Sales & Marketing Session 2

1. Sales & MarketingSession 2 Kay Geronikos (Business & Finance Faculty) Business Studies Teacher

2. RETAILING • Retailing includes all the activities involved in selling products or services to final consumers for their personal (non business) use. • Retailers reach consumers key moments of truth, ultimately influencing their actions at the point of purchase. • Shopper marketing idea is being embraced by marketers – ie. Marketing targeted to consumers while they are shopping.

3. RETAILING • Nonstore retailing has been growing in recent years – much faster than store retailing • Selling to the final consumer through the internet, direct mail, catalogs and other direct- selling approaches. • This section focuses on store retailing.

4. TYPES OF RETAILERS Individual Activity • See Table 10.3 handout of types of retailers • Provide one example (name of store or retailers) of each type of retailer.

5. TYPES OF RETAILERS Activity • Pick a familiar product • Identify two different store types that you can purchase this product at • Compare the stores: product assortment, services & prices • If you where going to buy the product, where would you buy it and why?

6. RETAILER MARKETING DECISIONS Segmentation, Targeting, Differentiation & Positioning Decisions • Retailers must first segment and define their target markets and then decide how they will differentiate and position themselves in these markets • This decision allows retailers to make consistent decisions about product assortment, services, pricing, advertising, store décor, or any of the other decisions that must support their positions.

7. RETAILER MARKETING DECISIONS • Many retailers, even big ones, fail to define their target markets and positions clearly and suffer the consequences. • Can you think of any retailer that suffers from a lack of clearly defining their target market?

8. RETAILER MARKETING DECISIONS Product Assortment & Services Decisions • Product Assortment – should differentiate the retailer while matching the target shoppers expectations eg. Woolworths only carries Macro Wholefoods • Services Mix – can help set one retailer apart from another eg. David Jones has in store brand specialists to assist the customer.

9. RETAILER MARKETING DECISIONS Product Assortment & Services Decisions • Store’s Atmosphere – is another important element for the retailer. Aim is to create a unique in store experience. • Many retailers practice “experimental retailing” such as the Dubai Mall – See Marketing at Work 11.2 p. 383) • Have you been into an Apple store recently? Describe the store’s atmosphere and how it makes you feel.

10. RETAILER MARKETING DECISIONS Price Decision • A retailer’s price policy must fit its target market and positioning, product & service assortment, the competition, and economic factors. • Most retailers seek either high prices on lower volume (most specialty stores) or low markupson higher volume (mass merchandisers)

11. RETAILER MARKETING DECISIONS Price Decision • Retailers must also decide on the extent to which they will use sales and other price promotions. • No price promotions (offer product & service quality instead) • Some practice everyday low pricing (Big W & Kmart) • High – Low pricing (Charge higher prices on everday basis, coupled with frequent sales and price promotions to increase store traffic)

12. RETAILER MARKETING DECISIONS Promotion Decision • Retailers use any or all of the promotional tools – advertising, personal selling, sales promotion, PR and direct marketing to reach consumers. • Most retailers have also set up web sites, offering customers information and selling merchandise directly.

13. RETAILER MARKETING DECISIONS Place Decision • Three critical factors in retailing success: Location Location Location! • Identify a few popular successful reatilers – where are they located?

14. RETAILER MARKETING DECISIONS Place Decision • Most stores today cluster together to increase their customer pulling power and to give customers the convenience of one-stop shopping • Main shopping strips, community shopping centre or a regional shopping centre eg.westfields,

15. RETAILER MARKETING DECISIONS Place Decision • Shopping Centres: The current trend is toward large power centres (open shopping centres) on the one hand and smaller lifestyle centres on the other – or a hybrid version of the two called a lifestyle-power centre. • Today’s centres are more about creating places to be rather than just places to buy.

16. RETAILING TRENDS AND DEVELOPMENTS • The following retailing development need to be taken into account when planning and executing competitive strategies: • Must keen adapting to changes • A slowed economy and tighter consumer spending • Growth of nonstore retailing – Born Globals • Retail convergence e.g books can be purchased just about anywhere! • The rise of megaretailers • Growing importance of retail technology • Global expansion of major retailers • Retail stores as communities eg coffee available within stores, internet available within stores.

17. Case Study • Read Case Study – retailing ups and downs • Answer questions in pairs • Discussion on questions to follow.