Risk Management Advanced Marketing Competencies: Develop strategies for reducing shrinkage from internal and external sources Explain importance of copyright, registered service mark, registered trademarks, and brand name protection Describe legal aspects of marketing management

What is Risk Management

Reducing Shrinkage Shrinkage includes the following: The difference between the stock you SHOULD have and the stock you ACTUALLY have Sources of shrinkage may be INTERNAL and/or EXTERNAL Huge issue for businesses- impacts profit significantly

Internal Shrinkage Employee Theft -Stealing merchandise -Discount abuse -Refund abuse -Credit card fraud Administrative/Human Error POS entry error Pricing Errors(calculating Mark Down) Inventory count error

External Shrinkage Vendor Theft Shoplifting -Concealing and stealing merchandise -Swapping price tags -Transferring from one container to another

Understanding Shrinkage Employee Theft is #1 Source of Shrinkage for Retail Business Shoplifting is # 2 Source of Shrinkage for Retail Business- while smaller than employee theft accounted for $10 billion ANNUAL LOSS

Strategies to Reduce Shrinkage Class Activity Students work with a partner. Brainstorm and then make a list of ways that you think businesses could reduce shrinkage within their organization. Include strategies for both INTERNAL and EXTERNAL shrinkage. Share out answers in class discussion

Strategies to Reduce Internal Shrinkage Use of technology (cameras, POS computers Inventory control and comparison Store Training and Policy Development- including handling merchandise and money

Strategies to Reduce External Shrinkage Techonogy/ cameras Trained Sales Associates/ Customer Service and Selling Emphasis Store Policies Regarding Dressing Rooms/ Monitoring Immediate Reconciliation of purchase order to packing slip with vendor

Copyright; Trademark; Service Mark; and Brand Name Protection

What is Copyright? Form of legal protection automatically granted to authors of work including: artistic, literary, musical, and dramatic Granted under U.S. Constitution, Article 1, Section 8