Retail Marketing Key Concepts
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Which is NOT part of the 5 Rights?

  • Price
  • Quantity
  • Location
  • Promotion (correct)

    • Which of the following is NOT part of the Five Rights of retail?

  • Quantity
  • Quality (correct)
  • Place
  • Price

    • The majority of all retail sales happen in a bricks and mortar store.

    True (A)

    Amazon hires internal employees to deliver packages to customers. This is an example of:

    <p>Forward integration (D)</p> Signup and view all the answers

    Amazon created a new line of private label home furnishings. This is an example of:

    <p>Backward integration (C)</p> Signup and view all the answers

    When a firm performs more than one set of activities in a channel, it is called:

    <p>Vertical integration (A)</p> Signup and view all the answers

    Walmart carries a private label line of electronics called Onn. This is an example of:

    <p>Backward integration (A)</p> Signup and view all the answers

    Walgreens is open 24 hours a day so that sick customers can buy medicine when they need it, at any time. How is Walgreens adding value?

    <p>Holding inventory (A)</p> Signup and view all the answers

    Walmart and Target are both full line discount stores. What type of competition do they have:

    <p>Intratype (A)</p> Signup and view all the answers

    Which of the following is NOT part of a retailer's strategy?

    <p>Location (B)</p> Signup and view all the answers

    Which of the following is NOT included in the retail mix?

    <p>Time (A)</p> Signup and view all the answers

    Depth is the number of different categories that a retailer carries.

    <p>False (B)</p> Signup and view all the answers

    Which best describes the assortment of Discount Tire (a store selling only tires and tire accessories)?

    <p>Narrow and deep (C)</p> Signup and view all the answers

    Walmart is:

    <p>Full-Line Discounter (D)</p> Signup and view all the answers

    Dollar Tree is:

    <p>Extreme value retailer (D)</p> Signup and view all the answers

    Alart'd State is:

    <p>Specialty store (D)</p> Signup and view all the answers

    Lowe's is:

    <p>Category killer (D)</p> Signup and view all the answers

    JC Penny is:

    <p>Department store (B)</p> Signup and view all the answers

    Breaktime is:

    <p>Convenience store (C)</p> Signup and view all the answers

    Schnucks is:

    <p>Traditional supermarket (D)</p> Signup and view all the answers

    Walmart and Target are classified as:

    <p>Full-line discounters (A)</p> Signup and view all the answers

    Warehouse clubs have all of the following characteristics EXCEPT:

    <p>Low visibility locations (A)</p> Signup and view all the answers

    The Gap is classified as a:

    <p>specialty store (C)</p> Signup and view all the answers

    Service retailers like hotels and airlines have to match supply and demand because services can't be stored. This is referred to as:

    <p>perishability (C)</p> Signup and view all the answers

    A retail channel is used to communicate information to a customer but is not a way for a customer to purchase goods.

    <p>False (B)</p> Signup and view all the answers

    Showrooming is when a customer looks at an item in a physical store and then purchases it online:

    <p>True (A)</p> Signup and view all the answers

    Retailers use multiple channels to interact with customers for all of the following reasons EXCEPT:

    <p>Customers that shop in more channels spend more time in stores (A)</p> Signup and view all the answers

    Which of the following is NOT a benefit customers receive for shopping in-store?

    <p>Broader selection (A)</p> Signup and view all the answers

    Which of the following is NOT a benefit customers receive from shopping online?

    <p>Reduced risk (B)</p> Signup and view all the answers

    Which of the following is a medium?

    <p>A retailer's YouTube page (A)</p> Signup and view all the answers

    Where do most sales happen?

    <p>In physcial stores (B)</p> Signup and view all the answers

    Which of the following is a benefit of shopping online?

    <p>Expanded selection (A)</p> Signup and view all the answers

    Flashcards

    Two most important rules in retail

    Five Rights and sell the most with least inventory.

    Five Rights

    Right product, price, time, place, quantity.

    Not part of the 5 Rights?

    D) Promotion.

    Retail definition

    Activities adding value to products/services sold to consumers.

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    Retailer definition

    Business selling products/services for personal use.

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    Wholesale definition

    Selling products in bulk to businesses for resale.

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    Supply chain definition

    Firms making and delivering goods/services to consumers.

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    Vertical integration definition

    Firm performs more than one activity in the channel.

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    Backward integration definition

    Retailer performs some distribution and manufacturing activities.

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    Forward integration definition

    Manufacturers undertake retailing activities.

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    Adding value in retail

    Provide assortment, break bulk, hold inventory, offer services.

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    Provide assortment

    Allows buying other products at the same time.

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    Break bulk

    Allows customers to buy in quantities they want.

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    Hold inventory

    Have products available when customers want them.

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    Offer services

    Services like credit, layaway to enhance shopping.

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    Competition types

    Direct, indirect, intratype, intertype, scrambled.

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    Direct competition

    Companies offering similar products to the same target.

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    Indirect competition

    Businesses offering different products for the same audience.

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    Intratype competition

    Competition between the same type of retailers.

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    Retail Strategy

    Includes target market, retail mix, sustainable advantage.

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    Retail Mix (6 P's)

    Personnel, Presentation, Product, Promotion, Pricing, Place.

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    Omnichannel definition

    Coordinated, seamless customer experience across channels.

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    M-commerce definition

    Mobile access to retail sites, location-sensitive.

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    Customer decision-making process

    Need recognition, information search, evaluation, choice, post-purchase.

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    Utilitarian need

    Need for a specific task.

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    Hedonic need

    Need for pleasurable shopping experiences.

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    Study Notes

    Retail Marketing Key Concepts

    • Retail Definition: Business activities adding value to products sold directly to consumers for personal use.
    • Retailer Definition: A business selling products/services to consumers for personal use.
    • Wholesale Definition: Selling products in bulk to businesses (like retailers) for resale.
    • Supply Chain Definition: Firms involved in making and delivering goods/services to consumers.
    • Five Rights of Retail: Right product, price, time, place, and quantity.
    • Retail Value Added: Assortment, breaking bulk, inventory holding, and offering services (e.g., layaway, credit, in-store viewing).
    • Vertical Integration: A firm performing multiple activities in a retail channel.
    • Backward Integration: A retailer taking on distribution and/or manufacturing.
    • Forward Integration: A manufacturer engaging in retailing activities.
    • Retail Environment:
    • Macroenvironment: Demographics, economics, political/legal, social/cultural, technological factors.
    • Microenvironment: Suppliers, resellers, public, competitors, customers.
    • Competition Types:
    • Intratype: Competition between similar retailers (e.g., Walmart vs. Target).
    • Intertype: Competition between different types of retailers (e.g., Target vs. a clothing boutique).
    • Scrambled: Retailers expanding into unrelated product lines (e.g., an appliance store selling home décor).
    • Retail Strategy: Targeting specific markets, managing product/service mix, and achieving lasting competitive advantages.
    • Retail Mix (6 Ps):
    • Personnel: Customer service.
    • Presentation: Store design, displays.
    • Product: Assortment (breadth and depth).
    • Promotion: Communications mix, pricing strategies.
    • Pricing: Strategies for setting prices.
    • Place: Store location.
    • Retail Formats:
    • Supercenters/Hypermarkets: Large format, full-line discount stores with supermarkets.
    • Warehouse Clubs: Limited assortment, low service, low prices.
    • Convenience Stores: Small, focused on quick purchases.
    • Online Grocery: Online ordering, delivery options.
    • General Merchandise Retailers: Diverse product lines.
    • Department Stores: Broad and (partially) deep assortment, services.
    • Full-Line Discount Stores: Broad variety, lower service, low prices (e.g., Walmart, Target).
    • Specialty Stores: Higher depth, narrower breadth; focused on specific segments.
    • Category Specialists/Killers: Focus on a narrow set of product categories.
    • Outlet Stores: Manufacturer or retailer outlets selling leftover or discounted merchandise.
    • Extreme Value Retailers: Low-cost locations, limited service, low prices (e.g., Dollar General, Dollar Tree).
    • Off-Price Retailers: Inconsistent assortment of brand-name goods at discounted prices.
    • Digital Retailing: Online business activities for creating, capturing, communicating, and delivering value to customers.
    • Social Retailing: Engaging customers through dialogue within social media channels.
    • Channels: Ways retailers deliver merchandise/services, e.g., store, online, catalog, social media.
    • Media: Methods of communication; owned, paid, and earned.
    • Omnichannel: Seamless, synchronized customer experience across all sales channels.
    • M-commerce: Mobile-based retail transactions.
    • Showrooming: Customers trying out items in-store then purchasing online.
    • Customer Decision-Making Process: Need recognition, information search, evaluation, choice/purchase, and post-purchase evaluation.
    • Customer Needs: Utilitarian (practical) and hedonic (experiential) needs.

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    Description

    Explore the fundamental concepts of retail marketing, including definitions of retail, retailer, and wholesale, as well as the supply chain and the five rights of retail. This quiz will test your understanding of value addition in retail, integration strategies, and the retail environment's macro factors. Perfect for students and professionals looking to enhance their knowledge in retail marketing.

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