8/7/2019 retail info sys-33
1/33
An Overview of the
Retail Planning andManagement
Process
8/7/2019 retail info sys-33
2/33
3-2
The only constant in the
universe is change!
Dr. J.R. (Doc) Ogden
8/7/2019 retail info sys-33
3/33
3-3
Importance of Planning
Planning the establishment of
objectives, policies, and procedure to
carry out goals.
Provides direction for expenditures
Provides opportunity for integration
Assists decision makers in planning for
specialized areas
8/7/2019 retail info sys-33
4/33
3-4
Mission Statement
If you dont know where you are
goingyou wont get there
Mission statement that describes
business purpose
Why are we in business?
What do we do?
The starting point for retailers thatspeaks of its commitment to customers,
employees, shareholders, and society
8/7/2019 retail info sys-33
5/33
3-5
Mission Statement (contd)
Guides retailer through good and bad
times
Must be known and valued by all
employees
Should be reviewed and updated on a
regular basis
8/7/2019 retail info sys-33
6/33
3-6
Figure 3.1:
Examples ofActual Mission
Statements
Sources: Courtesy of the Procter & Gamble
Company; Courtesy of Ben & Jerrys;
Courtesy ofStarbucks.
8/7/2019 retail info sys-33
7/33
3-7
Vision Statement
Evolves from mission statement butfocuses on future goals
A good vision statement contains
A statement of a desired future for theretailer
A reminder to the retailer of "why we dowhat we do
Values for the retailer to live by Enough information to serve as a
touchstone for making the hard decisionson retail policy
8/7/2019 retail info sys-33
8/33
3-8
Vision Statement Benefits
Promotes alignment of everyone in the
organization
Encourages inspiration and motivation
for employees and stakeholders
Serves as an articulation of retailer
values
8/7/2019 retail info sys-33
9/33
3-9
Retail (Corporate) Objectives
Retail objectives goals that state what
will be accomplished within a given time
period
Mission and vision statements provideguidance in developing these objectives
Objectives should be
Measurable/quantifiable
Realistic
Deadline oriented
8/7/2019 retail info sys-33
10/33
3-10
Examples of Objectives
Bad
To increase sales
To increase publicity
To increase profits by
10%
Good
To increase sales of Xproduct by X amountwithin x time frame.
To increase publicity asmeasure by xpublications by x% in xtime frame.
To increase profits of xby 10% within x timeframe.
8/7/2019 retail info sys-33
11/33
3-11
Situational Analysis
Assessment of the retail environment
Provides:
The history of the retailer
The current position in the marketplace
The product and sales history
Target market information
Involves environmental scanning
8/7/2019 retail info sys-33
12/33
3-12
Figure 3.3: Environmental Scanning
8/7/2019 retail info sys-33
13/33
3-13
Steps in Environmental Scanning
Identify all relevant environments.
Look for relevant changes in theseenvironments.
Understand and evaluate these changes interms of their nature, direction, and
magnitude.
Analyze and forecast the impact and timing ofthe changes; assess the potentialconsequences of the changes.
Create responses to the environmentalchanges through changes in strategy.
8/7/2019 retail info sys-33
14/33
3-14
Where to Look for Environmental
Changes
Secondary data sources
Newspapers
Magazines
Trade journals Conferences
Trade shows
The Internet
Primary Sources Employees
Stockholders
Research
8/7/2019 retail info sys-33
15/33
3-15
Retail Strategy
Provides a framework for current and
future actions
Dictates how objectives will be achieved
Vital Characteristics
Integration is essential
Must be dynamic
Requires strategic thinking
Stems from a desire to create and control
the future
8/7/2019 retail info sys-33
16/33
3-16
Strategic Planning
Tends to be a year in length but can be
prepared for any length of time
Should be reviewed and revised
regularly
Composed of controllable and
uncontrollable variables
8/7/2019 retail info sys-33
17/33
8/7/2019 retail info sys-33
18/33
3-18
Collecting Data
8/7/2019 retail info sys-33
19/33
3-19
Target Marketing
Target market individuals to whom the
retailers plans to aim marketing efforts
After target market is selected, the
retailer decides whether to go afterentire market or to segment the target
market
Segmentation the process of breakingup the target market into smaller
subgroups
8/7/2019 retail info sys-33
20/33
3-20
Target Marketing Approaches
Mass marketing approach
Retailer uses the marketing mix to capture
the entire market
Segmented approach Retailer breaks up the market into
submarkets (segments) and then develops
a unique marketing mix for each segment
8/7/2019 retail info sys-33
21/33
3-21
Useful Target Markets
Characteristics
The ability to purchase the product or
service from the retailer
The willingness to buy the product orservice
A sufficient number of people in the market
to generate profits
8/7/2019 retail info sys-33
22/33
3-22
Understanding Consumer Behavior
Must understand target market behavior
Understanding behavior assist in
developing a marketing mix that will
meet or exceed expectations whilemaking the firm a profit (marketing /
extended marketing concept)
Develop a typical customer profile Describes the target market
8/7/2019 retail info sys-33
23/33
3-23
Market and Location Selection
Involves decisions on market and
physical location as well as channels of
distribution
Decisions include Number of stores
Channels
Brick and mortar Internet
Combination (bricks and clicks)
8/7/2019 retail info sys-33
24/33
3-24
Financial Operations Management
Includes
Preparing financial statements
Resource allocation (budgeting)
Asset management
Payment of bills and collection of accounts
receivable
Financing operations Must be integrated with other areas
8/7/2019 retail info sys-33
25/33
3-25
Merchandise Buying and Handling
Overlaps with other areas such as finance,
pricing, and product management
Consistency with other areas is important,
including Decisions related to logistics and supply chain
management
Decisions on which suppliers to buy from
How much and what types of products topurchase
Stocking and marking products
8/7/2019 retail info sys-33
26/33
3-26
Human Resource Management
Must make sure employees are
Hired/fired
Properly trained
Working toward same overall goals
Experiencing job satisfaction
Achieving objectives
8/7/2019 retail info sys-33
27/33
3-27
Retail Tactics
Tactical executions the day-to-daytasks that implement the retail plans
Includes
Pricing Integrated Marketing Communication (IMC)
CustomerService
Can be used to differentiate retailers
Must be consistent with other areas
Must develop objectives and strategyfor each area
8/7/2019 retail info sys-33
28/33
3-28
Pricing
Pricing Policy establishes
the direction of retail pricing
and how pricing objectives will
be met Typically based on
Sales
Profits Return on investment (ROI)
8/7/2019 retail info sys-33
29/33
3-29
Developing Price
Develop objectives consistent with
mission/vision and overall corporate
objectives
Develop pricing policy based on pricingobjectives
Develop overall pricing strategy
8/7/2019 retail info sys-33
30/33
3-30
Integrated Marketing Communication
(IMC)
IMC comprised of all the firms
communication variables
Includes
Public relations and publicity
Direct marketing
Cybermarketing
Personal Selling Sales Promotion
Advertising
8/7/2019 retail info sys-33
31/33
3-31
Customer Services
Anything a retailer provides in addition
to the core product or service
Helps to maintain a high level of
customer satisfaction
8/7/2019 retail info sys-33
32/33
3-32
Laws and Ethics
Laws a rule established by authority,
society, or custom
Ethics - concepts of right and wrong
behavior
Should guide all retail planning and
includes codes of ethics adopted by
many organizations and industries
8/7/2019 retail info sys-33
33/33
3-33
Evaluation and Control
Evaluation continuous monitoring of
the retail plan to make sure it is
performing up to expectations
Examines whether or not objectiveshave been achieved
Develops alternative course of actions
to maintain desired market position(contingency plans)
Top Related