knowledge matters unit test

data you collect

primary research

data someone else collected

secondary research

cheaper survey but less reliable

smaller sample size

groups results so you can match ads to your target market

segmentation

segmentation groups results so that you can match ads to what?

target market

what is the downside of smaller sample size?

less reliable

big idea for product?

carry what your customers actually want to buy

all the products a store carries

product mix

what do you do with the popular items?

survey to find popular items?

what do you do with the unpopular items?

swap them out

how do you raise sales for popular items?

displays for popular items raise sales further

big idea for place?

location

compare spaces by?

cost per square foot

what costs more downtown or surburbs?

downtown

where should you locate your store?

near target customers and away from competitors

what happens when you are in an unprofitable location?

relocate

big idea for price?

the best price balances volume and margin

formula for margin?

price - cost

what happens when price is too high?

low volume

what happens when price is too low?

slim margins

when does profit peak?

middle price

priced very low to pull shoppers in

loss leader

big idea for promtion: traditional?

promotion reaches farther, but must pay for itself

what are the 4 Ps

product, place, price, promotion

what type of promotion reaches customers farther away?

billboards, newspaper circulars, radio, and TV

what should you compare when doing traditional promotion?

added revenue and expense

when comparing added revenue to expense, what should you do?

stay in budget

big idea for promotion: email

cheap and powerful, but overuse backfires

where do lists for promotional emails come from?

loyalty programs or purchased lists

what drives opens and clicks for promotional emails?

a strong offer and subject line

what happens when you email too often?

spam reports

when you get spam reports for emails, what should you do?

space emails out

big idea for staffing and selling

too few staff loses customers; too many wastes money

what happens when you have few cashiers?

long lines

what happens when you have few stockers?

empty shelves

sell high ticket items through consultative selling

salespeople

what do salespeople sell through consultative selling?

high-ticket items

salespeople sell high-ticket items through what?

consultative selling

every hire is a what kind of tradeoff?

expense vs. revenue

big idea for purchasing and inventory

buy enough, but not too much

what happens when there is too little inventory?

stock outs and complaints

what happens when there is too much inventory?

expired perishables and tied up cash

what should you set custom purchasing levels for?

short shelf life items

what should you set for short shelf life items?

custom purchasing levels

big idea for merchandising

store layout steers what customers buy

where do you put the need items?

in the back

where should you put impulse items?

near checkout

where should you put complementary goods?

side by side

big idea for security and risk

protect against losses, but only spend what’s worth it

unexplained inventory loss (shoplifting)

shrinkage

where should you move often stolen items?

visible areas

cost effective =?

cost effective = losses prevented > system cost

big idea for financing and planning

starting a business takes money before it makes money

lease, equipment, inventory, staff

start up costs

where should you check for your lowest cash position?

balance sheet

what should you check the balance sheet for?

lowest cash position

borrow enough, but extra borrowing adds what?

interest

big idea for mogul and turnaround?

every decision connects

build a grocery store from scratch

mogul

fix staffing, products, and layout

turnaround

one fix alone may not create profit, use the _______ to check

income statement