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Retail Industry Exam 2- Study Guide WITH 100- SURE ANSWERS
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Retail Industry Exam 2- Study Guide WITH 100- SURE ANSWERS
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EUNICERetail Industry Exam 2- Study Guide WITH 100% SURE
ANSWERS
A statement identifying (1)the retailers target market (2) the format the retailer plans
What is a Retail Strategy to use to satisfy the target markets needs and (3)the bases on which the retailer
plans to build a sustainable competitive advantage.
the market segment(s) toward which the retailer plans to focus its resources and
Target Market
retail mix
describes the nature of the reatiler's operations-its retail mix (type of services and
merchandise offered, pricing policy, advertising and promotion programs, store
Retail Format
design and visual merchandising, typical locations and customer services) that will
be used to satisfy the needs of its target market
A 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.
You can build one by:
What is a sustainable competitive edge? Building a brand with an emotional connection with customers.
And, how do you build one? -Utilize a deeper understanding of your customer
-Convenient locations
-Shared systems with vendors
-Exclusive merchandise (private-label)
-knowledgeable and helpful salesperson
-
What can a local business do that sets them
apart from a national retailer?
They are products developed and marketed by a retailer and available only from that
Many retailers build customer loyalty by retailer.The Consumer can only get private -label brands from that specific store
developing private label brands aka store
brands. What are private label brands? *Keeps consumers from comparison shopping
Example: Kroger brands, or Great value the Walmart brand
To build an advantage that is sustainable They must not rely on a single approach, such as good locations. They must use
over a long period of time, retailers must: multiple approaches to build a high wall around their position as possible.
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, Customer relationship management programs. Activities that focus on identifying
and building loyalty with a retailer's more valued customer
Typically involves offering customers rewards based on he amount of services or
Loyalty or Frequent Shopper Programs merchandise they purchase.
Example: Airlines- frequent flyer miles. Krogers Rewards card , Subway giving their
customers a free sandwich after each 10 they purchase
Is a growth opportunity directed toward existing customers using the retailer's
present retailing format.
Involves either attracting new consumers from the retailers current target market
Market Penetration who dont patronize the retailer
Example: Opening more stores in target market, keeping existing stores open for
longer
A market penetration approach - means sales associates in one department attempt
to sell complementary merchandise from other departments to their customers.
Cross-selling
Example: Customer has just bought a Blu-Ray player, a sales associate tries to sell
the customer special cables to improve the performance of the blu-ray player
Involves using the retailers existing retail format in new market segments.
Example: Chico's buying out White House Black Market and took on the younger
segment that they target towards.
Market Expansion
Also, Chicos acquisition of Soma, a lingerie retailer that targets women 35-55 also. -
Same market and similar operations, but different operations
An opportunity in which a retailer develops a new retail format- A format with a
Retail format development
different retail mix for the same target market.
How did U.K based retailer Tesco use the They operate several different food store formats that all cater to essentially the
retail format development growth same target market
opportunity.
1-Globally sustainable competitive advantage
characteristics of retailers that have
2-Adaptability
successfully exploited international growth
3- global culture
opportunities
4- Financial resources
The renewal and rebuilding of offices, housing, and retailers in deteriorating area-
Gentrification Coupled with an influx of more affluent people that displaces the former, poorer
residents
shopping centers that consist primarily of collections of big-box retail stores, such as
full-line discount stores (Target, Walmart), off-price stores(Marshalls, TJ Maxx),
warehouse clubs
Power center (Costcos,Sam's Club), and category specialist (Lowe's, Staples,Home Depot, Toys R
Us, Barnes and Noble, Best Buy, Sports Authority)
Example:Shopping area on Miller road
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