11

Chapter Chapter 11

Retail Management? Introduction, scope and trends in

Retailing

Faiza NasirFaiza Nasir

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Refreshor!!!!Refreshor!!!! ManagementManagement MarketingMarketing Product Marketing vs. Service MarketingProduct Marketing vs. Service Marketing SWOT analysisSWOT analysis 4 Ps or Marketing Mix4 Ps or Marketing Mix BrandingBranding Distribution & PlacementDistribution & Placement PositioningPositioning Retail Managers (in organizations & in Retail Managers (in organizations & in

retail outlets)retail outlets) Franchising, Dealership, Service RetailingFranchising, Dealership, Service Retailing

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Distribution NetworkDistribution Network

DistributorDistributor

Broker / AgentBroker / Agent

Factory OutletFactory Outlet

WholesalersWholesalers

RetailersRetailers

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Issues in RetailingIssues in Retailing

How can we best serve our How can we best serve our customers while earning a fair profit?customers while earning a fair profit?

How can we stand out in a highly How can we stand out in a highly competitive environment where competitive environment where consumers have too many choices?consumers have too many choices?

How can we grow our business, while How can we grow our business, while retaining a core of loyal customers? retaining a core of loyal customers?

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A Typical Channel of DistributionA Typical Channel of Distribution

Manufacturer

WholesalerFinal

Consumer

Retailer

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The Retailer’s Role in the Sorting The Retailer’s Role in the Sorting Process (link to Mkt. Mix)Process (link to Mkt. Mix)

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Relationship Management Among Relationship Management Among Retailers and SuppliersRetailers and Suppliers

Disagreements may occur:control over channelprofit allocationnumber of competing retailersproduct displayspromotional supportpayment termsoperating flexibility

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Distribution TypesDistribution Types

ExclusiveExclusive: suppliers make : suppliers make agreements with one or few retailers agreements with one or few retailers that designate the latter as the only that designate the latter as the only ones in a specified geographic area ones in a specified geographic area to carry certain brands or productsto carry certain brands or products

IntensiveIntensive: suppliers sell through as : suppliers sell through as many retailers as possiblemany retailers as possible

SelectiveSelective: suppliers sell through a : suppliers sell through a moderate number of retailersmoderate number of retailers

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Special Characteristics Affecting Special Characteristics Affecting RetailersRetailers

Retailer’sStrategy

Small Average

Sale

Impulse Purchase

Popularityof

Stores

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Eliminating Shopper BoredomEliminating Shopper Boredom

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Customer ServiceCustomer Service

Activities undertaken by a Activities undertaken by a retailer in conjunction with the retailer in conjunction with the basic goods and services it sells.basic goods and services it sells.Store hoursStore hoursParkingParkingShopper-friendlinessShopper-friendlinessCredit acceptanceCredit acceptanceSalespeopleSalespeople

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Relationship RetailingRelationship 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 experienceConcentrate on the total retail experience– Monitor satisfaction Monitor satisfaction – Stay in touch with customersStay in touch with customers– Develop customer databaseDevelop customer database

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Key DriversKey Drivers Consumer Pull Rising incomes Explosion of media Change in consumer behavior Consumerism cycle The Rural market: Waking up Supply chain establishment Entry of Corporate sector Expansion of family owned businesses New Entrepreneurs Reducing Brand dominance Foreign retailers seeking entry Technological impact