chapter14 - LO1) Describe what will make retailers...

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LO1) Describe what will make retailers successful in the future Many believe that to be a successful retailer, you must be in what is called the Big Middle. The big middle refers to the part of the market in which the most successful retailers compete because the biggest potential customer base resides there. To make it in the short run, it is not essential to be there, and many new firms do not start off there. Many times they start off with innovative products, low prices, or sometimes a mixture of both. Over time, they tend to drift into the big middle. Being in the big middle is most hazardous because they must be on their toes at all times. In order to keep their customers from trailing away to other firms, they must fine tune, and adjust constantly to keep up with the competition. LO2) Explain how retailers create value for customers Using the four p’s to create value in retailing Products By storing products in the stores, retailers create value. They also do this by selling a variety of products individually. Private-label (store) brands- brands developed and marketed by a retailer and available only from that retailer. This forces customers to go to a particular store to get the brand they want, which in return increases sales, and adds value to the products. Price Price defines the value, and helps define an image for the store. You would expect to pay more at Macy’s for a dress, than you would at Wal-Mart. This is why Macy’s has the high class image it does, because it sells higher quality products, and a price that fits. The same goes for Wal-Mart. In essence, you get what you are paying for.
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This note was uploaded on 10/18/2010 for the course BM 110 taught by Professor Arthur during the Spring '08 term at Mohawk Valley Community College.

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chapter14 - LO1) Describe what will make retailers...

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