Download - Retail Management
Retailing encompasses the business activities involved in selling goods & services to consumers for their personal, family, or household use.
It includes every sale to the final consumer – ranging from cars to apparel to meals at restaurants to movie tickets.
Key issues that retailer must resolve:
How can we best serve our customer while earning a fair profit?
How can we stand out in a highly competitive environment where customers have so many choices?
How can we grow our business while retailing a core of loyal customers?
A Typical Channel of Distribution
Manufacturer WholesalerRetailer
Final consumer
Manufacturer Brand A
Manufacturer Brand B
Manufacturer Brand C
Manufacturer Brand D
Wholesaler
Wholesaler
Retailer
Brand A customers
Brand B customers
Brand C customers
Brand D customers
Retailers role in sorting process
OwnershipStore-based retail
strategy mix
Nonstore-based retail strategy mix & nontraditional
retailing
• Independent• Chain• Franchise• Leased department• Vertical marketing
system• Consumer cooperative
• Convenience store• Conventional supermarket• Food-based supermarket• Combination store• Box (limited line) store• Warehouse store• Specialty store• Variety store• Traditional department store• Full-line department store• Off-price chain• Factory outlet• Membership club• Flea (louse) market
• Direct marketing• Direct selling• Vending machine• World wide web (WWW)
Suppliers Third Party Logistics
Retail Operations
Customer Mgmt.
Customers
Support FunctionsSupport Functions
SystemsSystems
The Retail Marketing
Mix
Cust
om
er
Serv
ice
People
Bra
nd
Asso
ciatio
ns
Shopping Experience
Pricing
Promotion
Place / Location
Product / Merchandise features
PresentationRetail Store Image
The Adidas Retail StoreCA, USA
Acquiring Product/Merchandise Knowledge
Studying the Customer
Approaching the Customer
Presenting the Merchandise
Overcoming Resistance
Suggestive Selling
Closing the Sale
SupplierRaw material packaging warehouse Manufacturer
Manufacturer warehouse
Retailer warehouse
Retailer
Physica
l Flo
w
Customer Service
“Customer service is a task, other than proactive selling, that involves interactions with customers in person or by telecommunication, mail or automated process. It is designed, performed & communicated with two goals in mind –
Operational Production
Customer Satisfaction
Customer Service focuses on measurement of how well a firm meets the established performance standards that are viewed as important for meeting customer needs.
Customer Satisfaction is how the customers measure externally the service performance of a firm.
Lower Value Segment
Grow able Segment
Most Valued Segment
In-store PoS
Advertisement
Merchandising
Targeted Direct Mail
Added value services
Tailored, cross-learning based relationship
No. of customers
Value per customer
Lower value segment
Grow able Segment
Most Valuable Segment
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