Retailing Strategy Aim: How do the customer service strategy and pricing effect one another? Do Now: 1-What is merchandising strategy? 2-How might the about of services effect the price of a product? 3-Can you buy the same product for less in some stores?

2-What is Customer Service? Customer service is the provision of services to customers before, during, and after a purchase. Retailers must decide on the variety of services they make available for shoppers Objectives are to enhance shopper comfort and attract and retain customers Examples include gift wrapping, bridal registry, return privileges, electronic shopping, and delivery and installation

2-Customer Service at Tiffany’s Distinctive blue box gift wrapping is part of Tiffany’s customer service strategy What do you notice the salespeople do after completing your purchase? Walk around with shopping bag

3-Pricing Strategy Product Bundles: Markup: The amount a retailer adds to a product’s cost to determine its selling price Determined by 2 factors: The services performed by the retailer. The inventory turnover rate. Markdown: The amount by which a retailer reduces a product’s original selling price Product Bundles: Offering several products for sale as one combined package Pricing strategy to move old stock

5- Promotional Strategy Retailers use a variety of promotional techniques Mass Marketing: Directs a company or stores marketing mix at a large and varied group of people. Sales people are frequently used in stores for direct selling Selling up: retailing selling technique in which salespeople try to persuade customers to buy higher-priced items than originally intended. Example: If you sold a customer an entire suit instead of just a suit jacket Suggestive selling Advertising: newspapers, commercials, radio, circulars, internet