MGM 4254 PENGURUSAN PERUNCITAN PROGRAM JARAK JAUH JUN 2011 SITI RAHAYU HUSSIN

UNIT 1 An Introduction to Retailing define retailing retailing special characteristics concept of strategic planning total retail experience customer service relationship retailing

A Typical Channel of Distribution Retailer Manufacturer Wholesaler Final Consumer

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 2 Building 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 channel profit allocation number of competing retailers product displays promotional support payment terms operating 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 3 Strategic 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 group Lumber, building, and hardware group Jewelry stores Nondurable Goods Stores: Apparel group Food group General merchandise group Gasoline service stations

Selected Kinds of Retail Goods and Service Establishments Service Establishments (Personal): Laundry and dry cleaning Beauty/barber shops Funeral services Health-care services Service Establishments (Amusement): Movie theaters Bowling alleys Dance halls Golf courses

Selected Kinds of Retail Goods and Service Establishments Service Establishments (Repair): Automobile repair Car washes Consumer electronics repair Appliance repairs Service Establishments (Hotel): Hotels Motels Trailer parks Camps

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 Retail Strategy

Factors to Consider When Engaging in Global Retailing

UNIT 4 Retail 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 Independent Chain Franchise Leased department Vertical marketing system Consumer 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 marketing Direct selling Vending machine World Wide Web Other emerging retail formats

Structural Arrangements in Retail Franchising

UNIT 5 Retail 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 6 Web, 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-based It exceeds $300 billion annually 78% comes from direct marketing Web-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 kiosks Airport 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 billion Other leading countries include Japan Germany Great Britain France Italy

Strategic Business Advantages of Direct Marketing Reduced costs Lower prices Large geographic coverage Convenient to customers Ability to pinpoint customer segments Ability to eliminate sales tax for some Ability to supplement regular business without additional outlets

Strategic Business Limitations of Direct Marketing Products cannot be examined prior to purchase Costs may be underestimated Response rates to catalogs under 10% Clutter exists Long lead time required Industry reputation sometimes negative

UNIT 7 Identifying 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 planning environmental factors that affect consumer shopping

What Makes Retail Shoppers Tick

Understanding Consumer Lifestyles: Social Factors Culture Reference Groups Lifestyle Time Utilization Social Class Household Life Cycle Family Life Cycle

Understanding Consumer Lifestyles: Psychological Factors Personality Attitudes Lifestyle Class Consciousness Perceived Risk Purchase Importance

Top Reasons for Leaving an Apparel Store Without Buying Cannot find an appealing style Cannot find the right size Nothing fits No sales help is available Cannot get in and out of the store easily Prices are too high In-store experience is stressful Cannot find a good value

Where America Shops: Weekly Purchases

The Consumer Decision Process

Key Factors in the Purchase Act

ASSIGNMENTS ASSIGNMENT 1 (20%) Short cases from text book - Prepare a retailer strategy mix

EXAMS Mid term exam 20% Chapters 1-7 Multiple choice questions Final exam 40% Chapters 9-19 Short answers