01 merch & prom r store mng stud.ppt [modo de compatibilidad]rua.ua.es › dspace › bitstream...

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RETAIL MARKETING

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Instructor :

Dr. Mayo De Juan Vigaray

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Power points: conceptual framework

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PART 1

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RETAIL MARKETING

2. COURSE DESCRIPTION AND OBJECTIVES

merchandising philosophyretail store image atmospherics and visual merchandisingFirst part atmospherics and visual merchandisingcustomer service“retail-tainment” and Lifestyle merchandising

promotional process

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promotional process promotional methods promotion objectivessales promotion tools

Second part

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MERCHANDISING OBJECTIVES

To examine the concept of retail image

To describe how a retail store image i d t

VISUAL MERCHANDISING

is conveyed to consumers

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ATMOSPHERICS

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Vig To show the importance of communicating with customers & customer service

© Mayo De Juan Vigaray 2007

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MERCHANDISING CONTENTS

M.1. Communication methods

M.2. Retail image

M.3. Design of a store

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M.4. Physical environment

Exterior

Atmospherics

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Vig M.5. Customer service General interior

Store layoutInterior displays


Ma p y

MERCHANDISINGCommunication

methodsM.1.

MERCHANDISING

COMMUNICATION METHODSM.1.

Retail imageM.2.

Design of a storeM.3.

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Physical environmentM.4.

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methodsM.1.

A REVIEW

A t il d i ti t t

A REVIEW

well-devised well-executed

A retailer needs a communications strategy

To properly position itselfin customer’s minds

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Communication methods

M.1.

A REVIEW

MERCHANDISING

A REVIEW

O t tt t d Once customers are attracted: it is imperative . . .

To create a

“PROPERLY MOOD

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MOOD

for them”

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For shoppers to achieve the “nirvana” of pp“fulfilling their dreams” ……

t il t i i th t b …… retailers must inspire them to be positive, “smart” shoopers

It is the “smart”, inspired, positive shoppers who stay longer and purchase more …..

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Vig of the perception of time


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Kaltcheva, V. and Weitz, B. (2006) “When Should a Retailer Create an Exciting Store Environment?” Journal of Marketing, Vol. 70, January, pp. 107-118.

If in negative mode, they will leave early, will grab and go, or even worse !!!

they simply get out quickly,

might abort the purchase and

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might abort the purchase and,

maybe, never shop there again!!!

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And… even do not recommend it to anybody!!!!


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methodsM.1.

A REVIEWA REVIEW

The information must be interpreted by the target marketby the target market

In the manner inteded by the

retailer

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retailer

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Communication methods

MERCHANDISING

COMMUNICATION METHODM.1.

COMMUNICATION METHOD

IMPERSONAL PERSONALID Personal selling

AdvertisingStore atmosphere

Visual merchandising

PA

I Visual merchandising Sales promotion

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ID Word-of-mouthPublicity

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AdvertisingStore atmosphere

Visual merchandising VMgSales promotion

P id l i ti Paid nonpersonal communication transmitted through out-of store mass media by an identified sponsor

Advertising

Short-term incentives to increase the

Salespromotions

Short term incentives to increase the effectiveness of the promotional efforts

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VM & Store atmosphere

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in the most appropriate setting to influence customers to buy


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FOCUS MORE ON:Communication

methodsM.1.

MERCHANDISING

Store- based retailers Non-Store-based retailers(*)

FOCUS MORE ON:

Overall principles

Mail-order retailer:storefront = covers of catalog

Vsprinciples

aply layouts&displays= interior pages

Even in a product category like apparel, where catalog and internet outlets have

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internet outlets have made some of their greatest inroads, consumers still make….

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…. 90% of their purchases at brick-and-mortar stores


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(*) Sautter, P., Hyman, M. and Lukosius (2004) “E-tail Atmospherics: A Critique of the Literature and Model Extension”, Journal of Electronic Commerce Research, Vol. 5 N. 1.

MERCHANDISING

Retail imageM.2.

MERCHANDISING


RETAIL IMAGEM.2.


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MERCHANDISING

Retail imageM.2.

Image how a retailer is perceived by perceived by consumers and others.

___________

___________

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MERCHANDISINGRetail imageM.2.

Positioningfirm’s devising its strategyg gy

In a way that projects an image relative to its retail category and its competitorsits retail category and its competitors

That elicits consumer responses to this imageimage

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MERCHANDISING

Retail imageM.2.

Image and…?…

Space productivity represents h ff i l h il ili how effectively the retailer utilizes its space

and is usually measured by:

• sales per square “metres” or “cm”

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p qor “foot” of selling space

• gross margin ($ €) per square “metres” “cm” “foot” of selling

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space.

1 foot=30 48 cm


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1 mile=1.609 metres

Typical Grocery Gondola Size Has Remained Stagnantyp y g

Confectionery In-Aisle GondolaGrocery Space

1993 20061993 2006

Length (Feet) 21.7 22.2

# Shelves 7.4 7.9

Shelf Space(Li F )

160.0 176.6

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(Linear Feet)

• The length (running footage) is almost exactly

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Vig The length (running footage) is almost exactly the same as it was 13 years ago

• Retailers have added shelves & increased pegs


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to accommodate more productSource: Store Audits

MERCHANDISING

Retail imageM.2.

O GELEMENTS OF RETAIL IMAGE

Attributes ofPhysical Facilities______

Market

C t

Firm’s_______

ShoppingExperiences

Customer_______

__________Service

OverallRetail

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Store_______

ServiceImage

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Attributes


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MERCHANDISINGDesign of a storeM.3.

MERCHANDISING


Retail imageM.2.

M.3. DESIGN OF A STORE

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MERCHANDISING


lighting, visual fixtures, communications

ceiling, walls and floor

RETAILERS THINK OF A STORE AS ......

Like the theater, the store design and all its

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support the merchandise rather than ti ith it

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staff Consumers


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merchandisingConsumers

MERCHANDISING

Design of a storeM.3.OBJECTIVES WHEN DESIGNING OR REDESIGNING A STOREOR REDESIGNING A STORE

Managers must bear in mind the costs associated with the design and the reocurring costs

Retailers need to consider th t i t d ith

costs

the costs associated with each store design

Versus

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Versus

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higher sales and profits


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Visual Merchandising DefinedVisual

M h di i & Merchandising & Atmospherics

DefinedEverything the customer sees,

both exterior and interior,

Defined

both exterior and interior, that creates a positive image of a

business and results in

Visual Merchandisingand results in

attention, interest, desire, and action 1. Supports sales- “the silent

salesperson”

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salesperson

2. Supports retail strategies

3 C i t ith t

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4. Communicates image


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5. Supports retailing trends

Visual Merchandisers

Visual merchandisers are responsible forpthe total merchandise or servicepresentation, the overall business image,presentation, the overall business image,and even the building and placement ofdesign elements

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design elements

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MERCHANDISINGPhysical environmentM.4.

MERCHANDISING


Retail imageM.2.


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THE PHYSICAL ENVIRONMENT COMMUNICATES

Managing Attention is KeyRetailers’ Goal:• Get Initial Attention• Direct Attention• Sustain Attention• Sustain Attention

St Pl i

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Store PlanningCreating the Physical Environment• Exterior Building Design

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• Interior Design• Allocation of Space


Ma Allocation of Space

• Arrangement and Location


MERCHANDISINGAtmospherics


Retail imageM.2.


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ExteriorG l i i

ATMOSPHERICSPhysical environment

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Store layoutInterior displays


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(*) Donovan, R.J., Rossiter, J.R. (1982) “Store Atmosphere: An Environmental Psychology Approach” Journal of Retailing, Spring, Vol. 58, n. 1, pp. 34-58.

(*)Park, C. Iyer, E. y Smith, D. (1989) “The Effects of Situational Factors on In-Store Grocery Shopping Behavior: The Role of Store Environment and Time Available for Shopping” Journal Shopping Behavior: The Role of Store Environment and Time Available for Shopping , Journal of Consumer Research, march, Vol. 15., pp. 422-433.

(*) Spies, K., Hese, F. y Loesch, K. (1997) “Store Atmosphere, Mood and Purchasing Behavior” J l f R h i M k i V l 14 1 17

(*) D’Astour, A. (2000) “Irritation Aspects of the Shopping Environment” Journal of Business Research, Vol. 49, n. 2., pp. 1º49-156.

Journal of Research in Marketing, Vol. 14, pp. 1-17.

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(*) Sharma, A. y Staffor, T. (2000) “The Effect of Retail Atmospherics on Customer’ Perceptions of Salespeople and Customer Persuasion: An Empricial Investigation”, Journal of Business Research Vol 49 n 2 pp 183 191

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Vig Research, Vol. 49, n. 2., pp. 183-191.

(*) Turley, L. y Milliman, R. (2000) “Atmospheric Effects on Shopping Behavior: A Review of the Experimental Evidence”, Journal of Business Research, Vol. 49, n. 2, pp. 193-211.


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ATMOSPHERICSAtmospherics

ATMOSPHERICS

The physical characteristics of the store, p y ,such as

•Architecture, Layout•Signs and Displays•Color, lightingT t•Temperature

•Noise and Odors

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consumer’s mind


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(*) Kotler, P. (1973-74) “Atmospherics as a Marketing Tool” Journal of Retailing, 49, núm. 4, pp. 48-64.


ELEMENTS OF ATMOSPHEREAtmospherics

ELEMENTS OF ATMOSPHERE

Exterior

General Interior

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Store Layout

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Interior Displays(point-of-purchase)


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(*) Donovan, R.J. y Rossiter, J.R. (1982) “Store Atmosphere: an Environmental Psychological Approach, Journal of Retailing, 58, pp. 34-57.

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