Marketing Final Exam

Begins with market segmentation and a thorough

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Unformatted text preview: d in this task? ANS: The first and foremost task of developing a retail strategy is defining the target market the prospective retailer wishes to serve. This process begins with market segmentation and a thorough knowledge of the segment targeted. Target markets in retailing are often defined on demographic, geographic, and psychographic dimensions. Different combinations of the elements in the retail marketing mix enable a retailing establishment to position itself for its particular targeting strategy. PTS: 1 REF: 241-242 Communication KEY: CB&E Model Strategy OBJ: 15-6 TOP: AACSB MSC: BLOOMS Synthesis 10. After defining and selecting a target market, retailers must develop the six Ps of the retailing mix to successfully meet the needs of the chosen target market. What are the six Ps of the retailing mix? ANS: The six Ps of the retailing mix are: • • • • • • PTS: 1 REF: 242 Communication KEY: CB&E Model Strategy Product Place Promotion Price Presentation Personnel OBJ: 15-6 TOP: AACSB MSC: BLOOMS Synthesis 11. When retailers decide on location, they have two basic site options: the freestanding store and the shopping center. Briefly describe these location alternatives and discuss the advantages and disadvantages of each location alternative. ANS: FREESTANDING STORES. This alternative is an isolated, freestanding location that customers will seek out (a destination store). Advantages include low site cost or rent and no direct competitors close by. Disadvantages are that it may be difficult to attract customers, and there are no shared costs. SHOPPING CENTERS. These include strip centers, community shopping centers, and malls. An advantage of a strip store is customer convenience. A disadvantage is crowding, lack of parking, and old buildings. Community shopping centers and malls provide several advantages, including a planned shopping environment, anchor stores, good parking, a unified image, and special activities. Disadvantages include expensive leases, common promotional expenses, not attracting customers to a particular store, lease restrictions on merchandise and hours of operation, domination by anchors, and possibility of direct competition within the same facility. PTS: 1 REF: 244 Communication KEY: CB&E Model Distribution OBJ: 15-6 TOP: AACSB MSC: BLOOMS Synthesis 12. Define store atmosphere and name and briefly describe the major determinants of store atmosphere. ANS: Store atmosphere is the overall impression conveyed by a store’s physical layout, decor, and surroundings. There are six major determinants of store atmosphere: EMPLOYEE TYPE AND DENSITY. The employees’ general characteristics and the number of employees per thousand square feet of selling space can create a casual, service-oriented, or “doit-yourself” atmosphere. MERCHANDISE TYPE AND DENSITY. The types of brands carried and the display of those brands contribute to atmosphere. FIXTURE TYPE AND DENSITY. Fixtures should be consistent with...
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