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Retail Marketing Management: Principles & Practice 1st Edition Helen Goworek - Solutions
Consider the legal and ethical issues that would affect a retailer selling children’s toys in your country. Your considerations should include the social implications of promoting and selling products to children and the environmental impact of the merchandise, amongst other points. You should
UK legislation is constantly being updated and laws obviously differ between countries.Investigate whether there has been any more recent legislation enacted in the UK or your own country since this book was published.
Intellectual property legislation includes copyright protection that covers creative content such as written, visual, musical and artistic works and is an automatic right, as explained above. Taking this quiz will enable you to check your knowledge of UK copyright law:
Retailers and manufacturers have been criticised by pressure groups for not making information about the sources of their products and conditions of the workers transparent to consumers. Do you believe they should be forced by law to do so? If they did so, what effects might this have on the
List the main types of legislation that apply to bricks-and-mortar retail outlets, as outlined in this chapter. Which of these laws do you consider to have the most impact on retailing at the present time? Explain the reasoning behind your decision.
Do you think it would be a good idea to make it illegal for advertisements to ‘gloss’ or exaggerate claims about products or services? What could the effects be if such laws were imposed?
To what extent does Asos have the capability to become a multichannel retailer?
What are the key issues facing the internationalisation of fashion retailers?
How does Asos differentiate itself as an online retailer?
As seen in the cases in this chapter, Oak Furnitureland has expanded from being an etailer to buying bricks-and-mortar stores, yet Bead Boutique has moved from being a physical store to become an etailer. Discuss the reasons why the retailers made these moves and the possible impact that the types
Research into the newest innovations in online retailing via the trade and technology magazines. Present details of two of the key innovations to your fellow students, assessing the viability of their use by online retailers.
Discuss the advantages and disadvantages of customers being able to ‘click and collect’. Consider ways in which online and bricks-and-mortar channels could become more integrated in the future.
Online retailing has overtaken the traditional mail order channel. Debate whether you think printed catalogues will become obsolete or if there will still be a place for them in ten years’ time.
Do you think Tesco should open more of these stores? Explain your answer.
What are the main issues Tesco could face by offering only this one self-service option?
What are the problems for the customer with this one self-service option?
Should Boots UK continue to offer their current levels of high quality customer service? Explain the reasons for your answer.
What additional customer service could Boots UK offer?
What could Boots UK do to counteract the grocers’price discounting?
List three retailers which you consider to offer good customer service and three examples of retailers with poor customer service. What customer service techniques do you believe that the second group could learn from the first group on your list?
How do customer service techniques differ between online and bricks-and-mortar retailers?
What are the main methods of effecting a service recovery? Consider examples of occasions when you’ve received poor service from retailers. Who did you tell about it?Suggest how the retailers could have made a better service recovery in such cases.
Inspired by the HappyOrNot device in the case study in this chapter, working in small groups carry out a brainstorming session to develop some creative ideas for assessing customer service quality. Select the most viable idea and describe how a retailer could implement it in practice.
Considering different types of retailer – fashion, food, electricals, home interiors etc. –discuss how each of these types of retailer could create a social shopping experience that increases their value to the community and customers. Explore how that can increase consumer engagement in terms
Compare SERVQUAL with the model in Figure 10.2. Which model do you believe is most appropriate to online retailing, explaining your reasoning.
What are the key advantages for retailers of using the SERVQUAL model? Consider whether the model has any disadvantages.
What are the key points of Anthropologie’s store design and layout that make it different to competitors such as furniture stores and department stores?
Compare the websites for Anthropologie and Urban Outfitters (or the stores if you are able to visit both of them). Which aspects of layout and product assortment do they have in common and what are the main differences between the two retailers?
How have the four elements of retail atmosphere been applied to the store described in the case?
Select two etailers of your choice and consider how the design of their websites can encourage customers to buy. Layout; background colour; images; zoom or 3D function on photographs; product information and ease of navigation are some of the main points you should assess, but you may wish to cover
What are the key similarities and differences between design and layout for etailers and BM stores?
Select a retail outlet or website that you feel is a bad example of retail design and/or layout. Making reference to some of the content in this chapter, offer three suggestions to improve the design or layout.
Consider a bricks-and-mortar retailer with an environment which appeals to you as a consumer and that you feel is a good example of store design. Make a list of all the elements of the store that make you feel this way, grouped under the four aspects of atmospherics listed above. Which of the four
How can eye-tracking help retailers to improve their store design and layout? Research into the latest developments for eye-tracking and other technological innovations that could assist store design and layout.
What are the advantages and disadvantages of the grid layout and the freeform layout from the perspectives of retailers and customers?
Assess which of the choices of store entrance and fittings you would consider to be most appropriate for a small-to-medium size independent store selling:a jewellery;b electrical goods;c men’s clothing.
Visit a shopping centre or row of shops near to where you live. Describe the interior and exterior design and layout for three to five selected stores including entrance type, fixtures and fittings. Consider the reasons behind these design and layout decisions and whether they are well suited to
In what ways are the product and price range of Family Shopper stores compatible with the location decision in the case?
Which of the four key elements of retail location factors (Figure 8.5) was the most important in deciding on the location of the store in the case? Rank the importance of the remaining three elements in relation to this retail outlet.
Mr and Mrs Kanji opted for ‘roll out’ as a way of expanding their business. If they had not chosen this option, which one of the other ‘6Rs’ (Table 8.2)would you have recommended them to pursue?Explain the reasoning behind your choice.
Which location technique (see Table 8.4) was primarily used to decide on the site for the store in the case?
Find out what the local retail planning policies are for where you live. On the basis of the policies what types of retailer are likely to be able to get planning permission?
Choose a major retailer and establish what types of locational management options it has been using over the last three years.
Find two major shopping centre plans – use the internet to download these. Analyse these plans and establish the anchor tenants of each.
Assume that you work for a retail consultancy and have been asked to advise a foreignbased food retailer. The retailer wants to develop a grocery format in the UK of about 15,000 square feet targeted at affluent customers. What advice would you give the retailer on its locational strategy and
Visit two retailers operating in the same sector, e.g. a high-end fashion store with one that is at the value end. Describe the site of both and generate a checklist of factors on how both companies could assess any future sites.
Examine a retailer’s annual report and accounts for the last three years. Establish the levels of investment in location and review the key statements as to what changes the retailer has made over the last three years. What changes does the retailer intend to make to its store portfolio over the
Using an internet search, investigate Superdry’s international expansion. If you worked for a consultancy employed to advise Superdry how to amend its marketing communication strategy to enhance its expansion overseas, what recommendations would you make?
Superdry’s promotional mix is unusual for a wellknown fashion brand in that it doesn’t involve advertising. Do you believe that the company should advertise its products? Provide reasons to explain your answer.
Does Superdry use a push or pull promotional strategy? Why do you believe they have chosen this promotional strategy? As their potential customers discuss whether or not you agree with this choice of strategy.
Select a well-known retail chain in your country or region, of which you are a customer.Compile a list of the range of methods of marketing communications used by this retailer after visiting an outlet and searching online. Consider whether there are any other promotional methods that they do not
Select the most appropriate types of Out of Home media for the following types of retailer then develop some copy for a poster for a real or fictitious company in one of these sectors:a Pet supplies b DIY c Bakery You may find it useful to look at the range of media available for this exercise at
In which aspects of marketing communications discussed in this chapter can social media be used? Although social media accounts are usually free to set up, explain why the use of social media as a promotional tool can still incur costs for a retailer.
What are the advantages and disadvantages of retailers using PR in comparison to advertising?
Look up the latest figures available for the top expenditure on advertising by retailers at www.marketingmagazine.co.uk. How have the top ten retailers in the list changed since 2013? What do you think are the reasons behind these changes in advertising spend for the retailers concerned?
Using YouTube and collecting adverts from print media, select two adverts that use humour and product features techniques. Critique the adverts and suggest potential improvements that you believe could make them more applicable to their target audience.
Consider the AIDA model in relation to an existing advert for a retailer. Assess how the advert captures consumers’ attention and interest.
Using one of von Oech’s seven approaches to generating advertising ideas, as mentioned in this chapter, develop a press advert for a retailer of your choice, including copy (text). You can either draw or describe the visual elements of the advert.
Search for articles about the price competition between the ‘big four’ UK supermarkets to assess the current situation. How have the supermarkets’pricing and relative market share changed, if at all, since this case study was written?
Visit Aldi’s and Lidl’s stores or websites, noting their price architecture, product ranges and store/web design and layout. What aspects of pricing, products and retail design help to differentiate them from other supermarkets that may account for their growth in market share?
Describe the different pricing strategies that are mentioned in this case study, using the terminology discussed in this chapter. Based on the information from the case, what are the potential dangers and advantages of competing retailers using these strategies to engage in a price war?
Calculate retail margins for the products below, using the formula mentioned in this chapter. After calculating each margin, assess whether the result would be above or below the target margin for a retailer with a 3 × cost price mark-up policy. You could also try estimating this before completing
Consider three products that you have bought at markdown prices, making a note of the percentage discount and where you bought them. Which of the reasons for markdowns mentioned in this chapter do you believe applied to these products? Do you consider these products to be good value? Give reasons
Compile three lists with examples of retailers that primarily use (a) cost-orientated,(b) competition-orientated and (c) demand-orientated pricing. Discuss whether there are any similarities between the retailers in each list, e.g. in their market level or product types.
Assess the pricing policies of three different retailers of the same product type by visiting their stores nearby, e.g. a national or international retail chain, a smaller store chain and a one-off independent store. Make notes for each store about pricing strategies mentioned in this chapter,
Discuss to what extent it is viable and desirable for low-cost retailers such as pound stores to address social and environmental responsibility in the selection of their products. (See Chapter 12 Legislation and ethics in retailing.) Viewing the Corporate Social Responsibility (CSR) policies of
Watch the following video about Euroshop in Germany: http://www.youtube.com/watch?v=s9kRRRzTLgQ.a Which aspects of retailing does the store manager place great importance upon?b How does the single pricing policy affect the staff?c How much is this market worth in Germany according to the YouTube
Compare the pricing strategies of two different supermarkets. Make a note of the prices of similar basic branded and own-label products, e.g. soap and bread. Calculate the average difference between the prices of the own-label products and the branded products, expressing the difference as a
In what ways do you believe price-comparison websites such as Kelkoo affect consumer decision-making? Draw from your own experience as a consumer by considering times when your purchase choice has been influenced by information from this type of website.
Which pricing strategies mentioned in this chapter would you advise a retailer to adopt to achieve the following objectives?a Increasing market share.b Increasing profit margins.c Improving the company’s brand image.d Making the retailer’s merchandise more sustainable.
What can European retail buyers do in terms of sourcing to achieve a compromise between the low prices but long-lead times of the Far East and the higher prices but shorter lead times of European suppliers?
What impact would sourcing more products from the domestic market (rather than overseas) have on the responsibilities of a retail buyer?
What are the main potential problems for buyers and merchandisers involved with sourcing in the UK from the viewpoint of:a grocery retailers b electronics retailers c clothing retailers
According to this article, what are the key reasons why retailers are reconsidering sourcing more merchandise in the UK?
Which ethical issues are involved in retail buying and merchandising? (See also Chapter 12 Legislation and ethics in retailing.)
Review the information on products for two symbol groups in the same product sector, based on the information on the companies’ websites, e.g. Spar, Mace and Nisa. If you were setting up your own grocery store, which of these symbol groups would you choose to buy from and why?
What are the advantages and disadvantages of centralised buying and decentralised buying, e.g. John Lewis versus Fenwick?
Assess the main differences in the buying cycle between buying branded and own-label ranges of the following product types:● tinned vegetables● men’s jeans● bath towels.
Based on the content in the chapter, name some of the other retail job roles with which buyers work internally and describe which tasks they collaborate on.
Discuss the skills and personal characteristics required to work effectively in buying and merchandising, then assess which are the three most important of these points for each job in the following types of retailer:a chain of ten hardware stores that only sells branded merchandise;b large fashion
Download the BrandZ Top 100 report for 2014 at www.wpp.com/wpp/marketing/brandz/, or for a more recent year. Compare the top 10 brands in it with those from the 2013 top 10 and assess the PEST factors that may have been responsible for any changes that you see, i.e. brands moving up, down or out of
What are the key factors needed for a brand to have high attraction power, according to the article?What other factors do you consider to be important in this respect? Use examples of successful brands to support your answer.
Consider how brand value has been calculated in the case. What are the potential difficulties of assessing brand value by this method? Suggest other potential ways in which brand value can be analysed.
Read the following essay by Robert Kozinets and name at least three retailers or brands that engage in retrobranding: spreadablemedia.org/essays/kozinets/#.U9kgRhsg_IU In what ways does retrobranding appeal to consumers?
For a retailer of your choice draw a positioning map with the retailer placed centrally and six or more competitors positioned around it. Use price on one axis and another relevant dimension on the other, such as product quality, service quality or fashionability. Use the map to assess who are the
Many retailers now offer own-label subbrands (e.g. Aldi and Tesco) which do not feature the retailer’s name prominently. What are the advantages of adopting this strategy?
Based on relevant information in this chapter, generate ideas for brand names for either a small delicatessen or independent clothing retailer. Select the name that you think is most appropriate and select a suitable font for the brand name from the choices in Microsoft Word or other sources.
Compare the advantages and disadvantages for retailers and consumers of offering:● own-label products;● ranges of merchandise from other companies.
Select at least five stores or services from a shopping centre. Where would you position them relative to each other on the product/service continuum?
Consider two different retailers of your choice, one that has a ‘narrow and deep’ assortment and another with a ‘broad and shallow’ product assortment. Write down the reasons why you believe the stores have selected these different types of product assortment. These reasons are likely to
Which of the market research methods discussed in this chapter could be used to investigate the shopping behaviour of supermarket customers? From these, select the most suitable market research method for investigating the behaviour of female consumers in a supermarket of your choice.
What would be your advice for advertisers to enable them to target female consumers effectively, based on the information in this article?
Advertisers can also be considered guilty of stereotyping male consumers. What lessons do marketers need to learn about male consumers to avoid this happening? How do these lessons differ from those mentioned in this article about female consumers?
Based on reading the article and from examples that you have seen, what problems are created when marketers use stereotyped perceptions of women?
Firstly, you should download and read this brief guide to social grades A-E published by Ipsos MORI: www.ipsos-mori.com/DownloadPublication/1285_MediaCT_thoughtpiece_Social_Grade_July09_V3_WEB.pdf Now select three retailers in your nearest town or city and for each store assess which are the main
The stages of the Family Lifecycle were compiled by Wells and Gubar (1966) and were re-addressed by Gilly and Enis (1982) (see http://www.acrwebsite.org/search/viewconference-proceedings.aspx?Id=6007). The FLC classification can be criticised for its lack of relevance to contemporary society, since
Look at the websites for two market research agencies, e.g. qrs-research.co.uk/ and www.jraresearch.com, and compare the companies’ services for quantitative and qualitative research. Based on the information available on their websites, assess which of the two companies you would recommend a
Read the article by Arnold and Reynolds (2003) on ‘hedonic shopping motivations’.Note the categories in which they place consumers – Minimalists, Gatherers, Providers, Enthusiasts and Traditionalists – and consider people you know who may fit into some of these groups. You should also
Devise a 300–500 word customer profile for a retailer of your choice using the technique of describing a hypothetical typical customer, featuring both demographic and psychographic characteristics. You may wish to base this on someone you know who is a loyal customer of the retailer. You can
What are the advantages to retailers of developing customer profiles? This blog from industry experts The Whole Brain Group and this information from Mintel may give you some ideas and help you to specify the demographic details of your customers:
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