Retail Marketing Chapter 3

Retail Strategy 2
The overall plan or framework of action
that guides a retailer
One year in duration
Outlines mission, goals, consumer
market, overall and specific activities,
and control mechanisms
Organizational Mission
Retailer’s commitment
to a type of business
and to a
distinctive role in the marketplace.
Sole proprietorship
An unincorporated
retail firm owned by one person
Partnership
An unincorporated retail
firm owned by two or more persons,
each with a financial interest
Corporation
A retail firm that is
formally incorporated under state law; it
is a legal entity apart from its officers
Objectives
Long-term and short-term performance
targets that a retailer hopes to attain.

Can involve sales, profit, satisfaction of
publics, and image

Image
Represents how a given retailer is perceived by consumers and others.
Positioning
Enables a retailer to devise its strategy in
a way that projects an image relative to its
retail category and its competitors, and
elicits consumer responses to that image.

Ex: American Airlines — “Something
Special in the Air”
M&M’s – “Melts in your mouth, not in
your hands.”

Mass merchandising
A positioning approach whereby retailers offer a discount or value-oriented image, a wide or deep merchandise selection, and large store facilities. Ex: Walmart; Target
Niche retailing
Occurs when retailers identify
specific customer segments and deploy
unique strategies to address the desires of
those segments rather than the mass market.
Ex: Victoria’s Secret
Target Market
Customer group that a retailer
seeks to attract and satisfy.
Controllable Variables
Aspects of business that the retailer can
directly affect

Ex: Hours of Operation
Sales personnel

Uncontrollable Variables
Aspects of business to which the retailer
must adapt

Ex: Competition
The Economy
Laws

Tactics
Actions that encompass a retailer’s daily
and short-term operation

Ex: Storefront display windows
Store layout
One-day sale
Changing assortment