Marketing Chapter 11
Of product and services assortment, price, promotion, and place, which plays one of the most important roles in aligning target markets and positioning?
Place
Choosing locations that are accessible to the target market in areas that are consistent with the retailer's positioning is an example of a __________.
Place decision
Which of the following retail trends is making differentiation more difficult?
Retail convergence
What is the relationship between the company profitability and the stockturn rate?
The higher the stockturn rate, the higher the management efficiency and company profitability.
Focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale is known as ______________________.
shopper marketing
A __________ is a store that offers a large assortment of routinely purchased food products, nonfood items, and services.
superstore
Eskimo Joe's sells it merchandise through its on-site store, via an e-commerce website, and using a direct mail catalog. Based upon this description, Eskimo Joe's is a(n) __________.
*omni-channel retailer
__________ is a retailer whose product line is actually a service; examples includes hotels, airlines, banks, and colleges.
A service retailer
The Great Recession of 2008-2009 had a profound effect on the economy and consumers. Of the following, which represents one of the major consumer trends resulting from the Great Recession?
It turned free-spending consumers into value-seeking ones.
Click and move the sliding scales to illustrate the typical level of price, depth of product lines, and level of service for each of the three types of retailers.
Price - Discount store : low - Speciality Store : high - Convenience Store : moderate Depth of product lines - Discount store : moderate - Speciality Store : high - Convenience Store : low Level of service - Discount store : moderate - Speciality Store : high - Convenience Store : low
By offering free shipping, which of the following retail marketing mix elements is Kmart not focusing on?
Product and services assortment
Which of the following makes up the retail marketing mix?
Product and services assortment, price, promotion, and location
Advertising, personal selling, sales promotion, public relations, and direct marketing are all considered __________.
Promotion Decisions
The three major groups of wholesalers are ________.
merchant wholesalers, brokers and agents, and manufacturers' and retailers' branches and offices
The trend of ________ has resulted in different types of retailers now selling the same products at the same prices to the same consumers.
retail convergence
Which of the following is least likely to be a competitor of Kmart?
Tiffany's
Market research suggests that customers have been steadily increasing their online spending in the pet food and accessories category. What strategy should you implement to keep customers coming back to your retail store?
- Add custom-made clothing and pet fashion consulting services.
__________ sell to manufacturers rather than to retailers.
Industrial distributors
Which of the following is TRUE regarding omni-channel buyers?
They shift easily across online and in-store channels.
Which of the following represents the four major classifications of retail organizations?
Corporate chains, voluntary chains, retailer cooperatives, and franchise organizations
__________ only offer specific services, like cash and carry wholesalers, truck wholesalers, drop shippers, rack jobbers, producers' cooperatives, and mail-order or web wholesalers.
limited service wholesalers
You and your team move on to evaluate the choices in terms of HentonCast's control goal of managing the customer experience. Again, everyone on your team has a different opinion, but you must make the final choice.
If we sell through high-end specialty shops, we would be able to work with the shops to train staff and present our rods. The wider market these shops afford is worth some loss of control.
Attracting and holding customers presents great challenges and decision points for retailers. Of the following, which is NOT one of the areas in which they face major decisions?
Social media and visibility decisions
Successful retailers of the future must adopt which type of buying experience that is both seamless and integrates multiple types of media?
Social shopping retailing
Which of the following statements about wholesaling is true?
Wholesalers must make decisions regarding their marketing mix.
You begin your sales of the ready-made rods. Unfortunately, HentonCast's existing stores are angry that they are not allowed to sell the rods. What is your best response?
Hold a meeting with the HentonCast store directors, explaining your decision.
Now that you have your retail format identified, you need to think about the level of customer service you will provide. Keep the industry trends and retail format in mind as you make your choice
- Full service
Segmentation and targeting must be addressed before the retail marketing mix decisions that will ultimately create customer value can be made. You and your partner have identified four potential segmentation bases, but you want to narrow them down to the best three.
- Generational cohort - Household income - Number of pets in household
Creating product assortments is another critical marketing mix decision that must be addressed by retailers. Which product assortment creates the most value for your target market based on the premiumization of pets trend?
- Offer a medium selection of national brand premium-quality pet foods as well as chef-created custom pet foods.
Product and Service Assortment
- To implement experiential retailing, the coffee shop adds a "Be the Bean" activity where customers participate in bean roasting.
You call a meeting with your marketing team to evaluate the three alternatives. First, you look at the choices in terms of HentonCast's economic goals of maximizing revenue and profit. Everyone on your team has a different opinion, but you must make the final choice. Which argument is most compelling?
If we sell through high-end specialty shops, we would have to invest, but in return we could charge high prices and give consumers a quality experience and product. This could change them into "true believers" in the HentonCase brand.
As you implement the retail marketing mix, you need to consider the 4 Ps. Beginning with the product and service decision for your target market, which of these service offerings creates value based on the humanization of pets trend?
- Offering pet massage and therapy services in-store
You hire an experienced pet industry executive to consult with you both throughout the process. In your first meeting, she presents you with an initial market analysis and trend report. The first decision you need to make is what type of retail format you think will be best for your new venture.
- Specialty store
Which two attributes would these consumers most likely seek in a pet retail experience? Select two options from the choices below and click Submit.
- Wide Assortment of gourmet pet food and treats - Unique pet pampering services
Retail Prices
-The coffee shop balances sales volume and markup, sacrificing high volume for markup.
Promotion
-The coffee shop develops a radio ad that runs on local stations during the morning commute.
The massive shift in how and where people buy calls for __________________________.
massive shifts in how store retailers operate
Which of the following statements about major retail trends is NOT true?
The green movement has not quite taken hold.
A __________ is a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods.
convenience store
In addition to Eskimo Joe's, Stan and his partners own two other restaurants: Joseppis' Italian Kitchen and Mexico Joe's. Which type of organizational approach to retailing does this represent?
corporate chain
Stan and the staff at Eskimo Joe's believe that creating a fun, one-of-a-kind restaurant and store atmosphere for its target customers will move them to visit more often and buy Eskimo Joe branded products. In so doing, Eskimo Joe's exemplifies __________ retailing. a existential b consumer-based c experiential d psychological e atmospheric
experiential
Your next step will be to identify the major retailing and wholesaling channels that HentonCast might use, and then evaluate them in terms of consumer needs and HentonCast's priorities. Members of the company have submitted suggestions to you for possible channels. Examine the arguments for each alternative, and select three for your team to evaluate.
- High-end specialty shops: If we sell through high-end specialty shops, we will be able to provide a positive buying atmosphere and expert staff for our customers. Customers will feel they are receiving the service worthy of a HentonCast rod. - Sporting goods chains and department stores: If we sell through sporting goods chains and department stores, we will be able to reach the widest market of potential customers - Online: If we sell online, we will reach modern customers. We will also be able to sell directly to the customers and avoid dealing with intermediaries."
Distribution
- The coffee shop takes over a lease on a prime location in a lifestyle center that has convenient access from schools and business.
Which of the following sets of characteristics correctly classifies retailers?
Amount of service offered, the breadth and depth of product lines, relative prices they charge, and how they are organized
A __________ is two or more outlets that are commonly owned and controlled.
Corporate chain
Which of the following correctly describes omni-channel retailing?
Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping
Kmart would be classified best as which type of retailer?
Department store
What is the overall goal when retailers choose their product assortment?
Differentiate the retailer while matching target shoppers' expectations
Your first task is to decide the best target market for HentonCast's new line of ready-made, but still top-quality, fishing rods. Choose the best market for this new product.
Expand the target market to serious anglers.
_____________________ is a retailing technique of carefully orchestrating the store's layout and displays, background music, colors, and smells.
Experiential retailing
A __________ is a contractual association between a franchisor (a manufacturer, wholesaler, or service organization) and franchisees (independent business people who buy the right to own and operate one or more business units in the franchise system).
Franchise organization
Now that you have analyzed your possible channels, it is time to pick how you think HentonCast should sell its ready-made rods.
High-end specialty shops
Your next task is to analyze the target market's needs. You consider holding a focus group to gather information from potential customers. You run this idea past the Marketing Director. Marketing Director: "Remember that focus groups cost time and money. Make sure you think it's worth it to hold one."
Hold a focus group.
A discount store (for example, Target, Kohl's, or Walmart) sells standard merchandise at lower prices. To do this, discount stores accept which of the following two conditions?
Lower margins and higher sales volume
Which of the following types of wholesalers are Independently owned businesses that take title to all merchandise handled?
Merchant wholesalers
Which of the following statements about the omni-channel buyer is NOT correct?
Omni-channel buyers do not need the bricks-and-mortar environment in which to shop.
Deciding on either high markups on lower volume or low markups on higher volume is an example of a __________.
Price decision
Retailers must decide on which three major product variables?
Product assortment, services mix, and store atmosphere
A __________ is a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.
Retailer Cooperative
Which of the following statements about retailer marketing decisions is correct?
Retailers identify three critical factors for retail success: location, location, and location.
What does the phrase "omni-channel buying calls for omni-channel retailing" imply for retailers?
Retailers should integrate all available shopping channels and devices into a seamless customer shopping experience.
Which of the following describes the activities that play an important role in connecting brands to consumers in the final phases of the buying process?
Retailing
Which of the following does NOT represent one of the major trends and developments in retailing?
Social e-tailing
Determine the stockturn rate of a retailer carrying an average inventory at cost of $900,000, with a cost of goods sold of $1,700,000.
The stockturn rate is 1.89 (1,700,000 / 900,000) = 1.89
You must now determine what level of customer service will be appropriate for customers of the ready-made fishing rods.
There will be extensive staff, even if it causes prices to increase
Which of the following best describes the type of buyer Kmart is trying to reach with its free shipping?
The omni-channel buyer
Progressive wholesalers recognize that their only reason for existing is to ____________________.
add value
The only reason for a wholesaler to exist is to ___________________ by increasing the efficiency and effectiveness of the entire marketing channel.
add value
Omni-channel retailing goes beyond just helping in-store customers as they cross-shop on mobile devices and requires _________________________.
carefully integrating the entire range of available shopping channels
Best Buy, Home Depot, Petco, and Bed Bath & Beyond, which are actually giant specialty stores characterized by immense size and deep assortments of merchandise, are sometimes called _______________.
category killers
After segmenting and defining their target markets, retailers must then ____________________.
decide how they will differentiate and position themselves
A __________ is a retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers.
department store
In buying the facility next to the restaurant to house their retail store, Eskimo Joe's was focusing on which retail marketing mix decision?
place
Deciding on store atmosphere is an example of a __________.
product assortment and services decision
Full-service wholesalers __________.
provide a complete line of services, carrying stock, maintaining a sales forces, offering credit, making deliveries and providing management assistance
__________ is all the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
retailing
By performing the channel function of ________, wholesalers' sales forces help manufacturers reach many small customers at a low cost.
selling and promoting
Looking only at its bar and restaurant business, Eskimo Joe's would be classified as a(n) ____.
service retailer
Hotels and motels, banks, airlines, restaurants, colleges, hospitals, movie theaters, tennis clubs, bowling alleys, repair services, hair salons, and dry cleaners are all examples of ________.
service retailers
A __________ is a large, low-cost, low-margin, high-volume self-service store that carries a wide variety of grocery and household products.
supermarket
A __________ is a wholesaler-sponsored group of independent retailers engaged in group buying and merchandising.
voluntary chain
__________ sell primarily to retailers and provide a full range of services.
wholesale merchants
Within each retail establishment of Kmart, external vendors stock and maintain the magazine department of the stores, but do not actually take possession of the product. Which type of wholesaler best describes these vendors?
Limited-service wholesalers
Macy's, Kohl's, and JCPenney practice a retailing pricing strategy called "high-low pricing." Which of the following correctly describes high-low pricing?
The retailer charges higher prices on an everyday basis, coupled with frequent sales and other price promotions.
__________ is a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.
A shopping center
Determine the stockturn rate of a retailer carrying an average inventory at cost of $680,000, with a cost of goods sold of $1,700,000.
The stockturn rate is 2.5 (1,700,000 / 680,000) = 2.5
If this company's stockturn rate was 3.3 last year, is the stockturn rate calculated above better or worse?
This year inventory turnover rate is worse in terms of the company profitability.
You and your partner have developed three target market profiles. Given your limited capital, you need to evaluate the three markets and choose the best market to target first. Baby boomers: Born between 1946 and 1964, most of their children have left home, and they are replacing them with pets. About 46% of baby boomer households have at least one pet. Boomers have higher than average household income and spend the most on their pets, averaging more than $700 per year. Millennials: Born between 1977 and 2000, they are becoming independent and have some disposable income. Most do not have children, and pet ownership is highest for this group at 58%. This segment is most likely to treat pets as human. Household income is still growing; therefore, pet spending is lower for this group, averaging $400 per year. Generation Z: Born after 2000, they are primarily still living in their parents' house. This generation influences their household's pet spending even though they are not generating income. Average household pet spending is close to $400. Gen Z has some disposable income, but most do not hold jobs. This segment is very likely to see pets as human and enjoy spoiling their pets. Gen Z pet ownership is low at 10%, but factoring in household-owned pets brings overall ownership to 41%. Which would be the best target market? Select an option from the choices below and click Submit.
- Baby Boomers
