1. Retail Positioning Advanced Fashion: Standard 3 Created by: Kris Caldwell Timpanogos High School

2. Retail Positioning Retail Positioning: Where a store situates itself in the consumer market. Done by: –Product –Price –Place –Promotion –Examples: Some stores are positioned with the lowest possible prices and least amount of service. Others are positioned for the best values for fashion forward career apparel.

3. Target Marketing Target Marketing: Defining the specialized niche of the market to whom the company wishes to make the greatest appeal. –Retailers do this by: Merchandise Policies: guidelines the company follows to keep inventory choices on track. Operational Policies: designed to make customers feel good about shopping at the store.

4. Policies Merchandising Policies: Specific guidelines established by management for the company to follow to keep inventory choices on track. Operational Policies: Specific guidelines, established by management, to make the store appealing for the target market through physical appearance and customer services.

5. Buying Motives Buying Motives: Reasons why people buy what they buy (what motivates them) –Product Motives: based on qualities or images of certain products –Patronage Motives: buy from certain stores

6. Competition Direct Competition: between 2 or more retailers using the same type of business format. (ex: GAP, Express) Indirect Competition: between 2 or more retailers using different types of business formats to sell the same type of merchandise. (ex: Dept store/grocery store both sell pantyhose) Vertical Competition: between businesses at different levels of the supply chain. (ex: company that sells to stores and also has a factory outlet store)

7. Competition Lifestyle Competition: Rivalry between businesses for consumers’ pastimes and spending money. Ambiance: Atmosphere, how a store pleases customers’ senses.

8. Product Strategy Assortment: range of stock or total selection a retailer carries. –Assortment Breadth (width): refers to the number of different item categories or classifications offered by a store. –Assortment Depth: indicates the quantity of each item available in the assortment of goods offered.

9. Price Strategy Prestige Pricing: Setting high prices on items to attract customers who want quality and status. –Usually in even numbers (ex: $48, not $47.99) Price Promoting: Advertising special price reductions to bring in shoppers. Can build traffic to buy other items as well.

10. Place Strategy Site Location: Prime location is important to attracting the right customers. Types of store clusters: –Central Business Districts: In cities or towns, stores and offices –Neighborhood Shopping Centers: 5-15 stores –Community Shopping Centers: 25-50 stores, with 1 primary store –Regional Shopping Centers: Malls. Draw customers from at least a 10 mile radius. –Super-Regional Centers: Largest malls. 6-8 Anchor stores, 150 specialty stores, eateries.

11. Place Strategy Market Coverage: The amount of concentration a retailer has in a customer area, such as intensive, selective, or exclusive. Facilities Design: Store design to create a strong visual identity with the right ambiance for the target market. Store Exterior: Often creates a customer’s first impression. Store Interior: Includes selling areas and sales support areas. Should be functional and welcoming for customers.