MKTG 424 CHP 5

what can a retailer do to gain sustainable competitive advantage?

location, customer loyalty, strong brand name, exclusive merch, efficient supply chain, buying power w/ vendors, committed employees

why does Starbucks have so many locations?

top of mind awareness (consideration set)

how can retailers build strong customer loyalty?

customer service, loyalty programs, unique merchandise

why do retailers carry private label brands? what are the main benefits?

higher profit margin, build strong brand name

what is brand equity?

added value and reputation a company gains from a product with a recognizable name compared to a generic alternative

what is brand image?

the general impression, feeling, and mental picture that consumers and the public hold about a brand

what is market penetration? examples

get current customer to visit store more often or buy more on each visit (cross selling, up selling)

what is market expansion? examples

using existing retail format in new market segments (geographic, demographic, pyschographic)

what is format development? examples

develops a new retail format with a different retail mix for the same target market (small target)

what is diversification, related diversification and unrelated diversification? examples

d: introduces new retail format toward a market segment that is not currently served by the retailer

r: expansion into business related to core retail operations (Amazon Fresh)

u: expansion into completely different industries (Amazon Web Services)

what is retail format?

the overall store or business concept a retailer uses to sell goods and services to consumers

what is cross-selling? examples

practice of recommending complementary or related products to a customer who is already making a purchase (fast food, would you like fries and a drink with that)

what is up selling? examples

a sales technique where a business encourages a customer to purchase a higher-end version, larger size, or more expensive tier of a product or service they are already considering (60 inch tv instead of 50)

what growth strategies has Equinox used to expand its business?

diversification → equinox hotel (unrelated), market penetration → membership fees, market expansion → growing to new locations