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113 Cards in this Set
- Front
- Back
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Retailing |
consists of the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer |
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Bricks and mortar retailers |
retailers that operate out of a physical building |
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Market Share |
the retailer's total sales divided by total market sales |
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External Environmental Forces |
Behavior of Consumers, Behavior of Competition,Behavior of the Supply Chain, Legal and Ethical Systems, State of Technology, Socioeconomic Environment |
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Mission Statement |
basic description of the fundamental nature, rationale, and direction of the firm |
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Gross Margin |
Net Sales - COGS |
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Gross Margin Percentage |
Gross Margin/Net Sales |
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Operating Expenses |
Expenses that a retailer incurs in running the business other than the cost of merchandise |
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Inventory Turnover |
The number of times a year, on average, that a retailer sells its inventory |
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Net Profit Margin |
Ration of net profit (after taxes) to total sales and shows how much profit a retailer makes on each dollar of sales after all expenses and taxes have been met. |
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Return on Assets |
Net profit / Total assets |
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Space Productivity |
Ratio that compares the percentage of the store's total gross margin that a particular merchandise category generates to its percentage of total store selling space used. |
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COGS |
cost of merchandise that has been sold during the period |
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Disposable Income |
Personal Income - Personal Taxes |
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E-tailing |
Retailing on the internet |
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Categorizing Retailers |
Bureau of the Census, Number of Outlets, Margin vs. Turnover, Location, Size |
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Changes in Retailing |
E-tailing, Price Competition, Demographic Shifts, Store Size, Experience and Niche Retailing |
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Strategic Planning |
Mission -> Goals and Objectives -> SWOT -> Retail Marketing Strategy |
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Retailing Planning Strategy |
Get shoppers into your store, Get them to purchase, Get them to purchase something with the lowest operating cost possible |
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SWOT |
Strengths, Weaknesses, Opportunities, Threats |
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Customer Satisfaction |
Occurs when the total shopping experi |
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One of the most dramatic changes created by e-tailing is a shift in power between retailers and consumers. The shift in power is derived from:
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The loss of control of pricing information by retailers due to the information dissemination capabilities of the internet
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One of the most dramatic changes created by e-tailing is a shift in power between retailers and consumers. The shift in power is derived from:
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The loss of control of pricing information by retailers due to the information dissemination capabilities of the internet
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The dominance of Walmart can be attributed to Sam Walton's realization that:
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Most if any products cost gets added after the item is produced
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One of the most dramatic changes created by e-tailing is a shift in power between retailers and consumers. The shift in power is derived from:
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The loss of control of pricing information by retailers due to the information dissemination capabilities of the internet
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The dominance of Walmart can be attributed to Sam Walton's realization that:
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Most if any products cost gets added after the item is produced
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Walmart became the worlds largest retailer by:
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Cutting unnecessary costs
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One of the most dramatic changes created by e-tailing is a shift in power between retailers and consumers. The shift in power is derived from:
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The loss of control of pricing information by retailers due to the information dissemination capabilities of the internet
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The dominance of Walmart can be attributed to Sam Walton's realization that:
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Most if any products cost gets added after the item is produced
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Walmart became the worlds largest retailer by:
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Cutting unnecessary costs
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Market share refers to
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The number of competitors a retailer must contend with
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What are the five most popular methods of classifying retailers?
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Census bureau, number of outlets, margin vs. turnover, location, and size
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_____ is the anticipation and organization of what needs to be done to reach an objective
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Planning
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_____ is the anticipation and organization of what needs to be done to reach an objective
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Planning
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The beginning of a retailers strategic planning process is the formulation of the retailers:
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Mission statement
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_____ is the anticipation and organization of what needs to be done to reach an objective
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Planning
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The beginning of a retailers strategic planning process is the formulation of the retailers:
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Mission statement
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When a retailer sets a goals and objectives based in a comparison of it's actions against it's competitors, it is establishing:
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Market performance objectives
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_____ is the anticipation and organization of what needs to be done to reach an objective
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Planning
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The beginning of a retailers strategic planning process is the formulation of the retailers:
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Mission statement
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When a retailer sets a goals and objectives based in a comparison of it's actions against it's competitors, it is establishing:
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Market performance objectives
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The four basic types of objectives that a retailer can formulate are
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Societal, market performance, personal, and financial performance
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Financial performance objectives can be broken into two categories:
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Profitability objectives and productivity objectives
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Financial performance objectives can be broken into two categories:
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Profitability objectives and productivity objectives
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If a retailer has a return on assets of 15% and net profit margin of 3% then it's rate of asset turnover is:
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5 times
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Financial performance objectives can be broken into two categories:
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Profitability objectives and productivity objectives
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If a retailer has a return on assets of 15% and net profit margin of 3% then it's rate of asset turnover is:
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5 times
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If net proft margin is 2% the rate of asset turnover is 6x and the financial leverage is 2.1 what is the return on asset?
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12%
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Financial performance objectives can be broken into two categories:
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Profitability objectives and productivity objectives
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If a retailer has a return on assets of 15% and net profit margin of 3% then it's rate of asset turnover is:
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5 times
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If net proft margin is 2% the rate of asset turnover is 6x and the financial leverage is 2.1 what is the return on asset?
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12%
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A retailer has total assets of $6000000 and a net worth of $3000000 what is the retailers financial leverage ratio?
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50%
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Financial performance objectives can be broken into two categories:
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Profitability objectives and productivity objectives
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If a retailer has a return on assets of 15% and net profit margin of 3% then it's rate of asset turnover is:
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5 times
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If net proft margin is 2% the rate of asset turnover is 6x and the financial leverage is 2.1 what is the return on asset?
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12%
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A retailer has total assets of $6000000 and a net worth of $3000000 what is the retailers financial leverage ratio?
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50%
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If a retailer has an ROA of 10% and a financial level of 4 then it's RONW would be:
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40%
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Financial performance objectives can be broken into two categories:
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Profitability objectives and productivity objectives
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If a retailer has a return on assets of 15% and net profit margin of 3% then it's rate of asset turnover is:
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5 times
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If net proft margin is 2% the rate of asset turnover is 6x and the financial leverage is 2.1 what is the return on asset?
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12%
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A retailer has total assets of $6000000 and a net worth of $3000000 what is the retailers financial leverage ratio?
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50%
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If a retailer has an ROA of 10% and a financial level of 4 then it's RONW would be:
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40%
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The easiest way for a retailer to differentiate itself in the eyes of consumers is to:
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Satisfy the customers needs and wants better than the competition
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Financial performance objectives can be broken into two categories:
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Profitability objectives and productivity objectives
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If a retailer has a return on assets of 15% and net profit margin of 3% then it's rate of asset turnover is:
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5 times
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If net proft margin is 2% the rate of asset turnover is 6x and the financial leverage is 2.1 what is the return on asset?
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12%
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A retailer has total assets of $6000000 and a net worth of $3000000 what is the retailers financial leverage ratio?
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50%
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If a retailer has an ROA of 10% and a financial level of 4 then it's RONW would be:
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40%
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The easiest way for a retailer to differentiate itself in the eyes of consumers is to:
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Satisfy the customers needs and wants better than the competition
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_____ includes age distributions, geographic trends, and ethnic makeup
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Population variables
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Financial performance objectives can be broken into two categories:
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Profitability objectives and productivity objectives
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If a retailer has a return on assets of 15% and net profit margin of 3% then it's rate of asset turnover is:
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5 times
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If net proft margin is 2% the rate of asset turnover is 6x and the financial leverage is 2.1 what is the return on asset?
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12%
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A retailer has total assets of $6000000 and a net worth of $3000000 what is the retailers financial leverage ratio?
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50%
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If a retailer has an ROA of 10% and a financial level of 4 then it's RONW would be:
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40%
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The easiest way for a retailer to differentiate itself in the eyes of consumers is to:
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Satisfy the customers needs and wants better than the competition
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_____ includes age distributions, geographic trends, and ethnic makeup
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Population variables
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An important characteristic of the "millennium generation"
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They tend to be more traditional and have a conservative lifestyle
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Financial performance objectives can be broken into two categories:
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Profitability objectives and productivity objectives
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If a retailer has a return on assets of 15% and net profit margin of 3% then it's rate of asset turnover is:
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5 times
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If net proft margin is 2% the rate of asset turnover is 6x and the financial leverage is 2.1 what is the return on asset?
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12%
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A retailer has total assets of $6000000 and a net worth of $3000000 what is the retailers financial leverage ratio?
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50%
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If a retailer has an ROA of 10% and a financial level of 4 then it's RONW would be:
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40%
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The easiest way for a retailer to differentiate itself in the eyes of consumers is to:
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Satisfy the customers needs and wants better than the competition
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_____ includes age distributions, geographic trends, and ethnic makeup
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Population variables
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An important characteristic of the "millennium generation"
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They tend to be more traditional and have a conservative lifestyle
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Retailers should remember that baby boomers
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Have an annual spending power of over $800 billion
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Secondary markets can be described as
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Communities with populations of less than 50,000
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Secondary markets can be described as
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Communities with populations of less than 50,000
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A retailers retail mix consist of all of the following except:
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Traffic strategy
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Secondary markets can be described as
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Communities with populations of less than 50,000
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A retailers retail mix consist of all of the following except:
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Traffic strategy
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The retailers _____ is a clear statement of the tangible and intangible results a customer receives from using the retailers products or services
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value proposition
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Secondary markets can be described as
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Communities with populations of less than 50,000
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A retailers retail mix consist of all of the following except:
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Traffic strategy
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The retailers _____ is a clear statement of the tangible and intangible results a customer receives from using the retailers products or services
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value proposition
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The aim of operations management is to:
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Maximize performance of current operations
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Secondary markets can be described as
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Communities with populations of less than 50,000
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A retailers retail mix consist of all of the following except:
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Traffic strategy
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The retailers _____ is a clear statement of the tangible and intangible results a customer receives from using the retailers products or services
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value proposition
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The aim of operations management is to:
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Maximize performance of current operations
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As a general rule, retailers should strive for a net profit margin of:
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2.5-3.5
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LIST OF EXPECTED CHANGES IN THE RETAILING ASPECT
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Etailing, demographics, store size.
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LIST OF EXPECTED CHANGES IN THE RETAILING ASPECT
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Etailing, demographics, store size.
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MARGIN VS TURNOVER
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Margin: shows the retailer makes as a percentage of sales. The gross margin will be used to pay the expenses
Inventory to: refers to how the retailer sells it's inventory High margin, low to= profit |
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Different methods of retailing
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Analytical method: investigating facts
Creative method: creating a highly successful retail chain |
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Different methods of retailing
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Analytical method: investigating facts
Creative method: creating a highly successful retail chain |
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4 OBJECTIVES
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Market performance: market share wants to grow rapidly, more sores= more profitability
Financial: analyze firms ability to prove profit level adequate to continue business and grow Societal: helping society Personal: helping employees |
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Different methods of retailing
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Analytical method: investigating facts
Creative method: creating a highly successful retail chain |
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4 OBJECTIVES
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Market performance: market share wants to grow rapidly, more sores= more profitability
Financial: analyze firms ability to prove profit level adequate to continue business and grow Societal: helping society Personal: helping employees |
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STRATEGIC PLANNING AND OPERATIONAL PLANNING
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Strategic planning: long term commitment
Operational: maximizing efficiency |
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SEGMENTARY RETAIL MARKET
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Break down heterogeneous population into heterogeneous groups. Helps retailers know who their customers are
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DISPOSABLE VS DISCRETIONARY INCOME
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Disposable: personal income-personal taxes
Discretionary: disposable income-necessities |
