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•Managing the Store
•Store Layout, Design& Visual
Merchandising•Custoer Ser!ice
•Retail Selling
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Managing the
Store
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Nordstrom for Store Managers
“This is your business. Do your own thing.
Don’t listen to us in Seattle, listen to your
customers. We give you permission to take
care of your customers.”
James Nordstrom, the CEO of Nordstrom’sJames Nordstrom, the CEO of Nordstrom’s
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Steps in the Employee Management
Process
% Recruit & select
employees
' Socialize & train
new employees
( Motivate & manage
employees to
achieve store
performance goals
) Evaluate employee
performance &
provide feedback
* Compensate &
reward employees
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Recruiting and Selecting Employees
Job analysisJob analysis
Job descriptionJob description
Locating prospectsLocating prospects
Screening applicantsScreening applicants
!pplication form, references, testing
Selecting applicantsSelecting applicants
"nterviewing can#i#ates
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Socializing and raining Employees
!rientation program!rientation program
rainingraining
"here# $hen# $hat
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Moti%ating and Managing Employees
LeadershipLeadership
Task an# group maintenance management
$articipate an# authoritarian
Moti%ationMoti%ation
Setting goals
%aintaining morale
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E%aluating and Pro%iding &eedback to
Employees
E%aluationE%aluation
Who, when, how often&
&eedback&eedback
$erformance outcome vs. process
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&actors Used to E%aluate Sales
'ssociates at he (ap
'*+ ,perations *-+
Sales.Customer
Relations'*+ Compliance
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)ommon E%aluation Errors
Ratings unduly negative
Rating unduly positive
/sing the same rating on all aspects of the evaluation
#lacing too much weight on recent events rather thanevaluating performance over the entire period
0aving the evaluation of a salesperson unduly
influenced by the evaluation of other salespeople
Making errors in identifying causes of the salesperson1s
performance
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)ompensating and Re$arding
Employees
E*trinsic %s+ intrinsic re$ardsE*trinsic %s+ intrinsic re$ards )ompensation)ompensation
Type
Straight salary Straight commission Salary plus commission 'uota bonus (Setting )uotas*
"n#ivi#ual vs. group incentives
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'd%antages and ,isad%antages of
Straight Salary
Straight SalaryStraight Salary -ncenti%e )ompensation-ncenti%e )ompensation
+ffers fleibility in assigning employees -as high motivating potential
to activities
uil#s stronger employee commitment -as more variable cost
"s easy for employees to un#erstan# /elates compensation to pro#uctivity
"s easy to a#minister
!llows for better performance of
non0selling activities such as customer
service
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)ontrolling )osts
Labor schedulingLabor scheduling
Store maintenanceStore maintenance
Energy maintenanceEnergy maintenance
Reducing in%entory lossReducing in%entory loss
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Sources of -n%entory Shrinkage
Employee theft ./012Employee theft ./012
Shoplifting ./312Shoplifting ./312
Mistakes and inaccurate records .4512Mistakes and inaccurate records .4512
6endor errors .3126endor errors .312
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Pre%enting Shoplifting
Store designStore design
Employee trainingEmployee training
(ood customer ser%ice(ood customer ser%ice
Security measuresSecurity measures
T1 cameras
ProsecutionProsecution
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Reducing Employee heft
rusting# supporti%e $ork atmosphererusting# supporti%e $ork atmosphere
Employee screeningEmployee screening
-onesty, #rug testing
Security personnel 7 mystery shoppersSecurity personnel 7 mystery shoppers
Policies and proceduresPolicies and procedures
Employee theft is an HR problem.Employee theft is an HR problem.
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Store Layout,Design, and
VisualMerchandising
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2ruit
3egetables
,ffice &,ffice &
customercustomer
serviceservice
"ooks4 magazines4 seasonal
display
(rid Store Layout
R e c e i v i n g & s
t o r a
g e
R e c e i v i n g & s
t o r a
g e
E5it
Entrance
Cart
areaCheckouts
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J+)+ Penney Racetrack Layout at North
Park )enter in ,allas# e*as
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&ree7&orm Layout
Storage, /eceiving, %arketing
2n#erwear Dressing /ooms
3heckout counter
3learance
"tems
4eature 4eature 5 e a n s
3
a s u a l W e a r
S t o c
k i n g s
! c c e s s o r i e s
$ a n t s
T o p s
T o p s
S k i r t s a n # D r e s s e s
- a t s a n # -
a n # b a g s
+pen Display Win#ow +pen Display Win#ow
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Space Planning -ssues
8o$ profitable is the merchandise98o$ profitable is the merchandise9
8o$ $ill the merchandise be displayed98o$ $ill the merchandise be displayed9
"hat items does the retailer $ish to"hat items does the retailer $ish to
emphasize9emphasize9
"ill the location of certain merchandise"ill the location of certain merchandise
dra$ the customer through the store9dra$ the customer through the store9
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Planogram for Salad ,ressing
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Merchandise Presentation echni:ues
-dea7!riented Presentation-dea7!riented Presentation
Style;-tem PresentationStyle;-tem Presentation
)olor !rganization)olor !rganization
Price LiningPrice Lining
6ertical Merchandising6ertical Merchandising
onnage Merchandisingonnage Merchandising
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Straight Rack
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Rounder
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&our7"ay
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(ondola
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Custoer Ser!ice
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Ser%ices !ffered by Retailers
6cceptance of credit cards
6lteration of merchandise
Child care facilities
Credit
elivery to home
emonstrations of merchandise
isplaying of merchandise
ressing rooms
E5tended store hours
E5tensive signage to identify merchandise
epartment andepartment and
specialty storespecialty store
iscountiscount
storesstores
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Ser%ices !ffered by Retailers
7ift wrapping
2acilities for shoppers with special needs
8physically handicapped4 etc9
#arking
#ersonal assistance in selecting merchandise
#lay areas for children
#resentations on how to use merchandise
Repair services
epartment andepartment and
specialty storespecialty store
iscountiscount
storesstores
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Problems in Pro%iding
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)ustomer Ser%ice Strategies
)ustomized)ustomized
7reater potential benefits to customers
7reater inconsistency
-igher cost
StandardizedStandardized
8ower cost
-igh consistency
%eets but #oes not ecee# epectations
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Role of E*pectations in E%aluating
Retail Ser%ice
Ser%ice :uality
Perception of
ser%ice deli%ered
Satisfaction $ith Past
ser%ice :uality e*periences
)ustomer
e*pectations
,issatisfaction $ith )ompetiti%eser%ice :uality offerings
Perception of
ser%ice deli%ered
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)ues )ustomers Use to E%aluate Retail
Ser%ice =,!I=7/=ERS;6=I=7 & >=,!I=7
C/S;,MER C/S;,MER
#roviding individual attention
Recognizing regular customers
SEC/RI;
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)ues )ustomers Use to E%aluate Retail
Ser%ice nowledgeable & skillful employees
Customer ?uestions answered
RES#,=SI3E=ESSRES#,=SI3E=ESS
Returning a customer1s call
7iving prompt service
RE:I6"I:I;
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he ('PS Model for -mpro%ing Ser%ice
nowledge gap>nowledge gap
Service gapService gap
Communication gapCommunication gap
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)losing the =no$ledge ('P
)ustomer research)ustomer research
More interactions bet$een managersMore interactions bet$een managers
and customersand customers
>etter communications bet$een>etter communications bet$een
managers and ser%ice pro%idersmanagers and ser%ice pro%iders
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)losing the Standards ('P
8igh :uality ser%ice commitment8igh :uality ser%ice commitment
-nno%ati%e solutions-nno%ati%e solutions
,efine the role of ser%ice pro%iders,efine the role of ser%ice pro%iders
Set ser%ice goalsSet ser%ice goals
Measure ser%ice performanceMeasure ser%ice performance
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)losing the ,eli%ery ('P
-nformation and training-nformation and training
-nternal communications-nternal communications
Reduce conflictsReduce conflicts
Empo$er employeesEmpo$er employees
Pro%iding incenti%esPro%iding incenti%es
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)losing the )ommunications ('P
Realistic commitmentsRealistic commitments
Managing customer e*pectationsManaging customer e*pectations
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Ser%ice Reco%ery
Listen to the customer Listen to the customer
Pro%ide a fair solutionPro%ide a fair solution
Resol%e problem :uicklyResol%e problem :uickly
/e#uce number of contacts
7ive clear instructions
!voi# 9argon
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Retail Selling
Steps in the Selling ? >uying Process
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Steps in the Selling ? >uying Process
4+ 'pproaching the customers
@+ )ollecting -nformation
/+ Presenting ? demonstrating merchandise ?o%ercoming reser%ations
A+ Making the sale
B+ >uilding future sales
St i th S lli ? > i
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Steps in the Selling ? >uying process
4+ Problem recognition
@+ -nformation search
/+ 'lternati%e e%aluation
A+ 'lternati%e choice
B+ Postpurchase e%aluation
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Selling >enefits# Not &eatures
#RESE=;6;I,= EM#06SI@I=7 2E6;/RES#RESE=;6;I,= EM#06SI@I=7 2E6;/RES
;his chinawear has a hard glaze that is applied after the pattern
is on the cups and plates ;he handles are molded into the cup
before it is fired 6ll the china is fired at 'A-- B2
#RESE=;6;I,= EM#06SI@I=7 "E=E2I;S#RESE=;6;I,= EM#06SI@I=7 "E=E2I;S
;his chinawear will last a long time It is stronger than most
chinawear because it is fired at 'A-- B2 ;o prevent the cuphandles from breaking off4 they are molded into the cup body
before it is fired ;he pattern will also last a long time It won1t
fade because a hard leadless glaze is applied over the pattern
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ypes of Reser%ations
;iming;imingI haven1t made
up my mind
SalespersonSalesperson
I don1t like him
StoreStore
I don1t know
about this store1s
return policy
MerchandiseMerchandiseI don1t think this
is made well
#rice#rice
;his is too e5pensive
:ocation:ocation
I can1t find it
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>uilding Relationships "ith a )ustomer
11-10-97Dear Ms. Marker,
It was a pleasure meeting you andassisting you with your sunglasses from ouraessories dept. at our !eiman"s !orthpartstore. #ooking forward to seeing you againsoon, and please do not hesitate to all forany assistane.
$inerely,
Diana %arreon!eiman Marus
iana Carreon
SALES . FASHION . ACCESSORIES
400 NORTHPARK CENTER
DALLAS, TX 75225
(214)363-8311
E!" 2127
R#" 327-2258
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Patterns of Non%erbal )ommunication
I=;ER#RE;6;I,=I=;ER#RE;6;I,= ",< 6=7:E",< 6=7:E 26CE26CE 6RMS6RMS 06=S06=S
#ower4#ower4
dominance4dominance4
superioritysuperiority
E5aggeratedE5aggerated
leaning overleaning over
#iercing#iercing
eyeeye
contactcontact
0ands on0ands on
hipships
0ands0ands
behind neckbehind neck
or backor back
SteeplingSteepling
8fingertips8fingertips
touching9touching9
I=;ER#RE;6;I,=I=;ER#RE;6;I,= ",< 6=7:E",< 6=7:E 26CE26CE 6RMS6RMS 06=S06=S
=ervousness4=ervousness4
submission4submission4
apprehensionapprehension
2idgeting or2idgeting or
shifting fromshifting from
side to sideside to side
0ead0ead
downdown
MinimumMinimumeyeeye
contactcontact
ConstantConstant
blinkingblinking
0ands to0ands to
face4 hairface4 hair
RubbingRubbingback ofback of
neckneck
!ringing!ringing
handshands
2ingers2ingersclaspedclasped
S%&'# *+'!% #.!/, S!## C+!##'', + % T+#', Selling: Building Parternships,3' #" (*&'' R.#, IL I'.9:;'+-H., 1
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Patterns of Non%erbal )ommunication
I=;ER#RE;6;I,=I=;ER#RE;6;I,= ",< 6=7:E",< 6=7:E 26CE26CE 6RMS6RMS 06=S06=S
isagreement4isagreement4
anger4anger4
skepticismskepticism
;urning body;urning body
awayaway
=egative=egative
shake of head4shake of head4
frown :ipsfrown :ips
pursing Eyespursing Eyes
s?uintings?uinting
ChinChinthrusting outthrusting out
6rms6rms
crossedcrossed
2inger2inger
underunder
collarcollar
2ist 2inger2ist 2inger
pointingpointing
0ands0ands
grippinggripping
edge ofedge of
displaydisplay
I=;ER#RE;6;I,=I=;ER#RE;6;I,= ",< 6=7:E",< 6=7:E 26CE26CE 6RMS6RMS 06=S06=S
"oredom4"oredom4
distinterestdistinterest
SlouchingSlouching
againstagainst
displaydisplay
:ack of eye:ack of eye
contactcontact
:ooking at:ooking atdoor4 atdoor4 at
watch4 outwatch4 out
windowwindow
"lank stare"lank stare
#laying with#laying with
obect onobect on
display casedisplay caserummingrumming
on displayon display
casecase
S%&'# *+'!% #.!/, S!## C+!##'', + % T+#', Selling: Building Parternships,3' #" (*&'' R.#, IL I'.9:;'+-H., 1
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Points to )onsider in 8andling !bCecti%e
'nticipate obCections
)reate opportunities from obCecti%es
Maintain a positi%e attitude
Understand customer obCections
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- di t f ' ti
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-ndicators of 'sserti%eness
Less 'sserti%eLess 'sserti%e More 'sserti%eMore 'sserti%eD'sk oriented Dell oriented
(o7along attitude ake7charge attitude
)ooperati%e )ompetiti%e
Supporti%e ,irecti%e
Risk a%oider Risk taker Makes decisions slo$ly Makes decisions :uickly
Lets others take initiati%e akes initiati%e
Leans back$ard Leans for$ard
-ndirect eye contact ,irect eye contact
Speaks slo$ly# softly Speaks :uickly# intensi%ely
Mo%es deliberately Mo%es rapidly
Makes fe$ statements Makes many statements
E*presses moderate opinions E*presses strong opinions
- di t f R i
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-ndicators of Responsi%eness
Less Responsi%eLess Responsi%e More Responsi%eMore Responsi%e)ontrols emotions Sho$s emotions
)ool# independent "arm# approachable
ask oreinted People oriented
Use facts Uses opinions
Serious Playful-mpersonal# businesslike Personable# friendly
Mo%es rigidly Mo%es freely
Limited use of gestures (estures fre:uently
&ormal dress -nformal dress
,isciplined about time Undisciplined about time
)ontrolled facial e*pressions 'nimated facial e*pressions
Monotone %oice Many %ocal inflections
h S i l St l M t i
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he Social Style Matri*
:ow
6ssertive
0igh
6ssertive
:ow Responsiveness
0igh Responsiveness
6 = 6 :
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) t -d tif th S i l St l f
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)ues to -dentify the Social Styles of
)ustomers
'miables'miables:iberal arts background
,ffice has friendly4 open
atmosphere
#ictures of family displayed#ersonal mementos on wall
esk placed for open
contact with people
Casual or flamboyant dress
:ike individual leisure
activities4 such as reading4
individual sports
E*pressi%esE*pressi%es:iberal arts background
Motivational slogan on wall
,ffice has friendly4 open
atmosphere
Cluttered4 unorganized
desk
esk placed for open
contact with people
Casual or flamboyant dress
:ike group activities4 such
as politics4 team sports
6 til d N 6 til > h i
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6ersatile and Non76ersatile >eha%ior
Less 6ersatileLess 6ersatile:imited adaptability to
other1s needs
Specialist
!elldefined interests
2irm of principle
#redictable
Singleminded
More 6ersatileMore 6ersatile6ble to adapt to others1
needs
7eneralist
"road interests
=egotiates issues
/npredictable
:ooks at many sides of
issue
echni: es to 'lter Sales >eha iors
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echni:ues to 'lter Sales >eha%iors
Reducing 'sserti%enessReducing 'sserti%eness6sk for customer1s opinion
6cknowledge merits of
customer1s viewpoint
:isten without interruption
"e more deliberate don1t rush
:et customer direct flow of
conversation
Reducing Responsi%enessReducing Responsi%eness"ecome businesslike
;alk less
Restrain enthusiasm
Make decision based on
facts
Stop and think
echni:ues to 'lter Sales >eha%iors
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echni:ues to 'lter Sales >eha%iors
-ncreasing 'sserti%eness-ncreasing 'sserti%eness7et to the point
on1t be vague or ambiguous
3olunteer information
"e willing to disagree
;ake a stand
Initiate conversation
Reducing Responsi%enessReducing Responsi%eness3erbalize feelings
E5press enthusiasm
#ay personal compliments
Spend time on relationships
rather than business
Socializeengage in small talk
/se nonverbal communication