Retailing - Unit 4 BBA 5.docx

Retailing – unit 4 (marketing Specialisation) BBA 5
By Nisha Hariyani Page 1
Ethical and legal issues in Retailing
Ethical and legal issues are an important consideration in retailing. Here are some examples:
1. Consumer protection: Retailers have a responsibility to ensure that their products are
safe and meet regulatory standards. They must also be transparent about product
features, pricing, and return policies.
2. Labour practices: Retailers must ensure that they are treating their employees fairly
and providing a safe working environment. This includes complying with labour laws
and regulations, providing fair compensation, and offering benefits such as health
insurance and retirement plans.
3. Environmental sustainability: Retailers have a responsibility to minimize their impact
on the environment. This includes reducing waste, conserving energy, and using
sustainable materials.
4. Data privacy: Retailers collect and store large amounts of customer data, including
personal and financial information. They have a responsibility to protect this data and
comply with data privacy laws such as GDPR and CCPA.
5. Intellectual property: Retailers must respect the intellectual property rights of others,
including trademarks, copyrights, and patents. They must ensure that they are not
infringing on the rights of others when selling products or using branding.
6. Discrimination: Retailers must ensure that they are not discriminating against
customers or employees based on factors such as race, gender, religion, or sexual
orientation.
Overall, ethical and legal issues in retailing are complex and multifaceted. Retailers must be
aware of these issues and take steps to ensure that they are operating in an ethical and legal
manner. This includes implementing policies and procedures to address these issues,
providing training to employees, and conducting regular audits to ensure compliance.
Ethics in retailing
Ethics in retailing refers to the principles and values that guide the behaviour of retailers
towards their customers, employees, and other stakeholders. Here are some examples of
ethical considerations in retailing:
1. Product safety: Retailers have a responsibility to ensure that their products are safe for
customers to use. This includes conducting safety tests, providing clear instructions for
use, and recalling products when necessary.

2. Fair pricing: Retailers must ensure that they are charging fair prices for their products.
This means avoiding price gouging and providing transparent pricing information.
3. Honest advertising: Retailers must ensure that their advertising is truthful and not
misleading. This includes avoiding false claims about product features or benefits.
4. Customer privacy: Retailers must protect the privacy of their customers by
safeguarding their personal and financial information. This includes implementing
secure data storage systems and complying with data privacy laws.
5. Employee treatment: Retailers must treat their employees fairly and provide a safe and
healthy working environment. This includes complying with labour laws and
regulations, providing fair compensation, and offering benefits such as health
insurance and retirement plans.
6. Environmental sustainability: Retailers have a responsibility to minimize their impact
on the environment. This includes reducing waste, conserving energy, and using
sustainable materials.
7. Social responsibility: Retailers can use their position to promote social responsibility
and contribute to their communities. This includes supporting charitable organizations
and implementing sustainable practices.
Overall, ethics in retailing is an important consideration for retailers. By operating in an
ethical manner, retailers can build trust with their customers, attract and retain top talent, and
contribute to their communities.
Legal issues in retailing refer to the laws and regulations that govern the operations of
retailers. Here are some examples of legal considerations in retailing:
1. Consumer protection: Retailers must comply with consumer protection laws that
protect customers from deceptive marketing practices, false advertising, and defective
products. They must also provide clear and accurate information about product
features, pricing, and return policies.
2. Employment laws: Retailers must comply with employment laws that protect
employees from discrimination, harassment, and unfair labour practices. They must
also provide fair wages, benefits, and safe working conditions.
3. Intellectual property: Retailers must respect the intellectual property rights of others,
including trademarks, copyrights, and patents. They must ensure that they are not
infringing on the rights of others when selling products or using branding.
4. Data privacy: Retailers collect and store large amounts of customer data, including
personal and financial information. They must comply with data privacy laws such as

GDPR and CCPA, and implement measures to protect this data from unauthorized
access or theft.
5. Sales tax: Retailers must collect and remit sales tax in accordance with state and local
laws. Failure to do so can result in penalties and legal action.
6. Health and safety regulations: Retailers must comply with health and safety
regulations that govern the operations of their stores, such as building codes, fire
safety regulations, and food safety standards.
7. Environmental regulations: Retailers must comply with environmental regulations that
govern their impact on the environment. This includes regulations related to waste
disposal, hazardous materials, and energy conservation.
Overall, legal issues in retailing are complex and varied. Retailers must be aware of these
issues and take steps to ensure that they are complying with relevant laws and regulations.
This includes implementing policies and procedures to address legal issues, providing
training to employees, and conducting regular audits to ensure compliance.
Dealing with ethical issues in retailing
Dealing with ethical issues in retailing involves ensuring that retailers are conducting
business in a responsible and ethical manner. Here are some ways that retailers can address
ethical issues:
1. Fair labour practices: Retailers should ensure that their employees are treated fairly
and with respect. This includes paying fair wages, providing benefits, and creating a
safe and healthy work environment.
2. Sustainable practices: Retailers can promote sustainable practices by reducing their
environmental impact, sourcing products ethically, and supporting sustainable supply
chains.
3. Transparency: Retailers should be transparent about their practices, policies, and
operations. This includes providing clear and accurate information about products,
pricing, and marketing claims.
4. Respect for human rights: Retailers should respect the human rights of their
employees, customers, and suppliers. This includes avoiding the use of child labour,
forced labour, and other unethical practices.
5. Social responsibility: Retailers should take an active role in supporting their local
communities, promoting diversity and inclusion, and giving back through charitable
donations and other initiatives.

6. Ethical sourcing: Retailers can promote ethical sourcing by working with suppliers
who adhere to ethical and sustainable practices. This includes ensuring that suppliers
are not engaging in human rights abuses, using harmful chemicals, or damaging the
environment.
Overall, dealing with ethical issues in retailing requires a commitment to responsible
business practices and a willingness to address ethical challenges as they arise. Retailers who
prioritize ethical behaviour can build trust and loyalty with their customers, employees, and
stakeholders, and create a more sustainable and successful business in the long term.
Social responsibility in retailing
Social responsibility in retailing refers to the ethical and responsible practices that retailers
undertake to support and give back to the communities they serve. Here are some examples
of social responsibility in retailing:
1. Community engagement: Retailers can engage with their local communities through
various initiatives such as sponsoring local events, supporting local charities, and
participating in volunteer work.
2. Environmental sustainability: Retailers can take steps to reduce their environmental
impact by promoting sustainable practices such as reducing waste, using renewable
energy sources, and promoting sustainable transportation.
3. Ethical sourcing: Retailers can promote ethical sourcing by working with suppliers
who adhere to ethical and sustainable practices. This includes ensuring that suppliers
are not engaging in human rights abuses, using harmful chemicals, or damaging the
environment.
4. Diversity and inclusion: Retailers can promote diversity and inclusion by creating a
welcoming and inclusive environment for customers and employees of all
backgrounds. This includes supporting diverse hiring practices and offering products
that cater to diverse customer needs.
5. Fair labour practices: Retailers can ensure fair labour practices by providing fair
wages, benefits, and creating a safe and healthy work environment for their
employees.
Overall, social responsibility in retailing involves promoting ethical and sustainable practices
that benefit both the retailer and the community they serve. Retailers who prioritize social
responsibility can build trust and loyalty with their customers and employees, and create a
more sustainable and successful business in the long term.
Waste reduction at retail stores

Waste reduction at retail stores is an important aspect of sustainability and responsible
business practices. Here are some ways that retail stores can reduce waste:
1. Recycling: Retail stores can implement recycling programs for materials such as
paper, cardboard, plastic, and glass. This can help divert waste from landfills and
reduce the environmental impact of the store.
2. Composting: Retail stores can also implement composting programs for organic
materials such as food waste and plant matter. Composting can help create nutrient-
rich soil for gardening and farming, while also reducing waste.
3. Reusable bags: Encouraging customers to use reusable bags can help reduce the
amount of plastic bags that end up in landfills or oceans.
4. Reduced packaging: Retail stores can work with their suppliers to reduce the amount
of packaging used for products. This can include using smaller packaging, eliminating
excess packaging, and using more sustainable materials for packaging.
5. Donation programs: Retail stores can donate unsold or unused products to local
charities or food banks. This can help reduce waste while also supporting the
community.
6. Sustainable products: Retail stores can stock and promote products that are made from
sustainable materials or have a smaller environmental footprint. This can include
products made from recycled materials or products that have been certified as
environmentally friendly.
Overall, waste reduction at retail stores involves implementing sustainable practices that
benefit both the environment and the business. By prioritizing waste reduction, retail stores
can reduce their environmental impact, build trust with customers who prioritize
sustainability, and create a more responsible and sustainable business in the long term.
Strategic Planning in Retailing:
Strategic planning in retailing involves developing a long-term plan that outlines the
direction and goals of the retail business. It involves analyzing the current market conditions,
identifying strengths and weaknesses, and developing strategies to achieve the desired
outcomes. Here are some key steps involved in strategic planning for retailing:
1. Define the mission and vision: The first step in strategic planning is to define the
mission and vision of the retail business. This involves identifying the purpose of the
business and the long-term goals that it hopes to achieve.
2. Conduct a SWOT analysis: A SWOT analysis involves identifying the strengths,
weaknesses, opportunities, and threats that the retail business faces. This can help

identify areas where the business is performing well, as well as areas where it needs to
improve.
3. Identify target customers: Once the strengths, weaknesses, opportunities, and threats
have been identified, the next step is to identify the target customers for the retail
business. This involves identifying the needs and preferences of the target customers
and developing strategies to meet those needs.
4. Develop a marketing plan: Based on the target customers, the next step is to develop a
marketing plan that outlines how the business will reach those customers. This can
include strategies for advertising, promotions, and social media.
5. Develop a sales plan: The sales plan outlines how the retail business will generate
revenue. This can include strategies for pricing, merchandising, and customer service.
6. Develop a financial plan: The financial plan outlines the budget and financial goals for
the retail business. This can include projections for revenue, expenses, and profits.
7. Monitor and adjust the plan: Once the strategic plan has been developed, it is
important to monitor its progress and make adjustments as needed. This can involve
reviewing sales and financial data, analyzing customer feedback, and making changes
to marketing and sales strategies.
Overall, strategic planning is an important process for retail businesses to achieve their long-
term goals and remain competitive in the marketplace. By identifying their strengths and
weaknesses, understanding their target customers, and developing effective marketing and
sales strategies, retail businesses can achieve success and grow over time.
strategic planning in retailing are:
1. Situation analysis: This involves conducting an analysis of the internal and external
environment, including SWOT analysis, to understand the current state of the
business, the challenges and opportunities, and potential threats.
Internal Analysis:
1. Strengths:
 Strong brand reputation
 Well-established supply chain network
 Skilled and experienced workforce
 High-quality products and services
2. Weaknesses:

 High employee turnover rate
 Limited product range
 Outdated technology systems
 Poor inventory management
External Analysis:
1. Opportunities:
 Increasing demand for online shopping
 Growing popularity of mobile payments
 Expansion into new markets
 Increasing consumer awareness of environmental sustainability
2. Threats:
 Intense competition from online retailers
 Economic uncertainty and recession
 Changes in consumer behaviour and preferences
 Increasing costs of raw materials and labour
By conducting a situation analysis, the retail business can gain a better understanding of its
internal strengths and weaknesses, as well as the external opportunities and threats that it
faces. This can help the business to make informed strategic decisions and develop a plan of
action to address the issues identified.
2. Vision and mission statement: This step involves developing a clear and concise
vision and mission statement for the business that outlines its purpose, values, and
goals.
3. Setting SMART goals and objectives: Based on the situation analysis, the next step is
to set specific, measurable, achievable, relevant, and time-bound (SMART) goals and
objectives for the business that align with the vision and mission statement.
4. Developing strategies: Once the goals and objectives are set, the next step is to
develop strategies and action plans to achieve them. This includes identifying key
initiatives that the business needs to undertake to achieve its goals.

5. Resource allocation: This step involves allocating the necessary resources, such as
budget, personnel, and technology, to implement the strategies and action plans.
6. Implementation: The implementation phase involves executing the action plans and
strategies that were developed in the previous step. This includes monitoring progress,
adjusting the strategies as needed, and ensuring that the implementation is aligned
with the overall strategic direction of the business.
7. Evaluation and control: The final step in strategic planning is to evaluate the
performance of the strategies and action plans and make any necessary adjustments.
This involves monitoring key performance indicators (KPIs) and taking corrective
action if necessary.
Identifying & understanding consumer
identifying and understanding consumers is a critical aspect of retailing. It involves gathering
information about consumers, such as their preferences, needs, behaviours, and
demographics, in order to better serve their needs and meet their expectations. Here are some
key steps involved in identifying and understanding consumers in retailing:
1. Conduct Market Research: Retailers can conduct market research to gather data on
their target customers. This can be done through surveys, focus groups, or online
research. This data can help retailers identify consumer demographics, behaviours, and
preferences.
2. Analyze Sales Data: Retailers can analyze sales data to gain insights into customer
behaviour, such as purchase history, frequency of purchases, and average spending.
This data can help retailers identify consumer trends and adjust their marketing
strategies accordingly.
3. Track Social Media: Social media can be a powerful tool for retailers to monitor
customer sentiment and preferences. By tracking customer comments and reviews,
retailers can identify what customers like or dislike about their products or services.
4. Use Customer Feedback: Retailers can gather feedback from customers through
surveys or feedback forms. This data can be used to improve products and services, as
well as customer service.
5. Develop Buyer Personas: Retailers can create buyer personas to represent their target
customers. These personas should include information such as demographics,
behaviours, and preferences. This can help retailers to tailor their marketing efforts to
specific customer segments.

By identifying and understanding consumers, retailers can develop effective marketing
strategies and improve customer satisfaction.
Consumer demographics & lifestyles
Consumer demographics and lifestyles are important factors that retailers can use to identify
and understand their target consumers. Here are some ways in which retailers can use
consumer demographics and lifestyles to identify and understand their target customers:
1. Age: Age is an important demographic factor that can influence consumer behaviour.
For example, older consumers may have different preferences and needs than younger
consumers. Retailers can use age as a way to segment their target market and tailor
their marketing efforts to specific age groups.
2. Gender: Gender is another important demographic factor that can influence consumer
behaviour. For example, male and female consumers may have different preferences
and needs when it comes to clothing, personal care products, and other items. Retailers
can use gender as a way to segment their target market and tailor their marketing
efforts to specific gender groups.
3. Income: Income is a key factor that can influence consumer purchasing behaviour.
Consumers with higher incomes may be more likely to purchase high-end or luxury
products, while consumers with lower incomes may be more price-sensitive. Retailers
can use income as a way to segment their target market and tailor their pricing
strategies to specific income groups.
4. Lifestyle: Consumer lifestyles can also provide important insights into their
preferences and behaviour. For example, consumers who are health-conscious may be
more likely to purchase organic or natural products, while consumers who are
environmentally conscious may be more likely to purchase sustainable or eco-friendly
products. Retailers can use lifestyle factors as a way to segment their target market and
tailor their marketing efforts to specific lifestyle groups.
By understanding consumer demographics and lifestyles, retailers can develop targeted
marketing strategies that are more likely to resonate with their target customers. This can
help retailers to improve customer engagement and loyalty, as well as drive sales and
revenue.
Consumer lifestyles can be used to segment target markets and tailor marketing efforts to
specific lifestyle groups. Here are some common lifestyle-based classifications of
consumers:

1. Health-conscious consumers: These consumers are interested in maintaining their
health and may prioritize natural, organic, or whole foods, as well as health and
wellness products and services.
2. Eco-conscious consumers: These consumers are interested in reducing their impact on
the environment and may prioritize eco-friendly or sustainable products and services.
3. Tech-savvy consumers: These consumers are early adopters of technology and may
prioritize products and services that are innovative, high-tech, or digital.
4. Luxury consumers: These consumers are interested in high-end or luxury products and
services and may prioritize quality, exclusivity, and prestige.
5. Budget-conscious consumers: These consumers are price-sensitive and may prioritize
value, discounts, and deals when making purchasing decisions.
6. Adventure-seeking consumers: These consumers are interested in travel, outdoor
activities, and adventure and may prioritize products and services that support these
interests.
7. Family-oriented consumers: These consumers prioritize products and services that are
family-friendly and may prioritize convenience, safety, and comfort.
By identifying and understanding these lifestyle-based classifications of consumers, retailers
can develop targeted marketing strategies and product offerings that are more likely to
resonate with their target customers.
consumer needs & desires, consumer shopping attitude
Consumer needs and desires refer to the underlying motivations that drive consumer
behaviour. These can include basic needs like food, shelter, and clothing, as well as higher-
level needs like self-esteem, belonging, and self-actualization. Understanding consumer
needs and desires is important for retailers because it can help them to create products and
services that meet these needs and desires.
Consumer shopping attitudes refer to the general attitudes or beliefs that consumers have
about shopping. For example, some consumers may enjoy the process of shopping and find it
relaxing, while others may view shopping as a chore or a necessary evil. Similarly, some
consumers may be loyal to certain brands or retailers, while others may prioritize
convenience, price, or other factors. Understanding consumer shopping attitudes is important
for retailers because it can help them to create marketing messages and shopping experiences
that resonate with their target customers. By understanding what motivates consumers to
shop and buy, retailers can create more effective marketing strategies and product offerings
that meet the needs and desires of their customers.

In addition to lifestyle-based classifications, consumers can also be classified based on their
needs, desires, and shopping attitudes. Here are some common consumer classifications in
these categories:
1. Value-oriented consumers: These consumers are looking for the best value for their
money and may prioritize discounts, deals, and price comparisons when shopping.
2. Convenience-oriented consumers: These consumers prioritize convenience and may
prefer online shopping or retailers that offer fast and easy shopping experiences.
3. Brand-conscious consumers: These consumers are loyal to certain brands and may
prioritize brand recognition, prestige, and status.
4. Quality-oriented consumers: These consumers prioritize high-quality products and
services and may be willing to pay a premium for products that meet their standards.
5. Experience-oriented consumers: These consumers prioritize the shopping experience
and may be more likely to shop at retailers that offer unique or enjoyable experiences.
6. Time-conscious consumers: These consumers prioritize time management and may
prefer retailers that offer fast checkout, curb side pickup, or other time-saving options.
By understanding the needs, desires, and shopping attitudes of their target customers,
retailers can tailor their marketing strategies and product offerings to better meet the needs of
their customers. This can lead to increased customer loyalty, higher sales, and greater
success in the retail industry.
Consumer decision process,
The consumer decision-making process refers to the steps that consumers go through when
making a purchase decision. These steps typically include:
1. Problem recognition: The consumer realizes they have a need or desire for a product
or service.
2. Information search: The consumer begins to gather information about the available
options, which may include researching online, asking friends and family, or visiting
physical stores.
3. Evaluation of alternatives: The consumer compares the available options based on
factors like price, quality, and features, and narrows down their choices.
4. Purchase decision: The consumer selects the product or service they want to buy.

5. Post-purchase evaluation: After the purchase, the consumer evaluates whether the
product or service met their expectations, and may provide feedback or reviews to the
retailer or other consumers.
Consumer decision process and retailers action.
Understanding the consumer decision-making process is important for retailers because it
can help them to anticipate and influence consumer behaviour. By understanding what
factors drive consumers to make a purchase, retailers can create marketing messages and
shopping experiences that are more likely to resonate with their target customers.
Additionally, retailers can use the post-purchase evaluation stage to gather feedback from
customers and make improvements to their products or services.
Based on the understanding of the consumer decision-making process, retailers can take
several actions to influence and support consumer behaviour. Here are some examples:
1. Advertising: Retailers can use advertising to increase awareness of their products and
services, and to highlight features that may be important to consumers in the
evaluation stage.
2. In-store displays: Retailers can use in-store displays to make their products more
visible and appealing to consumers as they shop. Effective displays can help to draw
attention to particular products and influence the evaluation stage.
3. Pricing: Retailers can use pricing strategies to influence the purchase decision. For
example, discounts or promotions can encourage consumers to choose one product
over another.
4. Customer service: Retailers can provide excellent customer service to create a positive
post-purchase evaluation and encourage repeat business. This may include easy
returns or exchanges, prompt and friendly service, and follow-up communication.
5. Product quality: Retailers can ensure that their products meet or exceed consumer
expectations in terms of quality, durability, and performance. This can help to build a
positive reputation and encourage word-of-mouth referrals.
6. Product assortment: Retailers can offer a wide range of products to meet the diverse
needs and preferences of their customers. By providing a variety of options, retailers
can increase the likelihood that consumers will find what they are looking for and
make a purchase.
7. Product information: Retailers can provide detailed information about their products,
such as product specifications, ingredients, or reviews. This can help consumers to
evaluate and compare products, and make informed purchase decisions.

8. Loyalty programs: Retailers can offer loyalty programs that reward customers for their
repeat business. These programs can help to build customer loyalty and encourage
repeat purchases.
9. Store atmosphere: Retailers can create a pleasant and welcoming store atmosphere to
encourage customers to spend more time in the store, and make them more likely to
make a purchase.
10.Social media: Retailers can use social media to connect with customers, share product
information, and encourage engagement. By building a strong social media presence,
retailers can increase brand awareness and engage with customers on a more personal
level.
By taking these actions, retailers can create a shopping experience that supports the
consumer decision-making process and encourages positive outcomes for both the retailer
and the consumer.

Retailing - Unit 4 BBA 5.docx

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