RTMNU 4th sem MBA Subject - Retail Sales Management & Services Marketing [ Marketing ] Module 1 INTRODUCTION TO RETAILING BY Jayanti Pande #JayantiPande_slideshare #RetailSalesSummary Free MBA notes pdf rtmnu

1. 1
Jayanti R Pande
email: jayantipande17@gmail.com
RTMNU MBA Sem 4 – Retail Sales
Management & Services Marketing
[Marketing]
MODULE NO 1: INTRODUCTION TO
RETAILING
RETAILING
Retailing is the sale of goods or services to
end consumers through various channels,
with the aim of providing a positive shopping
experience while generating profits. It is an
essential part of the economy, providing
employment and revenue.
DEFINITION OF RETAILING
Retailing is the process of selling goods and
services directly to the end consumer.
Cundiff and Still – “Retailing consists of all
those activities involved in selling directly to
ultimate consumers.”
CHARACTERISTICS OF RETAILING
1 Direct-to-consumer sales - Selling directly to
end consumers.
2 Multiple activities - Various tasks involved
in retailing.
3 Various sales channels - Different retailing
platforms.
4 Customer experience - Focus on
convenient, enjoyable shopping.
5 Economic importance - Vital for
employment and revenue.
FACTORS INFLUENCING RETAILING
1 Computerization: Technology streamlines
operations and expands sales channels for
retailers.
2 Communication: Effective communication
with suppliers, employees, and customers is
crucial for success.
3 Fashion: Retail managers must monitor
fashion trends to meet changing consumer
preferences.
4 Consumerism: Meeting customer needs and
wants through market research and feedback
leads to success.
ECONOMIC SIGNIFICANCE OF RETAILING
1 Employment: Retail provides jobs and
career opportunities.
2 Entrepreneurship: Retail creates
opportunities for startups and local suppliers.
3 Infrastructure: Retail contributes to the
development of local communities.
4 Transformation in India: Organized retailing
and e-commerce have transformed India's
retail industry.
5 Community Support: Retail businesses
support local communities through job
creation and charitable activities.
GROWING IMPORTANCE OF RETAILING
1 Consumer Behavior: Retailers must adapt to
changing demands.
2 Economic Growth: Retail sales drive job
creation and economic growth.
3 Technological Advancements: Technology
revolutionizes retailing.
4 Globalization: Retailers expand to new
markets.
5 Community Impact: Retailers contribute to
local economies and support social causes.
CHALLENGES IN INDIAN RETAILING
1. Poor infrastructure
• Limited transportation and storage
facilities
• Poor road networks and inadequate
power supply
2. Absence of skilled employees
• Lack of proper training and education
• Difficulty in attracting and retaining
talent
3. Threat of substitutes
• Growing competition from e-commerce
platforms
• Availability of substitute products from
unorganized retail sector
4. Bargaining power of suppliers
• Dominance of a few large suppliers
• Limited availability of high-quality
products
5. Bargaining power of buyers
• Increasingly price-sensitive consumers
• Availability of numerous retail options
WHOLESALING vs RETAILING
Wholesaling
 Sells to businesses
 Large quantities
 Low prices
 Fewer transactions
 Usually no packaging
Retailing
 Sells to consumers
 Small quantities
 Higher prices

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Jayanti R Pande
email: jayantipande17@gmail.com
 More transactions
 Often packaged goods
PRODUCT vs SERVICE RETAILING
Product Retailing
 Sells tangible goods to customers
 Maintains inventory of products in
stock
 Focuses on product features and
benefits
 Products can be seen, touched, and
evaluated
 Typically priced based on product
features
Service Retailing
 Sells intangible services to customers
 May not require an inventory of
products
 Focuses on customer experience and
satisfaction during service delivery
 Services are intangible
 May be priced based on the
complexity or duration of the service
RETAIL MANAGEMENT
Retail management involves daily
operations to increase sales, customer
satisfaction, and profits. Managers need
leadership, communication, analytical
skills to manage employees, inventory,
sales, customer service, and marketing.
Staying current with trends and
technology is crucial for remaining
competitive.
RETAIL MANAGEMENT DECISION
PROCESS
1 Understanding retailing world: Analyze
macro/micro environment, know
customer needs.
2 Developing retail strategy: Define
target market, product mix, pricing, store
location.
3 Implementing retail strategy: Manage
inventory, store layout, advertising,
customer service.
FACTORS INFLUENCING RETAIL
MANAGEMENT
1 Technology: Computerization and e-
commerce have transformed the retail
industry, making operations more
efficient and expanding sales channels.
2 Communication: Effective
communication with stakeholders,
including suppliers, employees, and
customers, is critical for success.
3 Fashion: Retail businesses must keep up
with changing fashion trends to meet
customer preferences.
4 Consumerism: Understanding and
meeting customer needs and wants is key
to success in the retail industry.
TYPES OF RETAILERS
RETAILERS BASED ON OWNERSHIP
1 Independent retailer: Single store or
small business owned by an individual or
family.
2 Retail chains: Multiple stores under the
same brand or company ownership with
standardized operations.
3 Franchising: Franchisor grants rights to
operate a business under their brand to a
franchisee who follows specific guidelines
and pays fees.
4 Leased departments: Independent
businesses or brands leasing a section
within a larger retail store.
5 Cooperatives: Retailers owned and
operated by a group of members who
pool resources and share profits.
RETAILERS BASED ON CHANNELS USED
A] STORE RETAILING BASED ON
MERCHANDISE USED
1] General Merchandise: Stores selling
various products. a) Departmental store:
Large store with multiple departments
and products. b) Discount store: Sells
products at lower prices than department
stores. c) Specialty store: Focuses on
specific product categories. d)
Membership club: Requires membership
to offer bulk products at a discount. e)
Airport retailing: Stores located in
airports. f) Drug stores: Stores primarily
selling pharmaceuticals. g) Cash and carry:
Sells products in bulk at wholesale prices.
2] Food Merchandise: Stores selling food
products. a) Convenience store: Small
store for quick shopping. b) Conventional
supermarket: Traditional grocery stores.
c) Food-based superstores: Large stores
with food and other items. d)

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Jayanti R Pande
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Combination stores: Offers grocery and
general merchandise products. e)
Supercenters and hypermarkets: Large
stores with a wide range of products. f)
Limited line stores: Specializes in narrow
product range.
B] NON-STORE RETAILING
Electronic retailing: Selling products
online with delivery.
Catalogue and direct mail retailing:
Sending catalogs directly to consumers for
orders.
Vending machines: Machines that
dispense products without human
interaction.
Telemarketing: Selling products/services
through phone calls to potential
customers.
TV home shopping: Promoting/selling
products through television broadcasts.
Video kiosks: Standalone machines that
allow customers to purchase/rent
products.
C] MULTI CHANNEL RETAILING
Store channel: Physical stores where
customers can shop in-person.
Catalogue channel: Direct marketing via
mail or email, allowing customers to order
by mail, phone, or online.
Electronic channel: Online retailing via
websites or mobile apps with delivery
options.
RETAILING MARKETING ENVIRONMENT
The retailing marketing environment
refers to external factors that impact a
retailer's marketing strategies, including
economic conditions, technology, and
competition. Retailers must stay aware of
changes and adjust their strategies to
meet customer needs and stay
competitive.
ELEMENTS IN RETAILING MARKETING
ENVIRONMENT
1 Macro environment: External factors
beyond retailer's control, e.g., economy,
tech, culture, legal, environment.
2 Micro environment: External factors
specific to retail industry, e.g., suppliers,
competitors, customers, publics.
3 Internal environments: Factors within
retailer's control, e.g., culture, leadership,
human resources, infrastructure.
STRUCTURAL CHANGES IN INDIAN RETAIL
ENVIRONMENT
1 Socio-demographic changes:
Urbanization, growing middle-class, and
changing lifestyles
2 Socio-economic changes: Rising income
levels, changing consumption patterns
3 Technological changes: E-commerce,
mobile apps, supply chain management
4 Political changes: Retail sector
liberalization, implementation of GST
5 Cultural changes: Western-style
products, social media influence
ENVIRONMENTAL ISSUES IN RETAILING
ENVIRONMENT
1 Natural resource impact: Retail heavily
relies on natural resources which can lead
to environmental impacts.
2 Product environmental impact: Retail
products have significant environmental
impact through production and disposal.
3 Energy and greenhouse gases: Retail
contributes to greenhouse gas emissions
via energy consumption.
4 Chemicals and toxins: Retail products
contain harmful chemicals and toxins.
5 Waste management: Retail generates
significant waste through the supply
chain.
INDIAN vs GLOBAL SENARIO IN RETAIL
INDIAN RETAIL
1. Dominated by small and unorganized
players
2. Low level of technology adoption
3. Limited e-commerce penetration
4. Traditional mom-and-pop stores are
still popular
5. Limited supply chain infrastructure
6. High dependence on cash transactions
7. Limited product offerings
8. High fragmentation in the market
9. Low penetration of modern formats like
supermarkets and malls
10. Limited customer loyalty programs
GLOBAL RETAIL
1. Dominated by large organized players

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Jayanti R Pande
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2. High level of technology adoption
3. High e-commerce penetration
4. Online shopping is gaining popularity
5. Strong supply chain infrastructure
6. Increased use of digital payments
7. Wide range of product offerings
8. Consolidation of the market
9. High penetration of modern formats
10. Robust customer loyalty programs
RETAIL MARKETING SEGMENTATION
Segmentation is an important marketing
strategy in the retail industry. Retailers
segment their customers based on various
dimensions to understand their needs and
preferences, and to tailor their marketing
efforts accordingly
NEED FOR MARKET SEGMENTATION
Targeted marketing.
 Increased sales.
 Better customer satisfaction.
 Efficient resource allocation.
 Competitive advantage.
DIMENSIONS OF SEGMENTATION
1 Geographic segmentation: divides
market based on location
2 Demographic segmentation: divides
market based on age, gender, income,
etc.
3 Psychographic segmentation: divides
market based on personality, values,
lifestyle
4 Behavioral segmentation: divides
market based on behavior and purchasing
habits
CRITERIA FOR EFFECTIVE SEGMENTATION
1 Measurable: Segments should be
measurable by size, growth, and
purchasing power.
2 Sustainable: Segments should have
stable and consistent characteristics over
time.
3 Accessible: Segments should be
reachable through effective
communication channels.
4 Differentiable: Segments should have
distinct needs and preferences.
5 Actionable: Retailers should be able to
develop effective marketing strategies for
each segment.
PROCESS OF MARKET SEGMENTATION
1 determining demand pattern
2 establishing possible bases of
segmentation
3 identifying potential market segments
IMPORTANCE OF SEGMENTATION
1 Demand pattern: Identify customer
needs and preferences.
2 Segmentation bases: Determine criteria
for dividing the market.
3 Market segments: Identify potential
target markets.
4 Marketing mix: Develop tailored
strategies for each segment.
5 Competitive advantage: Gain an edge
over competitors through targeted
marketing.
TARGETING
Targeting the market is the process of
selecting specific segments to focus on
and developing marketing strategies to
reach and engage with those segments.
PROCESS OF TARGETING THE MARKET
1 Identify potential segments: Find
segments based on geographic,
demographic, psychographic, and
behavioral factors.
2 Evaluate and select: Evaluate segments
based on attractiveness and feasibility,
select the most attractive and feasible
ones.
3 Develop customer profile: Understand
the needs, wants, preferences, behaviors,
and purchasing habits of each selected
segment.
4 Develop marketing mix strategy:
Develop tailored strategies for each
segment including product positioning,
pricing, promotion, and distribution.
5 Implement marketing strategies:
Advertising, promotions, and other
activities designed to reach and engage
with each segment.
6 Evaluate and adjust: Continuously
monitor and adjust strategies to optimize
results, and adapt to changes in the
market environment.
IMPORTANCE OF TARGETING
1 Better understanding of customers:
Targeting leads to more effective

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Jayanti R Pande
email: jayantipande17@gmail.com
marketing strategies, increasing sales and
loyalty.
2 Increased efficiency and cost-
effectiveness: Focusing resources on
profitable segments maximizes ROI.
3 Improved product development:
Targeting specific needs and preferences
leads to improved customer satisfaction.
4 Competitive advantage: Targeting
enables differentiation from competitors
and increased market share.
5 Increased customer loyalty: Targeting
leads to stronger customer relationships
and higher lifetime value.
POSITIONING
Positioning in retailing creates a unique
brand image in customers' minds through
a unique selling proposition, concise
statement, and marketing
communication. It helps build a
competitive advantage and increases
profitability.
DEFINITION OF POSITIONING
Positioning decision in retailing is the
process of creating a unique and
compelling image or identity for a
retailer's brand or products in the minds
of their target customers.
AI Ries and Jack Trout - “Positioning starts
with a product, a price of merchandise, a
service, a company, an institution or even
a person. Positioning is not what is done
to product but what is done to the mind
of the prospect, i.e. you position the
product in the mind of the prospect.”
RETAIL POSITIONING STRATEGIES
1 Benefit positioning: Emphasizing unique
benefits or solutions offered to
customers.
2 Attribute positioning: Highlighting
unique product features that set products
apart.
3 User positioning: Tailoring products to a
specific group of users.
4 Merchandise category positioning:
Identifying products within a particular
category.
5 Competitor positioning: Positioning
products as superior to competitors.
6 Quality and price positioning: Offering
superior quality or value for price.
7 Image or personality positioning:
Creating a brand image that resonates
with customers.
8 Specialty products positioning: Offering
specialized or niche products for a
particular need or interest.
RETAIL POSITIONING MAP
Retail positioning maps are visual tools
used to analyze and compare the
positioning of retailers in the market
based on specific attributes. These maps
help retailers understand their market
position relative to their competitors,
identify gaps in the market, and develop
effective marketing strategies to improve
their competitive advantage. By plotting
their position on the map, retailers can
determine which attributes they need to
improve to better meet the needs of their
target customers.
REQUISITES OF RETAIL BRAND
POSITIONING
1 Clarity: clear, simple, and easy to
understand for the target audience.
2 Differentiation: The brand positioning
should differentiate the retailer's brand
from its competitors
3 Relevance: The brand positioning
should be relevant to the target
audience's needs, preferences, and
aspirations.
4 Consistency: The brand positioning
should be consistent across all marketing
channels
5 Credibility: The brand positioning
should be credible and supported by the
retailer's products, services, and customer
experiences.