Chapter 14 Marketing Assignment PDF

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PART 1 Chapter 14 Student Assignment - Retailing Student Assignment is DUE at start of class on Thursday, April 5 Review Questions 1.

Discuss the possible marketing implications of the trend toward supercenters, which combine a supermarket and a full-line discount store. Answer: Supercenters are well liked because of the wide ranges or services they offer. Most super centers have a wide range of groceries, merchandise, and services like pharmacies, salons, banks, food places, etc. They are convenient for people who are pressed for time, everything that need is in one location. In my opinion, I think supercenters are a wonderful idea and very convenient. You can buy clothes, groceries, hair products, car products, anything you need all in one place. The only bad thing about supercenters is that they tend to put grocery chains, corner stores, and mom and pop stores out of business. Most people think that they will become extinct soon because of how popular supercenters are.

2.

Explain the function of warehouse clubs. Why are they classified as both wholesalers and retailers? Answer: Warehouse clubs are classified as both wholesalers and retailers for many reasons. Warehouse clubs are classified as wholesalers because they offer bulk buy to their customers and they sell to small retailers/business owners. Bulk buy allows for customers to buy products in bulk, which mainly benefits people who need products for their business or a fundraiser. At the same time, warehouse clubs are classified as retailers because they sell directly to customers and only to their members. Individual customers can go in a warehouse club, if they have a membership, and shop just like they would at a super center, retail store, or market. Bulk buy benefits bother individual customers and business owners/retailers. Even though they are classified for different reasons, all reasons benefit both sides.

3.

What advantages does franchising provide to franchisers as well as franchisees? Answer: Franchising provides many advantages to franchisers and franchisees. Franchises offer the independence of a small business ownership supported by the benefits of a big business network. Also, you do not necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business. Franchises have a higher rate of success than regular start-up businesses. I think the fact that you are

not completely alone in starting up the business and preparing to run it, helps franchises be more successful. Since you are not starting from scratch or with a blank slate, you have guidelines and plans to follow from. Some people find it easier to secure finance for a franchise, it may cost less to buy a franchise than to start your own business of the same kind. Franchises often have an established reputation and image, so you are not out their fighting to build up your image or fishing for a customer base. You get to start out with the image the company already has and customer base. Application Questions 1.

How much does the most powerful computer with the fastest modem, most memory, largest monitor, biggest hard drive, and all the available peripherals cost at http://www.dell.com? Then price a comparable computer at Best Buy and Walmart. How can you explain any price differences between the three retail operations? Explain any differences in features that you encountered. What conclusions can you draw from your research? Answer: The top of the line Dell laptop that I looked up (Inspiron) was a different price at the Dell website, Wal-Mart, and Best Buy. On the Dell website the price for the laptop was $699.99, at Wal-Mart the price was $769.99, and at Best Buy the price was $749.99. If you buy from the Dell website directly, you get a lower price. If you buy from somewhere like Wal-Mart or Best But there is a $50-$200 difference from the original price. On the Dell website it even tells you that you get the “Dell price” if you buy from them, and they show the market price if you buy from somewhere else. Another thing that I noticed, was that if you buy directly from Dell then you get a warranty with them for free. If you buy from Wal-Mart or Best Buy, you have the option to buy a warranty with their store. I think the reason that there is a price difference is because of the convenience. Best Buys and WalMarts are more common in areas than Dell Stores. They also must up the price so they can make some money off the product. With most products, not just computers, if you buy directly from the brand/company it is cheaper and has better warranty plans.

2.

How does a company create an atmosphere on its website? Visit the website of your favorite retailer to examine how they have been able to re-create the store atmosphere on the Internet. Explain. Answer: One of my favorite retailers is Vans, they sell shoes, skateboards, backpacks, clothes, socks, etc. The vibe of the store is laid back and friendly. Vans are skater shoes for skateboarding or longboarding, but they also are just comfortable shoes. They are a very popular brand right now. The website portrays the “skater laid back” atmosphere that the store does as well. On the website, they have pictures of people skating, surfing, and hanging out with their friends. They have the option to create an account so you can save

your favorite style of shoe or recent purchase. In store, the different styles are in their own sections which makes it easier to pick what you want. On the website, they also have the shoes separated by the different styles, sometimes even by color. The website even has the same designs and pictures that are on the walls in the store. 3.

Organizations have three options for distribution intensity: intensive distribution, selective distribution, or exclusive distribution. Review the information about levels of distribution intensity from section 14-2 in your text. Then select a product you recently purchased. At what level of distribution intensity is this product distributed? Why do you think this might be the case? Explain your answer. Answer: I recently purchased workout clothing from Target. I think that their distribution intensity is a mix between intensive and selective. I think it is intensive because their brand as a store is very popular, so they are constantly selling all the products they have. The workout clothing,I bought is quite popular, so since it is a popular product they have it more towards the front of the clothing department. They keep making different styles and patterns for the workout brand too. I also think it is selective because they are gearing more to women, women who want to work out, moms, or people who just want to dress comfortably. The main reason I think it is selective is because it is not for every customer, or every person who wants to workout. They have a set customer base that they go after and plan their advertising around.

4.

Because consumers demand convenience, non-store retailing is growing much faster than in-store retailing. Review the information about non-store retailing from section 14-5 in your text. Then consider five recent purchases. Have any of them been through non-store retailing? If so, list the type of non-store retailing that was used, and explain why you chose that method over traditional stores. If not, classify the type of stores you purchased from and why you chose those over non-store retailing options. Answer: I participate in both non-store retailing and in-store retailing, it just depends on the product that I am trying to purchase. Recently, I bought all my groceries (cereal, toilet paper, shampoo, drinks, food, cleaning products, etc.) for the month at Super Wal-Mart, which would be in-store retailing. Even though you can order groceries online, like through Amazon or food companies, I prefer to pick out my groceries in person. I prefer to actually see the quality of the food and packaging. Plus, I have a better chance at undamaged products and fresher products if I buy them in store myself. Recently I have ordered shoes online, which is non-store retailing. I ordered two pairs of Vans online. I prefer to shop for Vans online because there is a wider selection on their website versus in store. Also, in store, depending on the store’s workers, sometimes they harass you too much about trying on shoes and I don’t like to be bothered while I am shopping. Vans also offers the option to customize a pair of shoes if you want, this is also something you cannot do in store. I

ordered a Fire Stick from Amazon a few weeks ago, this is also non-store retailing. I bought the Fire Stick from Amazon directly for many reasons. The Fire Stick is their product, so it is cheaper to buy directly from them plus they were having a sale on their website for it. It seemed faster to me to order it online because some stores do not carry a Fire Stick and that is what I wanted. I did not want to waste my time looking from store to store, when I could just order it online and get it in two days. I buy jeans and workout clothes from Wal-Mart and Target, which is in-store retailing. I almost always buy clothes in store, because I always want to try on the clothes. Sometimes I see something that I want to buy, but once I try it on I don’t like it or it doesn’t look good or fit the right way. For me, it is easier to try things on in store rather than just order clothes online....