Retail Management Exam Notes

Ch. 1 World of Retailing * Retailing: the set of business activities that adds value to the products and services sold to consumers for their personal use or family use * Retailer: a business that sells products and/or services to consumers for their personal or family use * Supply Chain: set of firms that make and deliver goods and services to consumers * Wholesalers: engage in buying, taking title to, often storing, and physically handling goods in large quantities and then reselling the goods to retailers and other businesses * Vertical Integration: that a form performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply its stores * Backward Integration: when a retailer performs some wholesaling and manufacturing activities, such as operating warehouses or designing private-label merchandise
Why are retailers needed? 1. Provide an assortment of products and services 2. Breaking bulk 3. Holding inventory 4. Providing services * Corporate Social Responsibility (CSR): an organization voluntarily taking responsibility for the impact of its activities on its employees, customers, community and the environment * Intratype Competition: competition between same type of retailers * Intertype Competition: competition between retailers that sell similar merchandise using different types of stores, such as discount and department stores * Scrambled Merchandising: When retailers offer merchandise not typically associated with their type of store * Retail Strategy: how the retailer plans to focus its resources to accomplish its objectives 1. Target market, or markets, toward which the retailer will direct its efforts 2. The nature of the merchandise and services the retailer will offer to satisfy the needs of the target market 3. How will the retailer will build a long-term advantage over its