Quarter 2- Marketing Chapters

utilitarian benefits

when a store enables customers to locate and purchase products in an efficient and timely manner with minimum hassle

hedonic benefits

offers customers entertaining and enjoyable shopping expierences

cash wrap area

where people pay, they display and stimulate the sale of impulse items such as candy at a supermarket

what does the ADA do to retailing?

it calls for reasonable access to merchandise and services in retail stores built before 1993 and full access to stores built after 1993

retailers are typically required to…

1. provide 32 inch wide pathways 2. lower most cash wraps and fixtures so they can be reached from a wheelchair 3. create disability accessible checkout aisles 4. provide bathrooms with handrails or grab bars 5. make dressing rooms fully accessible 6. parking lots have a certain amount of ADA spaces

utilitarian benefits are usually where?

supermarkets, designed to emphasize ease of locating merchandise

hedonic benefits are where?

specialty stores, encourage exploration

grid layout

has parallel aisles with merchandise on shelves on both sides of the aisles, good for utilitarian benefits

center store

the middle of each aisle, where less compelling or exciting products are displayed

racetrack/loop layout

a store layout that provides major aisle that loops around the store to guide customer traffic around different departments within the store

free form/boutique layout

arranges fixtures and aisles in an asymmetric pattern

call to action signage

signs placed in strategic locations in the store to convey how, where, and why to engage with the retailer

category signage

signs are used within a particular department or sector of the store to identify types of products offered

promotional signage

signs describe special offers, found within the store or displayed in the windows to entice customers into the store

point of sale signage

signs are places near the merchandise they refer to so that the customers learn the price and other detailed infor

digital signage

signs whose visual content is delivered electronically through a centrally managed amd controlled network

feature areas

the areas within a store that are designed to get a customers attention

freestanding displays

fixtures that are located on aisles and designed primarily to attract customers attention and bring them into a department

end caps

displays located at the end of an aisle in stores using grid layout

demand/destination merchandise

refers to products that customers have decided to buy before entering the store

strike zone

critical because it creates the customers first impression of the stores offering

planogram

a diagram that shows how and where specific SKUs should be placed on retail shelves or displays to increase

visual merchandising

the presentation of a store and its merchandise in ways that will attract the attention of potential customers

fixtures

the equipment used to display merchandise

straight rack

long pipe balanced between supports in the floor or attached to a wall

rounder/bulk/capacity fixture

round fixture that sits on a pedastal

four way fixture/feature fixture

two cross bars that sit perpendicular to each other on a pedastal

Variety (breadth)

the number of merchandise categories a retailer offers

assortment (depth)

number of different items offered in a merchandise category

stock-keeping unit (SKU)

what each different item of merchandise is called

conventional supermarket

a large self service retail food store offering groceries, meat, dairy, and produce. Stock about 40,000 SKUS

limitied assortment supermarkets and extreme value food retailers

tend to stock only about 1,400 SKUs. Rather than carrying 20 brands of detergent, they would carry 1 or 2

how are supermarkets differentiating their offerings

1. adding valuable services 2. offering more ready to eat meals and meal kits 3. selling more exclusive and private label products 4. providing a better shopping experience

supercenters

large stores that combine supermarket with a full line discount store

hypermarkets

also large similar in design to supercenters, not common in US

warehouse clubs

retailers that offer a limited and irregular assortment of food and gerneral merchandise with little service at low prices for ultimate consumers and small businesses, Costco

convenience stores

provide limited variety and assortment of merchandise at a convenient location

department stores

carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise

soft goods

nondurable or consumable goods that have a shorter life span

hard goods/ durable goods

manufactured items that are expected to last several years

full line discount stores

offer a broad variety of merchandise, limited service, and low prices

category specialists

big box stores that offer a deep assortment but narrow variety of merchandise

category killers

ofering a complete assortment in a category specialists can dominate or kill a category of merchandise for other retailers

speciality stores

concentrate on a limited number of complementary merchanise categories and provide a high level of service

resale stores

sell secondhand or used merchandise

drugstores

speciality stores that concentrate on health and beauty care products

extreme value retailers/ dollar stores

small discount stores that offer a broad variety but shallow assortment of household goods, health and beauty care products

off price retailers

offer an inconsistent assortment of brand name merchandise (TJMAXX)

closeouts

end of season merchandise that will not be used in following seasons

irregulars

merchandise with minor mistakes in construction

service providers

primarily sell services, even if they might offer a few products that go along with those services

intangibilty

customers can not see or touch them

perishability

they can not be saved stored or resold