RETAIL MANAGEMENT TEST 1 STUDY
GUIDE QUESTIONS AND ANSWERS13
Evolution of the Big 3 in retail - ANSWERS -1997
1.) Walmart: $110 B in sales
2.) K-mart: $30 B in sales
3.) Sears: $28 B in sales
2005
1.) Walmart: $315 B in sales; they used VALUE as their point of differentiation.
*Value sells and cheap sinks
2.) Home depot: $82 B in sales
3.) Kroger: $61 B in sales
2015
1.) Walmart: $500 B
2.) Costco: $111 B
3.) Kroger: $103 B
*Only about a 2% product difference between Walmart, K-mart, and Target in their products, so
98% are pretty much the same
*Perceptual management is huge in retail: you have to stand out - ANSWERS -*$5.3 Trillion was
spent on retail last year
, *Only 50% of retailers last past 5 years
Intra-type analysis
vs.
Inter-type analysis - ANSWERS -Intra: competing with stores that have similar products
Ex: all the pizza places in the GCC area
Inter: Fox's pizza den competing with the Gutherie. You either go out to eat or watch a movie;
usually too expensive to do both
Product width vs. depth - ANSWERS -width: how many different TYPES of products you have
depth: jewelry store has a lot of depth and no width b/c all they sell is jewelry
3 steps in marketing (look up on powerpoint)
Primary vs. secondary cards (look up on powerpoint) - ANSWERS ----
What is a retailer? - ANSWERS -Buys big quantities and breaks them down and re-sells them
- Deal with the END CONSUMER
- Both hard GOODS and SERVICES
- French word that means to cut up
3 distinct phases in marketing? - ANSWERS -1.) Shopping
2.) Buying
3.) Using
GUIDE QUESTIONS AND ANSWERS13
Evolution of the Big 3 in retail - ANSWERS -1997
1.) Walmart: $110 B in sales
2.) K-mart: $30 B in sales
3.) Sears: $28 B in sales
2005
1.) Walmart: $315 B in sales; they used VALUE as their point of differentiation.
*Value sells and cheap sinks
2.) Home depot: $82 B in sales
3.) Kroger: $61 B in sales
2015
1.) Walmart: $500 B
2.) Costco: $111 B
3.) Kroger: $103 B
*Only about a 2% product difference between Walmart, K-mart, and Target in their products, so
98% are pretty much the same
*Perceptual management is huge in retail: you have to stand out - ANSWERS -*$5.3 Trillion was
spent on retail last year
, *Only 50% of retailers last past 5 years
Intra-type analysis
vs.
Inter-type analysis - ANSWERS -Intra: competing with stores that have similar products
Ex: all the pizza places in the GCC area
Inter: Fox's pizza den competing with the Gutherie. You either go out to eat or watch a movie;
usually too expensive to do both
Product width vs. depth - ANSWERS -width: how many different TYPES of products you have
depth: jewelry store has a lot of depth and no width b/c all they sell is jewelry
3 steps in marketing (look up on powerpoint)
Primary vs. secondary cards (look up on powerpoint) - ANSWERS ----
What is a retailer? - ANSWERS -Buys big quantities and breaks them down and re-sells them
- Deal with the END CONSUMER
- Both hard GOODS and SERVICES
- French word that means to cut up
3 distinct phases in marketing? - ANSWERS -1.) Shopping
2.) Buying
3.) Using
