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23 Cards in this Set
- Front
- Back
Define target market |
The market segment(s) toward which the retailer plans to focus its resources and retail mix.
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Define retail format |
The nature of the retailer’s operations—its retail mix
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Define sustainable competitive advantage |
An advantage over the competition that is not easily duplicated and can be maintained over a long time.
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Criteria for selecting a target market (3) |
(1) Attractiveness-- large, growing,
(2) Little competition •More profits (3) Consistent with your competitive advantages |
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Comparative advantage (more sustainable) |
•Location
•Customer loyalty •Customer service •Exclusive merchandise •Low-cost supply chain management •Information systems •Buying power with vendors •Committed employees |
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Comparative advantage (less sustainable) |
•Better computers
•More employees •More merchandise •Greater assortments •Lower prices •More advertising •More promotions •Cleaner stores |
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Customer loyalty (3) |
(1) More than simply liking one retailer over another (2) Customers will be reluctant to patronizecompetitive retailers (3) Retailers build loyalty by: •Developing a strong brand for the storeor store brands •Developing clear and precise positioningstrategies •Creating an emotional attachment withcustomers through loyalty programs |
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Retail Branding (2) |
(1) Can create an emotional tie with customers that build their trust and loyalty (2) Facilitates store loyalty because it stands for a predictable level of quality |
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Define positioning |
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. |
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Vendor relationships (3) |
(1) Low cost - efficiency through coordination - electronic data interchange (EDI) - collaboration planning and forecasting to reduce inventory and distribution costs (2) Exclusive sale of desirable brands (3) Special treatment - early delivery of new styles - shipment of scarce merchandise |
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Human resource management (4) |
(1) "Employees are key to build a sustainable competitive advantage" (2) Strategies for recruiting and retaining talented employees (3) Employee branding (4) Develop positive organizational culture |
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Distribution and Info systems (3) |
By decreasing costs here, there is more money available to invest in: (1) better services (2) increase in breadth and depth (3) decrease in prices |
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Location (3) |
(1) location is the most important thing in retailing (2) location is a competitive advantage (3) A high density of Starbucks stores: - creates top-of-mind awareness - makes it very difficult for a competitor to enter a market and find good locations |
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Define market penetration |
A market penetration growth opportunity is a growth opportunity directed toward existing customers using the retailer's present retailing format. |
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Define market expansion |
A market expansion growth opportunity involves using the retailer's existing retail format in new market segments. |
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Define retail format development |
A 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. |
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Define diversification |
A diversification growth opportunity is on in which a retailer introduces a new retail format directed toward a market segment that's not currently served by the retailer. |
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Define related diversification |
In a related diversification growth opportunity, the retailer's present target market and retail format shares something in common with the new opportunity. This commonality might entail purchasing from the same vendors, operating in similar locations, using the same distribution or management information system, or advertising in the same newspapers to similar target markets. |
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Define unrelated diversification |
An unrelated diversification growth opportunity has little commonality between the retailer's present business and the new growth opportunity. |
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India (2) |
(1) prefers small family owned stores (2) restricts foreign investment |
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China (2) |
(1) increasing operating costs (2) underdevelopment and inefficient supply chain |
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Stages in the strategic retail planning process (7) |
(1) Define the business mission (2) Conduct a SWOT analysis (3) Identify strategic opportunities (4) Evaluate strategic opportunities (5) Establish specific objectives and allocate resources (6) Develop a retail mix to implement the strategy (7) Evaluate performance and make adjustments |
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Self-analysis |
Your strengths and weaknesses |