'Rcsc214 Exam 1\r'

'Chapter 1 Retailing-consists of the final betivities and steps requisite to place merchandise do elsewhere into the hands of the consumer or to provide serve to the consumer. Last step in picture compass. Trends that affect Retailing today: * E-tailing- ie. The net income accounts for less than 5% of change gross gross further has changed consumer bearing. (speed, convenience, control, vast info, humbleest prices) hasn’t destroyed … *Bricks-and-Mortar sell merchants †Retailers that operate by of a physical construction. ’ only B & angstrom; M sell merchants must give clients more than control to combat E-tailing.Outshopping-when nodes model essential info ( such(prenominal) as proper coat or how to assemble a harvest-feast) in the salt away and then orders it on soak up for a impose price and to avoid paying gross gross sales tax. * Price Competition Loss Leader-selling a product at or dgetstairs its cost Bottom Line-net pro h old up on an income recital *Same-Store sales-comp atomic number 18s an individual gillyf humiliateder’s sales to its sales for the same calendar month in the previous category. *Market Share-the retail merchant’s supply sales divide by aggregate foodstuff sales *Scrambled Merchandising- exists when a retail merchant handles more different and unrelated items.The result of the military press existence placed on more retail merchants to step-up remuneration by carrying additive merchandise or services (with high profit margins) that will also increase store traffic ex. Convenience store that sells petty(a) margin gasoline that high margin bread, milk, beer, ciggs ETC. Supercenters, grant cards in grocery stores but ca purposes cost increases in RENT, INVENTORY COSTS, poke COSTs *Category Killer-a retailer that carries such a large amount of merchandise in a single stratum at such good prices that it makes it undo able-bodied for customers to w alk out without purchasing that they need, frankincense KILLING the competitionCategorizing Retailers Census Bureau- NAICS code takings of outlets- Chain? Or not? * trite Stock list-a merchandising order in which tout ensemble stores in a retail chain stock the same merchandise *Optional Stock List approach-merchandising mode in which each store in a retail chain is attached the flexibility to adjust its merchandise shamble to local tastes and demands. *Channel Advisor or Captain-the institution ( shaper, barterber, broker, or retailer) in the market place channel that is able to plan for and get former(a) channel institutions to look at in activities they might not otherwisewise engage in.Large store retailers are often able to perform the role of channel captain. * backstage Label Branding- May be store markering, when a retailer develops its own brand name and contracts with a manufacturer to start out the product with the retailer’s brand, or graphic beari nger lines, where a known designer develops a line grievous bodily harmly for the retailer. rim/Turnover everlasting(a) margin any(prenominal)bodya- evaluate of profitability GROSS MARGIN/NETSALES Gross brim-NET SALES †COST OF GOODS SOLDOperating Expenses-expenses that a retailer incurs in running the throw other than the cost of merchandise Inventory Turnover- refers to the sum up of times per year, on comely, that a retailer sells its history. High Performance retailers-retailers that produce fiscal results substantially superior to the industry average. depressed margin/low turnover-operates on a low gross margin percentage and a low rate of inventory turnover… will not be able to generate sufficient profits to remain competitive and survive. High Margin/Low turnover-(bricks and mortar) high gross margin percentage and low ate of inventory turnover ( high end stores, mum and pop) Clicks and Mortar-instore and online Low margin High turnover- low gmp, hig h rate of inventory turnover (wal mart, amazon. com) High, High- convenience stores, 7 eleven, circle k, Location- smart non traditional places. Size *Store management- the retail career path that involves responsibility for selecting, training, and evaluating personnel, as well as instore promotions, displays, customer service, building maintenance, and security *Buying-retailing career path whereby adept uses quantitative tools to develop admit demoraliseing plans for the store’s merchandise lines.Analytical method â€finder and investigator of facts Creative Method- mood person Two pronged approach- both(prenominal) analytical and creative CHAPTER 2 strategical planning- involves adapting the alternatives of the firm to the opportunities and threats of an ever changing retail environment * Development of heraldic bearing statement * Definition of specific goals and objectives for the firm * designation and analysis of the retailers strengths, weaknesses, opportu nities and threats â€SWOT ANALYIS * Development of canonical strategies that will enable the firm to separate out its objectives and fulfill its missionMission statement- a basic commentary of the fundamental nature, rationale, and direction of the firm. Market Share- retailer’s gibe SALES/ TOTAL MARKET SALES advantage-based Objectives-deal directly with the financial return a retailer desires from its business ROI/RONW- hark back on investment/ Return on Net worthy STRATIEGIC earn MODEL (MEMORIZE) Net ProfitMargin| Net Profit / wide-cut gross sales| Return on Assets| Net Profit* /Total Assets| fiscal Leverage| Total Assets/Net charge| Return on Net expenditure|Net Profit*/Net Worth| X = Asset Turnover| Total Sales/Total Assets| Stockouts- products that are out of stock and therefore un unattached to customers when they motivation them Productivity objectives- state how much yield the retailer desires for each unit of resource input: Floor quadrangle, labor, and inventory investment. * Sales prod: net sales/ total square feet of retail floor space * Labor prod: net sales/#of full time equivalent employees * intersection prod: net sales/average dollar investment in inventorySocietal Objectives- those that theorise the retailer’s desire to booster society fulfill near of it’s require. * Employment objectives * Payment of Taxes * Consumer Choice * virtue * Being a benefactor RASM- (revenue per functional seat mile) calculation used by airlines. Yield Management- the understanding, anticipating and reacting to changing customer needs in order to maximize the revenue from a fixed capacity of available services. (1)low marginal costs (2)fixed capacity (3) destructible product (4)fluctuation demand (5)different market segmentsPersonal Objectives-reflect the retailer’s desire to help individuals active in retailing fulfill some of their needs. * Self Gratification * Status and applaud * Power and authority Strateg y- a guardedly designed plan for achieving the retailers goals and objectives. 3 strategies scram shoppers into your store/ traffic strategy commute these shoppers into customers by having them purchase merchandise (retailers regeneration Do this at the lowest run cost possible that is consistent with the train of service that your customers expectTarget market-the conclave of customers that the retailer is want to serve Location- geographical or cyber space where the retailer conducts business Retail mix- the combination of merchandise, price, advertizing and promotion, locations, customer service and selling, and store layout and design Value proposition- clear statement of the patent and/or intangible results a customer receives from shopping at and using the retailer’s products or services trading operations Management- deals with activities directed at maximizing the dexterity of the retailer’s use of resources. It is ofttimes referred to as day to day management.CHAPTER 6 Horizontal Price Fixing- occurs when a group of competing retailers (or other channel members operating at a disposed(p) level of distribution) establishes a fixed price at which to sell certain brands of products ILLEGAL violates Sherman Antitrust endorsement 1 Vertical Price Fixing-occurs when a retailer collaborates with the manufacturer or wholesaler to resell an item at an hold upon price Price discrimination- occurs when 2 retailers buy an identical amount of â€Å"like commit and quality” merchandise from the same provider but pay different prices. Clayton act makes only certain forms illegal DEFENSESCost justification- derived function in price could be accounted for on the basis of differences in cost to the vendor in the manufactur, sale, or delivery. Due to differences in quantity or method. Changing market differences-justifies based on the danger of threatening deterioration of perishable goods or on the obsolescence of seasonal goods. Meeting Competition in good faith -lower price was do in good faith in order to meet an equally low price of a competitor unreal Pricing-occurs when an misleading price is used to cajole customers into the store and then hidden charges are added; or the item advertised whitethorn be unavailable.Predatory Pricing-exists when a retail chain charges different prices in different geographic areas to eliminate competition in selected geographic areas. Palming off-occurs when a retailer represents that merchandise is made by a firm other than the true manufacturer Deceptive advertisement-when a retailer makes false of misleading advertising claims about the physical makeup of a product, the benefits to be gained by its use, or the appropriate uses for the product. Bait and switch- advertising or promoting a product at an unrealistically low rice to serve as â€Å" devolve on” and then trying to â€Å"switch” the customer to a higher priced product. Product liability la ws-deal with the trafficker’s responsibility to market safe products. These laws invoke the forseeability doctrine, which states that a marketer of a product must endeavor to foresee how a product whitethorn be misused and warn the consumer against hazards of misuse. express warranties- are either pen or verbalized checkerments about the performance of a product and can cover all attributes of the merchandise or only atomic number 53 attributeImplied guarantee of merchantability- made by each retailer when the retailer sells goods and implies that the merchandise exchange is fit for the ordinary purpose for which such goods are typically used Implied warranty of fitness- a warranty that implies that the merchandise is fit for a particular purpose and arises when the customer relies on the retailer to assist or make the selection of goods to serve a particular purpose Territorial restrictions-are attempts by the supplier, usually a manufacturer, to limit the geograph ic area in which a retailer may resell its merchandiseDual distribution- occurs when a manufacturer sells to independent retailers and also through its own retail outlets One way scoop dealing arrangement-occurs when the supplier agrees to give the retailer the sole(prenominal) right to sell the suppliers product in a particular trade area Two way exclusive dealing arrangement- occurs when the supplier offers the retailer the exclusive distribution of a merchandise line or product in a particular trade area if in return the retailer will agree to do something or the manufacturer, such as heavily promote the suppliers products or not handle competing brands. ILLEGAL. Tying agreement-exists when a seller with a strong product or service requires a buyer to purchase a weak product or service as a stipulation for buying the strong product or service Ethics-set of rules for human moral doings Explicit code of ethics-consists of a written policy that states what is ethical and unethic al behavior Implicit code of ethics- an unwritten but well understood set of rules or standards of moral responsibility Chapter 14Empowerment- occurs when employees are given the power in their jobs to do the things infallible to satisfy and make things right for customers. servant leadership-an employees recognition that their primary responsibility is to be of service to others. 20% of customers generate 80% of sales value proposition-the promised benefits a retailer offers in relation to the cost the consumer incurs customer relationship management CRM-comprised of an integrated selective training system where the fundamental unit of data collection is the customer, supplemented by relevant information about the customer erformance appraisal and review- is the formal, authoritative assessment of how well employees are playing their jobs in relation to established standards and the communion of that assessment to employees Motivation-is the drive that a person has to excel at activities, such as a job, that he or she undertakes Esprit de corps- occurs when a group of workers feel a vulgar mission and a passion for that mission and a pride in being part of the groupFixed component- typically is composed of some base wage per hour, week, month, or year Variable component-is often composed if some bonus that is received if performance warrants rush benefit package-is a part of the total compensation package offered to many retail employees and may include health insurance, hindrance benefits, life insurance, retirement plans, child care, use of an auto, and financial counseling Job enrichment- the adjoin of enhancing the core job characteristics to improve the motivation, productivity, and job satisfaction of employees.\r\n'