Term
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Definition
| The final stop in the distribution channel in which organizations sell goods and services to consumers for their personal or household use |
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Term
| Retailing is a big business |
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Definition
2009 U.S. sales totaled $4.5 trillion
More than one of every 10 U.S. workers is employed in retailing |
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Definition
belong to the channel of distribution
Provide time, place, and ownership utility
Retailers vary around the world |
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Term
| wheel of retailing hypothesis |
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Definition
| Wheel of retailing hypothesis: how retailers move thru their life cycle: |
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| Entry Phase of wheel of retailing |
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Definition
| offer lower price products w/ little services |
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| Trading up phase of wheel of retailing |
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Definition
| they make improvements in facilities, merchandise, and increase prices |
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| Vulnerability Phase of wheel of retailing |
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Definition
| using a high-end strategy. Higher prices, more ammenities. Problem. Higher prices open ability for new company to enter the market |
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Term
| The retail life cyle (info) |
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Definition
Involves the same products as the product life cycle
Intro: see a new way of doing business. Profits are low.
Growth: retailers is accepted, sales increase. During this stage we see increased competition.
Maturity: see intense competition. This intense competition causes profits to decline
Decline: retailer becomes obsolete. |
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Term
| Factors motivating retail innovation |
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Definition
The changing economy: impacts what companies do during an economic downturn. Use more promotions to reach consumers.
Demographics: a focus on convienence for consumers. More emphasis on ethnic diversity and pay more attention to cultural trends
Technology- ex. RFID
Globalization- more retailers are going international. Need to keep in mind necessary changes to their product and marketing mix. |
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Definition
| Temporary retail spaces that are used to generate buzz. |
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Term
Ethical Problems:
Shrinkage |
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Definition
may stem from customers or employees
Shoplifting
Employee theft
Retail borrowing: consumers may buy but then return for full price |
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Term
| ***Classifying Retail Stores (3 ways) |
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Definition
1. Classifying by what they sell
2. Classifying by level of service
3. Classifying by merchandise selection |
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Term
| **Classifying by what they sell: |
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Definition
| their merchandise mix-the total of all products that they sell. |
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| **Classifying by level of service |
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Definition
Self-Service: provide practically no service (ex. Grocery store)
Full service: offer trained assistance and additional services such as gift wrapping. (ex. Bridal stores)
Limited Service: offer some supporting services (such as credit and returns but most of your selections are done w/o help) ex. Walmart. |
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Term
| **Classifying by merchandise selection (2 dimmensions) |
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Definition
Merchandise breadth: the # of different product lines: can be:
Narrow: limited selection of product lines
Broad: offers a wide range of items.
Merchandise depth: the variety within a product line. This variety can be:
Shallow: selection within the category is limited.
Deep: a great deal of selection within the category.
Ex. Shoe store has a narrow breadth, but a deep depth |
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Term
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Definition
the # of different product lines: can be:
Narrow: limited selection of product lines
Broad: offers a wide range of items. |
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Term
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Definition
: the variety within a product line. This variety can be:
Shallow: selection within the category is limited.
Deep: a great deal of selection within the category. |
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Term
| Major Types of Retailers (13) |
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Definition
-Convenience Stores
-Supermarkets
-Box Stores
-Specialty Stores
-Category Killers
-Leased Departments
-Variety Stores
-Discount Stores
-Off-Price Retailers
-Warehouse Clubs
-Factory Outlet Stores
-Department Stores
-Hypermarkets |
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Term
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Definition
have a limited selection of items that are displayed in open boxes.
Ex. Aldi’s |
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Term
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Definition
carries a limited amount of product lines but offers a strong selection.
Ex. Big & Tall store |
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Definition
offers a deep assortment in a particular product category with knowledgeable staff
Ex Lowes |
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Term
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Definition
in-store companies that operate in larger retailers.
Ex. Hair salon in wal-mart |
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Term
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Definition
| started out in 1800s as dime stores. Now they are the dollar stores. |
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Definition
| carry general merchandise. Ex. Target |
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Definition
| discount stores that obtain surplus merchandise. Ex. TJ Max |
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Definition
| offer discounts to consumers who pay a membership fee. Ex. Sam’s Club |
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Definition
| owned and operated by the manufacturer |
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Definition
| combine the characteristic of a warehouse store and a supermarket. Started out in Europe. Approx. size of 4 football fields. |
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Definition
| Any method of exchange that does not require the consumer to visit the store. |
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Term
Direct Selling (3 ways)
(a type of nonstore retailing) |
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Definition
Door to door: ex. Friends buying encyclopedias
Parties & networks: when a company representative makes a sales presentation to a group of people in someone's home. Ex. Tupperware
Multi level: Master distributer recruits others to become distributers. Ex. Amway |
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Term
Automatic Vending
(a type of nonstore retailing) |
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Definition
Usually best suited to low-cost convenience goods
Offers many benefits to consumers and marketers
*marketers use of this tool has changed. Now can buy all sorts of things. |
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Term
| B2C's Effect on Retailing's Future (internet) |
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Definition
Virtual channels are unlikely to replace traditional ones
Stores must continue to evolve to draw consumers away from computers.
Destination retailing: consumers visit a store for the total entertainment experience. |
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Term
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Definition
how the retailers compares to its competitors.
We see all of these impact a stores image
1.Atmosphere
2.Traffic Flow Design
3.Visual Merchandising
4. Music
5.Color and Lighting |
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Term
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Definition
| the use of lighting, scents, sounds, décor and other design elements to create a desired store image. |
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Term
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Definition
determines how shoppers move through the store.
2 layouts:
Grid Layout: we have rows of neatly spaced shelves and customers are encouraged to move up and down the isles. Ex. Grocery store
Free flow layout: difference sections of merchandise. Conducive to browsing
Ex. Clothing store. |
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Definition
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Term
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Definition
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Term
| Types of Nonstore Retailing |
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Definition
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Term
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Definition
| : the design of all things customers see both inside and outside of the store. Thus the feelings of shoppers are influenced by furnishings, fixtures, the amount of clutter, etc. |
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Definition
| all can create or enhance a mood. Red and yellow vs. Blue and green. |
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Term
Store Personnel:
Developing a store positioning strategy |
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Definition
Should complement a store’s image
Dress, attitude, and knowledge are important |
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Term
Pricing Policy:
Developing a store positioning strategy |
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Definition
Price points are price ranges of a store’s merchandise
Price points play a role in establishing its image |
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Term
| Store Locations (4 types) |
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Definition
Retailers can choose to locate their stores in a variety of locations. This is a critical decision, because the key to retailing success is commonly referred to as “Location, location, location.”
1.Business districts
2.Shopping centers
3.Freestanding retailers
4.Nontraditional store locations |
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Term
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Definition
| traditional downtown business area found in any city. During weekdays, many people are drawn to the area to shop, eat, or work. |
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Term
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Definition
| a group of commercial establishments which is owned and managed as a single property. |
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Definition
| typically occupy their own facility. Ex. Toys r Us |
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| Nontraditional store locations |
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Definition
| created as innovative retailers find new ways to reach consumers. Ex. carts and kiosks |
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Term
| Site selection (4 factors to consider) |
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Definition
The choice of where to locate a new store should reflect the overall growth strategy and be consistent with the firm’s long-term goals.
1.Site evaluation
2. Age profile
3. Community life cycle
4. Competition |
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Term
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Definition
| a geographic zone that accounts for the majority of a store's sales and customers |
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Definition
| considers specific factors such as traffic flow, number of parking spaces, ease of delivery access, visibility of the location from the street, zoning laws, and the type of signage allowed in a given area. |
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Definition
| (Young families? Older retirees?) |
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Term
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Definition
| (New? Stable? In decline?) |
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Term
| Degree of Competition (3 types) |
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Definition
Saturated trade areas: have high traffic and many stores.
Understored trade areas: have too few stores to serve the needs of the population.
Overstored trade areas: have too many stores for the sales volume available. |
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