Retail Industry Exam 2- Study Guide with Complete Solutions.
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Course
Retail Industry
Institution
Retail Industry
RetailIndustryExam2-StudyGuidewithComplete
Solutions.
What is a Retail Strategy - Correct 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 sustainabl...
Retail Industry Exam 2- Study Guide with Complete
Solutions.
What is a Retail Strategy - Correct 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.
Target Market - Correct Answer the market segment(s) toward which the retailer plans to
focus its resources and retail mix
Retail Format - Correct Answer describes the nature of the reatiler's operations-its retail
mix (type of services and merchandise offered, pricing policy, advertising and promotion
programs, store design and visual merchandising, typical locations and customer
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? - Correct 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
-
What can a local business do that sets them apart from a national retailer? - Correct
Answer
Many retailers build customer loyalty by developing private label brands aka store brands.
What are private label brands? - Correct Answer They are products developed and
, marketed by a retailer and available only from that retailer.The Consumer can only get
private -label brands from that specific store
*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: -
Correct Answer 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 - Correct Answer Customer relationship
management programs. Activities that focus on identifying and building loyalty with a
retailer's more valued customer
Typically involves offering customers rewards based on he amount of services or
merchandise they purchase.
Example: Airlines- frequent flyer miles. Krogers Rewards card , Subway giving their
customers a free sandwich after each 10 they purchase
Market Penetration - Correct Answer Is a growth opportunity directed toward *existing
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 - Correct Answer A market penetration approach - means sales associates
in one department attempt to sell complementary merchandise from other departments to
their customers.
Example: Customer has just bought a Blu-Ray player, a sales associate tries to sell the
customer special cables to improve the performance of the blu-ray player
Market Expansion - Correct Answer Involves using the retailers *existing retail format* in
new market segments.
Example: Chico's buying out White House Black Market and took on the younger segment
that they target towards.
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