BUS 425 RETAIL DISTRIBUTION MANAGEMENT FINAL REVIEW Retail
BUS 425 – RETAIL DISTRIBUTION MANAGEMENT FINAL REVIEW
Retail Management Decision Process The World of Retailing 1. Intro 2. Types of Retailers 3. Multichannel Retailing 4. Customer Buying Behavior Retailing Strategy 5. Retail Marketing 6. Financial Strategy 7. Retail Locations 8. Site Location Merchandise Management 1. Planning Merch. Assortments 2. Buying Systems 3. Buying Merchandise 4. Pricing 5. Retail Communications 9. Org. Structure and HR Mgmt. 10. Info Sys. & Supply Chain Mgmt 11. Customer Relationship Mgmt. Store Management 1. Managing the Store 2. Store Layout, Design, & Visual Merchandise 3. Customer Service
CHAPTER 1 INTRODUCTION TO RETAILING
What is Retailing? • Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use. A retailer is a business that sells products and/or services to consumers for personal or family use. James Darell/Getty Images
The Distribution Channel: Consumer Retailer Forward Integration Vertical Integration Wholesaler Manufacturer Backward Integration
CHAPTER 2 TYPES OF RETAILERS
Retail Strategy Decision Areas (Retail Mix) Customer Service Communications Mix Location Retail Strategy Store Design & Display Merchandise Assortments Pricing
A Critical Decision VARIETY ASSORTMENT PRICING SERVICES
Types of Food Retailers Conventional Supermarket Limited Assortment Supermarket Supercenter Warehouse Club Convenience Store
Safeway
Costco
Types of General Merchandise Retailers Department Stores Specialty Stores Category Specialists Home Improvement Centers Discount Stores Drugstores Off-Price retailers Extreme Value Retailers
Macy’s
Best Buy
CHAPTER 3 MULTICHANNEL RETAILING
“Tri-Channel” Retailing Catalog Internet Physical Store Steve Cole/Getty Images Digital Vision / Getty Images The Mc. Graw-Hill Companies, Inc. /Andrew Resek, photographer
Store Channel Browsing Touching & Feeling Products Personal Service Cash Payment Entertainment and Social Experience Immediate Gratification Risk Reduction
Catalog Channel Convenience Safety Quality of Visual Presentation
Internet Channel Deeper Assortments Broader Selection More Information to Evaluate Merchandise Personalization More info to retailer
Ann Taylor
Starbucks Brand Image Integrated Shopping Experience Merchandise Assortment Pricing
Stages in the Buying Process
CHAPTER 4 CUSTOMER BUYING BEHAVIOR
Stages in the Buying Process
Stages in the Buying Process
Getting into the Consideration Set Increase Performance Beliefs of Your Store Decrease Performance Beliefs About Competitor Increase Importance Weight of Attributes on which You Have an Advantage Add a New Benefit on which You Excel
Types of Buying Decisions Extended Problem Solving Limited Problem Solving Habitual Decision Making
CHAPTER 5 RETAIL MARKET STRATEGY
Retail Market Strategy Target market Format of the retailer (Retail Mix) Competitive Advantage
Competitive Advantage Customer loyalty Location Human Resources Management Distribution and Info. Systems Unique Merchandise Vendor relations Customer Service
Growth Strategies Market Penetration Market Expansion Retail Format Development Diversification
Chapter 6 FINANCIAL STRATEGY
Strategic Profit Model measurements Input Measures Output Measures Productivity
Strategic Profit Model
Chapter 8 RETAIL SITE LOCATION
Why is location important? The prime consideration in consumer choice Creates sustainable competitive advantage Creates potential long-term financial risk
Location Factors or “trade-offs” Size of Trade Area Occupancy Costs Pedestrian and Vehicle Traffic Restrictions on operations Convenience
Evaluating Locations Economic Conditions Competition Strategic Fit Operating Costs
Type of Locations
Chapter 9 HUMAN RESOURCES
The Downward Spiral FINANCIAL PERFORMANCE ISSUES • Low profits • High Costs EMPLOYEE RESPONSE • Decreased motivation and effort • Poor customer service • Lower job satisfaction • Greater turnover RETAILER RESPONSE • Layoffs • Freeze hiring and promotions • Reduced training • Salary freeze • Greater use of part-time employees and more outsourcing
Organizational Groupings Strategic Management Merchandise Management Store Management Administrative Management
Org. Structure – Single-Store Retailer
Org. Structure – National Chain Merchandise Operations Administration
Chapter 16 RETAIL COMMUNICATIONS MIX
BRAND = CUSTOMER EXPERIENCE
BRAND EQUITY Value of the brand Loyalty Lower marketing costs Increase margins Leverage brands
BUILDING BRAND EQUITY Awareness Associations (Personality) Reinforce Extend
Building Brand Awareness Top-of-mind Memorable names Number of stores Visual images Sponsorship
Creating Brand Associations Merchandise Category Price/quality Specific attribute or benefit Lifestyle or activity = BRAND IMAGE
Reinforcing the Brand Integrated Marketing Communications Merchandise Store Design Web site Customer Service An integrated experience
METHODS OF COMMUNICATION PAID UNPAID IMPERSONAL Advertising Sales promotions Store atmosphere Web site Personal Selling E-mail Web site (personalized) Publicity Word of mouth
Strengths & Weaknesses PAID UNPAID IMPERSONAL High Control Lower Flexibility Low Credibility HIGHEST COST High Control Highly Flexible Low Credibility High Cost Little Control Little Flexibility High Credibility Low Cost Little Control Little Flexibility High Credibility LOWEST Cost
Chapter 11 CUSTOMER RELATIONSHIP MANAGEMENT
Customer Relationship Management It costs 3 to 6 times more to sell products and services to NEW customers as it does to sell to existing customer GOAL = increase “share of wallet”
Customer Relationship Management Strategies Programs Systems Focus is on identifying and building loyalty with a retailer’s most valued customers
Loyalty Emotional connection Based on personal attention Exclusive or individually tailored offers or merchandise
CRM Process LEARN Collect customer data Analyze Customer Data ACTION Develop CRM program Implement CRM program Getty Images
Collecting Customer Data Transactions Customer contacts Customer preferences Descriptive information Responses to marketing CUSTOMER DATABASE
Customer Pyramid
Customer Retention Frequent shopper program Special customer services Personalization Community
CHAPTER 18 STORE LAYOUT, DESIGN & VISUAL MERCHANDISING
STORE DESIGN OBJECTIVES Store Design & Retail Strategy Influence Customer Buying Behavior Flexibility Cost Legal Considerations
W Hotels
STORE DESIGN - Layouts Grid Racetrack Freeform
STORE DESIGN – Signage & Graphics Location Category signage Promotional signage Point of sale Lifestyle images
WEB SITE DESIGN Follows the company brand Goal oriented Knows who you are and what you’ll like Anticipates your needs Makes you feel like a “platinum” customer Or provides you a path to becoming one Integrates seamlessly with the physical store
CHAPTER 19 CUSTOMER SERVICE
Customer Service - Approaches Customized Standardized Both are expensive, but…
The “Gaps” Model Customer Expectations Management Perceptions ACTUAL SERVICE Standards Customer’s Perceptions Retailer Communications Knowledge Gap Standards Gap Delivery Gap Communications Gap
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