MGM 4254 PENGURUSAN PERUNCITAN

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

2. UNIT 1An 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 2Building 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 3Strategic 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 4Retail 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. 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 Store-based Retail Strategy Mix

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 5Retail 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 6Web, 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 7Identifying 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 • ASSIGNMENT 2 (20%) - Prepare a retailer strategy mix