COMMERCE 2MA3 Study Guide - Final Guide: Hypermarket, Giant Tiger, Holt Renfrew
1 May 2016
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Retailing: activities involved in selling merchandise to ultimate consumers. Retailers act as both customers and marketers in their channels. The general store was the first type of retail institution. Rise of supermarkets in the early 1930s, discount stores in the. 1950s, convenience stores in the 1960s, and off-price retailers in the 80s and 90s. Wheel of retailing: hypothesis that each new type of retailer gains a competitive foothold by offering lower prices than current suppliers charge; the result of reducing or eliminating services. Retailers base key decisions on two fundamental steps in the marketing strategy process: selecting a target market, and developing a retailing mix to satisfy the chosen market. Selecting a target market, consider: size, profit potential of the market, level of competition. Merchandising strategy: guides retailer"s decisions on the items it will offer. While developing the merchandise mix, retailers should consider: Overall profitability of each product line and category.
