Retail Marketing_ Unit I

7/29/2019 Retail Marketing_ Unit I

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Retail Marketing

Unit I
http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=mL175XcmZCzxUM&tbnid=2kd6P2kgNff9rM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.thehindubusinessline.com%2Fmarketing%2Freliance-retail-to-enter-cashandcarry-space%2Farticle2074243.ece&ei=VuYQUu3AEoTBrAeeiYHYCA&psig=AFQjCNERReL_E6-4aS7FEkXDQ2QQz3qqvw&ust=1376925631572535http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=H0HP95YbDKBLDM&tbnid=a255WRyMAugNUM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.rediff.com%2Fbusiness%2Fslide-show%2Fslide-show-1-special-will-kishore-biyanis-big-gamble-work%2F20130508.htm&ei=qegQUuetMsmHrQfjr4DwCA&psig=AFQjCNFp5ZhRpVtVuU8MDjrgFjhOFZIsvg&ust=1376926154375357http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=6Mkom_pRrs2VzM&tbnid=5RGzYdR5bb_utM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.topnews.in%2Fwalmart-planning-first-indian-store-two-years-2365382&ei=TOcQUuLqB83KrAfZj4HADA&psig=AFQjCNElPqZF-jOgPjexdr77X41obJIn5A&ust=1376925810695393http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=mL175XcmZCzxUM&tbnid=2kd6P2kgNff9rM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.thehindubusinessline.com%2Fmarketing%2Freliance-retail-to-enter-cashandcarry-space%2Farticle2074243.ece&ei=VuYQUu3AEoTBrAeeiYHYCA&psig=AFQjCNERReL_E6-4aS7FEkXDQ2QQz3qqvw&ust=1376925631572535http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=WHIkATD-G7xWMM&tbnid=yfmC6y12Ac5mqM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.mensxp.com%2Fwork-life%2Fbusiness-mantras%2F2847-marketing-techniques-for-a-retail-business.html&ei=aeUQUoqGAY2PrgfY0IC4Cg&bvm=bv.50768961,d.aGc&psig=AFQjCNHQpIlA0CXKWD7p9m69t8bY3srdqg&ust=1376925353410755


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What is Retail Marketing

Retail marketing is the range of activities undertaken by a

retailer to promote awareness and sales of the companys

products.

Retail marketing is comprised of the activities related to

selling products directly to consumers


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Retail management

The various processes which help the customers to procure thedesired merchandise from the retail stores for their end use

refer to retail management.

Retail management includes all the steps required to bring thecustomers into the store and fulfil their buying needs.


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Retail management

Retail management makes shopping a pleasurable experience

and ensures the customers leave the store with a smile. In

simpler words, retail management helps customers shopwithout any difficulty.


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Types of Retailing

Specialty Store: Narrow product line

Examples ofspecialty stores may include camera equipment stores, book

stores

Department storeseveral product line

A departmental store is a large retail trading organization. It has several departments, which

are classified and organized accordingly. Departments are made as per different types of goods

to be sold. For example, individual departments are established for selling packed food goods,

groceries, garments, stationery, cutlery, cosmetics, medicines, computes, sports, furniture, etc.,

so that consumers can purchase all basic household requirements under one roof. It provides

them maximum shopping convenience and therefore, also called as 'Universal Providers' or

'One spot shopping'. The concept of a departmental store first originated in France.

Super marketlarge & low cost product


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Specialty Store: Narrow product line

Convenience storesmall store in residential

area

Discount StoreStandard or specialty

merchandise

Off price retailermerchandise sold at less

than retail

SuperstoreHuge space & sell all products


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Retail Marketing Strategy

Elements in Retail Strategy

Target Market

Customer Needs

Retail Format

Method for Satisfying Needs

Bases for Building Sustainable Competitive

Advantage

Defending Position Against Competitors


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The Retail Marketing Mix

TargetMarket

Product

Price

Promotion

Place

People

Presentation


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Product

Product (merchandise)

Product development

Product management Product features and benefits

Branding

Packaging After-sales services


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Promotion

Promotion

Developing promotional mixes

Advertising management Sales promotion

Sales management

Public relations Direct marketing


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Place

Place (store location)

Target market

Channel structure Channel management

Retailer image

Retail logistics Retail distribution


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Price

Price

Costs

Profitability Value for money

Competitiveness

Incentives Quality

Status


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People

People element

Staff capability

Efficiency

Availability

Effectiveness

Customer interaction

Internal marketing


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Presentation

The manner in which merchandise is

presented at the store level is very important.

It is a systematic way of putting stock on

display in the retail store.


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CRMCustomer Relationship Manager


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What is Customer Relationship

Management Process of creating and maintaining relationships with

business customers or consumers

A holistic process of identifying, attracting, differentiating,

and retaining customers

Integrating the firms value chain to create enhanced

customer value at every step

An integrated cross-functional focus on improving customer

retention and profitability for the company.


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CRM

A business strategy designed to reduce costs

and increase profitability by strengthening

customer loyalty.

It describes the strategy that a company uses

to handle customer interactions.


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CRM business strategy that enables businesses

to:

Understand the customer

Retain customers through better customer experience Attract new customer

Win new clients and contracts

Increase profitably

Decrease customer management costs


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Example of CRM

Card offer by many supermarket

Payback Points

Discount


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Consumer Buying Behavior

Consumer Buying Behavior refers to the buying behavior of finalconsumers -individuals & households who buy goods and servicesfor personal consumption.

The central question for marketers is:How do consumers respond to various marketing efforts the companymight use?


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Model of Consumer Behavior

Most consumers make many buying decisions everyday

Large companies base their research to discover actual consumer

purchases by asking such questions : how do consumers respond to

various marketing efforts ? : where they buy, how much and howthey buy and when and why they buy

Stimulus- response how consumers respond to different productfeatures , prices and advertising appeals - which in turn has given

the company a great advantage over its competitors.

Buyers black box certain responses are produced when

marketing and other stimuli enter the consumers black box and

marketers must figure out what is in the buyers black box.


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Model of Consumer Behavior

Marketing andOther Stimuli

Buyers Black Box

Buyers Response

Product

Price

Place

Promotion

Economic

Technological

Political

Cultural

CharacteristicsAffectingConsumerBehavior

BuyersDecisionProcess

Product Choice

Brand Choice

Dealer Choice

PurchaseTiming

PurchaseAmount

Characteristics Affecting


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Characteristics Affecting

Consumer Behavior

Buyer

Psychological

Personal

Social

Culture

l l


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Cultural

Social ClassSocietys relatively permanent& ordered divisions whosemembers share similar values,interests, and behaviors.

Measured by: Occupation,

Income, Education, Wealth andOther Variables.

Subculture Groups of people with sharedvalue systems based on commonlife experiences.

Geographic

Religions

Determines a person's wants and behavior

Values. Perceptions. Preferences, Behaviors.


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Social

Groups

Reference GroupsMembership

Family

Husband, wife, kids

Influencer, buyer, user

Roles and Status

Social Factors


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Personal

Personal Influences

Age and Family Life CycleStage Occupation

Economic Situation Personality & Self-Concept

F t A ff t i C B h i


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Factors A ffect ing Consumer Behavior :

Psycholog ica l

PsychologicalFactors

Motivation

Perception

Learning

Beliefs andAttitudes

Th B D i i P


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Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-purchase Behavior

The Buyer Decision Process

Th B D i i P


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Step 1. Need Recogn it ion

External Stimuli

TV advertising

Magazine ad

Radio slogan

Internal Stimuli

Hunger ThirstA persons normal needs

Need RecognitionBuyer Recognizes a Need


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Family, friends, neighborsMost effective source of

information

Advertising, salespeopleReceives most information from

these sources

Mass MediaConsumer-rating groups

Handling the productExamining the productUsing the product

Personal Sources

Commercial Sources

Public Sources

Experiential / Practical Sources

Buying Behaviour Decision

Evaluation of Alternatives



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Step 3. Evaluation of A lternatives

Consumer May Use Careful

Calculations & Logical Thinking

Consumers May Buy on desire

Consumers May Make Buying Decisionson Their Own.

Consumers May Make Buying Decisions

Only After Consulting Others.

Marketers Must Study Buyers to Find Out How They EvaluateBrand Alternatives



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The Buyer Decision ProcessStep 4. Purchase Decision

Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

Attitudes ofOthers UnexpectedSituationalFactors

The B er Decision Process


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Step 5. Pos t-purchase Behavio r

Consumers Expectations ofProducts Performance

Dissatisfied CustomerSatisfied Customer!

Products Perceived Performance

Retail Marketing_ Unit I

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