8/12/2019 servicemktg-140716051857-phpapp02

1/36

8/12/2019 servicemktg-140716051857-phpapp02

2/36

8/12/2019 servicemktg-140716051857-phpapp02

3/36

Organised VS Unorganised Retailing19-3

8/12/2019 servicemktg-140716051857-phpapp02

4/36

OVERVIEW19-4

10%- GDP8%- EMPLOYMENT95%- UNORGANISED REAILING

ORGANISED PENETRATION LEVEL85%- US80%- FRANCE

66%-JAPAN20%- CHINA5-6%- INDIA

8/12/2019 servicemktg-140716051857-phpapp02

5/36

Types by products

19-5

Food products typically require cold storagefacilities.

Hard goods or durable goods ("hard-lineretailers") appliances, electronics, furniture, sportinggoods, etc. Goods that do not quickly wear out andprovide utility over time.

Soft goods or consumables clothing, apparel,

and other fabrics. Goods that are consumed after oneuse or have a limited period (typically under three years) in which you may use them.

8/12/2019 servicemktg-140716051857-phpapp02

6/36

Types of retailers outlets19-6

Department Store Supermarkets

Warehouse retailers

Speciality Retailers E-tailer Convenience Retailer

Discount Retailer

8/12/2019 servicemktg-140716051857-phpapp02

7/36

Services Offered by Retailers19-7

8/12/2019 servicemktg-140716051857-phpapp02

8/36

Three Basic Tasks of Retailing

LO 1

8/12/2019 servicemktg-140716051857-phpapp02

9/36

Selling Process in the Retail Environment19-9

Prospecting Approach

Sales presentation Closing the sale

Suggestion selling

8/12/2019 servicemktg-140716051857-phpapp02

10/36

8/12/2019 servicemktg-140716051857-phpapp02

11/36

8/12/2019 servicemktg-140716051857-phpapp02

12/36

8/12/2019 servicemktg-140716051857-phpapp02

13/36

Retail pricing19-

13

Cost plus pricingSuggested retail pricing

8/12/2019 servicemktg-140716051857-phpapp02

14/36

Transfer mechanism19-

14

Counter priceDeliveryOrder

Door to doorSelf serviceDigital delivery

8/12/2019 servicemktg-140716051857-phpapp02

15/36

BPO SERVICES For Retail Industry19-

15

Facilitysupportservice

Customerservice

Reputationmgt.

Retailanalytics

Marketexpansion

Financeand

accounting

8/12/2019 servicemktg-140716051857-phpapp02

16/36

RetailStrategy

The main focus:Bringing harmony between the controllable

variables and the uncontrollable ones.Uncontrollable variables drive the controllable ones!

Developing an Overall Retail Strategy

Retail Marketing Mix:Controllable Factors

Competition & Environment:Uncontrollable Factors

Whats the 3 rd element

of retailStrategy?

TargetMarket

ControllableVariables

Store Location Store Format & Layout

Merchandise Management Pricing

Communications

UncontrollableVariables

Consumers Competition Technology

Economic Conditions Seasonality

Legal Restrictions

8/12/2019 servicemktg-140716051857-phpapp02

17/36

8/12/2019 servicemktg-140716051857-phpapp02

18/36

Composition of key elements

PlaceProductPrice

PromotionPeopleProcessPhysical Environment

8/12/2019 servicemktg-140716051857-phpapp02

19/36

Key Element

Place (store location)Target marketChannel structure

Channel managementRetailer imageRetail logistics

Retail distribution

8/12/2019 servicemktg-140716051857-phpapp02

20/36

Key element

Product (merchandise)Product developmentProduct management

Product features and benefitsBrandingPackaging

After-sales services

8/12/2019 servicemktg-140716051857-phpapp02

21/36

8/12/2019 servicemktg-140716051857-phpapp02

22/36

8/12/2019 servicemktg-140716051857-phpapp02

23/36

Key element

People elementStaff capabilityEfficiency

AvailabilityEffectivenessCustomer interactionInternal marketing

8/12/2019 servicemktg-140716051857-phpapp02

24/36

Key element

Process elementOrder processingDatabase management

Service deliveryQueuing systemStandardisation

8/12/2019 servicemktg-140716051857-phpapp02

25/36

19-25

8/12/2019 servicemktg-140716051857-phpapp02

26/36

Customer Service19-

26

The set of activities and programs undertaken byretailers to make the shopping experience morerewarding for their customers. These activitiesincrease the value customers receive from themerchandise and service they purchase.

8/12/2019 servicemktg-140716051857-phpapp02

27/36

Strategic AdvantageThrough Customer Service

19-27

Good service keeps customers returning to aretailer and generates positive word-of-mouthcommunication, which attracts new customers

The challenge of providing consistent high-qualityservice offers an opportunity for a retailers todevelop a sustainable competitive advantage

8/12/2019 servicemktg-140716051857-phpapp02

28/36

8/12/2019 servicemktg-140716051857-phpapp02

29/36

Personalized Approach19-

29

Personalized Approach encourages service providerto tailor the service to meet each customers personal needs.

Drawback : Service might be inconsistent

Customized service is costly

8/12/2019 servicemktg-140716051857-phpapp02

30/36

Standardization19-

30

Standardization Approach is based on establishing a setof rules and procedures and being sure that they areimplemented consistently.

Retailers that use this approach:

McDonalds

Wal-MartIKEADollar GeneralSave-A-Lot

The McGraw-Hill Companies,Inc./John Flournoy, photographer

8/12/2019 servicemktg-140716051857-phpapp02

31/36

Perceived Service19-

31

Cues used toassess service

Reliability

Assurance

Tangibility

Empathy

Responsiveness

Perceived Services evaluations are based on perception

8/12/2019 servicemktg-140716051857-phpapp02

32/36

8/12/2019 servicemktg-140716051857-phpapp02

33/36

Challenges19-

33

Depends oneconomy

Industryconcentration

Seasonal cashflow

Protectingcustomer

informationTrend affect

demandHigh worker

turnover

Auditing Technology

8/12/2019 servicemktg-140716051857-phpapp02

34/36

Recent trends In 201319-

34

Better over bigger Improved service

Voluntary data exchange Home delivery

Organised crime and fraud Selg service tech.

8/12/2019 servicemktg-140716051857-phpapp02

35/36

8/12/2019 servicemktg-140716051857-phpapp02

36/36

19-36