Retail and Sales Management
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Transcript of Retail and Sales Management
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Retail and Sales Management
Vinod Puri
9820694960; 26314644
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Retailing
Retailing encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sale to the final consumer.
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Issues in Retailing
How can we best serve our customers while earning a fair profit?
How can we stand out in a highly competitive environment where consumers have too many choices?
How can we grow our business, while retaining a core of loyal customers?
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The Philosophy
Retailers can best address these questions by fully understanding and applying the basic principles of retailing, as well as the elements in a well-structured, systematic, and focused retail strategy.
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Organised Retailing: share globally
Country Organised Traditonal
U.S.A. 80 20
W.Europe 70 30Malayasia/ Thailand
50 50
Brazil/Argentina 40 60
China 20 80
South Korea 15 85
India 6 94
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Retail Growth Potential (million $)
2007 2025
Total Retail 385 1520
Organised 23(6 %) 304(20 %)
Tradtional 362 1216
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Top Retailers Worldwide
Rank Retailer 2006 Sales m$
1 Wal-Mart 235322
2 Tesco 63985
3 Carrefour 58326
4 Home Depot 54963
5 Kroger 54882
6 Wallgreen 52205
7 Aidi 50794
8 Target 47688
9 C V S 42528
10 Safeway 39754
11 7- Eleven 38628
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An Ideal Candidate for Retailing Career Be a people person Be flexible Be decisive Have analytical skills Have stamina
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A Typical Channel of Distribution
Manufacturer
WholesalerFinal
Consumer
Retailer
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The Retailer’s Role in the Sorting Process
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Multi-Channel Retailing
A retailer sells to consumers through multiple retail formats Web sites Physical stores
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Relationship Management Among Retailers and Suppliers
Disagreements may occur:control over channelprofit allocationnumber of competing retailersproduct displayspromotional supportpayment termsoperating flexibility
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Distribution Types
Exclusive: suppliers make agreements with one or few retailers that designate the latter as the only ones in a specified geographic area to carry certain brands or products
Intensive: suppliers sell through as many retailers as possible
Selective: suppliers sell through a moderate number of retailers
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Comparing Distribution Types
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Special Characteristics
Retailer’sStrategy
Small Average
Sale
Impulse Purchase
Popularityof
Stores
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Retail Strategy
An overall plan for guiding a retail firm
Influences the firm’s business activities
Influences firm’s response to market forces
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Six Steps in Strategic Planning
1. Define the type of business
2. Set long-run and short-run objectives
3. Determine the customer market
4. Devise an overall, long-run plan
5. Implement an integrated strategy
6. Evaluate and correct
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Aspects of Target’s Strategy
Growth-oriented objectives
Appeal to a prime market
Distinctive company image
Focus Strong customer
service
Multiple points of contact
Employee relations Innovation Commitment to
technology Community
involvement Constantly monitoring
performance
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The Retail Concept
Customer Orientation
Coordinated Effort
Value driven
Goal Orientation
RetailingConcept
RetailStrategy
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Eliminating Shopper Boredom
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Customer Service
Activities undertaken by a retailer in conjunction with the basic goods and services it sells.Store hoursParkingShopper-friendlinessCredit acceptanceSalespeople
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A Customer Respect Checklist
Do we trust our customers? Do we stand behind what we sell? Is keeping commitments to customers
important to our company? Do we value customer time? Do we communicate with customers
respectfully? Do we treat all customers with respect? Do we thank customers for their business? Do we respect employees?
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Relationship Retailing
Seek to establish and maintain long-term bonds with customers, rather than act as if each sales transaction is a completely new encounter– Concentrate on the total retail experience– Monitor satisfaction – Stay in touch with customers
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Effective Relationship Retailing
Use a win-win approach– It is harder to get new customers than to
keep existing ones happy Develop a customer database
– Ongoing customer contact is improved with information on people’s attributes and shopping behavior
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Approaches to the Study of Retailing
Institutional
Functional
Strategic
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Retail Management: A Strategic Approach
Building relationships and strategic planning
Retailing institutions Consumer behavior and information
gathering Elements of retailing strategy Integrating, analyzing, and improving
retail strategy