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

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

3. A Typical Channel of Distribution
Retailer
Manufacturer
Wholesaler
Final
Consumer

4. 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

5. Changes in Retailing? E-tailing Price competition Demographic shifts
Store size
LO 1

6. 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?

7. 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

8. 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

9. 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

10. 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

11. Retailing-Two Career Paths
LO 3

12. 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

13. The Retailer’s Role in the Sorting Process

14. 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

15. 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

16. 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

17. 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

18. Elements of a Retail Strategy

19. Checklist to Consider When Starting a New Business

20. Checklist for Purchasing an Existing Retail Business

21. 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

22. 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

23. 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

24. Selected Retail Positioning Strategies

25. 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

26. Factors to Consider When Engaging in Global Retailing

27. 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

28. Ownership Forms Independent Chain Franchise Leased department
Vertical marketing system
Consumer cooperative

29. 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

30. Nonstore-based Retail Strategy Mix and Nontraditional Retailing
Direct marketing
Direct selling
Vending machine
World Wide Web
Other emerging retail formats

31. Structural Arrangements in Retail Franchising

32. 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

33. 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

34. Retail Strategy Alternatives

35. 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

36. Approaches to Retailing Channels

37. 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

38. Nontraditional Retailing
Nontraditional retailing also includes formats that do not fit into the store and non-store based categories:
Video kiosks
Airport retailing

39. 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

40. 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

41. 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

42. 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

43. What Makes Retail Shoppers Tick

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

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

46. 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

47. Where America Shops: Weekly Purchases

48. The Consumer Decision Process

49. Key Factors in the Purchase Act

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

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