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INTRODUCTION UNIT-1
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DEFINITION
According to Philip Koltler:
Retailing includes all the activities involved in
selling goods or services to the final consumersfor personal , non-business use. A retailer or
retail store is any business enterprise whose
sale volume comes primarily from retailing.
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CHARACTERISTIC OF RETAILER
Retailers sell small quantities of items infrequent basis
Retailers attempt to provide convenience in
terms of location, payment and credit facilities ,range of merchandise, after sales service , etc.
Retailers offer selection
The retailers interface with the customers is
predominately service based, often with socialinteraction and interpersonal sale techniquesmasking the sophistication of computer-basedordering ,stocking and transaction system.
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Retailers set up in business to trade with the
general public
They normally charge higher prices than would
a wholesaler. They use various pricing policies
The retailers bear the different kind of risk to
the manufacturers and the wholesaler.
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FUNCTIONS OF RETAILER
Customers
point of
view
Form utility
Time utilityOwnership
utility
Place utility
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Task Retail marketing function
1. Identifying the customer s needs and
buying patterns for a stores retail offer.
2. Analyzing marketing opportunities.
3. Translating needs into products
(assortments and store layouts).
4. Determining the retail products value to
the customer at different seasonal
periods.
5. Making the product available.
6. Informing and motivating the customer.
Marketing research and EPOS data mining.
Analyzing and selection of target markets
(segmentation) and understanding
buyer/supplier relationships.
Retail product planning and formulation as
well as merchandise and stock management.
Pricing policy-management to provide value .
Establish distribution outlets, inventory
systems, location analysis.
Promotion signage and in-store display.
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Transactional Marketing Relationship Marketing
1. short-term orientation
2. Me oriented
3. Focus on result of a sale as the is the end
of the process.
4. Emphasis on persuasion to buy5. Need to win , manipulation
6. Stress on conflict inherent in achieving a
transaction.
1. Long term orientation.
2. we oriented
3. Focus on retention and repeat sales
4. Stress on creating positive relationships
5. Providing trust and service6. Partnership and co-operative to minimize
defection and provide longer-term
relationship.
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THE RETAILERS ROLE IN THE
SORTING PROCESS
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FACTORS AFFECTING RETAILING
Socio
economic
environment
Behaviors of
consumers
State of
technology
Legal and
ethical system
Behaviour of
channel
Behaviour ofcompetition
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FACTORS AFFECTING THE GROWING
IMPORTANCE
Large and increasing contribution to GDP
Economic importance more visible
Major employer
Retailers as gatekeepers
Retailers diversifying their activities
Organizations growing on a international scale
Size of operations allowing for supply chain control Blurring of areas of retail to include wider area of
business activity
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THE MARKETING-RETAIL EQUATION
Manufacturer Manufacturer Manufacturer
Wholesaler
Retailer
Consumer
Wholesaler
Consumer Consumer
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RETAIL STRATEGIES :
1. RIGHT POSITIONING.
2. EFFECTIVE VISUAL
COMMUNICATION3. STRONG SUPPLY CHAIN
4. CHANGING THE PERCEPTION
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SPECIAL CHARACTERISTICS
AFFECTING RETAILERS
Retailers
Strategy
Small
Average
Sale
Impulse
Purchase
Popularity
of
Stores
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RETAIL MARKETING STRATEGY
Develop the Seven Ps
Define & Sele tT r et M rketKey T sksKey T sks
ininStr te iStr te iRet ilinRet ilin
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DEFINING A TARGET MARKET
S EP 1:
Segment the ar et
Demographics
Geographics
Psychographics
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CHOOSING THE RETAILING MIX
S EP 2:Choose theRetailing ix
Product
Price
Promotion
Place
Personnel
Presentation
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CHALLENGES AND OPPORTUNITIES
Store over saturation
Increasing consolidation and shakeouts
Marketing to smaller niches Rapid Globalization
Increased Demand for value and service
Database-Driven Marketing Use of technology
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HIDDEN CHALLENGES :
Retail differentiation:
Significant losses/ damage during shipping
Customer insight, allocation and assortment
techniques.
Customer experience, value vs price
,aspiration, innovation, accessibility of
suppliers brand.
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5-19
GROWTH OPPORTUNITIES
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DRIVERS OF RETAIL CHANGE IN INDIA
Socio-economic factors
Changing income profiles
The changing role of women and the evolvingfamily structure.
The changing consumption basket
Increased credit friendliness Geographical dispersion of market potential
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TRENDS IN GLOBAL RETAILING
Social responsibility Global consumer growth
Commoditisation run amok
Rise of long tail retailing The fight to plant the flag in India
Retail investments in services
Emerging market investment in developedretailers
Multi-channel integration
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PANTALOON MULTI FORMAT
APPROACH :
Hyper market
Super market
Specialty store
Mall
Online retailing