Retail Marketing

Retailing
set of business activities that adds value to the products and services sold to consumers for their personal or family use.
Retailer
A business that sells products and/or services to consumers for their personal or family use. It’s a key component to the supply chain. They are they final business within the supply chain that links manufacturers to consumers
Supply Chain
set of firms that make & deliver goods and services.
Manufacturer -> wholesaler -> retailer -> consumer
Wholesalers
engage in buying, taking title to, storing and physically goods in large quantities and then reselling goods (in smaller quantities) to other businesses.
Vertical Integration
firm performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities operating its own distribution centers to supply its stores. (two types)
Backward Integration
arises when a retailer performs some wholesaling and manufacturing activities, such as operating warehouses or designing private label merchandise.
Forward Integration
occurs when manufacturer undertakes retailing & wholesaling activities. LIke Ralph Lauren operating its own retail stores.
Corporate Social Responsibility
An organization voluntarily taking responsibility for the impact of its activities on employees, customers, community and the environment. (four stages)
Retail Strategy
how retailer plans to focus its resources to accomplish objectives. Identifies the target market, nature of the merch and services and how it will build long term competitive advantage.
Intratype
Competition between same type of retailers.
Intertype
Competition that sell similar merch using different type of stores, such as discount and department stores. Makes it harder for retailer to to identify competition.
Scrambled Merchandise
retailers offering merch not typically associated with their type of store.
variety
Number of merchandise categories a retailer offers.
The breadth of merchandise
Assortment
number of different items offered in a merch category. The depth of merchandise.
Stock-Keeping Unit
each different item of merchandise is called this.
Conventional Supermarket
large, self-service retail food store offering groceries, meat, produce & nonfood items. (30,000 SKUs)
Limited Assortment
designed to maximize efficiency and reduce costs, and doing that can offer merchandise prices 40 percent lower than conventional supermarkets. Located in 2nd or 3rd tier shopping centers with low rents.
Power perimeter
fresh merchandise categories around the outer walls of the supermarket.
Supercenters
Large stores (185,000 sqft.) that combine a supermarket with full line discount store.
Warehouse clubs
offer limited & irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses.
Convenience stores
limited variety and assortment of merchandise at a convenient location.
Big Box
Large, limited service stores. (Category Specialists)
wholesale sponsored voluntary cooperative group
An organization operated by a wholesaler offering a merchandise program to small, independent retailers on voluntary basis.
Retail Chain
operates multiple retail units under common ownership.
Franchising
contractual agreement between a franchisor and a franchisee that allows the franchisee to operate retail outlet using a name/format developed and supported by the franchisor.
multichannel retailers
sells merchandise/services through more than one channel. By using a combo of channels, retailers can exploit the unique benefits provided by each channel.
Mobile Marketing
set of practices that enables organizations to communicate and engage with target audiences in an interactive, relevant manner through any mobile device or network.
Geofencing
tracking where you are.
Couch Commerce
tablet is just the right size for shopping while watching TV. Laptops and desktops are for work, and smartphones have too small of a screen.
Conversion Rate
percent of viewers who buy product after viewing it.
Geodemographic
A marketer who knows your geography, your demographics and your lifestyle and can predict with very high certainty how you will vote, what you will buy and where you’ll shop.
Buying Process
steps consumers go through when buying product or service.
utilitarian needs
satisfied when purchases accomplish specific task. it’s a NEED.
Hedonic needs
satisfied when purchases accomplish a ned for entertainment, emotional or recreational purposes. It’s a WANT.
cross-shopping
buying both premium and low priced merchandise.
internal source
information from memory or past experiences.
external source
information from ads and other people. (word of mouth)
multiattribute attitude model
based on notion that customers see a retailer, product or channel as a collection of attributes or characteristics.
consideration set
set of alternatives the customer evaluates when making a selection.
satisfaction
a post-consumption evaluation of how well a store/products meets or exceeds customer expectation.
reference group
one or more people whom a person uses as a basis of comparison for beliefs, feelings and behaviors.
Culture
meanings, beliefs, morals and values shared by most members of a society.
QR Code
a matrix (two-dimensional) barcode with many uses (i.e. redirect you to a website)
Extensive problem solving
consumers devote time and effort in analyzing alternatives in decision making
Limited problem solving
purchase decision involves moderate amount of time and effort in decision making. Usually this is when they have had prior experience with product.
Habitual problem solving
involves little or no conscious effort in decision making.
Target Market
The market segment(s) toward which the retailer plans to focus its resources and retail mix.
Retail Format
the nature of the retailer’s operations – its retail mix.
sustainable competitive advantage
a long term advantage over the competition
Mobile Commerce
Selling & buying of products by means of wireless mobile devices