lecture 6 information processing in retailing
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TRANSCRIPT
De La Salle – College of Saint Benilde
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Lecture 06: Information Processing in Retailing
PRESENTED BY:
Ian Agoncillo Pacaña
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Agenda
Information Flow in the Retail Business Retail Information System Database Management Data Warehousing Data Mining and Micromarketing UPC and EDI for Gathering Data
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How Information Flows in a Retail Distribution Channel
Informationand theSupplier
Informationand theSupplier
Informationand theRetailer
Informationand the
Consumer
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Suppliers Need To Know
From the RetailerEstimates of category
salesInventory turnover
ratesFeedback on
competitorsLevel of customer
returns
From the CustomerAttitudes toward styles
and modelsExtent of brand loyaltyWillingness to pay a
premium for superior quality
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Retailers Need To Know
From the SupplierAdvance notice of new
models and model changes
Training materialsSales forecastsJustifications for price
changes
From the CustomerWhy people shop
thereWhat they like and
dislikeWhere else people
shop
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Consumers Need To Know
From the SupplierAssembly and
operating instructions
Extent of warranty coverage
Where to send a complaint
From the RetailerWhere specific
merchandise is stocked in the store
Methods of payment acceptable
Rain check and other policies
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Retail Information System (RIS)
Anticipates the information needs of retail managers
Collects, organizes, and stores relevant data on a continuous basis
Directs the flow of information to the proper decision makers
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A Retail Information System
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Retail Pro Management Information Software
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Database Management
A major element in an RISSystem gathers, integrates, applies, and
stores information in related subject areasUsed for
– Frequent shopper programs– Customer analysis– Promotion evaluation– Inventory planning– Trading area analysis
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Five Steps to Approach Database Management
Plan the particular database and its components and determine information needs
Acquire the necessary informationRetain the information in a usable and accessible
formatUpdate the database regularly to reflect changing
demographics, recent purchases, etc.Analyze the database to determine strengths and
weaknesses
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2 Aspects of Database Management
1. Data warehousing A mechanism for storing and distributing
information
2. Data Mining and micromarketing Are ways in which information can be utilized
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Retail Database Management in Action
1
2
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Data Warehousing
• Collection of data that supports management decision making
• It is a central storage of all or significant parts of the data that a firm’s business systems collect
• The process of defining, populating and using a data warehouse.
• Emphasizes the capture of data from diverse sources for useful analysis and access
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Components of a Data Warehouse
1. Physical storage location for data – the warehouse
2. Software to copy original databases and transfer them to warehouse
3. Interactive software to allow processing of inquiries
4. A directory for the categories of information kept in the warehouse
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Data Warehousing
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Data Mining and Micromarketing
Data mining is the in-depth analysis of information to gain specific insights about customers, product categories, vendors, and so forth
Micromarketing is an application of data mining, whereby retailers use differentiated marketing and develop focused retail strategy mixes for specific customer segments
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Gathering through UPC and EDI
Universal Product Code (UPC)o Products are marked with a
series of thick and thin vertical lines
o Retailers can record data instantly
o Improves: merchandizing data gathering inventory management faster transactions reduce errors
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Gathering through UPC and EDI cont..
Electronic Data Interchange (EDI)o Exchange of electronic
informationo Improves:
Enhance decision making capabilities
Inventory Control Responsiveness in Demand
o Became even cheaper when the Internet was used as a means for EDI
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Question and Answer
Q & A
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For next meeting…
– Be Ready for your FIRST LONG QUIZ• Big Test Booklet
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References
• Berman, Barry & Evans, Jpel, Retail Management 10th Ed. (Person)