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48 Cards in this Set
- Front
- Back
Target Market (Market Segment) |
the market segment(s) toward which the retailer plans to focus its resources and retail mix , Household income is very important for target market
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Retail Market |
A group of consumers with similar needs and a group of retailers that satisfy those needs using a similar retail channel and format.
Ex. Everyone needs bread |
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Customer Loyalty |
-More than simply liking one retailer over another
-Customers will be reluctant to patronize competitive retailers Retailers build loyalty by: -Developing a strong brand for the store or store brands -Developing clear and precise positioning strategies -Creating an emotional attachment with customers through loyalty programs • Loyal people are committed to the company ( Also known as Customer Relationship Management, might have a frequent shopper program with rebates, coupons,etc) |
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Retail Brand |
-Can create an emotional tie with customers that build their trust and loyalty
-Facilitates store loyalty because it stands for a predictable level of quality -Stores use brand (store’s name and store brands – private label brands) to build customer loyalty Sam's and Costco have their own in house brands such as Kirkland ( they make the most money on these brands) |
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Upscale Department Stores |
Saks fifth Avenue, Nordstroms, Bloomingdale's, Neiman Marcus |
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What are the major discounters? |
Dollar General, Family Dollar, and Dollar Tree |
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Department stores are determined by |
Square Footage |
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Store Front is very important |
needs to convey what you are trying to say |
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Luxury Hotel Chain |
Ritz Carlton- Known for top customer Service |
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Long Term Strategy |
Has become more important due to: New competitors, new formats, New technologies, Shifts in customer needs |
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Facts |
-Coach is moving into selling clothing - Saks fifth avenue is moving into canada - Sun Bum started just selling sunscreen and now has expanded |
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IKEA and H&M are from what country? |
Sweden, it is the second country with the largest retail sales per person |
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Carre Four is Walmart's main competitor |
both global brands |
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Este Lauder is the cosmetic leader in the U.S. |
** |
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Net Sales ( Total Revenue) = |
Gross Sales + Promotional Allowances – Returns, Discounts, and Credits for Damaged Goods
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Gross Margins = |
Net Sales – COGs
- Important measure in retailing because it indicates how much profit the retailer is making on merchandise sold without considering operating costs and expenses. Gross Margin/ Net sales= Gross Margin % |
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Top Down Management |
Corporate tells the stores what to do and then they implement the strategyS |
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Sephora |
Can be free standing or in a store like JCpenney |
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Input Measures |
assess the amount of resources or money used by the retailer to achieve outputs such as sales.
( take information data resources to produce better outcomes in the store) |
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Free Standing Stores are also known as |
Outparcels |
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What is the oldest type of shopping center? |
Strip Center |
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Age Matters Demographic wise |
( why would a college town have more pizza than a retirement community)
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Fifth Avenue is |
The Place for Fashion |
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Central Business District |
a few streets front or back just not one street
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Inner Cities are having a lot of rebuilding going on |
This is because there is a lot of traffic, people, employees |
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Movies and Movie Theaters |
used to be a part of strip centers, some are still and some are free standing ( what to put around the theaters, usually you want ice cream or other food places around the movies)
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Largest Malls in America: |
King Prussia in Pennsylvania |
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What are category stores? |
specialty stores, theme stores ( party stores), lifestyle stores ( spa’s, athletic stores)
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What are the main age groups roaming the malls? |
18-24 |
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What are pop up stores? |
short term leases, usually themed to holidays
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Pros of a shopping mall |
large and enclosed, food court in the center
* The longer you stay in a mall or store the more money you will spend |
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Airport Stores |
( make very good money, usually you need national brands, a retail site location)
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Metro stores |
Area has 50,000 or more people |
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Economies of Scale |
can buy more at a lower price at a larger chain than at a smaller stores
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Walmart |
Biggest retailer in the world based on net sales, its strategy was to go into little towns where there was little to no competition.
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Cannibalization |
you are borrowing from someone else,
ex. A nearness to another store, competition, putting a similar shoe store next to another or close to it. |
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Cumulative Attraction |
In an enclosed mall, what retailers would Abercrombie & Fitch want to be located near?
American Eagle Outfitter, Ann Taylor, Body Shop, Electronic Boutique?Principle of Cumulative Attractiveness |
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Cracker Barrel |
1/3 of Cracker Barrel profit is in the retail section, they are always by highways |
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Parasite Stores |
would pick customers from another store, or neighboring stores
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Small Luxury Stores |
Fendi ( italian) Signature wave on storefront |
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Which three states have the biggest population? |
• California, Texas, and Florida
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How does a company tell where to put a new retail location? |
can tell by online sales or catalog sales to see where the people live
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Huff Gravity Model |
looks at store size and travel time to the store
Based on the premise that the probability which a given customer will shop in a particular store or shopping center becomes larger as the size of store or center grows and distance or travel time from customer shrinks |
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Micro Statistical Area |
10,000 people or less |
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Mcdonalds wants atleast |
10,000 people in an area to open one |
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Hardees will put a store in |
a place with less than 10,000 people |
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Regression Analysis |
( trying to figure out where you are going to put a new store or a new site) You take the existing sites, if you have more than one where will the new one go
Multiple Regression Analysis = Factors affecting the sales of existing stores in a chain will have the same impact upon the stores located at new sites being considered. |
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Primary trading Area |
( people will be within so many miles of the store, Secondary trading area, fringe area)
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