Exam 15: Retailing

After defining and selecting a target market,retailers must develop the six Ps of the retailing mix to successfully meet the needs of the chosen target market.What are the six Ps of the retailing mix?

Diaz John Diaz immigrated to Tallahassee from Cuba in the 1980s.He set up a coffee shop called Diaz in a small upper-middle-class neighborhood.It rapidly became popular because of the wonderful coffee it brewed.Soon Diaz was selling the finest coffees from around the world,plus coffee-making necessities such as grinders and brewers.Within ten years,Diaz was operating a lucrative mail-order business in addition to his coffee shop.Upon entering the shop,the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee.Marble-topped tables are set in cozy nooks with overstuffed chairs.Bookshelves on one wall hold books about coffee for patrons to read while they sip.The smell is intoxicating to a real coffee lover.Coffee drinkers can take home a pound when they leave.The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300 per pound Kopi Luwak from Sumatra. -Refer to Diaz.If Diaz wanted to grow his business and granted another owner the rights to use his format and approach to doing business,he would be involved in:

Diaz John Diaz immigrated to Tallahassee from Cuba in the 1980s.He set up a coffee shop called Diaz in a small upper-middle-class neighborhood.It rapidly became popular because of the wonderful coffee it brewed.Soon Diaz was selling the finest coffees from around the world,plus coffee-making necessities such as grinders and brewers.Within ten years,Diaz was operating a lucrative mail-order business in addition to his coffee shop.Upon entering the shop,the first thing the customer sees is a countertop crowded with all of the machinery needed for making a perfect cup of coffee.Marble-topped tables are set in cozy nooks with overstuffed chairs.Bookshelves on one wall hold books about coffee for patrons to read while they sip.The smell is intoxicating to a real coffee lover.Coffee drinkers can take home a pound when they leave.The store carries all types of coffee from $8 per pound Brazilian Cerrado to $300 per pound Kopi Luwak from Sumatra. -Refer to Diaz.Customers of Diaz's coffee shop can purchase coffee,coffee makers,mugs,chocolate,music CDs,and all sorts of unique gift items.Diaz is practicing:

Providing great customer service is one of the most challenging elements in the retail mix because customer expectations for service are so varied.

Large independent department stores are the most common type of retail stores today.

_____ is a type of shopping available to consumers with access to the Internet.

A publisher of books on holiday decorating,cooking,and crafts has to find a way to dispose of its overruns and unsold end-of-season output.As a marketing consultant,you suggest the firm sell the merchandise to:

A _____ is a retail store that stocks pharmacy-related products and services as its main draw.

Walmart Walmart,the world's largest retailer by revenue,announced that it will get back to its founder's roots by initiating more price cuts.Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins.CEO Mike Duke assuaged critics by saying Walmart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold. -Refer to Walmart.Which type of pricing strategy describes Walmart's commitment to offer consistently lower prices?

Apple Stores Apple,Inc.opened its first Apple Store in 2001 and currently has hundreds of stores spanning several countries.Many of the Apple Stores are inside malls,but Apple also has several freestanding stores,which they call their flagship stores,with each looking a little different on the outside.These are located in New York City,Boston,Los Angeles,Chicago,San Francisco,Montreal,Tokyo,and Osaka. The store in New York City is a glass cube with a glass cylindrical elevator and spiral staircase that leads to an underground store.Inside,they have long tables displaying products ranging from the iMac,MacBook Air,iPods,printers,cameras,and other accessories.All these products are accessible to customers who can try them out and ask various questions of informed associates.The walls are mostly metallic,and the signs are all backlit. All stores have a Genius Bar where customers can receive technical advice or set up service and repair for their products.To address the needs of the many iPod users,some stores,such as the New York store,have set up a separate iPod Bar where customers can get their own technical assistance.They also have an iMac station for kids who want to try out games and learning products and a theater for workshops,product training sessions,and special presentations. Apple introduced the handheld Easy Pay system where customers don't have to wait in line to purchase products.With a simple click of a paperless,handheld credit card scanner,the employee brings the cash register to the customer.Items can be rung up anywhere on the show room floor.Apple plans to open several more stores in the years to come. Apple also has its online store.At its Web site,a customer can order any Mac or iPod product,plus a large variety of accessories.In addition to its product offerings,a customer can watch a demonstration of how products work or check out the latest Mac ads or news. -Refer to Apple Stores.Some shoppers purposely plan to visit the Apple store on Fifth Avenue in New York City,which is characteristic of:

Supermarkets are self-service retailers that specialize in food and food products,although many now carry nonfood items as well.

The merchandise mix:

Which of the following statements about a retailer's promotion strategy is true?

Prices are usually higher in convenience stores than in supermarkets because convenience stores offer:

Discuss the two recent developments in retailing.

A(n)_____ is a continuing relationship in which an individual or business grants business rights to operate or sell a product to another individual or business.

The Mad Stencilist has decided to demonstrate how to use its products to create custom gift tags on a local cable television channel and is encouraging shoppers to call a toll-free number to purchase the merchandise with a credit card.This form of retailing is called a(n):

Specialty stores such as Best Buy,Staples,Dick's Sporting Goods,and Bed,Bath,and Beyond are often called category killers because:

Which of the following statements about nonstore retailing is true?

Around the world,most retailers are _____,operating one or a few stores in their community,owned by a single person or partnership and not operated as part of a larger retail institution.