Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MKTG 351 > Chap 14 > Flashcards

Chap 14 Flashcards

1
Q

Define retailing

A

Represents all the activities directly related to the sale of goods and services to the ultimate consumer for personal, non business use.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does retailing enhanced?

A

The quality of our daily lives in countless ways

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Who are we doing business with when we shop for groceries, hair care, clothes, books, or other products and services?

A

Retailers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What does the goods and services provided by retailers mirror?

A

The diverse needs, wants, and trends of modern society

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What sector does the US economy depends heavily on?

A

Retail sector

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How can retail establishment be classified?

A

In several ways: such as type of ownership, level of service, product assortment, and price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the different type of retailers

A
  • département store
  • specialty store
  • supermarket
  • drugstore
  • convenience store
  • full-line discount store
  • specialty discount store
  • warehouse club
  • off-price retailer
  • restaurant
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What forms does the retail opener ship takes?

A
  • independently owned
  • part of a chain
  • franchise outlet
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How many form can retail ownership take?

A

1-3 forms which are ( independently owned, part of a chain, franchise outlet)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Independent retailer

A

Is owned by a person or group and is not operated as part of a larger network.
- single store within a local community (around the world)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Chain store

A

Is a group of retailers (one or more brand names) opened and operated by a single organization.
Ex: The Gap and Starbucks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Franchise

A

Is a retail business where the operator is granted a license to operate and sell a product under the brand name of a larger supporting organizational structure.
Ex: Subway

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Franchiser

A

Originates the trade name, product, methods of operation, and so on.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Franchisee

A

Pays the franchisor the right to use its name, product, and business methods, and take advantages of the franchisor’s brand equity and operational expertise.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the most successful franchises?

A

Increasingly services retailers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What service level does retailers provide?

A

From full service to self-service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Retailers like exclusive clothing store offers___

A

Very high or even customized service level.

Provide alteration, delivery, return policies, gift-wrap…

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is the level of service retailers (like factory outlets and warehouse) offers___

A

Virtually no service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is at the low end of the service continuum?

A

Retailers may take the form of a product kiosk or vending machine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the other way retailers can be categorized?

A

By the width and depth of their product lines

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Width refers___

A

To the assortment of products offered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Depth refers___

A

To the number of different brands offered within each assortment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Does specialty store have the thinnest product assortments? True or False.

A

True - usually carrying single or narrow product lines that are considerably deep.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Gross Margin

A

How much the retailer makes as a % of sales after the cost of the goods sold is subtracted.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

How often can price change?

A

Day to day or even minute to minute

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Department stores

A

A store housing several departments under one roof

ex: JCPenny and Macy’s
- each department acts as a separate profit center

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Specialty stores

A

A retail store specializing in a given type of merchandise

  • carry a deeper but narrower assortment of merchandise within a single category of interest.
  • salesclerks knowledgeable
    ex: the children place, foot locker
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Supermarkets

A

A large, departmentalized, self-service retailer that specialized in food in some nonfood items

  • Supermarkets being replaced by superstores
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Drugstores

A

A retail store that stocks pharmacy-related products and services as its main draw

  • also carry cosmetics, health and beauty aids, cards, toys, and more.
  • added services: 24H drive-through windows, low-cost health clinics
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Convenience store

A

A miniature supermarket carrying only a limited line of high-turnover convenience goods

  • Location near residential areas
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Discount stores

A

A retailer that competes on the basis of low prices, high turnover, and high volume

  • classified in several major categories
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Full-line discount stores

A

A discount store that carries a vast depth and breadth of product within a single product category

  • ex: Walmart -> limited service and carry wast known branded goods (toys, clothing, garden..)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Super-centers

A

a large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise (pharmacies, dry cleaning, optical shops..)

  • ex: Target
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Specialty discount stores

A

A retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover

  • ex: Foot Locker
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Category killer

A

A large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category

-ex: Best Buy (dominates its narrow merchandise segment)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

warehouse club

A

A large, no-frills retailer that sells bulk quantities of merchandise to customers at volume discount prices in exchange for a periodic membership fee

  • ex: Costco, Sam’s Club
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

off-price retailers

A

A retailer that sells a price 25% or more below traditional department store prices because it pays cash for its stock and usually doesn’t ask for return privileges

  • ex: Ross, Marshall’s
  • they sell manufacturer overrun, irregular merchandise, overstock that they purchase at or below cost
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Factory outlet

A

An off-price retailer is owned and operated by a manufacturer

  • carries one line of merchandise -> its own
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Used goods retailers

A

a retailer whereby items purchased from one of the other types of retailers are resold to different customers

  • turns customers into suppliers
  • can be either brick-and-mortar locations (Goodwill) or electronics marketplaces (ThredUP)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

restaurants

A

a retailer that provides both tangible products - food and drink- and valuables services - food preparation and presentation.

  • most resto are specialty retailers -> they concentrate their menu offering on a distinctive type of cuisine
  • ex: Olive Garden Italian restaurant
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

each operating model can be summarized as what?

A

a set of guiding principles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Nonstore retailing is____

A

Enables customers to shop without visit a physical store location

43
Q

What convenience does non-store retailing offers?

A

Adds a level of convenience for customers who wish to shop from their current locations

44
Q

What are the major forms of non-store retailing?

A
  • automatic vending
  • direct retailing
  • direct marketing
  • internet retailing (or e-tailing)
45
Q

Automatic vending

A

Entails the use of machine to offer goods for sale

Ex: soft drink, candy, or snack vending machines

46
Q

What type of product does the vending machine sells today?

A
  • dvd
  • digital cameras
  • perfumes
  • ice cream
47
Q

What type of audience did automatic vending allowed marketers to tap into?

A

Customers seeking luxury items on the go

48
Q

What is SST?

A

Self-service technologies

49
Q

Self-service technologies (SST)___

A

Comprise a form of automatic vending where services are the primary focus

Ex: pay at the pump gas station, automatic teller machines, movie ticket kiosks

50
Q

Direct retailing

A

Representatives sells products door-to-door, in office, or at in-home sales parties.

Ex: Mary Kay, Avon

51
Q

What does many direct seller host?

A

Digital parties on social media.

-people can shop from home

52
Q

Direct Marketing (DM)

A

Includes techniques used to elicit purchase from consumer’s homes, offices, and other convenient locations

53
Q

What are some common Dm techniques?

A
  • telemarketing
  • direct mail
  • mail-order catalogs
54
Q

What are the different direct marketing forms?

A
  • telemarketing
  • direct mail
  • microtargeting
  • shop-at-home television networks
  • online retailing (or e-tailing)
  • sharing economy
55
Q

Telemarketing is___

A

A form of DM that employés outbound and inbound telephone contacts to sell directly to consumers

56
Q

Direct mail

A
  • can be efficient or inefficient, it all depends on the quality of the mailing list and the effectiveness of the mailing piece.
  • delivery of advertising or marketing materials to recipient of postal or electronic mail
57
Q

Micro-targeting is based on what?

A

Data analytics of census data, lifestyles patterns, financial information, and past purchase and credit history allows direct mailers to pick out those most likely to buy their products

** data goal is to isolate potential customers with great precision

58
Q

Is micro-targeting a good told for online retailing? True or False

A

True

59
Q

Shop-at-home television networks is___

A

Produce television shows that display merchandise to home viewers.

  • can phone in their orders directly on toll-free line and shop with their credit cards.
60
Q

Online retailing (or e-tailing)

A

Enables a customers to shop over the internet and have items delivered directly to her door

Ex: Amazon

61
Q

Has sharing economy emerged as a more efficient exchange of resources? True or False

A

True

62
Q

What are sharing economy?

A

The way connected consumers exchange goods and services with each other through a digital marketplace

Ex: Craigslist

63
Q

What is social shopping

A

Consumer use social media application as shopping platforms

64
Q

How is retail marketing developed?

A

based on the goal established by stakeholders and the overall strategic plans developed by company leadership

65
Q

what does strategic retailing goal focus on?

A
  • total sales
  • reducing COGS
  • improving financial ratios (on assets and equity)
66
Q

what are the tactical strategies that retailers use to obtain their goals?

A
  • a sale
  • updating decor
  • launching a new advertising campaign
67
Q

what is the 1st task in retail strategy?

A

define the target market

68
Q

What is the process of a target market

A
  • start: market segmentation
69
Q

How are targets market in retailing defined?

A
  • demographic
  • geographic boundaries
  • psychographics
70
Q

retailing mix

A

A combination of the 6Ps (product, promotion, place, price, presentation, and personnel) to sell goods and services to the ultimate consumer

  • so the 4Ps of marketing mix + presentation and personnel
71
Q

product

A
  • 1st element of the retailing mix
  • other names: product assortment or merchandise mix
  • a question of the width and depth of product assortment
72
Q

promotion

A
  • ads, publicity and sales promotion
  • goal: position store/website in the customer mind
  • opening are orchestrated
  • a risk associated with promo: brand cannibalization
73
Q

brand cannibalization

A

the reduction of sales for one brand as the result of the intro of a new product or promotion of a current product by another brand

74
Q

what are the two reasons why brand cannibalization is dangerous for the retailer?

A
  • 1st: the retailer incurs significant expense in executing the promotion itself
  • 2nd: the promotion creates inaccurate sales forecasts for both the promoted and cannibalized product
75
Q

place

A
  • location is important
  • ## location affect growth
76
Q

destination store

A

A store that consumer purposely plan to visit prior to shopping

  • a website can also be it
    ex: Amazon -> product, Google -> research
77
Q

price

A
  • value based pricing another pricing strategy.
  • value based pricing focuses on the value of the product to the consumer more than the cost of the product to the supplier
  • a key element in a retail store
  • higher price indicates the level of quality and helps reinforce the prestigious image of retailers (ex: Dior)
  • discounters / off-price retailers offer a good value for the money (ex: target)
78
Q

presentation

A
  • helps determine the store’s image and position the retail store in the consumer’s mind
  • ex: retailer that wants to position itself as upscale would use lavish presentation
79
Q

atmosphere

A

the overall impression conveyed by a store’s physical layout, decor, and surroundings

ex: relaxed feeling, luxury, friendly vs cold attitude

80
Q

employee type and density

A
  • employee general characteristics (ex: friendly, service oriented, knowledgable…)
  • density: number of employees in the store based on the space available
81
Q

merchandise type and density

A
  • ex: Nordstrom carries the best brand names and displays them in a neat arrangement
  • discounters / off-price retailers crowded into small spaces
82
Q

fixture type and density

A
  • elegant, trendy, glass …
83
Q

sound

A
  • music pleasant, or not affect the store atmosphere (stay longer, buy more or not )
84
Q

odors

A
  • stimulate or detract from sales

- good odors spend more

85
Q

visual factors

A
  • colors create a mood or focus attention
86
Q

layout

A

the internal design and configuration of a store’s fixtures and products
- use all the store space effectively

87
Q

Market basket analysis

A

tech used to sift through the data collected by their point of purchase scanning equipment
ex: Walmart -> where to stock product for customer convenience

88
Q

Personnel

A
  • salespeople persuade shoppers to buy

- trained in two ways: trading up and suggestion selling

89
Q

what are the two ways salespeople are trained?

A

trading up and suggestion selling

90
Q

trading up

A

persuading a customer to buy a higher-priced item than they originally intended to buy

91
Q

suggestion selling

A

seeks to broaden customer’s original purchase with related items

92
Q

what is the most challenging element in the retail mix?

A

Providing great customer service

93
Q

what are the 4 main areas of services distribution

A
  • minimizing wait times
  • managing service capacity
  • improving service delivery
  • establishing channel-wide network coherence
94
Q

minimizing wait time

A

minimize time customer wait in line

95
Q

managing service capacity

A

if don’t have the capacity to meet demand -> turn down service or expand capacity

96
Q

improving service delivery

A

different distribution channels

97
Q

establishing channel-wide network coherence

A

some service firm find it better to standardize their service quality across regions to maintain brand image

98
Q

ways to address retail product/service failures

A
  • notify the customer in advance of stockout and give the reason
  • return policies
  • product recall
99
Q

big data analytics

A

the process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior

100
Q

beacons

A

a device that sends out connecting signals to customer smartphones & tablets in order to bring them into a retail store or improve their shopping experience

101
Q

shopper marketing

A

a retailing trend that employs market data to best serve customers as they prepare to make a purchase

102
Q

shopper analytics

A

used to dig deeply into customer’s shopping attitudes, perceptions, emotions, and behaviors to change market offering

103
Q

what does shopper marketing focus on?

A

1st: understanding how a brand’s target consumer behave as a shopper in different channels

MKTG 351 (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions