Prof. Newman Exam 1 Study Guide
Prof. Newman Exam 1 Study Guide MKTG 488
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This 4 page Study Guide was uploaded by Collin Nordstrom on Friday September 16, 2016. The Study Guide belongs to MKTG 488 at University of Mississippi taught by Dr. Christopher Newman in Fall 2016. Since its upload, it has received 26 views. For similar materials see Retail Marketing in Marketing at University of Mississippi.
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Date Created: 09/16/16
MKTG 488 Exam 1 Study Guide This exam is on Chapters 1,2,7,and 8 as well as case studies which include: Is Walmart Good or Bad What Dollar stores reveal about America Are Small Supermarkets the next big thing Target Fail in Canada *Video Case study- Base Pro Shops Pyramid Topics to know particularly well: (As outlined by Prof. Newman) - Planned vs. unplanned retail locations - Trade area and zones (primary, secondary, etc.) - Characteristics of all the retail location types we talked about (power centers, strip malls, enclosed malls, omnicenters, theme/festival centers, etc.) - Different types of leases - Characteristics of different retailer types we talked about (supercenters, supermarkets, extreme value retailers, specialty stores, category specialists, etc.) - Characteristics of retail services - The different members of the supply chain - Backward vs. forward integration - Different tiers of department stores - Shopper solutions So to start, let’s take a look at the topics and get in depth with what they mean. 1. Planned vs. Unplanned Retail Locations Planned business sites are areas of business that is planned (sounds easy enough) Generally they are centrally managed or owned. A key to a successful planned site is a balanced tenant mix to allow a business to offer the complementary merchandise to customers. Shopping center and/or manager makes & enforces policies that govern store operations Unplanned locations are freestanding, city or town owned business districts and shopping centers. Don’t have centralized management that determines what stores will be in a development 2. Trade Area and Zones An important first step in any market analysis is to define a town’s trade area. A trade area is determined by its ability to attract customers given impeding or enhancing factors It is the farthest distance consumers are willing to travel to purchase retail goods and services. The size of a retail trade area depends on the variety of goods and services offered in the community and its proximity to competing retail markets. 3. Different types of leases There are three different types of commercial leases. o Full Service Lease- Fixed rent are the most common type of leases. The tenants rent covers all property operating expenses. o Net Lease- The base rent for a net lease is lower than a full service lease, but the tenant also pays fixed operating expenses such as property taxes, insurance and common area maitenence. o Modified Net/Gross Lease- Offers a happy middle ground for tenants and landlords. Allows for broader negotiations when it comes to operating expenses. 4. Characteristics of different retailer types Shopping Center- A group of retailers that is planned, developed, owned, and managed as a single property. Neighborhood and Community Centers- AKA “Stripcenters” Offers convenient locations, easy parking and low occupancy costs. Power centers- Collection of big box stores suck as discount stores (Target), off-price stores (Marshall’s) warehouse clubs (Costco), and category specialists (Lowe’s). Shopping Malls- Regional vs. Super-Regional, contains many different retailers high pedestrian traffic, comfortable setting, uniform operating hours. Lifestyle Centers- 50K sq. ft. of upscale chain specialty stores. Open air configuration, containing restaurants, cinema, and entertainment in a small department store format. Outlet Centers- Typically consist of manufacturers outlets and retail outlets. Lower rent compared to malls. Space is the main driver. Omnicenters- Combines enclosed malls, lifestyle centers, and power centers. Designed to generate more pedestrian traffic and longer shopping trips. Captures cross-shopping consumers. 5. Characteristics of retail services Retailers differentiate themselves by offering more and/or better services including: o Special Financing o Layaway o Warrenties o In-House repairs o Shopping/wish Lists o Returns 6. The different members of the supply chain Raw matericals SupplierManufacturerDistibutionCustomer (Business)Consumer 7. Backward vs. forward integration Forward Integration- Manufacturer undertakes wholesaling and/or retailing activites of its products. EX: American Apparel o Manufactures own clothes, distributes via own centers, sells to customers via its own stores Backward Integration- Retailer undertakes distribution and/or manufacturing activities. EX: Starbucks o Owns bean farms o Owns bean roasting plants o Owns warehouses and distribution centers. 8. Different tiers of department stores Department stores offer a wide variets with a deep assortment of products and lots of customer services. Tiers of department stores are: Discount Stores Category Specialists Specialty Stores Drug Stores Extreme-Value Retailers Off-Price Retailers Shopper Solutions In-Store Promotional display that offers shoppers, in on central location, a set of thematically-related products designed to satisfy a specific shopper problem or need. Offering solutions increases shopper convenience, choices of displayed items, willingness to pay for items, and word of mouth loyalty,
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