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Answer to #1
A customer-centric view of retailing is focused on the retailer developing a deep understanding of its customers or potential customers and how they are going about their ordinary lives to enhance them. Customer centricity views the customer as an active participant in the process of creating resources and solutions. It views the customer as involved in relationships that involve engagement, co-producing, co-creating, relieving, and enabling processes.
In the traditional or firm-centric view the focus is on primarily the economic goals and outcomes. It is mainly concerned with the value of goods created by the manufacturers, getting the merchandise to market as quickly and efficiently as possible and selling it to consumers who consume or destroy the value.
In terms of promotion, the traditional broadcast one-way model is highly firm centric because it is designed to allow the retailer to primarily sell its merchandise. However, consumer-centric views advertising and all communications as a service and part of the process of building relationships.
A retailer cannot fully understand its customer if it does not go beyond simply trying
to understand how customers shop in the store. Retail shopping behavior must be understood
within the context of the everyday existence of customers and how they constantly
integrate resources to solve problems and pursue opportunities.
Answer to #2
A Geographic information system (GIS) is a computerized system that combines physical geography with cultural geography. Both physical and cultural geography from data input which can be aggregated and analyzed via computers. This analysis then results in maps and other displays of information which is the output. These maps help the retailer visualize a tremendous amount of information in an easy to understand format.
As a management technology, GIS has a variety of important uses in retailing. Some of the more popular uses are identified as follows.
Market Selection. A retailer with a set of criteria in mind, such as the demographics of its target market and the level of over- or understoring in a market, can have the GIS identify and rank the most attractive cities, counties, or other geographic areas to consider for expansion.
Site Analysis. If a retailer has a particular community in mind, a GIS can identify the best possible site or evaluate alternative sites for their expected profitability.
Trade Area Definition. If the retailer develops a database of where its customers reside, a GIS can automatically develop a trade area map and update this daily, weekly, monthly, or annually.
New Store Cannibalization. A GIS can help the retailer evaluate how the addition of another store in a community might cannibalize sales from any of its existing stores.
Advertising Management. A GIS can help the retailer allocate its advertising budget to different stores based on the market potential in their respective trade areas. Similarly, a GIS can help the retailer develop a more effective direct-mail campaign to prospective customers.
Merchandise Management. A GIS can help the retailer develop an optimal mix of merchandise based on the characteristics of households and individuals within its trade area.
Evaluation of Store Managers. A GIS can provide an important human resource function. It can help assess how well a store manager is performing based on one's trade area characteristics.
Answer to #3
Service is defined as the application of knowledge and skills through deeds, processes, and performances for the benefit of another. Service includes the following:
It involves doing something of benefit for the customer, suppliers, and employees.
It involves interaction between others because the deeds, processes, and performances that comprise the service are not done in isolation but in interaction others.
It involves the application of knowledge and skills that are operant resources that can provide the retailer with competitive advantage.
Service is not defined as what a good or tangible product is not, but rather service is a
transcending concept.
Service as a mindset and dominant logic is grounded on four principles. The four
principles are:
1 . Service is the basis of human exchange.
2 . People are always co-creators of value.
3 . All people are resource integrators.
4 . Each person uniquely determines value.
Answer to #4
There are four basic types of store-based retail locations: business districts, shopping centers and malls, freestanding units, and nontraditional locations. The examples for each type are as follows:
Business Districts:
Central business district: Dollar General
Secondary business district: Carrefour.
Neighborhood business district: Ann Taylor
Shopping Centers and Malls:
Shopping center: Cheesecake Factory
(According to the International Council of Shopping Centers, there are eight different types of shopping centers and malls: regional centers, superregional centers, community centers, lifestyle centers, power centers, theme/festival centers, and outlet centers).
Freestanding Location: Ace Hardware
Nontraditional Locations include the following:
Airports
College campuses
Truck and travel stops
Convenience stores, university libraries, and classroom buildings
Some examples of how nontraditional locations are used for retailing are:
Embassy Suites built new units next to shopping centers.
Hospitals are building emergency-care clinics near where people live in the suburbs and away from the hospitals
Lawyers are opening storefront offices wherever there is high pedestrian traffic
Yoga studios are locating in major office buildings.
Wells Fargo banks have mini-marketplaces featuring Starbucks coffee bars, dry cleaners, delis, and postal centers.
Banks have opened branch offices in retirement centers.
Nonstore-Based Retailers: The oldest form is the street peddler or the temporary stall set up on a street. Other examples are:
Mail-order: JCPenney's
Automated merchandising systems: Sears
Direct selling: Amway
Internet: MyGofer
Answer to #5
The three major eras of retailing are:
to market
marketing to
marketing with.
A to market orientation focuses on how to get product or merchandise from sources
of supply to the retail store and then to the customer. The major challenge was bringing merchandise to market as merchandise and goods moved primarily by railroads and waterways.
Marketing to retailing focuses on how to promote and advertise and otherwise entice customers to purchase merchandise. Improved transport and communications led to an increase in retail competition as more merchants were able to fill their store with goods.
Marketing with is an orientation that treats the customer as an equal partner and someone to engage in value co-creating activities. This era is known as the era of active collaboration between retailers, customers, suppliers and other stake holders. Long term relationships are a central premise of this era.
Answer to #6
Market segmentation is the method retailers use to segment, or break down, heterogeneous consumer populations into smaller, more homogeneous groups based on their characteristics. Since any single retailer cannot serve all potential customers, it is important that it segment the market and select a target market. A target market is that segment of the market that the retailer decides to pursue through its marketing efforts. Retailers in the same line of retail trade often pursue different target markets.
Sometimes it is not easy to reach every target market. A retailer must identify its target market before it decides how to best reach that market.
To reach a target market successfully, three criteria should be met. First, the retailer should seek a measurable market segment. This requires the retailer to rely on objective measures for which there is data available. The second criteria is accessibility, or the degree to which the retailer can target its promotional or distribution efforts to a particular market segment. The location decision is largely determined by identifying the most effective way to reach a target market. Finally, successful target marketing requires that the segment be substantial or large enough to be profitable for the retailer.
Answer to #7
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Answer to #8
F
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