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.