Exam 2- tam 1300
Overstored
so many stores the retailer can't earn a profit: number of square feet of retailing space per person is high.
balanced tenancy
stores in a planned shopping center complement each other in quality and variety of product offerings.
mass fashion
styles that are accepted and worn by a great many people for a period of time.
Assortment plan-need to know how to calculate the assortment plan tables
tells you the exact # to buy of each SKU. -the more sku's, the more variety in the assortment.
fads
shortest trends, small segment of consumers, rises quickly and declines abruptly
Assortment planning Assortment factors SKUs-how to calculate the total number Model stock plan for fashion items
-Planning the assortment w/ respect to style, color, size, brand, fabric, etc. -assortment factors: attributes of a product that influence consumer purchase.
Data Mining
- analyzing massive amounts of data collected electronically to look for patterns than can inform business decisions. group customers who have store credit cards, live within 10 miles of the store, own more than one car, have a separate freezer.
Product/fashion life cycle
-Introductory stage- high price, limited introduction, high fashion. -growth phase-new style is being purchased and worn, rises in popularity, copied and adapted, knock-off -peak- greatest level of demand, many price levels, mass production -decline- search for newness, price declines, sales decline
String
A group of retail stores with similar or compatible product line. Located along a street or highway.
Observation (ex. Mystery Shoppers)
-Retailers hire people to pose as customers in order to evaluate aspects of the store environment (e.g. sales of the store environment (e.g. sales presentations, display maintenance, presentations, display maintenance, and service calls)and service calls) -Often sales encounter based.
Secondary business district
-a shopping area that is usually bound by the intersection of two major streets. -smaller stores & trading area than the CBD. -less selection of goods, more convenience items.
Definitions & Examples of: Fashion goods Basic goods Seasonal goods Staple goods
-basic- easy to forecast demand, basic casual apparel, or tools. -fashion- in demand for a relatively short time, introduction of new products. Frequent changes in styling. -seasonal- experience change in demand due to seasonal events (weather, holiday, cultural or holiday events) -holiday dresses, bathing suits -staple- are in continuous demand throughout the merchandise cycle. Underwear, socks, and may or may not have style changes.
Merchandise Assortment width depth
-breadth- the number of different brands, styles, colors, sizes, etc. carried -depth- the number of pieces stocked in each variant
Managing Inventory Basic stock-automatic replenishment
-buyer determines: basic stock or assortment plan, and level of backup inventory -system: monitors inventory levels, and automatically reorders when inventory gets below a specifies level.
Planned shopping center
-centrally owned or managed. -planned as a unit, balanced tenancy, surrounded by parking.
Parasite store
-do not create their own traffic and have no real trading area of their own. -these stores depend on people who are drawn to area for other reasons. -magazine stand in office building.
Central business district
-downtown area w/ a high concentration of office buildings & retail stores -high vehicular & pedestrian traffic
Neighborhood business district String
-emerges to satisfy the convenience needs of a neighborhood. -major retailer is a supermarket or variety store w/ several smaller stores. -major street in residential area.
Destination store
-have a better assortment, promotion, and image. -they generate trading areas much larger than competitors. -Dunkin donuts- "it's worth the trip"
Primary vs. secondary data
-primary: data which are collected by a researcher for the particular MR project currently being undertaken (survey, observation, expirement, simulation, big data) -secondary: data collected by an individual other than the researcher for a project different from the one currently being undertaken ~ internal secondary data sources- sales reports, billing reports, inventory records, performance reports ~external- data bases: academic, government (U.S. census, public records.
Unplanned business district
-retail structure where two or more stores are located together or in close proximity that is not the result of prior planning
Community shopping center
-sells both convenience and shopping goods -small department/variety store plus additional stores -variation: power center -category killers+other stores -complementary stores focused on one product type
Neighborhood shopping center
-sells mostly convenience items -supermarket or drugstore anchor -w/in ten min. of customers -may lose balanced tenancy -strip mall
Regional mall
-sells mostly search goods -market comes from a wide geographic area -30-50 acres -300,000-1,000,000 square feet
Stockturn-defintion Variations by type of retailer How to calculate
-the number of times the average stock for the period is sold and replaced. Tells the retailer how fast the stock is selling -variation by store: gas station, supermarket, drug store, apparel store, furniture store. -variation by merchandise type: women's apparel, men's apparel, books, bridal, footwear
Simulations
A type of experiment using a using to manipulate the elements of a retail strategy mix rather than test them in a real-life setting. ••mathematical mathematical models models ••virtual reality
Defintions, examples, and advantages/disadvantages of: Brand name merchandise Private Label merchandise
Advan: private labels have store loyalty, differentiation strategy, increased channel power over suppliers, higher profit margins on private labels. Dis:
Market segmentation
Dividing the market into smaller homogeneous subsets of consumers
Merchandising-definition
Planned and control of buying and selling to help retailer realize objectives. -having right product, quantity, place, time, light to meet the company's financial goal.
Retail Information Systems
GIS software digitized mapping to depict trading area, population demographics, data on customers purchases, listings of current, proposed and competitor locations.
consumer demographics- meaning, examples
Objective, quantifiable, easily identifiable and measurable. -income/price, age and gender, family type, region.
Target Market-Mass, Concentrated & Differentiated Marketing
Specific group of customers that a manufacturer or retailer is trying to reach -mass: kohl's department store -concentrated: family dollar (female w income under 40,000) -differentiated marketing: foot locker
Consumer Decision Making Process What it is-steps in process Extended, Limited & Routine Decision Making
Stimulus, problem awareness, information search, evaluation of alternatives, purchase, post-purchase behavior. (Demographics and lifestyle affect this process) -Extended: high prom dress/ designer shoes -Limited: Risk & time jeans/polo shirt -Routine: low socks and white t's
Trading area Primary trading area Secondary trading area Fringe trading area
Trading area- a geographic area containing the customers of a particular firm or group of firms for specific goods or services. (size and shape, store type, store size, location, travel time, media) -primary- 50-80% of a store's customers. -secondary- 15-25% of a store's customers. -fringe- al remaining customers.
high fashion
a style of limited appeal, high price, sophisticated, extreme
Understored
an area with too few stores: large number of consumers per square foot of store space.
Impulse Buying
completely unplanned, partially unplanned, and unplanned substitution
Isolated store
free standing, highway or side street. -In a large store format it could be Wal-Mart, or Costco. -As for convenience stores: 7-eleven
Surveys
in person over the phone by mail online
Saturated trading area
just the right amount
megamall
mall of america
Experiments
one or more elements of the retail mix are manipulated under controlled conditions -ex: price, set up experiment with two different prices and measure consumer response.
Marketing Research
the collection and analysis of info relating to specific issues or problems facing a retailer. -reasons for research: product development, store location, addition of new products or services, advertising slogan, customer satisfaction, identifying shopping patterns, promotional activities-coupons
sku definition
the smallest unit for inventory control -style, size and color
Consumer Psychographic/Lifestyles-meaning, examples
ways in which consumers and families live and spend time/money -lifestyle, attitudes, interests, opinions, purchase importance, personality
Outshopping
when a person goes outside of their hometown to shop.