Term
Developing a Sustainable Competitive Advantage
3 Approaches |
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Definition
1. Build strong relationships with customers
2. Build strong relationships with suppliers
3. Achieve efficient internal operations |
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Term
| Sustainable Competitive Advantage |
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Definition
| Occurs when a an organization acquires or develops an attribute or combinations of attributes that allows it to outperform its competitors. |
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Term
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Definition
Elements we can control and can change
Ex. Customers, Suppliers, Distribution Channel |
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Term
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Definition
Elements that we cannot control/change.
Ex. Economics, Legal, Demographics |
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Term
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Definition
| Is the design and implementation of a retail mix to create an image of the retailer in the customer's mind in relation to it's competitors. Companies apply this strategy either by emphasizing the distinguishing features of their brand (what is it, what it does, and how) or they may try to create a suitable image (inexpensive, premium, entry level or high end) through advertising. Once a brand is positioned, it is very difficult to reposition it without destroying it's credibility. This is also called product positioning. |
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Term
Strategic Retail Planning Process
7 Steps |
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Definition
1. Define the business mission
2. Conduct a situation audit = Market attractiveness analysis, Competitor analysis and self analysis
3. Identify strategic opportunities
4. Evaluate strategic alternatives
5. Establish specific objectives and allocate resources
6. Develop a retail mis to implement strategy
7. Evaluate performace and make adjustments |
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Term
Business Mission Statement
5 Questions to ask yourself |
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Definition
1. What business are we in?
2. What should be our business in the future?
3. Who are our customers?
4. What are our capabilities?
5. What do we want to accomplish? |
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Term
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Definition
| A set of business activities that adds value to the products and services sold to consumers for their personal or family use. |
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Term
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Definition
| Is a business that sells products and/or servies to consumers for personal or family use. |
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Term
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Definition
| Number of different product lines. |
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Term
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Definition
| Number of items within each product line. |
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Term
Retailers Characteristics
4 Elements |
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Definition
1. Type of merchandise/servies offered
2. Breadth/Depth of merchanise offered
3. The level of customer service
4. The price of the merchandise
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Term
| The Multi-channel Universe |
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Definition
| Is a marketing strategy that offers your customers a choice of ways to buy products. A true multi-channel strategy covers purchases from a store, purchases from a website, telephone ordering, mail orders, interactive television, catalog ordering and comparison shopping sites. The aim of a multi-channel retailing strategy is to maximize revenue and loyatly by offering your customers choice and conveince. |
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Term
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Definition
| When a consumer goes shopping to accomplish a specific task. |
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Term
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Definition
| When consumers go shopping for pleasure. |
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Term
Purchasing the Merchandise or Service
"How can you make it easier to purchase?" |
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Definition
Reduce wait times by having more checkouts
Reduce the risk by offering return policies, money back guarantees, refunds or price matching
Self service checkouts, and or drive thrus |
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Term
| Factors Affecting Buying Decisions |
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Definition
Beliefs
Values
Attitudes
Family
Culture
Reference Groups |
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Term
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Definition
| Is a group of customers whose needs are satisfied by the same retail mix because they have similar needs, in an otherwise homogenous market. |
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Term
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Definition
| Groups customers by where they live. A retail market can be segmented by countries and by areas within a country such a provinces, cities, and neighbourhoods. |
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Term
Actionability
"Actionable" |
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Definition
| The defined segment clearly indicates what the reatiler should do to satisfy its needs. |
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Term
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Definition
| A segment must be large enough to have significant buying potential. |
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Term
Identifiability
"Identifiable" |
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Definition
| The retailer is able to determine which customers are in the segment. |
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Term
Accessibilitly
"Reachable" |
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Definition
| The retailer can target promotions and other marketing information to consumers in the segment. |
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Term
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Definition
| Groups consumers on the basis of easily measured objective characteristics such as: age, gender, income, education... |
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Term
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Definition
| A method of segmentation a retail market using multiple variables, including benefits sought, lifestyles and demographics. |
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Term
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Definition
| A method of segmentation of a retail market on the basis of similar benefits sought in merchandise or services. |
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Term
| Buying Situation Segmentation |
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Definition
| A method of segmentation a retail market based on how consumers live, how they spend their time and money, what activities they pursue, and their attitues and opinions about the world they live in. |
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Term
| Geodemographic Segmentation |
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Definition
This segmentation scheme is based on the principle that "Birds of a feather flock together"
Use "data mining" to group consumers into clusters based on buying habits across Canada postal code by postal code. |
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Term
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Definition
| A function performed by retailers or wholesalers in which they receive large quantities. |
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Term
Corporate Social Responsibility
(C.S.R.) |
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Definition
| Voluntary actions taken by a company to address ethical, social and environmental impacts of its business operations and the concerns of its stakeholders. |
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Term
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Definition
| Manufacturing - Wholesaler - Retailer - Consumer |
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Term
The Retail Mix
6 Elements |
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Definition
People
Place
Product
Price
Promotion
Process |
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Term
| Human Resource Management |
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Definition
| Since retailing is a labour-intensive business and also has high levels of contacts between employees and customers, retailers need to develop programs to motivate and coordinate employee efforts. These are usually done by providing appropriate incentives for employees fostering a strong and positive organization culture environmental, and managing diversity. |
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Term
Supplier Relationships
Benefits |
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Definition
Special financing terms
Up-to-date information on trends
Exclusive selling rights of merchandise |
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Term
| Approaches for Building Customer Loyalty |
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Definition
Customer Service
Loyalty Programs
Location
Unique Positioning
Information on Customers |
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Term
| Definition of Retail Market Strategy |
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Definition
Target Market (Who will we focus on with our resources and retail mix?)
Format (What is our retail mix?)
Sustainable Competitive Advantage (What will make us different from other competitors?) |
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Term
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Definition
| Retailers use music, visual displays, scents and demostrations to create a more entertaining shopping experience. Graphics, photography are also used in flyers, catalogues and on websites to stimulate consumers. |
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Term
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Definition
All about the SATISFACTION
How well a store, product or service meet or exceeds customer expectations
This then becomes apart of the customer's internal information that affects future purchases decisions. |
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Term
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Definition
| Is a group of consumers with similar needs (a market segment) and a group of retailers using a similar retail format to satisfy those customers needs. |
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Term
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Definition
| Involve the following strategics: Market, Financial, Location, Supply Chain, CRM, Information Systems. |
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