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MGM 4254 PENGURUSAN PERUNCITAN. PROGRAM JARAK JAUH JUN 2011 SITI RAHAYU HUSSIN. UNIT 1 An Introduction to Retailing. define retailing retailing special characteristics concept of strategic planning total retail experience customer service relationship retailing. - PowerPoint PPT PresentationTRANSCRIPT
MGM 4254 PENGURUSAN PERUNCITAN
PROGRAM JARAK JAUH JUN 2011
SITI RAHAYU HUSSIN
UNIT 1An Introduction to Retailing
define retailing retailing special characteristics concept of strategic planning total retail experience customer service relationship retailing
A Typical Channel of Distribution
Manufacturer
Wholesaler Final Consumer
Retailer
What is Retailing?
• Retailing - Consists of the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer.
• Any firm that sells a product or provides a service to the final consumer is said to be performing the retailing function.
LO 1
Changes in Retailing?
• E-tailing• Price competition• Demographic shifts• Store size
LO 1
Issues in Retailing
How can we best serve our customers while earning a fair profit?
How can we stand out in a highly competitive environment where consumers have too many choices?
How can we grow our business, while retaining a core of loyal customers?
Successful retailers must:
– become more service-oriented– offer better value in price and quality– be more promotion-oriented, and– be better attuned to their customers’ needs.
LO 1
Profit growth in retailing?
– increasing same-store sales at the expense of the competition’s market share or
– by reducing expenses without reducing services to the point of losing customers.
• As stores increase in size the retailer often employs a scrambled merchandising strategy.
• Scrambled merchandising - Exists when a retailer handles many different and unrelated items.– It is the result of the pressure being placed on
many retailers to increase profits.LO 1
Private label branding
• Occurs when a retailer develops its own brand name and contracts with a manufacturer to produce the merchandise with the retailer’s brand on it instead of the manufacturer’s name.
• Also called store branding.
LO 2
Location
• Retailers are now aware that opportunities exist in new non-traditional retail areas.
• Retailers are reaching out for alternative retail sites, rather than simply renovating the existing stores.
• Today, the most significant of the new nontraditional shopping locations could be the one which combines culture with entertainment or shopping.
LO 2
Retailing-Two Career Paths
LO 3
UNIT 2Building and Sustaining Relationships in Retailing
“value” and its pivotal role in retailers’ building and sustaining relationships
customer relationships and channel relationships in today’s highly competitive marketplace
the differences in relationship building between goods and services retailers
impact of technology on relationships in retailing retailers’ ethical performance and relationships
in retailing
The Retailer’s Role in the Sorting Process
Relationship Management Among Retailers and Suppliers
• Disagreements may occur:control over channelprofit allocationnumber of competing retailersproduct displayspromotional supportpayment termsoperating flexibility
Relationship Retailing
• Seek to establish and maintain long-term bonds with customers, rather than act as if each sales transaction is a completely new encounter– Concentrate on the total retail experience– Monitor satisfaction – Stay in touch with customers
Effective Relationship Retailing
• Use a win-win approach– It is harder to get new customers than to keep
existing ones happy• Develop a customer database
– Ongoing customer contact is improved with information on people’s attributes and shopping behavior
UNIT 3Strategic Planning in Retailing
the value of strategic planning for all types of retailers
the steps in strategic planning for retailers: situation analysis, objectives, identification of consumers, overall strategy, specific activities, control, and feedback
the individual controllable and uncontrollable elements of a retail strategy
Elements of a Retail Strategy
Checklist to Consider When Starting a New
Business
Checklist for Purchasing an Existing Retail
Business
Selected Kinds of Retail Goods and Service Establishments
Durable Goods Stores:Automotive group
Furniture and appliances groupLumber, building, and hardware group
Jewelry stores
Nondurable Goods Stores:Apparel group
Food groupGeneral merchandise group
Gasoline service stations
Selected Kinds of Retail Goods and Service Establishments
Service Establishments (Personal):Laundry and dry cleaning
Beauty/barber shopsFuneral services
Health-care services
Service Establishments (Amusement):Movie theatersBowling alleysDance hallsGolf courses
Selected Kinds of Retail Goods and Service Establishments
Service Establishments (Repair):Automobile repair
Car washesConsumer electronics repair
Appliance repairs
Service Establishments (Hotel):HotelsMotels
Trailer parksCamps
Selected Retail Positioning Strategies
Developing an Overall Retail Strategy
Controllable Variables:
• Store location• Managing business
• Merchandise management
and pricing• Communicating
with customer
Uncontrollable Variables:
• Consumers• Competition• Technology• Economic
conditions• Seasonality
• Legal restrictions
RetailStrategy
Factors to Consider When Engaging in Global Retailing
UNIT 4Retail Institutions by Ownership
ways in which retail institutions can be classified
retailers on the basis of ownership type and examine the characteristics of each
methods used by manufacturers, wholesalers, and retailers to exert influence in the distribution channel
Ownership Forms
IndependentChainFranchiseLeased departmentVertical marketing systemConsumer cooperative
Store-based Retail Strategy Mix
Convenience store Conventional supermarket Food-based superstore Combination store Box store Warehouse store Specialty store
Variety store Traditional department store Full-line discount store Off-price chain Factory outlet Membership club Flea market
Nonstore-based Retail Strategy Mix and Nontraditional Retailing
Direct marketingDirect sellingVending machineWorld Wide WebOther emerging retail formats
Structural Arrangements in Retail Franchising
UNIT 5Retail Institutions by Store-Based Strategy Mix
the wheel of retailing scrambled merchandising the retail life cycle retail strategy mixes a wide variety of food-oriented retailers
involved with store-based strategy mixes a wide range of general merchandise retailers
involved with store-based strategy mixes
Retailer Strategy Mix
• A strategy mix is the firm’s particular combination of:store location, operating procedures, goods/services offered, pricing tactics, store atmosphere, customer services, and promotional methods
Retail Strategy Alternatives
UNIT 6Web, Nonstore-Based, and Other Forms of Nontraditional Retailing
single-channel and multi-channel retailing the characteristics of the three major retail
institutions involved with nonstore-based strategy mixes: direct marketing, direct selling, and vending machines
the emergence of electronic retailing through the World Wide Web
two other nontraditional forms of retailing: video kiosks and airport retailing
Approaches to Retailing Channels
Nonstore Retailing
Retailing strategy that is not store-basedIt exceeds $300 billion annually78% comes from direct marketingWeb-based retailing is fastest growing
area
Nontraditional Retailing
Nontraditional retailing also includes formats that do not fit into the store and non-store based categories:Video kiosksAirport retailing
Direct Marketing
Customer is first exposed to a good or service through a nonpersonal medium and then orders by mail, phone, fax, or computer
Annual U.S. sales exceed $235 billionOther leading countries include
* Japan* Germany* Great Britain
*France* Italy
Strategic Business Advantages of Direct Marketing
Reduced costsLower pricesLarge geographic coverageConvenient to customersAbility to pinpoint customer segmentsAbility to eliminate sales tax for someAbility to supplement regular business
without additional outlets
Strategic Business Limitations of Direct Marketing
Products cannot be examined prior to purchase
Costs may be underestimatedResponse rates to catalogs under 10%Clutter existsLong lead time requiredIndustry reputation sometimes negative
UNIT 7Identifying and Understanding Consumers
The importance for a retailer to properly identify, understand, and appeal to its customers
consumer demographics, lifestyle factors, and needs and desires
consumer attitudes toward shopping and consumer shopping behavior, including the consumer decision process and its stages
retailer actions based on target market planningenvironmental factors that affect consumer shopping
What Makes Retail Shoppers Tick
Understanding Consumer Lifestyles: Social Factors
Lifestyle
Culture ReferenceGroups
Social Class
FamilyLife
Cycle
Time Utilization
HouseholdLife
Cycle
Understanding Consumer Lifestyles: Psychological Factors
Lifestyle
Personality Attitudes
PerceivedRisk
PurchaseImportance
ClassConsciousness
Top Reasons for Leaving an Apparel Store Without Buying
Cannot find an appealing styleCannot find the right sizeNothing fitsNo sales help is availableCannot get in and out of the store easilyPrices are too highIn-store experience is stressfulCannot find a good value
Where America Shops: Weekly Purchases
0
10
20
30
40
50
60
Weekly
The Consumer Decision Process
Key Factors in the Purchase Act
ASSIGNMENTS
• ASSIGNMENT 1 (20%)- Short cases from text book
• ASSIGNMENT 2 (20%)- Prepare a retailer strategy mix
EXAMS
• Mid term exam- 20%- Chapters 1-7- Multiple choice questions
• Final exam- 40%- Chapters 9-19- Short answers