchange for more profitabilityStore location isthe hardest to change |
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Why are consumers moresophisticated today? |
Instant access - impatience |
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Unplanned Substitution = ? |
you walk into a store and a new substitutionyou didn’t know about changes your mind |
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Shape of tradingarea can be affected by ? |
geographic and competitors |
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Operations blueprint = ? |
lists all operating functions to be performed and who's responsible. What retailer has to do and why it is valuable |
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Blueprint suggestions are ? list them.... |
Actions: Customer, onstage/visual employee, backstage employee, support processes, physical evidence |
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Top down spacemanagement = ? |
how we want to structure store, then products |
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Bottom up = ? |
how we want to displace products, then builds up to departments |
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Efficient personnel utilization would be ? |
reduce turnover, increase customer service and productivity, offer better flexibility |
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Credit Cards charge between ? transaction fees |
1.5% and 5% 3rd greatest expense of retailers |
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"checkout" surcharge fees charge ? |
customers the credit % transaction fee |
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Benefits of outsourcing ? |
reduce cost of employee time, capitalize on experience and economies of scale increase flexibility and reduce store costs |
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Some examples of outsourcing for marketers ? |
Dataanalysis, website, legal |
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Crisis Management - should have ? |
Contingency plans for as many possible crisis situations Promo responses and clear chain of command |