Berman 01

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Berman 01

  1. 1. SALES & RETAIL MANAGEMENT BBA 3212 P.K.C.Dinesha
  2. 2. Chapter 01 Introduction to Retail Management RETAIL MANAGEMENT: A STRATEGIC APPROACH, 9th Edition BERMANBERMAN EVANSEVANS
  3. 3. Chapter Objectives To define retailing, consider it from different perspectives, demonstrate its impact, and note its special characteristics To introduce the concept of strategic planning and apply it . To show why the retailing concept is the foundation of a successful business, with an emphasis on the total retail experience, customer service, and relationship retailing
  4. 4. What Retailing is? Retailing comprises the business activities involved in selling goods and services to consumers for personal, family, or household use. It includes every sale to the final consumer It is the last stage in the distribution process.
  5. 5. A Typical Channel of Distribution
  6. 6. Retailing is the last stage in a channel distribution. They and their suppliers have complex relationships because retailers serve in two capacities. They are part of a distribution channel aimed at the final consumer, and they are major customers for suppliers. A Typical Channel of Distribution
  7. 7. A Typical Channel of Distribution (con.) 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
  8. 8. A Typical Channel of Distribution (con.) Selective: suppliers sell through a moderate number of retailers Relationship Management among Retailers and Suppliers
  9. 9. What Retailing is? Retailing comprises the business activities involved in selling goods and services to consumers for personal, family, or household use. It includes every sale to the final consumer It is the last stage in the distribution process.
  10. 10. What Retailing is? Retailing comprises the business activities involved in selling goods and services to consumers for personal, family, or household use. It includes every sale to the final consumer It is the last stage in the distribution process.
  11. 11. Issues in Retailing •Retail sales are at their highest point in history, new technologies are improving productivity, there are opportunities to start a new business or work for an existing one, and global retailing possibilities abound.
  12. 12. Issues in Retailing(con.) •Many consumers are bored with shopping or do not have much time for it. •Some locales have too many stores. •Competitors often spur one another into frequent price cutting and low profit margins.
  13. 13. Issues in Retailing(con.) Customer service expectations are high.  Some retailers remain unsure what to do with the Web.
  14. 14. Retailers Role in sorting process •Consumers always like to search variety of goods and services and select limited quantity. Retailers collect an assortment from various sources, buy larger quantity, and sell in small amount, this call as sorting process.
  15. 15. Manufacture brand A Manufacture brand B Manufacture brand C Manufacture brand D Manufacture brand E Manufacture brand F Wholesaler Wholesaler Wholesaler Retailer Brand A customer Brand B customer Brand C customer Brand D customer Brand E customer
  16. 16. Factors affecting retailers Retailer’s strategy Small average seals Impulse purchase Popularity of stores Retailer’s strategy Impulse purchase Popularity of stores
  17. 17. Special Characteristics of Retailers •The average sales transaction is small •Final consumers make many unplanned purchases •Most customers visit a store location
  18. 18. Retail Strategy A retail strategy is the overall plan guiding the firm. It has six basic steps: •defining the business • setting objectives •defining the customer market • developing an overall plan • enacting an integrated strategy • evaluating performance and making modifications
  19. 19. Retailing Concept and Retailing Strategy Retail concepts Customer orientation Coordinated effort Value-driven Goal orientation Retail strategy
  20. 20. Retailing Concept • Customer orientation • Coordinated effort • Value-driven • Goal orientation
  21. 21. Customer service the activities undertaken by a retailer in conjunction with the basic goods and services it sells The services can be, • Store hours. • Parking • Shopper-friendliness • Credit acceptance • Salespeople
  22. 22. 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
  23. 23. Effective in relationship retailing Relationship retailing is the process whereby retailers seek to establish and maintain long term bonds with customers. To be effective in relationship retailing, a firm needs to keep these points in their mind. •Win-win approach: both parties involved in retailing are win. However, it is harder to get new customers than to keep existing ones happy. •Customer database: ongoing customer contact is improved with information on people's attributes and shopping behavior
  24. 24. Approaches to Retail Management Retailing may be studied by using an institutional approach a functional approach a strategic approach.
  25. 25. Strategic Approach to Retail Management Building relationships and strategic planning Retailing institutions Consumer behavior and information gathering Elements of retailing strategy Integrating, analyzing, and improving retail strategy

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