Exam 1 Review

Exam 1 Review - MKT 3355 Retailing Abbreviated Review Sheet...

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MKT 3355 – Retailing Abbreviated Review Sheet for Exam 1 (Ch 1-5) Know the following terms and how to apply them: 1. Retail strategy Retailing Strategy: Overall plan guiding a retail firm. It influences the firm’s business activities and its response to market forces, such as competition and the economy 2. Mission statement 3. Corporate philosophy 4. wheel of retailing Wheel of Retailing: A theory about institutional structure change based on the premis that institutional innovations in retailing penetrate the system on the basis of price appeal and gradually trade up over time in terms of store standings, quality, store services and prices 5. retail life cycle Retail Life Cycle: A theory asserting that institutions, like the goods and services they sell, pass through identifiable life-cycle stages: o Innovation o Accelerated Development o Maturity o Decline 6. rationalized retailing Rationalized Retailing: A strategy involving a high degree of centralized management control combined with strict operating procedures for every phase of business 7. scrambled merchandising Scrambled Merchandising: Occurs when a retailer adds goods and services that may be unrelated to each other and to the firm’s original business 8. depth of assortment Depth of Assortment: The variety of a single product sold 9. width of assortment Width of Assortment: The amount of different products sold 10. consistency of assortment 11. franchising and benefits thereof for franchisee and for franchisor
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Franchising: An exclusive area contractual agreement between a franchisor and a retail franchisee, which allows the franchisee to conduct business under franchisor’s established name and or according to a franchisor’s given pattern of business (depending on format of franchise purchased) for an initial fee and monthly % of gross sales paid by the franchisee. o Advantages: Low capital required Acquire well-known names Operating/management skills taught Cooperative marketing possible Exclusive rights Less costly per unit 12. Sole proprietorship Sole Proprietorship: an unincorporated retail firm owned by one person 13. Corporation Corporation: is a retail firm that is formally incorporated under state law; it is a legal entity apart from its officers 14. ease of entry Ease of Entry: Occurs due to low capital requirements and no, or relatively simple, licensing provisions 15. vertical marketing system Vertical Marketing System: All the levels of independently owned businesses along a channel of distribution. Goods and services are normally distributed through one of three types of systems: o Independent o Partially Integrated o Fully Integrated 16. integrated VMS and benefit thereof Integrated Vertical Marketing Systems: Single firms do all production and distribution functions
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17. leased department and benefits thereof Lease Departments: One or more departments in a retail store that is rented to an outside
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Exam 1 Review - MKT 3355 Retailing Abbreviated Review Sheet...

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