MGM 4254 PENGURUSAN PERUNCITAN

PROGRAM JARAK JAUH JUN 2011

SITI RAHAYU HUSSIN

UNIT 1An Introduction to Retailing

define retailing retailing special characteristics concept of strategic planning total retail experience customer service relationship retailing

A Typical Channel of Distribution

Manufacturer

Wholesaler Final Consumer

Retailer

What is Retailing?

• Retailing - Consists of the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer.

• Any firm that sells a product or provides a service to the final consumer is said to be performing the retailing function.

LO 1

Changes in Retailing?

• E-tailing• Price competition• Demographic shifts• Store size

LO 1

Issues in Retailing

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

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

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

Successful retailers must:

– become more service-oriented– offer better value in price and quality– be more promotion-oriented, and– be better attuned to their customers’ needs.

LO 1

Profit growth in retailing?

– increasing same-store sales at the expense of the competition’s market share or

– by reducing expenses without reducing services to the point of losing customers.

• As stores increase in size the retailer often employs a scrambled merchandising strategy.

• Scrambled merchandising - Exists when a retailer handles many different and unrelated items.– It is the result of the pressure being placed on

many retailers to increase profits.LO 1

Private label branding

• Occurs when a retailer develops its own brand name and contracts with a manufacturer to produce the merchandise with the retailer’s brand on it instead of the manufacturer’s name.

• Also called store branding.

LO 2

Location

• Retailers are now aware that opportunities exist in new non-traditional retail areas.

• Retailers are reaching out for alternative retail sites, rather than simply renovating the existing stores.

• Today, the most significant of the new nontraditional shopping locations could be the one which combines culture with entertainment or shopping.

LO 2

Retailing-Two Career Paths

LO 3

UNIT 2Building and Sustaining Relationships in Retailing

“value” and its pivotal role in retailers’ building and sustaining relationships

customer relationships and channel relationships in today’s highly competitive marketplace

the differences in relationship building between goods and services retailers

impact of technology on relationships in retailing retailers’ ethical performance and relationships

in retailing

The Retailer’s Role in the Sorting Process

Relationship Management Among Retailers and Suppliers

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

Relationship 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 experience– Monitor satisfaction – Stay in touch with customers

Effective Relationship Retailing

• Use a win-win approach– It is harder to get new customers than to keep

existing ones happy• Develop a customer database

– Ongoing customer contact is improved with information on people’s attributes and shopping behavior

UNIT 3Strategic Planning in Retailing

the value of strategic planning for all types of retailers

the steps in strategic planning for retailers: situation analysis, objectives, identification of consumers, overall strategy, specific activities, control, and feedback

the individual controllable and uncontrollable elements of a retail strategy

Elements of a Retail Strategy

Checklist to Consider When Starting a New

Business

Checklist for Purchasing an Existing Retail

Business

Selected Kinds of Retail Goods and Service Establishments

Durable Goods Stores:Automotive group

Furniture and appliances groupLumber, building, and hardware group

Jewelry stores

Nondurable Goods Stores:Apparel group

Food groupGeneral merchandise group

Gasoline service stations

Selected Kinds of Retail Goods and Service Establishments

Service Establishments (Personal):Laundry and dry cleaning

Beauty/barber shopsFuneral services

Health-care services

Service Establishments (Amusement):Movie theatersBowling alleysDance hallsGolf courses

Selected Kinds of Retail Goods and Service Establishments

Service Establishments (Repair):Automobile repair

Car washesConsumer electronics repair

Appliance repairs

Service Establishments (Hotel):HotelsMotels

Trailer parksCamps

Selected Retail Positioning Strategies

Developing an Overall Retail Strategy

Controllable Variables:

• Store location• Managing business

• Merchandise management

and pricing• Communicating

with customer

Uncontrollable Variables:

• Consumers• Competition• Technology• Economic

conditions• Seasonality

• Legal restrictions

RetailStrategy

Factors to Consider When Engaging in Global Retailing

UNIT 4Retail Institutions by Ownership

ways in which retail institutions can be classified

retailers on the basis of ownership type and examine the characteristics of each

methods used by manufacturers, wholesalers, and retailers to exert influence in the distribution channel

Ownership Forms

IndependentChainFranchiseLeased departmentVertical marketing systemConsumer cooperative

Store-based Retail Strategy Mix

Convenience store Conventional supermarket Food-based superstore Combination store Box store Warehouse store Specialty store

Variety store Traditional department store Full-line discount store Off-price chain Factory outlet Membership club Flea market

Nonstore-based Retail Strategy Mix and Nontraditional Retailing

Direct marketingDirect sellingVending machineWorld Wide WebOther emerging retail formats

Structural Arrangements in Retail Franchising

UNIT 5Retail Institutions by Store-Based Strategy Mix

the wheel of retailing scrambled merchandising the retail life cycle retail strategy mixes a wide variety of food-oriented retailers

involved with store-based strategy mixes a wide range of general merchandise retailers

involved with store-based strategy mixes

Retailer Strategy Mix

• A strategy mix is the firm’s particular combination of:store location, operating procedures, goods/services offered, pricing tactics, store atmosphere, customer services, and promotional methods

Retail Strategy Alternatives

UNIT 6Web, Nonstore-Based, and Other Forms of Nontraditional Retailing

single-channel and multi-channel retailing the characteristics of the three major retail

institutions involved with nonstore-based strategy mixes: direct marketing, direct selling, and vending machines

the emergence of electronic retailing through the World Wide Web

two other nontraditional forms of retailing: video kiosks and airport retailing

Approaches to Retailing Channels

Nonstore Retailing

Retailing strategy that is not store-basedIt exceeds $300 billion annually78% comes from direct marketingWeb-based retailing is fastest growing

area

Nontraditional Retailing

Nontraditional retailing also includes formats that do not fit into the store and non-store based categories:Video kiosksAirport retailing

Direct Marketing

Customer is first exposed to a good or service through a nonpersonal medium and then orders by mail, phone, fax, or computer

Annual U.S. sales exceed $235 billionOther leading countries include

* Japan* Germany* Great Britain

*France* Italy

Strategic Business Advantages of Direct Marketing

Reduced costsLower pricesLarge geographic coverageConvenient to customersAbility to pinpoint customer segmentsAbility to eliminate sales tax for someAbility to supplement regular business

without additional outlets

Strategic Business Limitations of Direct Marketing

Products cannot be examined prior to purchase

Costs may be underestimatedResponse rates to catalogs under 10%Clutter existsLong lead time requiredIndustry reputation sometimes negative

UNIT 7Identifying and Understanding Consumers

The importance for a retailer to properly identify, understand, and appeal to its customers

consumer demographics, lifestyle factors, and needs and desires

consumer attitudes toward shopping and consumer shopping behavior, including the consumer decision process and its stages

retailer actions based on target market planningenvironmental factors that affect consumer shopping

What Makes Retail Shoppers Tick

Understanding Consumer Lifestyles: Social Factors

Lifestyle

Culture ReferenceGroups

Social Class

FamilyLife

Cycle

Time Utilization

HouseholdLife

Cycle

Understanding Consumer Lifestyles: Psychological Factors

Lifestyle

Personality Attitudes

PerceivedRisk

PurchaseImportance

ClassConsciousness

Top Reasons for Leaving an Apparel Store Without Buying

Cannot find an appealing styleCannot find the right sizeNothing fitsNo sales help is availableCannot get in and out of the store easilyPrices are too highIn-store experience is stressfulCannot find a good value

Where America Shops: Weekly Purchases

0

10

20

30

40

50

60

Weekly

The Consumer Decision Process

Key Factors in the Purchase Act

ASSIGNMENTS

• ASSIGNMENT 1 (20%)- Short cases from text book

• ASSIGNMENT 2 (20%)- Prepare a retailer strategy mix

EXAMS

• Mid term exam- 20%- Chapters 1-7- Multiple choice questions

• Final exam- 40%- Chapters 9-19- Short answers