Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
49 Cards in this Set
- Front
- Back
|
Retailing |
a set of business activities that adds valueto the products and services sold to consumers for their personal or familyuse.
- how things are produced, how they aredistributed, how they are displayed and sold
|
|
|
Retailer |
is a business that sells products and/orservices to consumers for personal or family use.
Kohl’s, Macy’s, Wendy’s, Amazon.com, Jiffy Lube, AMC Theaters, American Eagle Outfitter, Avon, J.Crew • A bank is a retailer, a hot dog stand is a retailer, dillards -Retailersadd significantly to the prices consumers face |
|
|
1602 |
• 1602 – one of the first retailers, dutch east india company, first trading in Europe, they sold around the world
|
|
|
How retailers add value |
Provide Assortment: Buy other products at the same time
Break Bulk :Buy it in quantities customers wantHold Inventory: Buy it at a convenient place when you want it Offer ServicesSee it before you buy; get credit; layaway |
|
|
Supply Chain |
is a set of firms that make and deliver a given set of goods and services to the ultimate consumer
|
|
|
Wholesalers |
buy and store merchandise in large quantities from manufacturers and then resell the merchandise (usually in smaller quantities) to retailers.
|
|
|
What are the different types of integration? |
Vertical Integration – firm performs more than one set of activities in the channelEx: retailer invests in wholesaling or manufacturing
Backward Integration – retailer performs some distribution and manufacturing activitiesEx: JCPenney sells Arizona jeans (Private Label) Forward Integration – manufacturers undertake retailing activitiesEx: Ralph Lauren (New York Jones, Liz Claiborne) operates its own stores Large retailers engage in both wholesaling and retailingEx: Wal-Mart, Lowe’s, Safeway, Brown Shoe Company |
|
|
What is the distribution channel? |
Manufacturer --> Wholesaler --> Retailer --> Consumer |
|
|
Differences in the distribution systems of different countries |
•China, India: To reduce unemployment by protecting small businesses
•EU: To protect small retailers •To preserve green spaces/town centers •Much lower population density in the US than in India, China, and EU (where less low-cost real estate are available for building large stores) •Large retail markets in US, India, China •Countries in EU – distribution channels and retail chains operate in a single country (no economy of scales to be achieved; trade barriers still exist) |
|
|
The United States |
Top retailer per number of sales -The nature of retailing and distribution channels in the U.S. is unique. -Has the greatest retail density -Has the greatest concentration of large retail firms -Large enough to operate their own warehouses, eliminating the need for wholesaling. -The combination of large stores and large firms result in a very efficient distribution system. |
|
|
Retail Sales |
Over $4.3 trillion in annual U.S. sales in 2011More than 8% of the U.S GDP comes from retailing
|
|
|
Retail employment |
Employs over 14 million people in 2011
One of the largest sectors for job growth in US |
|
|
Retailers Social Responsibilities |
Corporate social responsibility
-The voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations, in addition to the concerns of its stakeholders •Examples: •Targetstores give to local communities as well as through its “Bullseye Gives”program.•McDonald’sis developing LEED-certified buildings. •Nikeis creating shoes that score high on the sustainability index. •HomeDepot partners with Habitat for Humanity to build houses and donate supplies. |
|
|
Who is the worlds largest retailer? |
Walmart |
|
|
Retail adds value to what? |
life, within value there is a lot of choice |
|
|
Types of retailers |
Retailers use different retail mixes -merchandise: variety (breadth) / assortment (depth) stock keeping unit (SKU) -services -store design, visual merchandising -location -pricingInfinite variationsSome combination of retail mixes satisfy the needs of significant segments and persist over time.
|
|
|
Four retailer characteristics? |
Risk, Choice, Selection, Value
|
|
|
Intratype Retailers |
Dillards, vs JCpenney Same types of products |
|
|
Intertype retailers |
Dillards vs walmart different concept and products |
|
|
Scrambled Merchandise |
Sell all types of things in one store |
|
|
Main Competitors |
People in your area with the same product Some people don’t have competitors because whatthey offer can be very different, others have tons of competition |
|
|
What is the goal of a business or retail? |
profit,it is numbers driven, compare last year at the same time |
|
|
Ethics and what you are allowed to do as avendor or a buyer, your company will talk to you about what is acceptable |
... |
|
|
What are the top drug store chains? |
Walgreens, CVS, Rite Aid |
|
|
Franchises |
isa type of retail, your chances of success of being in a franchise are a lothigher than if you start from scratch |
|
|
What is a category killer? |
youcan have a store that has such a complete assortment that you don’t havecompetition
|
|
|
What percent of working people are in retail? |
20% |
|
|
Off Price Retailers |
. |
|
|
Outlet retailers |
. |
|
|
Hypermarkets |
Big store with a large square footage |
|
|
What does fair trade mean? |
factories in other countries pay appropriate wages and have good working conditions
|
|
|
What are examples of luxury department stores? |
Neiman Marcus and Nordstrom |
|
|
Where would price conscience shoppers go? |
Dollar Tree, Dollar General, Family Dollar |
|
|
What are outfitters? |
Recreational wear and outerwear |
|
|
What are luxury cosmetics? |
Brands that cost more ex. Chanel, Lancome |
|
|
What is Carre Four? |
A store like Walmart in France |
|
|
Products vs services |
. |
|
|
What should a retail strategy identify? |
-the target market
-the product and service mix -a long-term comparative advantage |
|
|
Holding inventory |
A major value-providing activity performed by retailers whereby products will be available when consumers want them
|
|
|
Service should be.. |
consistent ( how they deliver it,price)
|
|
|
SKU |
Stock Keeping Unit |
|
|
Multi Channel Retailing is the |
way of the future |
|
|
Direct Selling |
Face to face with the consumer |
|
|
Retail Strategy |
Customer Service, Store Design, Merchandise Assortment, Pricing, Communication Mix, and location |
|
|
Strategic vs. tactical decisions |
Doing the Right Thing (direction) vs..Doing Things Right (execution)
Strategic Decisions Are:Made InfrequentlyLong-termRequire significant investmentNot easily reversed -Location, Organization Design, Information and Distribution Systems, Customer Service |
|
|
Services Offered |
Retailers differ in the services they offer customersWheelworks offers assistance in selecting the appropriate bicycle as well as bicycle repairs.
Wal-Mart, however, doesn’t provide any additional services. |
|
|
Retail merchandise offers |
Variety (breadth of merchandise): wide vs. narrow - The number of merchandise categories
Assortment (depth of merchandise): deep vs. shallow -the number of items in a category (SKUs) |
|
|
Retail characteristics part two |
Variety (breadth)
Assortment (depth) Services offered Prices and the cost of offering breath and depth of merchandise and services |
|
|
General Merchandise Retailers |
Department Stores
Specialty Stores Discount Stores Category Specialists Off-Price Retailers Warehouse Clubs Value Retailers |
