berman_ch_18_11e

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Establishing and

Maintaining a

Retail Image

RETAIL

MANAGEMENT:

A STRATEGIC

APPROACH

11th Edition

BERMAN EVANS

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Chapter Objectives

To show the importance of communicating with customers and to examine the concept of retail image

To describe how a retail store image is related to the atmosphere it creates via its exterior, general interior, layout, and displays; and to look at the special case of non-store atmospherics

To discuss ways of encouraging customers to spend more time shopping

To consider the impact of community relations on a retailer’s image

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Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

Figure 18-1a:

Positioning and the Polaris

Fashion Mall

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Figure 18-1b: Positioning and Hard Rock Cafe

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Figure 18-1c: Positioning and McDonald’s

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Figure 18-2: Elements of a Retail Image

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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In Seconds…

A shopper should be able to determine a store’s

Name

Line of trade

Claim to fame

Price position

Personality

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Atmosphere

The psychological feeling a customer gets when visiting a retailer

Store retailer

: Atmosphere refers to store’s physical characteristics that project an image and draw customers

Nonstore retailer

: Atmosphere refers to the physical characteristics of catalogs, vending machines, Web sites, etc.

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Visual Merchandising

A proactive, integrated atmospherics approach aimed to create a certain look, properly display products, stimulate shopping behavior, and enhance physical behavior

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Figure 18-3: Shopping at Prada

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Figure 18-5: The Elements of Atmosphere

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Exterior Planning

Storefront

Marquee

Store entrances

Display windows

Exterior building height

Surrounding stores and area

Parking facilities

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Alternatives in Planning a Basic Storefront

Modular structure

Prefabricated structure

Prototype store

Recessed storefront

Unique building design

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Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

Store Entrances

How many entrances are needed?

What type of entrance is best?

How should the walkway be designed?

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Figure 18-7: The Name Says It All

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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General Interior

Flooring

Colors

Lighting

Scents

Sounds

Store fixtures

Wall textures

Temperature

Aisle space

Dressing facilities

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

In-store transportation

(elevator, escalator, stairs)

Dead areas

Personnel

Merchandise

Price levels

Displays

Technology

Store cleanliness

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Figure 18-8: Eye-Catching Displays from

M&M World

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Store Layout: Allocation of Floor Space

Selling space

Merchandise space

Personnel space

Customer space

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Figure 18-9: How a Supermarket Uses a Straight

(Gridiron) Traffic Pattern

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Figure 18-10:

How a

Department

Store Uses a

Curving

(Free-Flowing)

Traffic Pattern

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Product Grouping Types

Functional product groupings

Purchase motivation product groupings

Market segment product groupings

Storability product groupings

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Straight Traffic Pattern

Advantages

An efficient atmosphere is created

More floor space is devoted to product displays

People can shop quickly

Inventory control and security are simplified

Self-service is easy, thereby reducing labor costs

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

Disadvantages

Impersonal atmosphere

More limited browsing by customers

Rushed shopping behavior

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Figure 18-11: Sears’ Open-Store Design

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Curving Traffic Pattern

Advantages

A friendly atmosphere

Shoppers do not feel rushed

People are encouraged to walk through in any direction

Impulse or unplanned purchases are increased

Disadvantages

Possible customer confusion

Wasted floor space

Difficulties in inventory control

Higher labor intensity

Potential loitering

Displays may cost more

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Approaches for Determining Space Needs

Model Stock Approach

Determines floor space necessary to carry and display a proper merchandise assortment

Sales-Productivity Ratio

Assigns floor space on the basis of sales or profit per foot

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Interior (Point-of-Purchase) Displays

Assortment display

Theme-setting display

Ensemble display

Rack display

Case display

Cut case

Dump bin

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Figure 18-12: The RE/MAX Online Storefront

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Online Store Considerations

Advantages

Unlimited space to present assortments, displays, and information

Can be customized to the individual customer

Can be modified frequently

Can promote crossmerchandising and impulse purchasing

Enables a consumer to shop in quickly

Disadvantages

Can be slow for dialup shoppers

Can be too complex

Cannot adequately display three-dimensional aspects of products

Requires constant updating

More likely to be exited without purchase

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Figure 18-13: Making the Shopping Experience

More Pleasant

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Figure 18-14: The Shopping Cart’s Role in an

Enhanced Shopping Experience

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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Community-Oriented Actions

Make stores barrier-free for disabled shoppers

Show a concern for the environment

Support charities

Participate in anti-drug programs

Employ area residents

Run sales for senior citizens and other groups

Sponsor Little League and other youth activities

Cooperate with neighborhood planning groups

Donate money/equipment to schools

Check IDs for purchases with age minimums

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United

States of America.

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