1 Chapter 1 Retail Management? Introduction, scope and trends in Retailing Faiza Nasir

2 Refreshor!!!!  Management  Marketing  Product Marketing vs. Service Marketing  SWOT analysis  4 Ps or Marketing Mix  Branding  Distribution & Placement  Positioning  Retail Managers (in organizations & in retail outlets)  Franchising, Dealership, Service Retailing

3 Distribution Network  Distributor  Broker / Agent  Factory Outlet  Wholesalers  Retailers

4 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?

5 A Typical Channel of Distribution Manufacturer Wholesaler Final Consumer Retailer

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

7 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

8 Distribution Types  Exclusive: suppliers make agreements with one or few retailers that designate the latter as the only ones in a specified geographic area to carry certain brands or products  Intensive: suppliers sell through as many retailers as possible  Selective: suppliers sell through a moderate number of retailers

9 Special Characteristics Affecting Retailers Retailer’s Strategy Small Average Sale Impulse Purchase Popularity of Stores

10 Eliminating Shopper Boredom

11 Customer Service  Activities undertaken by a retailer in conjunction with the basic goods and services it sells.  Store hours  Parking  Shopper-friendliness  Credit acceptance  Salespeople

12 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 –Develop customer database

13 Key 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