Retail Management
Retail Management
To understand the macro environment To understand the micro environment To explore the analysis of the retail environment To briefly look at different retail formats To examine the types of customer served by consumer markets
Any proposed strategy should be tested using the three key determinants of every market situation:
1. The competitive market environment 2. The customers who are the target 3. The capabilities and competencies
PEST FACTORS
The basic questions which must be asked of existing competitors and new entrants to the market: 1. Where and how 2. How does this affect our performance? 3. What are the capabilities and resources of the competitor 4. Comparative strengths and weaknesses of the competition 5. How should we respond?
1. Front-line employees, who directly interact with customers 2. Other employees who contribute to the effective operating of a retailer 3. Formal groups, such as trade unions or staff association 4. Non-human resources available to the retailer
Employee : The company doesnt look after me why should I bother with customers? Customer : These people dont seem to care. Im not coming back to this store. Retailer : Our staff arent doing their job they need to be sorted out!
Ways of categorising retail organisations: 1. with reference to the type of customers served consumer, industrial or re-seller 2. with reference to the type of premises and market occupied - fixed store, mobile or non-store 3. in terms of the type of merchandise offered, range and assortment, price position and level and type of service available
Forces Contributing to the Growth of Non-store Retailing (Dunne & Lusch 1999)
the consumers need to save time the erosion of fun in some shopping experiences the lack of qualified sales help to provide information the explosive development of the telephone, the computer and telecommunications in general the consumers desire to eliminate the middlemans profit and reduce prices
Buyer Influences
No customers = No business
Customers must be attracted into the store and then be encouraged to spend Satisfaction can lead to word of mouth endorsement
Worst scenario - customer not satisfied may tell friends may tell programmes such as Watchdog