DECA Retail Merchandising Exam - Q & A Retailing process on how to get goods from the manufacturer to the consumer. What is the supply chain?
... [Show More] Manufacturer - Wholesaler - retailer - consumer Market segment group of customers whose needs are satisfied by the same retail mix because they have similar needs Actionable retailer should know what to do to satisfy the needs of the customer Identifiable retailer can identify which customers are in the market segment Substantial if a market is too small of buying power is insignificant its not substantial Reachable the retailer can reach those customers in the market segment with promotions Segmentations geographic, demographic, geodemographic, lifestyle, buying situation, benefits and composite Geodemographic "birds of a feather flock together" - consumers in the same neighborhoods tend to buy the same products. retailers use this to select locations for their stores. Tapestry classifies neighborhoods into 65 segments Geographic groups customers according to where they live, they can be identifiable, substantial and reachable. Demographic group customers by age, gender, income and education Lifestyle how people live their life and they spend their time and money. Uses VALS. better at predicting behavior then demographics. Buying situations identifiable, actionable and reachable Composite use multiple variables to identify customers in the target segment according to their benefits sought, lifestyles and demographics. Fashion lifecycle stages compatibility, complexity, triability, observability and relative advantage Compatibility degree to which fashion is consistent with existing norms, values and behaviors Complexity how easy the new fashion is to use and understand Triability costs and commitment required to adopt the fashion initially Observability degree to which the new fashion is visible and easily communicated to others in the social group Relative advantage degree to which the new fashion is advantageous to the customers than competing brands. Retail Strategy statement identifying retailers target market, format the retailer is going to use to satisfy target market needs and how the retailer is going to build a competitive advantage 5 ways to build a sustainable competitive advantage customer loyalty, supplier relationships, internal operations, location and combination of all 4 growth strategies market penetration, market expansion, retail format development and diversification Market penetration growth opportunity directed towards existing customers using the retailers present retailing format. Example: opening more stores in target market or staying open longer hours Market expansion involves using the retailers existing retail format in a new market segment. Example: opening up stores in new areas [Show Less]