Marketing Chapter 13 Retail Positioning

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Questions and Answers

What is retail positioning?

The quantity of each item available in a store

The atmosphere created by a store

The prices set by a retailer

Where a store situates itself in the consumer market (correct)

What are merchandising policies?

Specific guidelines established by management for the company to follow to keep inventory choices on track.

What are operational policies?

Specific guidelines established by management to make the store appealing for the target market through physical appearance and customer services.

What are buying motives?

The reasons consumers decide what products and services to purchase. Signup and view all the answers

What are product motives?

Qualities or images of certain products that affect consumer purchases such as materials, construction, style, fit, or guarantees. Signup and view all the answers

What are patronage motives?

Reasons customers choose to shop at some stores rather than others based on various factors. Signup and view all the answers

What is direct competition?

The rivalry between two companies that offer similar products and services. Signup and view all the answers

What is indirect competition?

Competition between retailers that employ different types of business formats to sell the same type of goods. Signup and view all the answers

What is vertical competition?

Rivalry between businesses at different levels of the supply chain. Signup and view all the answers

What is lifestyle competition?

Rivalry between businesses for consumers' pastimes and spending money. Signup and view all the answers

What is ambiance in retail?

A store's atmosphere that has an influence on its image. Signup and view all the answers

What is assortment breadth?

The number of different categories or classifications of merchandise offered. Signup and view all the answers

What is assortment depth?

Quantity of each item available in the assortment of goods offered. Signup and view all the answers

What is prestige pricing?

The practice of setting a price artificially high to foster the impression of high quality. Signup and view all the answers

What does price promoting involve?

Advertising special price reductions of goods to attract shoppers. Signup and view all the answers

What is value pricing?

The selling of items below the price suggested by vendors. Signup and view all the answers

What is everyday low pricing?

A retail strategy of consistently offering fair prices and good values at all times. Signup and view all the answers

What is purchasing behavior?

The way consumers act in the market influenced by various factors. Signup and view all the answers

What is emotional behavior in purchasing?

Behavior based on feelings such as status, imitation, fear, or pride. Signup and view all the answers

What is image in a retail context?

How the store is perceived by the public. Signup and view all the answers

What is product mix?

The entire selection of goods and services offered by a retailer. Signup and view all the answers

What is assortment?

The range of stock or total selection a retailer carries. Signup and view all the answers

What does narrow and deep mean in retail?

Stocking relatively few styles but offering them in many sizes and colors. Signup and view all the answers

What does broad and shallow mean in retail?

Stocking small amounts of many different styles. Signup and view all the answers

What is signage in retail?

The total of all the signs that attract consumers' attention and identify the store. Signup and view all the answers

What is sales promotion?

Any activities that encourage consumer interest in the purchase of goods or services. Signup and view all the answers

What should retailers do if they see their target market is not being satisfied?

Change its target market or redesign its marketing mix. Signup and view all the answers

What does the merchandise fashion level emphasize?

Presenting goods in the early or later stages of the fashion cycle. Signup and view all the answers

What might a retailer do to adjust to changing demographics?

Change a retailer's image. Signup and view all the answers

Since retail space and inventory costs must be considered, stocking a broad assortment may limit the ________ to which those items can be carried.

depth Signup and view all the answers

If depth is desired, space and costs often limit the _________ that can be offered.

variety Signup and view all the answers

What is the right price?

The amount consumers are willing to pay for certain products. Signup and view all the answers

Study Notes

Retail Positioning and Strategies

Retail positioning defines a store's place in the market, influencing its approach to meet consumer needs and set itself apart from competitors.
Merchandising policies are guidelines established by management to align inventory choices with the company's strategic objectives.
Operational policies aim to enhance the store’s appeal to target demographics through its physical layout and customer service.

Consumer Behavior Dynamics

Buying motives refer to the underlying reasons behind consumer product purchases.
Product motives encompass features or images of products that influence buyer decisions, including quality, style, and guarantees.
Patronage motives are factors driving customers to prefer one retailer over another, shaped by factors like reputation, merchandise selection, and pricing.

Types of Competition

Direct competition involves businesses that offer similar products and actively respond to each other’s strategies.
Indirect competition occurs between retailers using different formats but selling similar goods, like supermarkets vs. department stores.
Vertical competition involves rivalries along the supply chain, such as manufacturers competing with their retailers.
Lifestyle competition focuses on the battle for consumers' discretionary spending beyond traditional retail, like entertainment options.

Retail Environment and Presentation

Ambiance refers to the overall atmosphere of a store, significantly impacting consumer perception.
Assortment breadth indicates the variety of product categories offered, while assortment depth denotes the range of options within those categories, like sizes and colors.

Pricing Strategies

Prestige pricing sets higher prices to convey a perception of superior quality.
Price promoting involves advertising discounts to increase initial customer traffic, leading to additional purchases.
Value pricing features products sold below suggested vendor prices, while everyday low pricing maintains consistently fair pricing.

Understanding Purchasing Behavior

Purchasing behavior reflects consumer actions influenced by cultural, social, and psychological factors.
Emotional behavior stems from feelings like pride or fear, driving impulsive purchases based on sentiments rather than logic.
The image of a retailer is shaped by public perception, akin to a brand’s personality.

Product and Stock Considerations

The product mix is the complete range of goods and services a retailer offers.
Assortment includes the total mix of sizes, colors, and styles available to consumers.
Strategies like narrow and deep involve stocking fewer styles in many options, while broad and shallow entails offering diverse styles with limited quantities.

Marketing and Operational Adjustments

Signage encompasses all visual elements that attract customer attention and represent the store.
Sales promotions include various tactics such as advertising and events aimed at stimulating consumer interest.
Retail adjustments may involve targeting market alterations or redesigning marketing strategies to respond to customer feedback and competition.

Challenges in Retailing

Retail expansion is hindered by slowing population growth and reduced consumer spending on material goods.
Profit maximization requires retailers to either cut operational costs or attract customers from competing businesses.
The merchandise fashion level highlights the importance of timing in showcasing products based on their cycle stage.

Inventory and Cost Management

Stocking a broad assortment may limit the depth of options due to space and inventory costs.
Conversely, aiming for deep inventory can limit the variety available, a crucial consideration for store managers.
The "right price" is defined by the intersection of consumer willingness to pay and retailer acceptance of sale terms.

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Explore the key concepts of retail positioning and its impact on consumer markets in this flashcard quiz. Learn about merchandising and operational policies that guide retail practices while differentiating businesses from competitors.