FBLA Provided Test rep

Retailing

Selling goods/services directly to the final consumer.

Retailers

The last link in the distribution channel.

Marketing vs Retailing

Marketing focuses on creating demand; retailing focuses on selling products to consumers.

Merchandising

Planning, buying, and presenting products to increase sales.

Early retail

General stores selling many product types.

Evolution of retail

General stores → department stores → malls → big-box stores → e-commerce.

Omnichannel retailing

Combines physical stores and online platforms.

Brick-and-mortar

Physical locations of stores.

E-commerce

Retail transactions conducted through the internet.

Target market

Specific group of consumers a business aims to serve.

Market segmentation

Divides customers into groups with similar needs.

Demographic segmentation

Includes age, gender, income, education.

Geographic segmentation

Includes region, city size, climate.

Psychographic segmentation

Includes lifestyle, personality, interests.

Behavioral segmentation

Includes purchase behavior and brand loyalty.

Product assortment

The range of products offered.

Product mix width

The number of product lines sold.

Product mix depth

The number of items in each product line.

SKU

Stock Keeping Unit, a unique inventory identifier.

Category management

Managing product categories as strategic business units.

Retail formats

Include department stores, specialty stores, supermarkets, warehouse clubs.

Discount retailers

Sell products at lower prices with high volume.

Convenience stores

Focus on quick purchases and accessibility.

Specialty stores

Focus on one product category.

Department stores

Sell many categories in separate departments.

Retail success factors

Depends on location, price, service, and product availability.

Merchandisers

Analyze sales data to decide what to stock.

Sales trends

Retailers track sales trends and consumer demand.

Inventory flow

Retailers must maintain consistent inventory flow.

Customer experience

Retail strategies often focus on enhancing customer experience.

Branding

Builds recognition and trust.

Private label products

Store-owned brands.

National brands

Manufacturer brands.

Generic products

Have minimal branding and low price.

Consumer demand

Affects inventory purchasing decisions.

Supply chains

Retailers must manage supply chains.

Distribution channels

Connect manufacturers, wholesalers, and retailers.

Market analysis

Retailers must analyze competition and market trends.

Retail performance measurement

Is measured using sales revenue and profit.

Customer service

Creates positive shopping experiences.

Good service effects

Increases customer loyalty and repeat business.

Sales associates

Represent the brand image of the retailer.

First impressions

Affect customer perception.

Greeting customers

Helps establish rapport.

Active listening

Helps understand customer needs.

Open-ended questions

Gather more information.

Closed-ended questions

Confirm details.

Determining needs

Helps recommend appropriate products.

Product knowledge

Builds customer trust.

Sales process

Includes approach, needs assessment, presentation, closing.

Demonstrating products

Helps customers understand value.

Handling objections

Is part of the sales process.

Closing techniques

Encourage customers to complete the purchase.

Upselling

Encouraging customers to buy higher-priced products.

Cross-selling

Suggesting related items.

Suggestive selling

Increases average transaction value.

Customer satisfaction

Improves word-of-mouth marketing.

CRM

Customer Relationship Management systems.

Tracking history

CRM tracks customer purchase history and preferences.

Loyalty programs

Retailers offer to retain customers.

Rewards of loyalty programs

Reward repeat purchases.

Professional communication

Sales associates must maintain.

Handling complaints

Quickly improves customer trust.

Service recovery

Solving customer problems effectively.

Refunds

Return money to the customer.

Exchanges

Replace one product with another.

Store policies

Determine return eligibility.

Registers

Track sales transactions.

POS systems

Record purchases.

Cash drawers

Must be balanced at start of shift.

Accurate change calculation

Required for cash transactions.

Credit card payments

Involve authorization.

Debit card payments

Withdraw funds directly.

Mobile payments

Use digital wallets.

Gift cards

Store prepaid value.

Receipts

Provide proof of purchase.

Fraud prevention

Is part of transaction processing.

Security cameras

Deter theft.

Excellent customer service

Improves brand reputation.

Receiving

The first step in inventory processing.

Delivery shipments

Include a packing slip.

Packing slips

List items and quantities shipped.

Verify shipment accuracy

Employees must do this.

Damaged goods reporting

Must be reported immediately.

Merchandise counting

Must be counted upon arrival.

Stock checking

Must be checked against purchase orders.

Documenting discrepancies

Inventory discrepancies must be documented.

Price marking

Attaches price labels to products.

Barcodes

Allow fast scanning at checkout.

RFID tags

Allow electronic inventory tracking.

Sorting merchandise

Must be sorted before shelving.

Security tags

Help prevent theft.

Stocking in correct department

Items must be done this way.

Backroom storage

Holds extra merchandise.

Organized products

Must be organized for easy retrieval.

Stock rotation

Employees must rotate stock regularly.

FIFO

Ensures older inventory sells first.

Preventing stockouts

Prevents lost sales opportunities.

Efficient stock handling

Reduces operational costs.

Shoplifting

A major cause of retail shrinkage.