Introduction to Retailing and Marketing Value

Vocabulary flashcards covering fundamental marketing concepts, place value, SWOT elements, CD STEP factors, supply chain integration, and retail operations based on Chapter 1 and Chapter 2 lecture notes.

Marketing

The set of institutions, activities, and processes for creating, communicating, capturing, and exchanging or delivering value for customers.

Place Value

The layer of value added to a core product through the retail store environment, return policies, warranty, and customer service during exchange and delivery.

Internal Factors (SWOT)

Strengths and weaknesses within a retailer's control that stem from choices made regarding the Four C's.

Four C's

The four internal factors of business decision-making: Customers, Company, Corporate partners, and Competition.

External Factors (SWOT)

Opportunities and threats originating from outside environment forces that a business cannot directly control.

CD STEP

An acronym for external macro-environmental forces impacting businesses: Culture, Demographics, Social changes, Technology, Economic factors, and Political/legal environment.

Retailing

The final sale of products or services directly to the ultimate consumer for personal or household use.

Breaking Bulk

A value-adding channel function where large shipment quantities are divided into smaller amounts suitable for individual consumer purchase.

Holding Inventory

A channel activity where products are kept in stock locally so consumers can acquire them immediately when needed.

Vertical Integration

A supply chain setup where a firm owns and performs multiple sequential steps of production and distribution.

Backward Integration

A form of vertical integration where a retailer moves upstream in the supply chain to design or manufacture its own private-label products.

Forward Integration

A form of vertical integration where a manufacturer bypasses middle distributors or retailers to sell directly to final consumers.

Corporate Social Responsibility (CSR)

Voluntary corporate actions taken by a business to positively impact its local community, stakeholders, and surrounding environment.

Conscious Marketing

An overall approach to business driven by a higher purpose, ethical decision-making, and consideration of stakeholders beyond pure profit.

Retail Fragmentation

The multiplication of highly specialized product categories beyond physical store capacity, driving vast niche inventories to online platforms and centralized warehouses.

Costco Profit Model

A retail business model where goods are marked up by a specific operating cost percentage (such as 13.76%) to break even on sales, relying primarily on membership fees for net profit.