COURSE CREDIT 1 CONCEPT review

Zellers

an iconic Canadian discount department store that operated from 1928 until the mid-2010s, when it was largely replaced by Target.

Manager

Individual who is in charge of a certain group of tasks or a certain subset of a company.

Retailing

Distribution channel where one organization buys or creates products and sells these directly to consumers.

Marketing

The action or business of promoting and selling products or services, including market research and advertising.

Merchandising

The activity of promoting the sale of goods at retail venues. Activities may include display techniques, free samples, etc.

Buying

Acquiring goods and services from suppliers for resale to customers.

Selling

Communicating the value of products or services to customers to facilitate a purchase.

Merchandising (functions)

Planning and controlling the stock, presentation, and sales of products in a retail environment to maximize profit.

Sole proprietor

A business that is owned by only one individual.

Partnership

Two or more individuals own a business and share the responsibilities

Corporation

Created as an "artificial" person with rights, powers and duties. Owners are called shareholders.

Franchise

An individual(s) or group of individuals buy the right to operate and sell certain goods or services.

Cooperative

Owned and controlled by an association of members. It can be set up as a for-profit or as a not-for-profit organization.

Capital

Includes the business and whatever is inside that building, goods used in the production process.

Entrepreneurship

Refers to the skills of people who are willing to invest their time and money to run a business.

Form Utility

Value added by changing raw materials or increasing the attractiveness of a product to a group of consumers by altering its physical appearance.

Place Utility

Having a product where a consumer can buy it.

Time Utility

Having a product available at a certain time of day or year.

Possession Utility

Every time legal ownership of a product changes hands.

Information Utility

Communication with consumers.

Manufacturers

Produce goods to sell to other manufacturers or wholesalers and retailers.

Wholesalers

Obtain goods from manufacturers and resell them to industrial users, other wholesalers and retailers.

Retailers

Buy goods from wholesalers or directly from manufacturers and resell them to the consumer.

Marketing mix

The set of controllable elements or strategies that a company uses to influence and meet the needs of its target customers in the most effective and efficient way possible.

Product (4 P's)

Physical features – style, distinctive characteristics, color, quality, etc.

Price (4 P's)

Return on investment – amount earned as a result of investment.

Promotion (4 P's)

Includes all means through which a company communicates the benefits and values of its products and persuades targeted customers to buy them.

Place (4 P's)

How are you going to get your goods to your customers?

Consumers (2 C's)

The target audience whose needs and behaviours the marketing mix is designed to satisfy.

Competition (2 C's)

Involves analyzing how rivals operate, their marketing tactics, and their pricing strategies to gain a sustainable competitive advantage.

Product Merchandising

Selecting the right products and presenting them in a way that highlights their features and benefits to customers.

Price Merchandising

Strategically setting prices, including discounts and promotions, to attract customers and maximize sales and profits.

Service Merchandising

Providing in-store support like product demonstrations and assistance to improve the overall customer shopping experience.

Place Merchandising

The strategic positioning of products, displays, and store layouts to guide customer traffic and boost sales.

Promotional Merchandising

Using branded items, freebies, and special campaigns to increase brand visibility and drive customer purchases.

Scrambled Merchandising

A single retailer offers a mix of unrelated products.

Narrowing the product line

A group of related products manufactured by a single company.

Sampling and product demonstrations

Allowing the customer to try or see the product without buying it.

Shelf positioning

Involves placing high-demand or high-margin items at the customer's eye level to maximize visibility and encourage purchase.

Packaging

Packaging/label can be used by marketers to encourage potential buyers to purchase the product – name, color, pictures, texture, size, weight, design all must be considered.

Multiple Pricing

Offering a discount when customers buy multiple identical items.

Unit Pricing

Displaying the cost per standard unit of measurement (e.g., price per ounce or kilogram) to allow customers to compare value across different package sizes and encourage bulk purchases.

Warehouse Pricing

Allows customers to buy products at a lower per/unit price; however, products are sold in packages of increased size, increases dollar sales volume.

Loss Leaders

Products priced at or below the retailer’s cost; aim to improve the store’s customer traffic, sales of other merchandise must be great enough to more than offset the losses generated.

Hours of Operation

The retailer must provide store hours that are convenient to the customer.

Franchising (Service)

Licensing the business model for rapid brand expansion and consistent experience

Loyalty Programs

Structured marketing efforts that reward, and therefore encourage, loyal buying behavior (e.g., points).

Delivery

Offering convenient product transport for wider reach and enhanced convenience.

Satisfaction Guaranteed

The buyer has full discretion to determine if the product or service fulfilled their expectation; the retailer is reducing the risk for the customer.

Size of the Store

Store size is based on the sales per square foot; stores that sell larger or smaller products will have a store of respective size.

Layout of the Store

The right place within a store for a product; drawing customers through the store (e.g., complementary products and lines).

Direct Lighting

Using lighting properly to highlight accent areas in retail stores to draw focus; lighting may be used to direct customers through the store.

Visual Merchandising

Exercise of developing floor plans and three-dimensional displays to increase sales; purpose is to attract customers, recommend, highlight, and demonstrate a particular product at strategic locations (e.g., window displays, point-of-purchase displays).

Advertising

Posters or promotional merchandise in the store mirror the advertisements outside of the store, promote brand recognition.

Shelf Cards

shelves, racks, and displays meant to indicate specials (provide info, attract attention).

Packaging and Labelling

Packages/labels indicate special features to the customer; changes to regular appearance attract attention (e.g., multipacks, bonus 20%).