Wednesday, May 22, 2013

EOC Chapt 6 Questions



1.    Compare services to products, and examine the difference and/or similarities in their branding process.
Products are mainly items that fill a need in a persons life. For example a person is having a bad hair day and they are selling hairspray or a new comb to help that problem that person will be satisfied." "A product is usually fullyexperienced by the consumer after the purchase decision has been made; in thecase of retail shopping, a major part of the experience is consumed andevaluated before the purchase decision is made". A service is intangible and will usually fill in emotional needs. Example would be after buying that comb or product it makes you feel better and adds a sense of empowerment or happiness.

2.    Define retail concept, and briefly discuss its role in the positioning strategy of a retail brand.
A retail concept will be a mixture of a service mix and the business model. Discussed in the book "The RETAIL CONCEPT is the business model and retailphilosophy adopted by the brand". It will include the four P’s which will then build upon the business model.

3. What are the advantages and disadvantages of franchising as a global growth strategy?
Advantages of franchising would include giving the rights to a retail business for more profit. It often includes the franchisor offering its products and services to the franchisee which will then be sold by the franchisee.  Another advantage is  "a source of revenue. The structure of fees can differ, but in generalit is a combination of a one-time fee and a percentage of sales that can bearound 5 percent. Sometimes a minimum monthly payment is guaranteed even ifmonthly sales did not cover the royalty fee". A disadvantage would be "Lack of control and possibledifficulty in monitoring a large chain".

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