Retail Industry Exam 2- Study Guide- Verified Questions and Answers Perfect for Exam Prep!
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Course
NRF
Institution
NRF
Retail Industry Exam 2- Study Guide- Verified Questions and Answers Perfect for Exam Prep!
What is a Retail Strategy - ANSWER A statement identifying (1)the retailers target market (2) the format the retailer plans to use to satisfy the target markets needs and (3)the bases on which the re...
Retail Industry Exam 2-
Study Guide- Verified
Questions and Answers
A
VI
Perfect for Exam Prep!
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IS
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What is a Retail Strategy - ANSWER A statement identifying (1)the retailers target
market (2) the format the retailer plans to use to satisfy the target markets needs and
(3)the bases on which the retailer plans to build a sustainable competitive advantage.
O
Target Market - ANSWER the market segment(s) toward which the retailer plans to
focus its resources and retail mix
A
Retail Format - ANSWER describes the nature of the reatiler's operations-its retail
N
mix (type of services and merchandise offered, pricing policy, advertising and promotion
programs, store design and visual merchandising, typical locations and customer
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services) that will be used to satisfy the needs of its target market
What is a sustainable competitive edge? And, how do you build one? - ANSWER 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:
Building a brand with an emotional connection with customers.
, -Utilize a deeper understanding of your customer
-Convenient locations
-Shared systems with vendors
-Exclusive merchandise (private-label)
-knowledgeable and helpful salesperson
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What can a local business do that sets them apart from a national retailer? - ANSWER
A
Many retailers build customer loyalty by developing private label brands aka store
brands. What are private label brands? - ANSWER They are products developed
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and marketed by a retailer and available only from that retailer.The Consumer can only
get private -label brands from that specific store
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*Keeps consumers from comparison shopping
Example: Kroger brands, or Great value the Walmart brand
To build an advantage that is sustainable over a long period of time, retailers must: -
ANSWER
IS They must not rely on a single approach, such as good locations. They
must use multiple approaches to build a high wall around their position as possible.
Loyalty or Frequent Shopper Programs - ANSWER Customer relationship
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management programs. Activities that focus on identifying and building loyalty with a
retailer's more valued customer
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Typically involves offering customers rewards based on he amount of services or
merchandise they purchase.
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Example: Airlines- frequent flyer miles. Krogers Rewards card , Subway giving their
customers a free sandwich after each 10 they purchase
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Market Penetration - ANSWER Is a growth opportunity directed toward *existing
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customers* using the retailer's present retailing format.
Involves either attracting new consumers from the retailers current target market who
dont patronize the retailer
Example: Opening more stores in target market, keeping existing stores open for longer
Cross-selling - ANSWER A market penetration approach - means sales associates
in one department attempt to sell complementary merchandise from other departments
to their customers.
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