Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Retail Op
Fashion
| Question | Answer |
|---|---|
| Retailing | The business activities involved in selling goods or services to consumers for their personal,family or household use. It includes every sale to the final customer. |
| Key challenges a retailer faces | - To much competition - Shift on how consumers buy - Customers don't want to spend money - Fast Fashion (disposable fashion) |
| Retail Distribution Channel | Manufacturer 1 Manufacturer 2 Retailer 3 Final Consumer |
| Role of a retailer in the distribution channel | -Participate in the sorting process -Cmmuncate with manufacturers, wholesalers and customers. -Provide assistance by transporting,storing,marking,advertising and pre-paying for products. -Complete transactions -Engage in multi-channel retailing |
| Multi-Channel Retailing | A retailer sells to consumers through multiple retail formats: -Web -Brick & Mortar -Catalogue -Toll-free phone number |
| Exclusive | Suppliers maker agreements with one or few reatailers that designate the retailer as the only ones in a specifie geographic area to carry certain brands. |
| Intensive | suppliers sell through as many retailers as possible. (most volatile/difficult) |
| Selective | suppliers sell through a moderate number of retailers. |
| Distribution Types | -Exclusive -Intensive -Selective |
| Retail strategy | -Is the overall plan guiding a retail firm -It influences the firms business activities -It influences the firms response to market forces. |
| Market Forces | Competition & The Economy |
| Six Steps in a Retail Strategy | 1) Define the type of business 2) Set long-run and short-run objectives 3) Determine the customer market 4) Devise and overall long-run plan 5) Implement an integrated strategy 6) Evaluatte and Correct |
| The Retailing Concept | 1)Customer Orientation 2)Coordinated Effort 3)Value Driven 4)Goal Oriented |
| The Total Retail Experience | Includes all elements designed to encourage or inhibit consumers. -Salespeople -Displays -Prices -Brands Carried -Inventory |
| Customer Service | Activities undertaken by a retailer in conjuction with the basic goods and services it sells. Ex:Store hours,parking,Credit acceptance,Gift Wrapping,Delivery policies,ect. |
| Relationship Retailing | Seeks to establish and maintain long-term bonds with customers, rather than act as if each sales transaction is a completely new encoounter. |
| Key steps in Relationship Retailing | - Concentrate on the total retail experience - Monitor satisfaction with customer service - Stay in touch with customers. |
| Win-Win approach | It is harder to get new customers then to keep existing ones happy. *Develop a customer database, ongoing customer contact is improved with information on peoples attributes and shopping behavior. |
| Value | Desirability, worth or merit of a thing. |
| Value (Channel Perspective) | Value is tied into a series of activities and processes that occur between the retailer, supplier and wholesaler. -> shipping costs, payment terms & Warranties. *These acvtitivies must be of value to the retailer and other members of the channel. |
| Value (Customer Perspective) | Value is the perception that the shopper has of the Retail Value Chain. It is theview of all the benefits from a purchase versus the price paid. ***This perception if formed by the TOTAL RETAIL EXPERIENCE. |
| Retail Value Chain | Delivers a bundle of benefits to the consumer: -Customer service -Product Quality -Retailer Ambiance -Prices ect. |
| 3 Aspects of Value-Oriented Retail Strategy | -Expected -Augmented -Potential |
| Expected Value | Minimal elements offerec in the retail value chain. -Store cleanliness -Convenient Hours -Good stock of popular products |
| Augmented Value | Elements of a retail value chain that offer a differentiation in benefits versus the competition. -Exclusive Brands -Valet Parking |
| Potential Value | Elements of a Retail Value Chain that are not offered or yet perfected by a type of store format. -Ulimited return priveledges -Total customization of fashion for a specialty store. |
| Customer Satisfaction | This occurs when the value and customer service provided to the customer meets or exceeds expectations. *Occurs with augmented levels of customer service. |
| 4 Factors that Nurture Customer Relationships | 1) Customer Base 2) Customer service offered 3) Customer Satisfaction |
| Customer Base | -Constantly reviewed and analyzed customers -Key customer base are "Core Customers" -Internal data can help identify who are the more profitable customers. |
| Loyalty Programs | Rewarding customers that are the most profitable and are the most frequent. |
| Core Customers | Customers that are the most profitable and are the most frequent. |
| Nurturing Channel Relationships 2 Ways | a) Category Management: channel members collaborate to manage product by category rather than item. b)Technology; collects data improves information flow. Ex:Point of sales, EDI. |
| Opportunities | A marketplace opening that no other retailter has capitalized on. *Windows to improve on existing weaknesses. |
| Threats | The are the environmental and market place factors that adversely affect retailers. *Trends toward discount/outlet shopping. (Winners) |
| S.W.O.T | S;Strengths W;Weaknesses O;Opportunities T;Threats |
| Organizational Mission (Mission Statement) | A retailers commitment to a type of business and to a distinctive role in the marketplace. It is reflected in the firms attitude toward consumers,employees,suppliers,competitors, government and others. |
| Ownership & Management Alternatives | -Sole Proprietorship -A Partnership -A corporation |
| Sole Proprietorship | An unincorporated retail firm owned by one person. |
| A Partnership | An unincorporated retail firm owned by two or more persons, each with a financial interest. |
| A Corporation | A retail firm that is formally incorporated under state law; it is a legal entity apart from its officers. |
| Sales Objectives | Are related to the volume of goods and services a retailer sells. *Relates to : Growth, Stability & Market Share. |
| Profitability Objectives | Retailers seek at lease a minimum profit level within a designated time frame (usually one year) *Relates to dollar figures,% of sales and ROI. |
| Satisfaction of Public | -Shareholder Satisfaction -Customer Satisfaction -Good Supplier Relations -Cordial Labor Relations -Understand and adapt to government regulations. |
| Image (Positioning) | Represents how a given retailer is perceived by consumers and others. A retailer could positioning themseleves as an upsacle, midprice- or specialty retailer, traditional department store,discount deparment store. |
| Mass Merchandising | is a positioning approach whereby retailers offer a discount or value-oriented image, a wide or deep merchandise selection, and large store facilities. |
| Niche Retailing | Occurs when retailers identify specific customer segments and deploy unique strategies to address the desires of those segments rather then the mass market. |
| Identification of Consumer (3 ways) | 1)Mass Marketing:Sell to a broad spectrum of people. (Wal-Mart) 2) Concentrated Marketing; zero in on onw consumer group. (H&M) 3) Differentiated Marketing;aim at two or more consumer groups in one store. (La Senza) |
| Controllable Variables | Ex: -Store Location -Merchandise -Pricing -Communication with consumer. -Managing Business |
| Uncontrollable Variables | Ex: -Consumers -Competition -Technology -Economic Conditions -Seasonality -Legal Restrictions. |
| Tactics | Making short run decisions and carrying out "specific activities" that enact eachof the controllable variables. This is a retailers daily and shor term operations. |
Created by:
Telisha
Popular Business sets