Ioce|yn L Wa|ter

GSMM8A
Market|ng Management
!ofnIIIng IncIudos nII ncfIvIfIos InvoIvod In
soIIIng goods or sorvIcos fo fInnI consumors
for orsonnI, nonbusInoss uso.
!ofnIIor or n rofnII sforo Is nny busInoss
onforrIso whoso snIos voIumo comos
rImnrIIy from rofnIIIng.
#%
@ypes of keta||ers
Product /ine
SpeclalLy sLore a reLall sLore LhaL carrles a narrow producL
llne wlLh a deep assorLmenL wlLhln LhaL llne
ueparLmenL sLore a reLall organlzaLlon LhaL carrles a wlde
varleLy of producL llnes
SupermarkeL large lowcosL lowmargln hlgh volume self
servlce sLore LhaL carrles a wlde varleLy of food laundry and
household producLs
Convenlence sLore a small sLore locaLed near a resldenLlal
area LhaL ls open long hours seven days a week and carrles a
llmlLed llne of hlgh Lurnover convenlence goods
SupersLore a sLore almosL Lwlce Lhe slze of a regular
supermarkeLs LhaL carrles a large assorLmenL of rouLlnely
purchased food and nonfood lLems and offers servlces
e/otive Prices
ulscounL sLore a reLall lnsLlLuLlon LhaL sells sLandard
merchandlse aL lower prlces by accepLlng lower marglns and
selllng aL hlgher volume
Cffprlce reLaller a reLaller LhaL buys aL less Lhan regular
wholesale prlces and sells aL less Lhan reLall
(1) lndependenL off prlce reLaller owned and run by
enLrepreneurs or ls dlvlslon of larger reLall corporaLlon
(2) lacLory ouLleLs owned operaLed by a
manufacLurer and LhaL normally carrles Lhe manufacLurers
surplus dlsconLlnued or lrregular goods
(3) Warehouse club sells a llmlLed selecLlon of brand
name grocery lLems Lo members who pay annual membershlp
fees
1ypes of 8eLallers
ount of 5ervice
Selfservlce ls Lhe cornersLone of all dlscounL operaLlons
Many cusLomers are wllllng Lo carry ouL Lhelr own locaLe
compareselecL process Lo save money
SelfselecLlon cusLomers flnd Lhelr own goods alLhough
Lhey can ask for asslsLance
LlmlLed servlce reLallers carry more shopplng goods and
servlces such as credlL and merchandlse reLurn prlvlleges
CusLomers need more lnformaLlon and asslsLance
lull servlce salespeople are ready Lo asslsL ln every phase of
Lhe locaLecompareselecL process
1ypes of 8eLallers
The four broad positioning strategies available to retailers
-onsLore 8eLalllng
1) ulrecL selllng
mulLllevel selllng and neLwork markeLlng
a salespeople goes Lo Lhe home of a hosL who has lnvlLed
frlends demonsLraLes Lhe producLs and Lakes order
2) ulrecL markeLlng
lL has rooLs ln dlrecL mall and caLalog markeLlng
3) AuLomaLlc vendlng
lL ls use for a varleLy of merchandlse lncludlng lmpulse
goods
4) 8uylng servlce
ls a sLoreless reLaller servlng a speclflc cllenLele
CorporaLe 8eLalllng
CorporaLe Chaln SLore Lwo or more ouLleLs and conLrolled
employlng cenLral buylng and merchandlslng and selllng
slmllar llnes of merchandlse
volunLary Chaln a wholesaler sponsored group of
lndependenL reLallers engaged ln bulk buylng and common
merchandlslng
8eLaller CooperaLlve lndependenL reLallers who seL up a
cenLral buylng organlzaLlon and conducL [olnL promoLlon
efforLs
Consumer CooperaLlve a reLall form owned by lLs
cusLomers
CorporaLe 8eLalllng
lranchlse CrganlzaLlon conLracLual assoclaLlon beLween a
franchlser and franchlsees
Merchandlslng ConglomeraLe a free form corporaLlon LhaL
comblnes several dlverslfles reLalllng llnes and forms under
cenLral ownershlp along wlLh some lnLegraLlon of dlsLrlbuLlon
and managemenL
1he -ew 8eLall LnvlronmenL
-ew 8eLall lorms and ComblnaLlons
CrowLh of lnLerLype CompeLlLlon
CompeLlLlon beLween SLore8ased and -onSLore8ased
8eLalllng
CrowLh of ClanL 8eLallers
uecllne of MlddleMarkeL 8eLallers
Crowlng lnvesLmenL ln 1echnology
Clobal roflle of Ma[or 8eLallers
MarkeLlng ueclslons
1otqet Motket
Lhe reLaller cannoL make conslsLenL declslons abouL producL
assorLmenL sLore decor adverLlslng messages and medla
prlce and servlce levels unLll lL deflnes and proflles Lhe LargeL
markeL
9toJoct Assottmeot
1he reLaller's producL assorLmenL musL maLch Lhe LargeL
markeL's shopplng expecLaLlons 1he reLaller musL declde on
producL breadLh and depLh
roducL ulfferenLlaLlon SLraLegy
(1) leaLure excluslve naLlonal brands LhaL are noL avallable aL
compeLlng reLallers
(2) leaLure mosLly prlvaLelabel merchandlse
(3) leaLure blockbusLer dlsLlncLlve merchandlse evenLs
(4) leaLure surprlse or ever changlng merchandlse
(3) leaLure Lhe laLesL or newesL merchandlse flrsL
(6) Cffer merchandlse cusLomlzlng servlces
(7) Cffer a hlghly LargeLed assorLmenL
9tocotemeot
Lhe reLallers esLabllsh merchandlse sources pollcles and
pracLlces
ln Lhe corporaLe headquarLers of a supermarkeL chaln
speclallsL buyers (merchandlse managers) are responslble for
developlng brand assorLmenLs and llsLenlng Lo salesperson's
presenLaLlons
SLore managers are lnfluenced by sLrong evldence of
consumer accepLance a welldeslgned adverLlslng and sales
promoLlon plan and generous flnanclal lncenLlves Lo Lhe
Lrade
8eLallers are rapldly lmprovlng Lhelr skllls ln demand forecasLlng
merchandlse selecLlon sLock conLrol space allocaLlon and dlsplay
ulrecL roducL roflLablllLy (u) measure producL's handllng
cosLs ( recelvlng movlng Lo sLorage paperwork selecLlng
checklng loadlng and space cosL) from Lhe Llme lL reaches s Lhe
warehouse unLll cusLomer buys lL ln Lhe reLall sLore
9tlces
rlces are a key poslLlonlng facLor and musL be declded ln
relaLlon Lo Lhe LargeL markeL Lhe producLandservlce
assorLmenL mlx and Lhe compeLlLlon
8eLallers musL pay close aLLenLlon Lo prlclng LacLlcs
Lveryday low prlclng (LuL) can lead Lo lower adverLlslng cosLs
greaLer prlclng sLablllLy a sLronger lmage of falrness and
rellablllLy
etvlces
1he servlce mlx ls a key Lool for dlfferenLlaLlng one sLore from
anoLher 8eLallers musL declde on Lhe servlce mlx Lo offer
cusLomers
repurchase servlces
osLpurchase servlces
Anclllary servlces
8eLallers also need Lo conslder dlfferenLlaLlon based on
unerrlngly rellable cusLomer servlce wheLher lL ls face Lo face
across phone llnes or even vla a Lechnologlcal lnnovaLlon
tote Atmospbete
ALmosphere ls anoLher elemenL ln Lhe sLore arsenal
8eLallers musL conslder all Lhe senses ln shaplng Lhe
cusLomer's experlence
tote Actlvltles ooJ xpetleoces
8eLallers are adapLlng pracLlces as slmple as calllng each
shopper a guesL" and as grandlose as bulldlng an lndoor
amusemenL park
ommoolcotloos
8eLallers use a wlde range of communlcaLlon Lools Lo
generaLe Lrafflc and purchases
1hey place ads run speclal sales lssue moneysavlngs
coupons and run frequenLshopperreward programs ln
sLore food sampllng and coupons on shelves or aL checkouL
polnLs
ocotloo ueclsloo
8eLallers exerclse greaL care ln selecLlng Lhe reglons ln Lhe
counLry where Lo open ouLleLs Lhen parLlcular clLles and
Lhen parLlcular slLes
CenLral buslness dlsLrlcLs
8eglonal shopplng cenLers
CommunlLy shopplng cenLers
Shopplng sLrlps
A locaLlon wlLhln a larger sLore
lour lndlcaLors Lo assess a parLlcular sLore's sales effecLlveness
a) -umber of people passlng by on an average day
b) ercenLage who enLer Lhe sLore
c) ercenLage who buy and
d) Average amounL per sale
1hank ?ou!