TEST #1
February 14
Chapters 1-5
Retail Market Strategy
Chapter 5 (continued)
Retail Market Strategy
• Target market
• Format of the retailer (Retail Mix)
• Competitive Advantage
Competitive Advantage
• Customer loyalty
• Location
• Human Resources Management
• Distribution and Info. Systems
• Unique Merchandise
• Vendor relations
• Customer Service
Growth Strategies
• Market Penetration
• Market Expansion
• Retail Format
Development
• Diversification
Global Growth
• Sustainable
competitive
advantage
• Adaptability
• Global Culture
• Financial Resources
Strategic Planning Process
Strategic Planning Process
Define Business Mission
• What business are we in?
• What should be our
business in the future?
• Who are our customers?
• What are our capabilities?
• What do we want to
accomplish?
Strategic Planning Process
Conduct Situation Audit
• Market Factors
• Competitive Factors
• Environmental Factors
• Strengths and Weaknesses
Strategic Planning Process
Identify Opportunities
• Market penetration
• Market expansion
• Format development
• Diversification
Strategic Planning Process
Evaluate Opportunities
• Market Attractiveness
• Competitive Position
Strategic Planning Process
Establish Objectives & Allocate Resources
• Performance Sought
• Timeframe
• Level of Investment
Strategic Planning Process
Develop Retail Mix
Customer
Service
Communications
Mix
Store Design
& Display
Location
Retail
Strategy
Merchandise
Assortments
Pricing
Strategic Planning Process
Evaluate Performance
• Are objectives being met?
• What adjustments are
necessary?
• Repeat process…
Review
Chapters 1-5
Retail Management Decision
Process
The World of Retailing
1.Intro
2.Types of Retailers
3. Multichannel Retailing
4. Customer Buying
Behavior
Retailing Strategy
5.Retail Marketing
6. Financial Strategy
7. Retail Locations
8. Site Location
Merchandise Management
1. Planning Merch.
Assortments
2. Buying Systems
3. Buying Merchandise
4. Pricing
5. Retail Communications
9. Org. Structure and HR Mgmt.
10. Info Sys. & Supply Chain Mgmt
11. Customer Relationship Mgmt.
Store Management
1. Managing the Store
2. Store Layout, Design, &
Visual Merchandise
3. Customer Service
What is Retailing?
• Retailing – a set of business
activities that adds value to
the products and services
sold to consumers for their
personal or family use.
• A retailer is a business that
sells products and/or services
to consumers for personal or
family use.
James Darell/Getty Images
The Distribution Channel
Manufacturer
Point of
Production
Wholesaler
Retailer
Point of
Sale (POS)
Consumer
The Distribution Channel:
VERTICAL INTEGRATION
Manufacturer
Backward
Integration
Wholesaler
Retailer
Forward
Integration
Consumer
How Retailers Add Value
•
•
•
•
Provide Assortment
Break Bulk
Hold Inventory
Offer Services
Environmental Factors
MacroEnvironment
Technology
Ethical/Legal
Issues
MicroEnvironment
RETAILER
Competitors
Customers
Environmental Issues
Social Issues
Political &
Economic Issues
Retail Strategy Decision Areas
(Retail Mix)
Customer
Service
Communications
Mix
Store
Design
& Display
Location
Retail
Strategy
Merchandise
Assortments
Pricing
A Critical Decision
Variety
Assortment
Pricing
Services
Types of General
Merchandise Retailers
•
•
•
•
•
•
•
•
Department Stores
Specialty Stores
Category Specialists
Home Improvement Centers
Discount Stores
Drugstores
Off-Price retailers
Extreme Value Retailers
Types of Ownership
• Independent
• Corporate Retail chains
• Franchise
“Tri-Channel” Retailing
Catalog
Internet
Steve Cole/Getty Images
Digital Vision / Getty Images
Physical Store
The McGraw-Hill Companies,
Inc./Andrew Resek, photographer
Store Channel
Browsing
Touching & Feeling Products
Personal Service
Cash Payment
Entertainment and Social
Experience
• Immediate Gratification
• Risk Reduction
•
•
•
•
•
Catalog Channel
• Convenience
• Safety
• Quality of Visual Presentation
Internet Channel
• Broader Selection
• More Information to Evaluate
Merchandise
• Personalization
• Selling Merchandise with
“Touch and Feel” Attributes
• Perceived Risks in Electronic
Shopping
Compare
Store Channel:
•
•
•
•
•
•
•
Browsing
Touching & Feeling Products
Personal Service
Cash Payment
Entertainment and Social
Experience
Immediate Gratification
Risk Reduction
Internet Channel:
•
•
•
•
•
Broader Selection
More Information to
Evaluate Merchandise
Personalization
Selling Merchandise
with “Touch and Feel”
Attributes
Perceived Risks in
Electronic Shopping
Issues in Multi-Channel
• Integrated Shopping
Experience
• Brand Image
• Merchandise Assortment
• Pricing
Stages in the Buying
Process
Multiattribute Model
Information needed to use the
multiattribute model
• Alternative retailers consumers can consider
• Characteristic/Benefits Sought in Making
Store and Merchandise Choices
• Ratings of Alternative Performance on Criteria
• Importance weights that consumers attach to
the merchandise
Search
Connecting needs with
solutions
Language (words) as an expression of
interest and/or unmet need
Getting into the Consideration Set
• Increase Performance
Beliefs of Your Store
• Decrease Performance
Beliefs About
Competitor
• Increase Importance
Weight of Attributes on
which You Have an
Advantage
• Add a New Benefit on
which You Excel
Types of Buying Decisions
• Extended Problem
Solving
• Limited Problem
Solving
• Habitual Decision
Making
Market Segmentation
Geographic
Demographic
Geodemographic
Lifestyle
(Psychographic)
• Buying Situation
• Benefit
•
•
•
•
Composite Segmentation
• Benefit sought
• Lifestyle
• Demographic
Retail Market Strategy
• Target market
• Format of the retailer (Retail Mix)
• Competitive Advantage
Competitive Advantage
• Customer loyalty
• Location
• Human Resources Management
• Distribution and Info. Systems
• Unique Merchandise
• Vendor relations
• Customer Service
Growth Strategies
• Market Penetration
• Market Expansion
• Retail Format
Development
• Diversification
Global Growth
• Sustainable
competitive
advantage
• Adaptability
• Global Culture
• Financial Resources
Strategic Planning Process
TEST #1
February 14
Chapters 1-5