Management of Retail Enterprises

8/3/2019 Management of Retail Enterprises

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Management of

Retail Enterprises


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SESSION - 1

DURATION: 2 HOUR


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INTRODUCTION As a reseller, retailers offer many benefits to suppliers and

customers.

For consumers the most important benefits relate to the ability to

purchase small quantities of a wide assortment of products atprices that are considered reasonably affordable.

For suppliers the most important benefits relate to offeringopportunities to reach their target market, build product demandthrough retail promotions, and provide consumer feedback to theproduct marketer.


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INTRODUCTION TO THE WORLD

OF RETAILING Retailing is a distribution channel function where one organization buys

products from supplying firms or manufactures the product themselves,and then sells these directly to consumers.

A retailer is a reseller from which a consumer purchases products.

In the majority of retail situations, the organization from which aconsumer makes purchases is a reseller of products obtained fromothers and not the product manufacturer.

For instance, in a direct marketing system where a consumer purchasesfrom another consumer (e.g., eBay) the consumer purchase would not beclassified as a retail purchase.


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Concerns of Retailers Retailers are faced with many issues as they attempt to be

successful.

The key issues include:

CustomerSatisfaction Ability to Acquire the Right Products

Product Presentation

Traffic Building

Layout

Location Keeping Pace With Technology


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TYPES OF RETAILERS There are many ways retailers can be categorized depending on the

characteristics being evaluated.

For our purposes we will separate retailers based on six factors directlyrelated to major marketing decisions:

Target markets served Product offerings

Pricing structure

Promotional emphasis

Distribution method

Service level

and one operational factor: Ownership


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Promotional Focus

Advertising future group

Direct Mail dell

Personal Selling eureka forbes

Distribution Method Store-Based Sellers big bazaar

Non-Store Sellers ebay amazon

Service Level

Self-Service mc d

Assorted-Service go air

Full-Service maruti suzuki singapore airlines

Ownership Structure Individually Owned and Operated bata titan

Corporate Chain future group

Corporate Structure walmart

Contractually Licensed and Individually Operated mc d kfc


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Retail Formats Now that we have presented ways in which retailers can be classified, we now use

these categories to distinguish general formats or business models that bestdescribes a retail operation.

Mom-and-Pop local shops

Mass Discounters brand factory Warehouse Stores pantaaloons

Category Killers big bazaar

Department Stores relaince fresh

Boutique manish malhotra

Catalog Retailers asian paints

e-tailers amazon

Franchise Mc d

Convenience Store local chemist

Vending atm machines


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SESSION - 2

DURATION: 2 HOUR


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MULTICHANNEL RETAILING Originally, Web sales were dominated by pure-play retailers

retailers that only sold goods online like Amazon.com andPets.com.

Online sales now closely mirror offline sales: With the exception of

online sellers Amazon.com and eBay, the majority of online salesare closed by the same retailers that dominate offline sales.

Multichannel retailing: Consumers that research online and buyoffline.

As a result of retailers efforts to make consumers comfortableshopping with online stores that also have offline presences,consumers frequently research items online and buy them offline --

we call these consumers cross-channel shoppers.


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CUSTOMER BUYING BEHAVIOR Possibly the most challenging concept in marketing deals with

understanding why buyers do and what they do (or dont do).

Using this information, marketers can create marketing programs thatthey believe will be of interest to customers.

As you might guess, factors affecting how customers make decisions areextremely complex.

Buyer behavior is deeply rooted in psychology with dashes of sociologythrown in just to make things more interesting.

The perspective we take is to touch on just the basic concepts thatappear to be commonly accepted as influencing customer behavior.


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Types of Consumer Purchase

Decisions MinorNew Purchases

Minor Re-Purchases

MajorNew Purchases

Major Re-Purchase

For marketers it is important to understand howconsumers treat the purchase decisions they face.

The implication of buying behavior for marketers is thatdifferent buying situations require different marketingefforts.


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Customers make purchases in order to satisfy needs. Some of theseneeds are basic and must be filled by everyone on the planet (e.g., food,shelter) while others are not required for basic survival and varydepending on the person.

There are many factors that can affect this process as a person worksthrough the purchase decision.

The number of potential influences on consumer behavior is limitless.

The three main categories: Internal, External and Marketing.

For the most part the influences are not mutually exclusive. Instead, theyare all interconnected and work together.


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INTERNAL INFLUENCES

We start the influences on consumer purchase decisions by first looking insideourselves to see which are the most important internal factors that affect and howwe make choices.

Perceptu

al Filter Perception is how we see ourselves and the world we live in. However, what endsup being stored inside us doesnt always get there in a direct manner.

Perception has several steps.

Exposure sensing a stimuli (e.g. seeing an ad)

Attention an effort to recognize the nature of a stimuli (e.g. recognizing it is anad)

Awareness assigning meaning to a stimuli (e.g., humorous ad for particular

product) Retention adding the meaning to ones internal makeup (i.e., product has fun

ads)


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Knowledge

Knowledge is the sum of all information known by a person.

Attitude

In simple terms attitude refers to what a person feels or believes about something.

Personality

An individuals personality relates to perceived personal characteristics that are consistentlyexhibited, especially when one acts in the presence of others.

Marketing Implications:

For marketers it is important to know that consumers make purchase decisions to support theirself concept.

Lifestyle

This influencing factor relates to the way we live through the activities we engage in andinterests we express.

Roles Roles represent the position we feel we hold or others feel we should hold when dealing in a

group environment.

Motivation

Motivation relates to our desire to achieve a certain outcome.


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EXTERNAL INFLUENCES Consumer purchasing decisions are often affected by factors that are outside of their control

but have direct or indirect impact on how we live and what we consume.

Culture

Culture represents the behavior, beliefs and, in many cases, the way we act learned byinteracting or observing other members of society.

Other Group Membership In addition to cultural influences, consumers belong to many other groups with which they

share certain characteristics and which may influence purchase decisions.

Purchase Situation

A purchase decision can be strongly affected by the situation in which people find themselves.

Need/Want/Desire is Recognized

In the first step the consumer has determined that for some reason he/she is not satisfied andwants to improve his/her situation. For instance, internal triggers, such as hunger or thirst,may tell the consumer that food or drink is needed.


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Search forInformation

Assuming consumers are motivated to satisfy his or her need, they willnext undertake a search for information on possible solutions.

Evaluate Options

Consumers search efforts may result in a set of options from which achoice can be made. It should be noted that there may be two levels tothis stage.

Purchase

In many cases the solution chosen by the consumer is the same as theproduct whose evaluation is the highest.

After-Purchase Evaluation

Once the consumer has made the purchase they are faced with anevaluation of the decision.


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SESSION - 3

DURATION: 2 HOUR


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RETAIL MARKET STRATEGY There are two major components to your marketing strategy:

How your enterprise will address the competitive marketplace

How you will implement and support your day to day operations.

In today's very competitive marketplace a strategy that insures aconsistent approach to offering your product or service in a way that willoutsell the competition is critical.

In the process of creating a marketing strategy you must consider manyfactors.

Because each strategy must address some unique considerations, it isnot reasonable to identify 'every' important factor at a generic level.


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A COST LEADERSHIP STRATEGY is based on the concept that you canproduce and market a good quality product or service at a lower cost than yourcompetitors. BIG BAZAAR

A DIFFERENTIATION STRATEGY is one of creating a product or service that isperceived as being unique "throughout the industry". ROLLTOP

A FOCUS STRATEGY may be the most sophisticated of the generic strategies, inthat it is a more 'intense' form of either the cost leadership or differentiationstrategy. WAL-MART

Pricing

Having defined the overall offering objective and selecting the generic strategy youmust then decide on a variety of closely related operational strategies.

There are three basic strategies you can consider.

A SKIMMING STRATEGY SONY A MARKET PENETRATION STRATEGY NOKIA RELAINCE

A COMPARABLE PRICING STRATEGY NIKE REEBOK


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Promotion

To sell an offering you must effectively promote and advertise it. Thereare two basic promotion strategies, PUSH and PULL.

The PUSH STRATEGY maximizes the use of all available channels of

distribution to "push" the offering into the marketplace. The PULL STRATEGY requires direct interface with the end user of the

offering.

There are many strategies for advertising an offering. Some of theseinclude:

Product Comparison advertising PEPSI COKE

Product Benefits advertising REVITAL INSURANCE BANKING

Product Family advertising BABY PRODUCTS

Corporate advertising SUN BIRLA LIFE


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Distribution On-premise Sales involves the sale of your offering using a field sales

organization that visits the prospect's facilities to make the sale. EUREKAFORBES

Direct Sales involves the sale of your offering using a direct, in-house

sales organization that does all selling through the Internet, telephone ormail order contact. DELL

Wholesale Sales involves the sale of your offering using intermediaries or"middle-men" to distribute your product or service to the retailers.METRO

Self-service Retail Sales involves the sale of your offering using selfservice retail methods of distribution.

Full-service Retail Sales involves the sale of your offering through a fullservice retail distribution channel.


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The Environment

Environmental factors positively or negatively impact the industry and the marketgrowth potential of your product/service.

The Product/Service

You should be thoroughly familiar with the factors that establish products/servicesas strong contenders in the marketplace.

The Competition

It is essential to know who the competition is and to understand their strengthsand weaknesses.

Development

A review of the strength and viability of the product/service development programwill heavily influence the direction of your strategy.

CustomerServices The strength of the customer service function has a strong influence on long term

market success.


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FINANCIAL STRATEGYThe Prospect

It is essential to understand the market segment(s) as defined by the prospectcharacteristics you have selected as the target for your offering.

Your Enterprise

An honest appraisal of the strength of your enterprise is a critical factor in thedevelopment of your strategy.

Production

You should review your enterprise's production organization with respect to theirability to cost effectively produce products/services.

Marketing/Sales

The marketing and sales organization is analyzed for its strengths and currentactivities.

Cost to Enter Market This is an analysis of the factors that will influence your costs to achieve significant

market penetration.

Profit Potential

This is an analysis of the factors that could influence the potential for generatingand maintaining profits over an extended period.


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Retail Locations and Site Selection

Commercial retail locations are available in many different forms. Stop and thinkabout the businesses in your town.

Retailers have many store location factors to consider when choosing a place fortheir business. Here are a few of the more common types of retail locations.

Mall Space

From kiosks to large anchor stores, a mall has many retailers competing with eachother less than one roof.

Before selecting this type of store location, be sure the shopper demographicmatches the description of your customers. Mall retailers will have to make somesacrifices in independence and adhere to a set of rules supplied by mallmanagement.

Shopping Center Strip malls and other attached, adjoining retail locations will also have guidelines

or rules for how they prefer their tenants to do business.


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Downtown Area

Like the mall, this type of store location may be another premium choice.However, there may be more freedom and fewer rules for the businessowner.

Free Standing Locations This type of retail location is basically any stand-alone building. It can be

tucked away in a neighborhood location or right off a busy highway.

Office Building

The business park or office building may be another option for a retailer,especially when they cater to other businesses. Tenants sharemaintenance costs and the image of the building is usually upscale and

professional.


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SESSION - 4

DURATION: 2 HOUR


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INTRODUCTION

In their infancy, business computers were used for the

practical business of computing the payroll and

keeping track of accounts payable and receivable.

As applications were developed that provided

managers with information about sales, inventories,

and other data that would help in managing the

enterprise, the term "MIS" arose to describe these

kinds of applications.


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RETAIL INTRODUCTION Retailing consists of the sale of goods or merchandise from a fixed location, such

as a department store or kiosk, or by post, in small or individual lots for direct

consumption by the purchaser.

Retailing may include subordinated services, such as delivery.

Retailers are at the end of the supply chain. Manufacturing marketers see the

process of retailing as a necessary part of their overall distribution strategy.

Shops may be on residential streets, shopping streets with few or no houses, or in

a shopping center or mall, but are mostly found in the central business district.

Online retailing, also known as e-commerce is the latest form of non-shop

retailing.

Recreational shopping often involves window shopping and browsing and does notalways result in a purchase.

Retail industry has brought in phenomenal changes in the whole process of

production, distribution and consumption of consumer goods all over the world.


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HUMAN RESOURCE

MANAGEMENT Human resource management (HRM) is the strategic and coherent approach to

the management of an organization's most valued assets - the people workingthere who individually and collectively contribute to the achievement of theobjectives of the business.

The terms "human resource management" and "human resources" (HR) have

largely replaced the term "personnel management" as a description of theprocesses involved in managing people in organizations.

Features

Its features include:

Personnel administration

Personnel management

Manpower management

Industrial management


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Business practice Human resources management comprises several processes. Together they are supposed to

achieve the above mentioned goal.

Workforce planning

Recruitment (sometimes separated into attraction and selection)

Induction and Orientation

Skills management Training and development

Personnel administration

Compensation in wage or salary

Time management

Travel management (sometimes assigned to accounting rather than HRM)

Payroll (sometimes assigned to accounting rather than HRM)

Employee benefits administration

Personnel cost planning Performance appraisal


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SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the process of planning,

implementing, and controlling the operations of the supply chain asefficiently as possible.

Supply Chain Management spans all movement and storage of raw

materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.

In essence, Supply Chain Management integrates supply and demandmanagement within and across companies.

Supply Chain Management can also refer to Supply chain managementsoftware which is tools or modules used in executing supply chaintransactions, managing supplier relationships and controlling associated

business processes.


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Supply Chain Management Problems Distribution Network Configuration

Distribution Strategy

Information Inventory Management

Cash-Flow

Supply chain execution is managing and coordinatingthe movement of materials, information and funds

across the supply chain. The flow is bi-directional.


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Tactical Sourcing contracts and other purchasing decisions.

Production decisions, including contracting, locations, scheduling,and planning process definition.

Inventory decisions, including quantity, location, and quality ofinventory.

Transportation strategy, including frequency, routes, andcontracting.

Benchmarking of all operations against competitors andimplementation of best practices throughout the enterprise.

Milestone payments


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Operational Daily production and distribution planning, including all nodes in the supply chain.

Production scheduling for each manufacturing facility in the supply chain (minute by minute).

Demand planning and forecasting, coordinating the demand forecast of all customers andsharing the forecast with all suppliers.

Sourcing planning, including current inventory and forecast demand, in collaboration with all

suppliers. Inbound operations, including transportation from suppliers and receiving inventory.

Production operations, including the consumption of materials and flow of finished goods.

Outbound operations, including all fulfillment activities and transportation to customers.

Order promising, accounting for all constraints in the supply chain, including all suppliers,manufacturing facilities, distribution centers, and other customers.


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Components of Supply Chain Management

IntegrationThe management components ofSCM

The SCM components are the third element of the four-square circulationframework. The level of integration and management of a business process link isa function of the number and level, ranging from low to high, of components addedto the link.

Management information system: Management information Systems (MIS), sometimes referred to as Information

Management and Systems, are the discipline covering the application of people,technologies, and procedures collectively called information systems tosolving business problems.

Definition

'MIS' is a planned system of collecting, storing and disseminating data in the formof information needed to carry out the functions of management.

The terms MIS and information system are often confused. Information systemsinclude systems that are not intended for decision making. MIS is sometimesreferred to, in a restrictive sense, as information technology management.


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CUSTOMER RELATIONSHIP

MANAGEMENT Customer relationship management (CRM) is a customer-centric business

strategy with the goal of maximizing profitability, revenue, and customersatisfaction.

Functions that support this business purpose include sales, marketing, customerservice, training, professional development, performance management, human

resource development, and compensation. The different players within the organization are in identifiable groups:

Customer Facing Operations

Internal Collaborative Functional Operations

External Collaboration functions

Customer Advocates and Experience Designers

Performance Managers and Marketing Analysts

Customer and Employee Surveyors and Analysts


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Technology considerations

The technology requirements of a CRM strategy must be guided by an overall view of who thecustomer is and what value they are to get from engaging with the organization.

The basic building blocks:

A database for customer lifecycle (time series) information about each customer and prospect

and their interactions with the organization, including order information, support information,requests, complaints, interviews and survey responses.

Customer Intelligence - Translating customer needs and profitability projection into game plansfor different segments or groups of customers, captured by customer interactions (Human,automated or combinations of both) into software that tracks whether that game plan isfollowed or not,and whether the desired outcomes are obtained.

Business Modeling - Customer Relationship Strategy, Goals and outcomes: Numbers anddescription of whether goals were met and models of customer segments and game plansworked as hypothesized.


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Learning and Competency Management Systems - Customer Capacityand Competency Development - Training and improving processes andtechnology that enable the organization to get closer to achieving thedesired results.

Analytics and qu

ality monitoring - Voice recognition, video patternmatching, statistical analysis, activity-based costing to ultimatelydetermine profitability of customer relationship policies and activities overthe lifecycle of each group of customers sharing a defined set ofcharacteristics.

Collaboration and Social networks - Profiling and interactive technologythat allows the customers to interact with the business and their fellowcustomers and others: prospective customers, strategic partners.


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Operational CRM

Operational CRM provides support to "front office" business processes,including sales, marketing and service.

Each interaction with a customer is generally added to a customer's

contact history, and staff can retrieve information on customers from thedatabase when necessary.

Operational CRM processes customer data for a variety of purposes:

Managing Campaigns

Enterprise Marketing Automation

Sales Force Automation


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Analytical CRM Design and execution of targeted marketing campaigns to optimize

marketing effectiveness

Design and execution of specific customer campaigns, includingcustomer acquisition, cross-selling, up-selling, retention

Analysis of customer behavior to aid product and service decision making(e.g. pricing, new product development etc.)

Management decisions, e.g. financial forecasting and customerprofitability analysis

Prediction of the probability of customer defection (churn analysis)

Analytical CRM generally makes heavy use of data mining.


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Collaborative CRM

The function of the Customer Interaction System or CollaborativeCustomer Relationship Management is to coordinate the multi-channelservice and support given to the customer by providing the infrastructure

for responsive and effective support to customer issues, questions,complaints, etc.

Strategy

Several commercial CRM software packages are available which vary intheir approach to CRM.

Privacy and data security

One of the primary functions of CRM software is to collect information

about customers.


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SESSION - 5

DURATION: 2 HOUR


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PLANNING MERCHANDISE

ASSORTMENTS "Merchandise Collaborative assortment planning is designed to help

retailers and manufacturers to figure out in advance what assortment willmake it to which stores and when,".

Predicting assortments is no easy task because it's based on less-than-

predictable consumer behavior, which is easily influenced by everythingfrom pop culture and celebrities to economics and global, national andregional style trends.

But by providing a platform for sharing, manipulating and monitoringinformation, users are able to minimize the negative effects ofunpredictability.

Buying: customers make purchases in order to satisfy needs and someof these needs are basic and must be filled by everyone on the planet(e.g., food, shelter) while others are not required for basic survival andvary depending on the person.


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MERCHANDISE PRICING Pricing is one of the four p's of the marketing mix. The

other three aspects are product, promotion, and place.

Pricing is the manual or automatic process of applying

prices to purchase and sales orders, based on factorssuch as: a fixed amount, quantity break, promotion orsales campaign, specific vendor quote, price prevailingon entry, shipment or invoice date, combination ofmultiple orders or lines, and many others.


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What a price should do achieve the financial goals of the firm (eg.: profitability)

fit the realities of the marketplace (will customers buy at that price?)

support a product's positioning and be consistent with the other variablesin the marketing mix

price is influenced by the type of distribution channel used, the type ofpromotions used, and the quality of the product

price will usually need to be relatively high if manufacturing is expensive,distribution is exclusive, and the product is supported by extensiveadvertising and promotional campaigns

a low price can be a viable substitute for product quality, effectivepromotions, or an energetic selling effort by distributors


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The effective price is the price the company receives after accounting fordiscounts, promotions, and other incentives.

Price lining is the use of a limited number of prices for all your product offerings.

A loss leaderis a product that has a price set below the operating margin.

Promotional pricing refers to an instance where pricing is the key element of themarketing mix.

The price/quality relationship refers to the perception by most consumers that arelatively high price is a sign of good quality.

Premium pricing (also called prestige pricing) is the strategy of consistentlypricing at, or near, the high end of the possible price range to help attract status-conscious consumers.

Demand-based pricing is any pricing method that uses consumer demand -

based on perceived value - as the central element.


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Market-Adaptive Pricing The standard way to measure price elasticity for a product is by testing a different

price and then measuring its impact. However, in practice, this can be difficult todo for a number of reasons, including

the reluctance by many pricers to change prices even for testing purposes, and(COST RELUCTANCE EVEN FOR TEST FOR EX. TATA NANO)

1. the intervening influence of other non-price factors which can cloud test results,and so on. (PLAY WITH NON PRICE FACTORS - SUNSILK)

2. Therefore a more practical alternative was developed for pricing service parts.(SERCVICES IS HIGH BUT PRODUCT IS SAME YAMAHA SERVICECENTRE)

When the market for a product is more price sensitive, there is a tendency forcompeting prices to be closer together; and when the market for a product is lessprice sensitive the reverse is true -- competing prices tend to vary more. (LOWPRICE, NO COST CHANGE VOLVO BUS)

(HUGE NEED BUT NO PRICE CHANGE GAS CYLINDERS, CIGGERATES)


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Seven Ps

As well as the standard four P's (Product, Pricing, Promotion and Place), servicesmarketing calls upon an extra three, totaling seven and known together as theextended marketing mix. These are:

People: Any person coming into contact with customers can have an impact onoverall satisfaction.

Process: This is the process(es) involved in providing a service and the behaviorof people, which can be crucial to customer satisfaction.

Physical evidence: Unlike a product, a service cannot be experienced before it isdelivered, which makes it intangible.

FourNew P's

Personalization: It is here referred customization of products and servicesthrough the use of the Internet.

Participation: This is to allow customer to participate in what the brand shouldstand for.

Peer-to-Peer: This refers to customer networks and communities where advocacyhappens.

Predictive modeling: This refers to algorithms that are being successfully appliedin marketing problems.


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SESSION 6

DURATION: 2 HOUR


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MANAGING THE STORE Store Image is the overall perception the consumer has of the stores environment.

Objectives of the Store Environment

Tasks to create desired store image and increase productivity: (brand factory)

Get customers into the store (market image).

Convert them into customers buying merchandise once inside the store (space productivity).

Do this in the most efficient manner possible.Store Planning

Allocating Space (hypercity)

Circulation

Shrinkage Prevention

Store Planning

Floor plan is a schematic that shows where merchandise and customer service departmentsare located, how customers circulate through the store, and how much space is dedicated to

each department.


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Elements That Compose the Store

Environment


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Advantages and Disadvantages of Free Flow

Layout

Advantages

Allowance for browsing and wandering freely

Increased impulse purchases

Visual appeal Flexibility

Disadvantages

Loitering encouraged

Possible confusion

Waste of floor space

Cost Difficulty of cleaning


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Advantages and Disadvantages of Grid Layouts

Advantages

Low cost

Customer familiarity

Merchandise exposure

Ease of cleaning Simplified security

Possibility of self-service

Disadvantages

Plain and uninteresting

Limited browsing

Stimulation of rushed shopping behavior Limited creativity in decor


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Store Design

1. Storefront Design

2. Interior Design

3. Lighting Design

4. Sounds and Smells: Total Sensory Marketing

Interior Design: The low cost, no frills flooring combined with the low cost metal shelving help to convey the

low price image in this discount retail display for Barbie.

Signs and Lighting

Lighting Design

Visual Communications

Name, Logo and Retail Identity

Category Signage

Point-of-Sale (POS) Signage Space Productivity


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Customer Service

Customer service is an organization's ability to supply their customers'wants and needs.

Good customer service is the lifeblood of any business.

If you truly want to have good customer service, all you have to do is

ensure that your business consistently does these things:1. Answer your phone.

2. Dont make promises unless you WILL keep them.

3. Listen to your customers.

4. Deal with complaints.

5. Be helpful - even if theres no immediate profit in it.

6. Train you

r staff (if you

have any) to be ALWAYS helpfu

l, cou

rteou

s,and knowledgeable.

7. Take the extra step.

8. Throw in something extra.


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INTRODUCTION Retail is Indias largest industry, accounting for over 10

percent of the countrys GDP and around eight percentof employment.

Retail in India is at the crossroads. It has emerged asone of the most dynamic and fast paced industries withseveral players entering the market.

However, the future is promising; the market isgrowing, government policies are becoming morefavorable and emerging technologies are facilitatingoperations.


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AN OVERVIEW OF RETAILING Emerging markets such as India and China are the final frontier for retail

taking the focus away from saturated Western markets.

Retailers of multiple brands can operate through a franchise or a cash-and-carry wholesale model.

Retailing in India is gradually inching its way to becoming the next boomindustry. The whole concept of shopping has altered in terms of formatand consumer buying behavior, ushering in a revolution in shopping.

Modern retail has entered India as seen in sprawling shopping centers,multi-storied malls and huge complexes offer shopping, entertainmentand food all under one roof.

The Indian retailing sector is at an inflexion point where the growth of

organized retail and growth in the consumption by Indians is going toadopt a higher growth trajectory.


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DEVELOPMENT AND GROWTH OF

RETAILING Retailing is one of the pillars of the economy in India and accounts for 35% of GDP. The retail

industry is divided into organized and unorganized sectors.

Growth

An increasing number of people in India are turning to the services sector for employment dueto the relative low compensation offered by the traditional agriculture and manufacturingsectors.

The Indian Retail Market Indian market has high complexities in terms of a wide geographic spread and distinct

consumer preferences varying by each region necessitating a need for localization even withinthe geographic zones.

MajorIndian Retailers

Indian apparel retailers are increasing their brand presence overseas, particularly in developedmarkets.

Entry of MNCs

The world's largest retailer by sales, Wal-Mart Stores Inc and Sunil Mittals Bharti Enterpriseshas entered into a joint venture agreement and they are planning to open 10 to 15 cash-and-carry facilities over seven years.


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Challenges Automatic approval is not allowed for foreign investment in retail.

Regulations restricting real estate purchases, and cumbersomelocal laws.

Taxation, which favors small retail businesses.

Absence of developed supply chain and integrated ITmanagement.

Lack of trained work force.

Low skill level for retailing management.

Intrinsic complexity of retailing rapid price changes, constantthreat of product obsolescence and low margins.


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Factors influencing Retailing There is a lot happening in terms of organized retailing. Almost 300 shopping

malls are expected to come up in various parts of the country within the next fiveyears. A lot of organized shopping area is being created. And the organized retailchains are expanding.

And there is an ancillary sector that is emerging to support the retail boom.

The right location, trained manpower, software assistance, product with a distinctdifferentiation, a strong value proposition, efficient supply chain management -these are the factors that influence the success of a retail outlet.

Saturation is definitely being felt in the big cities, which is why a lot of retail chainsare looking at the B-cities like Pune, Nagpur, etc for opening up stores.

Secondly, the B-cities did not have such organized shopping areas even as thedemand and the capacity to satisfy this demand existed.

There are 2-3 channels for expanding shares for a brand.


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RETAILERS CUSTOMERS AND

CONSUMERS Consumers' cooperative is a cooperative business owned by its customers for

their mutual benefit. It is a form of free enterprise that is oriented toward servicerather than pecuniary profit.

In some countries, they are also known as retail co-operatives or retail co-ops,though they are not to be confused with retailers' cooperatives, whose members

are retailers rather than consumers. There are many types of consumers' cooperative. There are health care,insurance, and housing cooperatives as well as credit unions, agricultural andutility cooperatives.

Large consumers' co-ops are run much like any other business and requireworkers, managers, clerks, products, and customers to keep the doors open andthe business running.

The difference is that where a for-profit enterprise will treat the difference between

cost (including labor, etc.) and selling price as financial gain, the consumer ownedenterprise returns this sum to the consumer/owner as an over-payment.


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Governance

Consumers' cooperatives utilize the cooperative principle of Democraticmember control, or one member/one vote.

Role of government

While some claim that surplus payment returns to consumer/ownerpatrons should be taxed the same as dividends paid to corporate stockholders, others argue that consumer cooperatives do not return a profitby traditional definition, and similar tax standards do not apply.

Problems of consumers' cooperation

Since consumers' cooperatives are run democratically, they are subjectto the same problems typical of democratic government.


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Top 10 Tips to Really Understand the

Customer1. Don't assume

2. Go back to basics

3. Invest in CRM as a strategy rather than just a technology

4. Talk to customers and peers about their experiences

5. Embrace changebut not for its own sake6. Select the right technology to support your strategy

7. Put yourself in the customer's shoes

8. Outsource if necessary

9. Align with the customer

10. Go for the competition


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SESSION - 8

DURATION: 2 HOUR


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ELECTRONIC RETAILING Electronic home shopping is, without a doubt, one of the most

sensational developments to hit the retailing world since the advent ofmail order shopping in the nineteenth century.

The Electronic Retailing Market ex-plores, in depth, every aspect of thisdynamic new retailing segment, from its history and evolution, to thefactors and trends that have contributed to its phenomenal growth ofrecent years, to its prospects for future growth.

The Electronic Retailing Market is an indispensable tool for retailers,vendors, suppliers, and providers who would like to profit from thisexciting new medium.


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Tips for Choosing a LocationPopulation and YourCustomer

If you are choosing a city or state to locate your retail store, research the area thoroughlybefore making a final decision. Read local papers and speak to other small businesses in thearea.

Accessibility, Visibility and Traffic

Don't confuse a lot of traffic for a lot of customers. Retailers want to be located where there aremany shoppers but only if that shopper meets the definition of their target market. Small retailstores may benefit from the traffic of nearby larger stores.

Signage, Zoning and Planning

Before signing a lease, be sure you understand all the rules, policies and procedures related toyour retail store location.

Competition and Neighbors

Other area businesses in your prospective location can actually help or hurt your retail shop.

Personal Factors

If you plan to work in your store, think about your personality, the distance from the shop tohome and other personal considerations.


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Special Considerations Will the store require special lighting, fixtures or other hardware

installed?

Are restrooms for staff and customers available?

Is there adequate fire and police protection for the area?

Is there sanitation service available? Does the parking lot and building exterior have adequate lighting?

Does the building have a canopy that provides shelter if raining?

What is the crime rate in the area?

Are there restrictions on Sunday sales?


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Store Image

Retail store image has been shown to play an important role instore patronage, and it is widely accepted that psychologicalfactors have a significant role in store image formation.

A surprisingly simple way to increase sales is to continuebranding your retail business at the point of sale.

A primary goal of every retailer should be to brand their companyname.

This is a highly effective marketing method that all retailers shouldconsider.


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MERCHANDISING Merchandising refers to the methods, practices and operations conducted to promote and sustain certain

categories of commercial activity.Licensing

In marketing, one definition of merchandising is the practice in which the brand or image from one product orservice is used to sell another.

Children

Merchandising for children is most prominently seen in connection with films, usually that in current releaseand with television shows oriented towards children.

Adults

The most common adult-oriented merchandising is that related to professional sports teams (and theirplayers). A smaller niche in merchandising is the marketing of more adult-oriented products in connection withsimilarly adult-oriented films and TV shows.

Promotional merchandising

Merchandising, as commonly used in marketing, means maximizing merchandise sales using productselection, product design, product packaging, product pricing, and product display that stimulates consumersto spend more.

Trading industry

In Eastern Europe, particularly in Russia, the term merchandising is commonly used within the tradingindustry and denotes all marketing and sales stimulation activities around PoS (point of sale): design, creation,promotion, care and training of the sales staff.


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MERCHANDISE PLANNING The first element in the merchandise plan is the Strategic Plan. This is

normally high level, with perhaps a five year timescale.

Once complete we would create a Category Level Margin Plan. Here weare creating a weekly version of the strategic plan at category level forsales, margins and markdowns.

Merchandise Planning then is "A systematic approach. It is aimed atmaximizing return on investment, through planning sales and inventory inorder to increase profitability. It does this by maximizing sales potentialand minimizing losses from mark - downs and stock - outs."

Merchandise planning is a strategic process. As such we need to createsystems that lead us seamlessly and in an integrated way from top levelstrategy to tactical action.


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Pricing: Pricing is one of the four p's of the marketingmix. The other three aspects are product, promotion,and place.

Demand-based pricing is any pricing method thatuses consumer demand - based on perceived value -as the central element.

Handling Merchandise

The merchandise purchasing process involvesnegotiating with the sources of supply.


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SESSION - 9

DURATION: 2 HOUR


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INTRODUCTION The attractive growth potential of the Indian

retail credit industry has over the past decade

or so, attracted the interest of global financialinstitutions.

This has led to significant investments in

product design, distribution networks and sales

teams.


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MERCHANDISE CONTROL Process of collecting and evaluating data on all aspects of each retail merchandise

category, including sales, costs, shrinkage, profits, and turnover. Control isachieved through the maintenance of an inventory book where all data areevaluated.

The determination and direction of merchandising activities, both in terms of

dollars (dollar control) and in terms of units (unit merchandise control).Dollar Merchandise Control

Open-to-buy (OTB) refers to the dollar amount that a buyer can currently spend onmerchandise without exceeding the planned dollar stock. Computations for OTBare as follows:

Planned sales for month + Planned reductions for month + End-of-Month (EOM)planned retail stock Beginning-of-Month (BOM) stock = Planned purchases atretail

Planned purchases at retail Commitments at retail for current delivery = Open-to-Buy (OTB)


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Common Buying Errors Buying merchandise that is either priced too high or too low for the

stores target market.

Buying the wrong type of merchandise (i.e., too many tops and no skirts)or buying merchandise that is too trendy.

Having too much or too little basic stock on hand.

Buying from too many vendors.

Failing to identify the seasons hot items early enough in the season.

Failing to let the vendor assist the buyer by adding new items and/or newcolors to the mix. (All too often, the original order is merely repeated,resulting in a limited selection.)


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ACCOUNTING AND INVENTORY

CONTROL The inventory control problem is a type of problem encountered within

the field of optimal control.

Concepts

One issue is infrequent large orders vs. frequent small orders.Calculating shipping costs, volume discounts, storage costs, and capitalcosts, this can be figured with mathematical precision.

A second issue is having the needed merchandise on hand in order tomake sales during the appropriate buying season(s).

And a third issue comes from the whole philosophy of Just In Time, whichargues that the costs of carrying inventory have typically been under-estimated.


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Equations


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Best of Both Worlds

And this is of course what is recommended, that an enterprise useboth the judgment and experience of the business person and themost relevant equations and data.

Retail credit

Credit granted by a firm to consumers for the purchase of goodsor services.

ConsumerCredit

A debt that someone incurs for the purpose of purchasing a good

or service.


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RETAIL PROMOTION Any communication by a retailer that informs, persuades, and/or reminds

the target market about any aspect of that firm.

Retail promotions are designed to promote the goods and servicesoffered in the business district and to directly generate retail sales.

Retail promotions should be used as part of a broader promotionalstrategy, which also can include special events and image-buildingpromotions.

Retail events can promote general services (e.g. invited hours for regularcustomers), convenience and special attractions, rather than usingreduced prices to draw shoppers.

Cooperative promotion activities focus attention on a cluster of stores inthe same category that can be promoted together.


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Retail Selling

Retail selling can save your bottom line. In fact, the profits made from retail can beastronomical if you approach the opportunity in the right way.

The common commission structure is a 50/50 split of the gross service sales with a 12% orlower commission on retail sales.

No matter what method of retailing you try its important to remember that the spa industry

didnt invent the concept of selling.Display

An assortment of retail displays is available in many different styles and colors. The vastselection of retail displays allows you to easily remodel your store or shop to make a stunningretail environment.

Retail Display Assistant

Also known as: Display Assistant, Retail Visual Merchandiser, Retail Window Dresser, Retail

Retail display assistants design and create displays for the windows and departments of retailoutlets.


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Work Activities

Display employees are hired by display contracting firms, by industrial concerns, and by wholesale and retailtraders. They may be engaged with independent display firms in arranging exhibits for national or internationaltrade fairs or in organizing advertising projects to popularize new products.

Personal Qualities and Skills

As a retail display assistant, you need the following skills and qualities:

Creativity and imagination

An ability to visualize your ideas both on paper and in three-dimensional form Willingness to change some of your ideas to suit the house style / image of your employer or client Self-motivation, initiative, and an ability to work alone Knowledge of typography and production techniques Physical fitness and stamina (building a display can be hard physical work) An understanding of health and safety measures (working in confined spaces or with power tools can be

dangerous) Business skills (if you are working on a freelance basis) An ability to use computer-aided design


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SESSION - 10

DURATION: 2 HOUR


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ADVERTISING Retail advertising is advertising used by a retailer to reach customers

within its geographic trading area.

Advertising is a form of communication whose purpose is to informpotential customers about products and services and how to obtain anduse them. Many advertisements are also designed to generate increased

consumption of those products and services through the creation andreinforcement of brand image and brand loyalty.

Advertisements can also be seen on the seats of grocery carts, on thewalls of an airport walkway, on the sides of buses, heard in telephonehold messages and in-store public address systems.

While advertising can be seen as necessary for economic growth, it is notwithout social costs.


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Mobile Billboard Advertising

Mobile Billboards are flat-panel campaign units in which their sole purpose is tocarry advertisements along dedicated routes selected by clients prior to the start ofa campaign.

Public service advertising

The same advertising techniques used to promote commercial goods and servicescan be used to inform, educate and motivate the public about non-commercialissues, such as AIDS, political ideology, energy conservation, religiousrecruitment, and deforestation.

Types of advertising

Media

Covert advertising

Television commercials

Newer media and advertising approaches

Measuring the impact of mass advertising


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Negative effects of advertising An extensively documented effect is the control and vetoing of free information by

the advertisers.

The bigger the companies are, the bigger their relation becomes, maximizingcontrol over a single piece of information.

Advertisers may try to minimize information about or from consumer groups,

consumer-controlled purchasing initiatives (as joint purchase systems), orconsumer-controlled quality information systems.

Another indirect effect of advertising is to modify the nature of the communicationmedia where it is shown.

Programs that are low in mental stimulus, require light concentration and arevaried are best for long sitting times.

A simple way to understand objectives in television programming is to comparethe content of programs paid for and chosen by the viewer with those on channels

that get their income mainly from advertisements.


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FutureGlobal advertising

Advertising has gone through five major stages of development:domestic, export, international, multi-national, and global.

Trends

With the dawn of the Internet came many new advertising opportunities.Popup, Flash, banner, advergaming, and email advertisements (the lastoften being a form of spam) are now commonplace.

Promotion and Advertising

Many people when they hear the word marketing instantly assume it isthe same thing as advertising.

In reality, marketing is a much broader concept that includes as one of its

parts methods of communication and promotion of products andservices.


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Area Coverage: for those not familiar with advertising resources are provided for understanding the

basics of advertising as well as advice for designing advertisements and forcreating and managing an advertising campaign

the hot issue of internet advertising is covered with links to understanding what itis about and how to do it successfully

find out the basics of public relations and some advice for doing it correctly locate a PR professional through directories and searchable databases

for companies exploring direct marketing methods, resources are provided thatexplain the basics of direct marketing, help in locating mailing lists and othercontact lists

understand techniques that can be used to build strong word-of-mouth or referral(or pass along) campaigns for finding new customers


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Sales Promotion and Public Relations

Sales promotion is one of the five aspects of promotional mix. (The otherfour parts of the promotional mix are advertising, personal selling, directmarketing and publicity/public relations.)

Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate marketdemand or improve product availability.

Examples include:

Contests

point of purchase displays

rebates

free travel, such as free flights


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Consumer sales promotion

techniques Price deal: A temporary reduction in the price, such as happy hour

Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famousexamples are Pepsi Stuff and AAdvantage.

Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package.

Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25percent extra).

Coupons: coupons have become a standard mechanism for sales promotions.

Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitablesales

Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased.

On-linecouponing: Coupons are available on line. Consumers print them out and take them to the store. Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for

redemption.

Online interactive promotion game: Consumers play an interactive game associated with the promoted product. Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer.

Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product.

Point-of-sale displays


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Trade sales promotion techniques Trade allowances: short term incentive offered to induce a retailer to

stock up on a product.

Dealer loader: An incentive given to induce a retailer to purchase anddisplay a product.

Trade contest: A contest to reward retailers that sell the most products.

Point-of-purchase displays: Extra sales tools given to retailers to boostsales.

Training programs: dealer employees are trained in selling the product.

Push money: also known as "spiffs". An extra commission paid to retailemployees to push products.


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Political issues

Sales promotions have traditionally been heavilyregulated in many advanced industrial nations, with thenotable exception.

Objectives ofSales Promotion

Building Product Awareness

Creating Interest

Providing Information

Stimulating Demand Reinforcing the Brand


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Types of Sales Promotion Consumer Market Directed - Possibly the most well-known

methods of sales promotion are those intended to appeal to thefinal consumer.

Trade Market Directed Marketers use sales promotions to

target all customers including partners within their channel ofdistribution.

Business-to-Business Market Directed A small, butimportant, sub-set of sales promotions are targeted to thebusiness-to-business market.


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PUBLIC RELATIONS Public relations (PR) are the practice of managing the flow of information

between an organization and its publics.

Common activities include speaking at conferences, winning industryawards, working with the press and employee communications.

Lobby groups are established to influence government policy, corporatepolicy, or public opinion. These groups claim to represent a particularinterest.

Spin

In public relations, spin is sometimes a pejorative term signifying aheavily biased portrayal in one's own favor of an event or situation.


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RETAIL STRATEGY AND CURRENT

ISSUES Retail Strategy: The overall plan guiding a retail firm, It has an influence on the firm's business

activities and its response to market forces, such as competition and the economy.

The retail market is complex and peculiar. India is an extremely cost sensitive market.

Current issue

We are currently entering an interesting phase in physical retailing, one which will challengeretailers and brands as they seek to satisfy the ever increasing tangible and intangible needs

of a consumer who is increasingly hungry for reward and social participation.A desire to participate

The internet has helped consumers become involved in an increasingly wider dialogue withbrands and retailers.

A sense of belonging

Retailers and brands must take customers beyond just transaction and create new reasons tovisit stores.

Orchestration and curation

The physical store has to become a place of relevance, destination and reward - bothemotionally and tangibly.


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Sustainability / Environmental issues

For retail design the subject of sustainability is a broad but very pressingone, and it not only affects the store itself but, ultimately, the very locationit sits within.

Business Ethics in Retailing

Ethics in retailing pose certain critical issues. Retailers may use certainethical standards that guide decision making when confrontingquestionable situations that may not be covered by law.

The Rationale for the Current Study

Retailing is an emerging sector in the Indian economy and ethics inretailing has posed certain issues that require examinations.


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Design of the Study

The aim of this paper is to investigate the ethical practices of retailers and theethical beliefs of retail sales force.

Major Findings

Ethical sales abound in business and as stated earlier retail salespeople

encounter situations that could be ethically troublesome.Customer: Customer related situations encompass those situations that entail

involvement with customers and have direct impact upon customers.

Peer: Peer related situations involve interactions with salespeoples non-work peers(friends and relatives) and fellow employees.

Work: Work related situations entail circumstances that may be precipitated bycompany operating procedures, practices or directives or are fostered by the workenvironment.


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INTRODUCTION The meaning of electronic commerce has changed

over the last 30 years.

Originally, electronic commerce meant the facilitationof commercial transactions electronically, usingtechnology such as Electronic Data Interchange (EDI)and Electronic Funds Transfer (EFT).

The growth and acceptance of credit cards, automatedteller machines (ATM) and telephone banking in the1980s were also forms of electronic commerce.


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RETAIL CONSUMER SEGMENTS An increasing number of people in India are turning to the services sector

for employment due to the relative low compensation offered by thetraditional agriculture and manufacturing sectors.

The Retail Business in India is currently at the point of inflection.

MajorIndian Retailers

Indian apparel retailers are increasing their brand presence overseas,particularly in developed markets. While most have identified a gap incountries in West Asia and Africa, some majors are also looking at theUS and Europe. Arvind Brands, Madura Garments, Spykar Lifestyle andRoyal Classic Polo are busy chalking out foreign expansion plansthrough the distribution route and standalone stores as well.


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CUSTOMER SATISFACTION Customer satisfaction, a business term, is a measure of how products and

services supplied by a company meet or surpass customer expectation.

In a competitive marketplace where businesses compete for customers, customersatisfaction is seen as a key differentiator and increasingly has become a keyelement of business strategy.

Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers whiletargeting non-customers; measuring customer satisfaction provides an indicationof how successful the organization is at providing products and/or services to themarketplace.

Customer satisfaction is an ambiguous and abstract concept and the actualmanifestation of the state of satisfaction will vary from person to person andproduct number of both psychological and physical variables which correlates withsatisfaction behaviors such as return and recommend rate.


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Information Gathering Every salesperson and marketer understands the meaning of these

words: "Know your customer."

Accurate information is the key to knowing your customer. It is obtainedfrom feedback from employees, field research and third-party research.

Senior management needs to be aware that some employees may fear

reprisals if they transmit customer criticism that may put certainmanagers, whose areas of responsibility are the target of customercomplaints, in a poor light.

Third-party research is another way to find out what customers want.Surveys, interviews, or other samplings of customers or potentialcustomers can be revealing.


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MERCHANDISE PLANNING AND

PURCHASING Merchandise planning is the science of forecasting sales and

managing inventories balanced with the art of identifying themerchandise your customers need.

Merchandise and Assortment Planning provides metrics on every

level of the hierarchy, helping decision makers find the idealbalance between the two extremes.

Merchandise Analytics

Sales & Margin Planning

Inventory Planning

Open-to-Buy Planning

Long-Term Forecasting


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Merchandise PurchasingBranding Strategies

Manufacturer' brands

Private-label brands

Reasons for launching private labels

Global Sourcing Decisions Country-of-origin effect

Foreign exchange fluctuations

Tariffs

Free trade zones

Inventory carrying costs

Transportation Costs Managerial Issues in Global Sourcing Decisions


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The Merchandise Purchasing and Handling process

The Merchandise Purchasing Process

Merchandise handling

Reordering merchandise

Regular Re-evaluation

Ethical and Legal issues in Merchandise Purchasing

Slotting allowances

Commercial Bribery

Counterfeit Merchandise

Gray market Merchandise

Diverted Merchandise

Exclusive territories

Exclusive dealing agreements

Tying contracts

Refusals to deal

Dual distribution


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Merchandise Distribution

You can use the Merchandise Distribution functions to plan, control and managethe flow of merchandise from a vendor to a distribution center and then on to thestore or customer.

Merchandise Distribution supports push and pulls processes, and allows you tocarry out cross-docking in the distribution center.

Distribution planning

In planning, the system differentiates between the following situations: Planning using an allocation table (push)

Planning using a collective purchase order (pull)

Distribution processing

At goods receipt, the distribution data is automatically or manually adjusted tocorrespond with the quantities actually delivered.


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Procurement and Distribution by a

Distribution Center


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Special forms of distribution In these cases, merchandise distribution is planned

using an allocation table, but the merchandise does

not go through the distribution center.

As a result, distribution data is not required in thesystem.

Allocation with direct delivery (third-party processing)

Allocation of warehouse stocks


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SESSION - 12

DURATION: 2 HOUR


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PROMOTION PLANNINGSuperior promotion planning for increased control over demand

Promotion Planning supports sales promotions management and covers both forecasting andevaluation of results.

Functions

Identifies the impact that past promotions have had on sales. From an analysis of historic data, itdetermines the net effect of promotions and evaluates margin.

Defines historic sales data "cleaned" from the effects of promotions and utilizes this as the basis fornew forecasts.

Catalogues different types of promotional initiatives and their effects.

Applies the different types of promotions to new sales forecasts and estimates their impact on futurevolumes, turnover and margins.

Benefits

By making the best use of promotions, companies can manage and control demand profiles in orderto optimize their manufacturing capacities and margin objectives.

Promotion Planning brings the benefits of:

Improved reactivity to promotion demands as a result of more accurate forecasting.

Increased capacity to govern and influence demand, improving and adapting its profile with respect toproduction capacities and available resources.

Reduced stock-outs and stock-overs during promotions.


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Services Marketing Services marketing is marketing based on relationship and value. It may

be used to market a service or a product.

Marketing a service-base business is different from marketing a product-base business.

There are several major differences, including:

1. The buyer purchases are intangible2. The service may be based on the reputation of a single person

3. It's more difficult to compare the quality of similar services

4. The buyer cannot return the service

5. Service Marketing mix adds 3 more p's


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Marketing is the flow of goods and services from the producer toconsumer. It is based on relationship and value.

In common parlance it is the distribution and sale of goods andservices.

Marketing can be differentiated as: Marketing of products

Marketing of services.

"Managing the evidence" refers to the act of informing customersthat the service encounter has been performed successfully.


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COMPETITIVE STRATEGIES FOR THE SMALL

VERSUS LARGE RETAILER Small businesses are some of the most creative marketers in the world. Celebrate being small

by focusing on the inherent advantages of small businesssuch as quick decision making,grassroots marketing and a personal sales approach.

Here are a few recommendations that small businesses should follow to make their marketingefforts more effective:

1. Know what you do and do it well.

2. When it comes to marketing, think ou

tside the box.3. Give your customers an experience to remember.

4. Keep customers happy and they'll come back for more.

5. Mixing businesses is a recipe for success.

6. Will that be cash or plastic?

7. When it comes to business, first impressions count.

8. Business relationships are based on trust.

9. Everyone loves a party.

10. Be good to your community and the community will be good to you.


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Electronic Commerce

Electronic commerce, commonly known as e-commerce, consists of thebuying and selling of products or services over electronic systems suchas the Internet and other computer networks.

A wide variety of commerce is conducted in this way, spurring anddrawing on innovations in electronic funds transfer, supply chain

management, Internet marketing, online transaction processing,electronic data interchange (EDI), inventory management systems, andautomated data collection systems.

A large percentage of electronic commerce is conducted entirelyelectronically for virtual items such as access to premium content on awebsite, but most electronic commerce involves the transportation ofphysical items in some way.


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Business applications

Some common applications related to electronic commerce are:

E-mail and messaging

Documents, spreadsheets, database

Accounting and finance systems

Orders and shipment information Enterprise and client information reporting

Domestic and international payment systems

Newsgroup

On-line Shopping

Messaging

Conferencing


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Trade Area Analysis

Sales retention is an indirect measure of locally available goods andservices, assuming people buy locally if possible.

Care must be used in accepting the computed potential sales fromequation. It ignores all of the shopping area and consumer characteristicsthat are located within the immediate and surrounding shopping areas.

One way to estimate the sales retention just divide actual sales by salespotential.

Trade Area Capture estimates the number of customers a community'sretailers sell to.

The number calculated is the number of people purchased for, not thepeople sold to or actual customers in the store.


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Trade Area Capture measures purchases by both residents andnonresidents.

The Pull Factor is the ratio of Trade Area Capture to municipal, inour case here county, population.

A Pull Factor (PF) greater than one implies that the local market isdrawing or pulling in customers from surrounding areas.

An alternative way to think about sales retention is to computelocal Surplus or Leakage by looking at the difference betweenactual sales (AS) with Potential Sales (PS).


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Strategies for Enhancing Retail and

Service Markets There exists a wide range of potential strategies can put in place to build

on strengths of the local retail and service markets and address potentialgaps.

Rather, the intent here is to introduce the reader to a broad range ofideas. The two broad classifications of strategies include: (a) increasing

the flow of dollars into the community (e.g., build on Surpluses) and (b)increasing the re-circulation of dollars within the community (e.g., plugLeakages).

Increasing the re-circulation of dollars in the community means that thecommunity is plugging Leakages of money out of the local community'seconomy.

In other words, the community is actively seeking ways to get people and

businesses to spend more locally.


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SESSION - 13

DURATION: 2 HOUR


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ENVIRONMENT OF RETAILING

Retail stores are segmented using socioeconomic characteristics of thetrade area, and it is shown that the effects of store environment on storeperformance vary across segments.

The internal store environment includes the number of checkout countersper square foot of selling area, the number of non-grocery products sold

(extent of scrambled merchandising), whether the store at least doublesmanufacturers coupons, whether there is a banking facility, and whetherthe store is open for 24 hours.

A methodology for predicting store performance (for existing and newstores) based on the type of environment and store location by usingaggregate secondary data is demonstrated.

Th f


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The most common types of

retailers include Department Stores

Discount/Mass Merchandisers and Big

Box/Category Killers Specialty Stores

Factory Outlets

Catalog

Internet


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While sales and service people may work part-time, most retailmanagers and supervisors work at least 40 hours or more a week;longer hours, including evenings and weekends, are notuncommon.

Hours can change weekly, and managers sometimes must reportto work on short notice, especially when employees are absent.

Retail is evolving. With the implementation of new technologies,it's growing and changing every day.

To meet customer expectations and outpace the competition,retailers are also reshaping many essential functions, such asmarketing, distribution, customer satisfaction and inventory

control.


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Customers

A customer refers to individuals or households thatpurchase goods and services generated within theeconomy.

Customer needs may be defined as the goods or

services a customer requires to achieve specific goals.Different needs are of varying importance to thecustomer.

Customer expectations are influenced by culturalvalues, advertising, marketing, and other

communications, both with the supplier and with othersources.


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How to be a Good Customer

Allow your agency to work on your account, free from fear

Select the right agency in the first place

Brief your agency thoroughly

Make sure your agency makes a profit

Set high standards

Test everything

Don't waste time

Be tolerant

Don't underspend


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These 25 attributes ranked in order of importance were selected by customers,accordingly to Scott Gross in Positively Outrageous Service:

1. Being called back when promised

2. Receiving an explanation of how problem occurred

3. Provided with information on how to contact relevant people

4. Being contacted promptly when a problem has been resolved5. Able to talk to someone in authority

6. Being told how long it will take to resolve a problem

7. Being given valuable alternatives if problem can't be solved

8. Being treated as a person not an account number

9. Being told how to prevent a problem in the future

10. Given progress reports if problem will take some time to resolve

11. Able to talk to people without interruptions12. Not being put on hold without asking


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13. Being treated with appreciation for their business

14. Having a person, not a recording, answer the telephone

15. Being given service people's names and telephone numbers

16. Getting through to a department on the first call

17. Being offered suggestions on how to keep costs of banking down

18. Being able to talk to someone on the first call who can resolve a problem19. Receiving an apology when an error is made

20. Being helped without being put on hold

21. Having the telephone answered on the third ring

22. Being greeted with a 'hello' or 'good morning'

23. Able to reach the service area after 4pm

24. Being addressed by name

25. Ability to reach someone after hours.


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MARKET/ COMPETITORS

The demand for quality real estate is to grow exponentially over the next 4-5years fuelled by the demand from the organized retailers.

Earlier, the Indian organized retail market was reined by the attire brand stores orregional retail chains.

Wal-Mart, Metro, Carrefour, Tesco, Auchan and many big players have shownenthusiastic interest to invest in Indian markets.

Competition is the rivalry of two or more parties over something. Competitionoccurs naturally between living organisms which coexist in the same environment.

Competition can be remote, as in a free throw contest, or antagonistic, as in astandard basketball game.

Rivals will often refer to their competitors as "the competition". The term can alsobe used as to refer to the contest or tournament itself.


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Th l l f i titi


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Three levels of economic competition

have been classified:1. The most narrow form is direct competition (also called category

competition or brand competition), where products which performthe same function compete against each other.

2. The next form is substitute or indirect competition, where

products which are close substitutes for one another compete.3. The broadest form of competition is typically called budget

competition. Included in this category is anything on which theconsumer might want to spend their available money.


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Internal and external factors

Internal factors The strengths and weaknesses internal to theorganization.

External factors The opportunities and threats presented bythe external environment.

Corporate planning As part of the development of strategies and plans to enable the

organization to achieve its objectives, then that organization willuse a systematic/rigorous process known as corporate planning.SWOT alongside PEST/PESTLE can be used as a basis for theanalysis of business and environmental factors.


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Set objectives defining what the organization is going to do

Environmental scanning

Internal appraisals of the organizations SWOT, this needs to include an assessment of thepresent situation as well as a portfolio of products/services and an analysis of theproduct/service life cycle

Analysis of existing strategies, this should determine relevance from the results of aninternal/external appraisal.

Strategic Issues defined key factors in the development of a corporate plan which needs tobe addressed by the organization

Develop new/revised strategies revised analysis of strategic issues may mean theobjectives need to change

Establish critical success factors the achievement of objectives and strategy implementation

Preparation of operational, resource, projects plans for strategy implementation

Monitoring results mapping against plans, taking corrective action which may meanamending objectives/strategies.

Date post:	06-Apr-2018
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