Chapter 1,2,3,5 test Marketing 3007

customer relationship management (CRM) programs

also called loyalty or frequent shopper programs, are activities that focus on identifying and building loyalty with a retailer's most valued customers.

vending machines

also known as automated retailing machine, are typically placed at convenient, high traffic locations,

consignment shop

another type of resale store, a store that accepts used merchandise from people and pays them after it is sold.

hypermarkets

are also large (160,000 to 200,000 square feet), combination food (60 to 70 percent) and general merchandise (30 to 40 percent) stores.

category specialists

are big-box stores that offer a narrow but deep assortment of merchandise.

closeouts

are end-of -season merchandise that will not be used in following seasons

supercenters

are large stores (160,000 to 200,000 square feet) that combine a supermarket with a full-line discount store

irregulars

are merchandise with minor mistakes in construction.

outlet stores

are off-price retailers owned by manufacturers or retailers.

department stores

are retailers that carry a broad variety and deep assortments, offer customer services, and organize their stores in distinct departments for displaying merchandise.

full-line discount stores

are retailers that offer a broad variety of merchandise, limited service, and low prices.

warehouse clubs

are retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses.

extreme-value retailers or dollar stores

are small discount that offer a broad variety but shallow assortment of household goods, health and beauty care (HBC) products, and groceries.

apps

are software applications designed to improve the consumers' shopping experiences when using smartphones and tablets.

drugstores

are specialty stores that concentrate on health and beauty care (HBC) products. Many drug stores have steadily increased the space devoted to cosmetics.

ethics

are the principles governing individuals and companies that establish appropriate behavior and indicate what is right and wrong

flash sales

because each day at the same time, members receive an e-mail that announces the deals available

big-box stores

both super centers and hyper center face challenges in finding locations for new large, limited-service.

channel migration

but if customers gather information from one of its channels, then buy from a channel hosted by a competitor, the retailer suffers from the frustrating problem

category killers

by offering a complete assortment in a category, category specialists can "kill" a category of merchandise for other retailers and thus are frequently.

intertype competition

competition among retailers that sell similar merchandise using different types of retail outlets, such as drug and department stores.

specialty stores

concentrate on a limited number of complementary merchandise categories and provide a high level of service

live chats

customers can click a button at any time and have an instant messaging e-mail or voice conversation with a customer service representative.

private-label brands or store brands or own brands

department stores are placing more emphasis on developing their brand. These items are developed and marketed by the retailer, available only in its stores.

intratype competition

department stores compete against other department stores, and supermarkets compete with other supermarkets. This competition between the same type of retailers

retail format

describes the nature of the retailers' operations its retail mix (type of merchandise and services offered, pricing policy, advertising and promotion programs, store design and visual merchandising typical locations, and customer services) that it will use to satisfy the needs of its target market.

pyramid scheme

develops when the firm and its program are designed to sell merchandise and services to other distributors, rather than to end-users.

Stock-keeping unit (SKU)

each different item of merchandising

locavore movement

focuses on reducing the carbon footprint caused by the transportation of food throughout the world

power perimeter

fresh-merchandise categories are located in the areas around the outer walls of a supermarket, and include the dairy, bakery, meat, florist, produce, deli, and coffee bar.

unrelated diversification opportunity

has little commonality between the retailer's present business and the new growth opportunity.

base of the pyramid or bottom of the pyramid (BoP)

have a potential spending power of more than $5 trillion. The sheer size and growth of the BoP markets, especially in the countries with emerging economies such as China, India, and Brazil, and maturation of consumer goods and retail markets in developed economies in motivating firms to enter the BoP market.

unorganized retailing

includes the small independent retailers the local tirana shops, owner-operated general stores, paan/beedi shops, convenience stores, and handcart and street vendors.

multilevel system

independent businesspeople serve as master distributors, recruiting other people to become distributors in their network

mobile retailing

involves accessing the internet using a smartphone

corporate social responsibility (CSR)

involves an organization volunarily engaging in business practices that meet or exceed the ethical and legal expectations of its stakeholders its employees, customers, community, and society in general.

multichannel retailing

involves using more than one channel to sell and deliver merchandise and services to consumers.

market expansion growth opportunity

involves using the retailer's existing retail format in new market segments

mission statement

is a broad description of a retailer's objectives and the scope of activities its plans to undertake.

retailer

is a business that sells products and/or services to consumers for their personal or family use.

strategic alliance

is a collaborative relationship between independent firms

retail chain

is a company that operates multiple retail units under common ownership and usually has centralized decision making for defining and implementing its strategy.

franchising

is a contractual agreement in which in the franchisor (the company) sells the rights to use its business trademark, service mark, or trade name, or another commercial symbol of the company, to the franchisee for a one-time franchise fee and an ongoing royalty fee, typically expressed as a percentage of gross monthly sales

joint venture

is a formed when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared

retail community

is a group of consumers who have a shared involvement with a retailer.

retail market

is a group of consumers with similar needs and a group of retailers that satisfy those needs using a similar retail channels and format.

market penetration growth opportunity

is a growth opportunity directed toward customers using the retailer's present retailing format.

conventional supermarket

is a large, self-service retail food store offering groceries, meat, and product, as well as some nonfood items, such as health and beauty aids and general merchandise.

catalog channel

is a non store retail channel in which the retail offering is communicated to customers through a catalog mailed to customers.

direct-response TV (DRTV) channel

is a retail channel in which customers watch a TV advertisements that demonstrates merchandise and then place orders for that merchandise.

television home shopping

is a retail channel in which customers watch a TV network with programs that demonstrate merchandise and then place orders for that merchandise, usually by telephone or via the internet.

automated retailing

is a retail channel in which merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use a credit card.

direct selling

is a retail channel in which salespeople interact with customers face-to-face in a convenient location, either at the customer's home or at work.

retail mix

is a set of decisions retailers make to satisfy customer needs and influence their purchase decisions,

supply chain

is a set of firms that make and deliver goods and services to consumers.

sustainable competitive advantage

is an advantage the retailer has over its competition that is not easily copied by competitors and thus can be maintained over a long period of time.

retail format development growth opportunity

is an opportunity in which a retailer develops a new retail format a format with a different retail mix for the same target market

perceptual map

is frequently used to represent the customer's image and preferences for retailers.

omniretailing

is frequently used when discussing multichannel retail offering that provides a seamless customer experience when using all of the retailer's shopping channels.

diversification growth opportunity

is one in which a retailer introduces a new format directed toward a market segment that's not currently served by the retailer.

positioning

is the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors.

internet retailing

is the fastest growing channel. It involves retailers interacting with consumers via the internet, whether they use a traditional computer or a laptop, a variety of sizes of tablets or a smartphone.

target market

is the market segment toward which the retailer plans to focus its resources and retail mix

assortment

is the number of different items offered in a merchandise category.

variety

is the number of merchandise categories a retailer offers

fair trade

is the practice of the prevailing minimum wage, and offer other benefits such as onsite medical treatment

retailing

is the set of business activities that adds value to products and services sold to consumers for their personal or family use.

strategic retail planning process

is the set of steps a retailer goes through to develop a strategy and plan.

retail channel

is the way a retailer sells and delivers merchandise and services to its customers

vertical integration

means that a firm performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities by operating warehouses or designing private-label merchandise.

customer loyalty

means that customers are committed to buying merchandise and services from a particular retailers.

cross selling

means that sales associates in one department attempt to sell complementary merchandise from other departments to their customers.

showrooming

occurs when a consumer goes into a store to learn about different brands and products and then searches the internet for the same product sold at a lower price.

forward integration

occurs when a manufacturer undertakes retailing and wholesaling activities, such as apple operating its own retail stores.

direct investment

occurs when a retail firm invests in and owns a retail operation in a foreign country

off-price retailers

offer an inconsistent assortment of brand-name merchandise at a significant discount off the manufacturers' suggested retail price (MSRP)

convenience stores

provide a limited variety and assortment of merchandise at a convenient location in 3,000-to 5,000- square foot stores with speedy checkout.

thrift store

resale stores are retailers that sell secondhand or used merchandise. A special type of resale store is the, where merchandise is donated and proceeds go to charity.

breaking bulk

retailers then offer the products in smaller quantities tailored to individual consumers' and households' comsumption patterns an activity.

holding inventory

so that products will be available when consumers want them. Thus, consumers can keep a smaller inventory of products at home because they know local retailers will have the products available when they need more.

service retailers or firms

that primarily sell services rather than merchandise.

related diversification growth opportunity

the retailer's present target market and retail format shares something in common with the new opportunity.

factory outlets

those owned by manufacturers

wholesale-sponsored voluntary cooperative group

to compete against corporate chains, some independent retailers join, which is an organization operated by a wholesaler offering a merchandising program to small, independent retailers on a voluntary basis

exclusive brands

to differentiate their merchandise offerings and strengthen their image, department stores are aggressively seeking in which national brand vendors sell them merchandise that is not available elsewhere

breadth of merchandise

variety is often referred to as the breadth of merchandise, and assortment is referred to as the depth of merchandise.

scrambled merchandising

when retailers offer merchandise not typically associated with their type of store, such as clothing in a drugstore, the result

limited-assortment supermarkets or extreme-value food retailers

whereas conventional supermarkets carry about 30,000 SKUs, only stock about 1,500 SKUs. The two largest limited-assortment supermarket chains in the United States are Save-A-Lot and ALDI

hard goods or durable goods

which are manufactured items that are expected to last several years, such as appliances, furniture, and consumer electronics

value-creating activities undertaken by retailers include:

(1) providing an assortment of products and services (2) breaking bulks (3) holding inventory, and (4) providing services.

retail strategy

(1) the target market, or markets, toward which the retailer will direct its efforts; (2) the nature of the merchandise and services the retailer will offer to satisfy the needs of the target market; and (3) how the retailer will develop unique assets that enable it to achieve long-term advantage over its competitors.

north american industry classification system (NAICS)

The united states, canada, and Mexico have developed a classification scheme, to collect data on business activity in each country.

soft goods

They are both nondurable or consumable goods, which have a shorter lifespan such as cosmetics, clothing, and bedding