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MKT320 Exam 2 Key Terms

by: Jessica Koenig

MKT320 Exam 2 Key Terms MKT320

Marketplace > University of Miami > Marketing > MKT320 > MKT320 Exam 2 Key Terms
Jessica Koenig
GPA 3.9

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MKT320/Retailing Exam 2 Study Guide & Key Terms
Study Guide
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Popular in retailing

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This 6 page Study Guide was uploaded by Jessica Koenig on Monday February 2, 2015. The Study Guide belongs to MKT320 at University of Miami taught by Scharf in Winter2013. Since its upload, it has received 115 views. For similar materials see retailing in Marketing at University of Miami.


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Date Created: 02/02/15
Retailing Exam 2 Key Terms CH7 TRADE AREA geographic area that encompasses most of the customers who would patronize a retail site FREESTANDING SITE not connected to anything else visible fewer restrictions limited trade area higher occupancy costs OUTPARCELS freestanding sites next to other malls banks CENTRAL BUSINESS DISTRICT many shops hub for public transportation residents Badlimited parking longer driving times Main Street located in suburbs or small towns Inner City large urban areas being redeveloped extremely expensive real estate hardest to keep going higher unemployment amp lower income SHOPPING CENTER group of retailers that are planneddevelopedowned as a single property attracts more consumers has common area maintenance CAM NEIGHBORHOOD CENTER smaller centers typically anchored by a supermarketdrugstore designed for daytoday convenience shopping COMMUNITY STRIP SHOPPING CENTER strip shopping center larger centers anchored by a department storecategory specialist POWER CENTER collections of large anchor stores typically category killers DadelandConsumer convince low occupancy costs Greatest growth over past10 years SHOPPING MALL climate controlled department store anchors Advantages Large trade area don t have to worry about weather Disadvantages high occupancy costs strict control of store operations intense competition within mall less convenient oldunappealing LIFESTYLE CENTER outdoor streetscape of specialty stores entertainment and restaurants openair configurations Sunset 0 Low occupancy costs very convenient attractive to customers but less traf c MIXED USE DEVELOPMENT combine residential commercial and retail together 0 Pedestrian oriented use space productively mizner park OUTLET CENTERS manufacturer owned stores tourists trade area of 50 miles POPUP STORES temporary stores halloween xmas create buzz test new concepts try a new area very popular MERCHANDISE KIOSKS temporary selling spaces in malls generate rental income in otherwise vacant space Legal Issues 1 Environment a Above the ground asbestos b Below the ground waste disposal 2 Zoning what can be residential vs commercial 3 Building Codes exterior of store how bigdesign of signs parking lots 4 Licenses liquor Boutique Dominos Pizza in Mexico amp Mall of the Americas Cases CH8 METROPOLITAN STATISTICAL AREA 50000 people MICROPOLITAN STATISTICAL AREA 10000 Factors Affecting Area to Locate 1 Economic Conditions 2 Competition 3 Strategic Fit 4 Operating Cost Site Characteristics TRAFFIC FLOW ACCESSIBILITY egress means exit ingress means entrance NATURAL BARRIERS mountains amp rivers ARTIFICIAL BARRIERS highways railroad tracks parks Location Characterisitcs CONGESTION excess level of traffic that leads to customer delays VISIBILITY CUMULATIVE ATTRACTION a cluster of similarcomplementary retailing activities will generally have greater drawing power than isolated stores TRADE AREA contiguous geographic area that accounts for the majority of a stores sales amp customers PRIMARY TRADING AREA geographic area from which the store derives 5070 of its customers SECONDARY TRADING AREA 2030 of customer sales TERTIARY TRADING AREA fringe remaining customers who come from widely dispersed areas PARASITE STORE does not create its own traf c amp whose trade area is determined by the dominant retailer in the shopping center dry cleaner next to Walmart CENSUS count of the population of country as of a specified date GEOGRAPHIC INFORMATION SYSTEM system of hardware amp software used to store retrieve map and analyze geographic data PERCENTAGE LEASE rent is based on a percentage of sales FIXED RATE LEASE pays a fixed amount per month over the life of the lease most commonly used by community amp neighborhood centers CH 9 EMPLOYEE PRODUCTIVITY retailers sales or profits divided by the number of employees Directly related to shortterm profits EMPLOYEE TURNOVER number of employees leaving their job in 1 yearnumber of positions ORGANIZATION STRUCTURE Identifying the activities to be performed by specific employees and determining lines of responsibility SPECIALIZATION employees responsible for 1 or 2 tasks develop expertise amp increase productivity BUYERMERCHANDISING PLANNER handles advertising amp promotion tasks as well as merchandise selection amp inventory management Approaches to Coordinate Buying and Selling 1 Improved appreciation for the store environment 2 Having the buyers make storevisits 3 Assigning employees to coordination roles CENTRALIZATION decisions made at corporate level DECENTRALIZATION made at storelevel ORGANIZATION CULTURE set of values traditions and customs of a firm that guides employee behavior EMPOWERMENT process in which managers share power amp decisionmaking authority with employees Building Employee Commitment 1 Skill Development 2 things 0 Hiring 0 Training 2 Empowerment Transfer decisionmaking authority to others 3 Creating Partners 3 areas 0 Reduce status differences 0 Promote from within 0 Balance career amp family by FLEXTIME job scheduling system that enables employees to choose the times they work balances careers amp families JOB SHARING 2 employees voluntarily are responsible for a job that was previously held by one 1 person Legal Issues Equal Employment discrimination Compensation minimum wage overtime child labor Labor Relations unions Safety workplace environment Sexual Harassment behavioral environment Employee Privacy emails Policies distributive amp procedural justice GLASS CEILING invisible barrier that makes it hard for minorities amp women to be promoted beyond a certail level ILLEGAL DISCRIMINATION actions of a company or its managers that results in members being treated unfairly amp differently from others PROTECTED CLASS group of individuals who share a common characteristic as defined by the law DISTRIBUTIVE JUSTICE perception of the outcome being fair with respect to outcomes received by others merit pay vs equal pay PROCEDURAL JUSTICE perception of the process being fair Patagonia Video amp Avon Case CH 10 SUPPLY CHAIN MANAGEMENT Set of techniques that companies use to integrate everybodymanage the ow of merchandise from the vendors to the retailors customers STOCKOUT An SKU that a customer wants is not available UNIVERSAL PRODUCT CODE UPC code containing a 13digit number with manufactuer description of item info about special packaging amp promotions ADVANCED SHIPPING NOTICE document from the manufacturer that tells the distribution center what specifically is being shipper and when it will be delivered Data Warehousing purchase data collected at the pointofsale that goes into a database for processing ELECTRONIC DATA INTERCHANGE computertocomputer exchange of business documents between the vendor amp retailer how they communicate about purchase orders transportation routings shipment address etc 0 Standards UCS vs VCIS o UCS Standards for grocery stores 0 VCIS Standards for everyone else Intranet secure communication system for one company Extranet company allows a vendor to access their website using intemet technology SECURITY POLICY set of rules that apply to activities involving computer amp communication resources in an organization Security Concerns3 areas 1 Authentication are you who you say you are 2 Authorization do you have the right to be here 3 Integrity when I send you something from my computer does it stay the same or change on yours LOGISTICS Flow and Tracking of merchandise from pointoforigin to pointofconsumption CROSSDOCKED prepackaged by manufacturer for a specific store only at DC for a short period of t1me PULL SUPPLY CHAIN requests for merchandise are generated at a store level point of purchase PUSH SUPPLY CHAIN merchandise is allocated to stores based on forecasted demand REVERSE LOGISTICS tracking of returned merchandise DROPSHIPPINGCONSUMER DIRECT FULLFILLMENT vendor sends it directly to the customer VENDOR MANAGED INVENTORY vendor is responsible for maintaining retailer s inventory Benefits 1 Should reduce vendor s costs 2 Reduces retailers costs 3 Reduces stock outs COLLABORATIVE PLANNING FORECASTING amp REPLENISHMENT sharing of forecasts amp business related info bw retailers amp vendors to improve supplychain efficiency amp product replenishment more advanced than VMI share promotion plans product developments etc RADIO FREQUENCY IDENTIFICATION allows an object to be identified at a distance by means of radio waves reduces costs inventory savings reduced theft Physical Distribution Video amp DivaGen y case CH 11 CUSTOMER RELATIONSHIP MANAGEMENT set of strategies that identifies and builds loyalty with a retailers best customers SHARE OF WALLET percentage of the customers purchases made from the retailer CUSTOMER LOYALTY Customers are committed to the retailer Will resist competition 1 Collecting Customer BM CUSTOMER DATABASE part of the data warehouse contains all data about its customers Transactions at the SKU LEVEL Total number of Customer Contacts how many times you reach out to them Preferences stylesbrands Descriptive Info demographic data How they re responding to our marketing activities FREQUENT SHOPPER PROGRAMLOYALTY PROGRAM programs that identify amp provide rewards to customers who patronize a retailer regularly Identifying Info Ask people while they re shopping Frequent Shopper Programs Connecting Internet Data w store data if multichannel OPT IN In Europe consumers own their info OPT OUT In US retailer owns information and if you don t want to be included you have to OPTOUT 2 Analvzing Customer Data Identifying Target Consumers MARKET BASKET ANALYSIS items purchased together CUSTOMER LIFETIME VALUE Value amt of money spent over lifetime for a retailer Customer Pyramid Platinum top 25 Gold 25 Iron remaining 50 Leadpeople that cost you money 8020 RULE 80 of sales come from 20 of the customers RFM ANALYSIS Recency Frequency Monetary analysis to estimate the CLVmainly used by catalog retailers 3 amp 4 Develo in m lementin CRM Pro rams Turning Good Customers into the Great Customer Alchemy offer more products to eXisting customers AddOn Selling new products to eXisting customers Unprofitable Customers 2 ways to deal Reduce eXpenses to them Charge them a fee if they want to stick around Creston Vineyards Video amp Nordstroms Loyalty Program CH12 MERCHANDISE MANAGEMENT The process by which a retailer offers the right quantity of the right merchandise at the right place at the right time MERCHANDISE GROUP Senior VPGMM in charge of it DEPARTMENT Divisional managers CLASSIFICATION Targeting customer types STOCK KEEPING UNIT size color amp style MERCHANDISE CATEGORY An assortment of items that the customers see as substitutes for each other CATEGORY MANAGEMENT one buyer oversees all merchandising activities for the entire category best combo of sizes amp vendors CATEGORY CAPTAIN vendor that works with retailers to develop a better understanding of shopping behavior satisfy customer needs amp improve profitability of merchandise category STAPLE MERCHANDISEBASIC continuous demand over an extended period of time FASHION MERCHANDISE shorter period of time inconsistent demand SEASONAL MERCHANDISE sales uctuate based on the time of year ASSORTMENT PLAN Set of SKUS that a retailer will offer in a merchandise category in each of its stores VARIETY breadthnumber of different categoriesdifferent types of merchandise ASSORTMENT number of SKUS per type BACKUP STOCK BUFFER STOCK SAFETY STOCK Cushion for cycle stock so you don t run out PRODUCT AVAILABILITY percentage of demand for an SKU that is satisfied CYCLE STOCK BASE STOCK Merchandise you keep on hand if you can predict demand perfectly goes up and down due to the replenishment process LEAD TIME time between recognizing you need to place an order amp when the restock arrives FILL RATE Percentage of complete orders received from the vendor ORDER POINT Amount that you can not go below without risking a shortage OPENTOBUY Keeps track of merchandise in realtime SELLTHROUGH ANALYSIS Compares actual amp planned sales to determine markdowns MARKDOWN MONEY funds that a vendor gives a retailer to cover lost money resulting from markdowns ABC ANALYSIS Breakdown your SKUS into categories based on performance A 5 of your items that give you 70 of your sales B 10 of your items that give you another 20 of your sales C 65 of your items that give you the rest of your sales D No sales Rubios Video West Point Market Video Lindy s Bridal Shop Case


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