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Retail Mkt-Final
Chapter 5
| Question | Answer |
|---|---|
| ELEMENTS IN RETAIL MARKETING | Target Market & Retail Offering/Format |
| TARGET MARKET | The market segments toward which the retailer plans to focus its resources retail mix. |
| RETAIL OFFERING/FORMAT | Developing sustainable competitive advantage (advantage over the competition). |
| CRITERIA FOR SELECTING ATTRACTION | Attractiveness: large, growing, little competition "consistent with your competitive advantage" |
| OPPORTUNITIES FOR RETAILERS TO DEVELOP SUSTAINABLE COMPETITIVE ADVANTAGE | 1.Customer loyalty 2.Location 3.HR Management 4.Distribution & IS 5.Unique merchandise 6.Vendor Relations 7.Customer Service |
| CUSTOMER LOYALTY | Retailers build loyalty by: -developing strong brand -developing clear and precise positioning strategies -creating loyalty programs |
| HOW TO BUILD RETAIL BRANDING? | Retailers build an emotional tie with customers and have a concise predictable level of quality. |
| HOW TO BUILD LOYALTY PROGRAMS? | -Part of an CRM [Customer Relationship Management] -Save purchase behaviors of members of loyalty programs -Develop personalization marketing effort to customers |
| LOCATION | Location is a competitive advantage (the 3 most important things in retailing) |
| HUMAN RESOURCES | "Employees are key to build sustainable competitive advantage"; develop a positive organization culture; strategies for recruiting and retaining; employee branding. |
| DISTRIBUTION AND INFORMATION SYSTEMS | vendor>distribution center>store; by decreasing cost in these three you can decrease price, increase breath and depth, and give better services |
| UNIQUE MERCHANDISE [PRIVATE LABELS] | EX: SEAR'S= KENMORE APPLIANCES; Kmart= Martha Stewart |
| VENDOR RELATIONSHIP | Low-cost efficiency: EDI [electronic data interchange]; Collaborative Planning and Forecasting to reduce inventory and distribution cost. "special treatment"=early delivery and shipment of scarce merchandise |
| CUSTOMER SERVICE | Difficult to achieve since people are very inconsistent, goes beyond just hiring and training; its about your organizational culture. |
| GROWTH STRATEGIES | A)Market Penetration B)Market Expansion C)Retail Format Development D)Diversification |
| MARKET PENETRATION | Existing retail format for existing customers, to make existing customer to visit store more often; Cross-selling ex)when sales-person from one department sells from another! |
| MARKET EXPANSION | Existing retail format for new customers ex)Dunking Donuts at their stores and gas stations |
| RETAIL FORMAT DEVELOPMENT | New retail format with a different retail mix, for the same target market ex) Tesco Expres, Tesco Extra, Tesco Metro etc... |
| DIVERSIFICATION | New retail format for new target market: 1)Related diversification 2)Unrelated Diversification |
| IMPORTANT STAGE IN STRATEGIC PROCESS? | 2ND STAGE: Conduct a situation analysis,a market attractiveness analysis,competitor analysis, and a self-analysis. |
| TWO IMPORTANT ELEMENTS IN SITUATION ANALYSIS? | Market factors & Competitive factors |
| MARKET FACTORS | Size ( large markets attract large firms), growth (more attractive then mature or declining stage), seasonality (resources are needed more during peak time), business cycle (economy) |
| COMPETITIVE FACTORS | Barriers to entry, bargaining power of vendors(less attractive if few vendors control the merchandise sold within), competitive rivalry (frequency and intensity of reactions undertaken by competitors) |
Created by:
clmartinez13
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