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Question 1 a) Critically discuss the main differences sellin#$ et!een retail mar"etin# and retail %&0mar"s) %&0mar"s)


'hat are the characteristics (f a t() retail sales )ers(n*

AN+'ER ,art %a) The main differences et!een retail mar"etin# and retail sellin#- %&0.) Current changes in the retail marketplace, from e-commerce to telephone banking, have placed greater emphasis on the use of marketing rather than selling Selling focuses on the needs of the seller while marketing focuses on the needs of the buyer Selling is preoccupied with the seller’s need to convert his products into cash while marketing is preoccupied with satisfying the needs of the customer by means of the product and all the extras associated with creating, delivering and finally consuming it Students could also compare the sales concept and the marketing concept in a retail context: +ales c(nce)t: Focus merchandise, goods, or services !eans selling and promotion "nd profits through sales volume Mar"etin# c(nce)tFocus customer needs #merchandise, services, store$ !eans integrated marketing, relationship marketing "nd- profits through customer satisfaction AN+'ER ,art % ) The characteristics (f a t() retail sales )ers(n- %&0.) %ntroduction is re&uire to define what retail personal selling is and where it occurs, such as perceived as an interpersonal communication tool which has distinct steps a prospect is taken through such as inform, persuade or remind individuals or groups to take action, often in this case buy something' (he sales person engages on a Face-)- Face, one to one basis where instantaneous feedback is possible #such as ob*ection overcoming$' (he costs of personal selling are high so the norm is to only use where the product+service is expensive' /elie0es in y(urself- , retail salesperson must have that self-confidence to keep going when everything is going wrong' ,fter all, your customers will believe in you if you believe in yourself but if you do not believe in yourself, why should they believe in you' (here will be days when selling is easy, when the customers will want everything you are selling' -owever, the key is handling those days when everything is going wrong'

etail selling is really a *ob demanding hard work if you are going to be good' /ou should not waste time when customers aren’t in the store. and to render *udgments./e !illin# t( !(r" hard: . and take action until the sale is completed is decisiveness' "very salesperson could probably make better decisions if more time were available' -owever. more time is fre&uently unavailable because of the types of customers a salesperson must deal with /e a le t( handle stress(he retail salesperson must be able to perform consistently under pressure and to thrive on constant change and challenge' . try a different one' /e decisi0e3o two selling situations are the same' (he ability to make rapid decisions. and call your 0key1 customers on the phone to see if they need anything' 1a0e )erse0erance(he person that has the ability to persevere and take ups and downs of selling in stride will find an increasing number of opportunities' . but you will lose not only the war but the customer as well' Find out what the customer needs and get it for him' /e fle3i le(he ability to ad*ust to the ever-changing needs of the situation calls for flexibility' (he salesperson must have the willingness and enthusiasm to do whatever is necessary #although not planned to make the sale' %f one approach or sales presentation doesn’t work. go over your sales records. learn about your merchandise.ll too often salespeople may become frustrated due to the many things occurring that they can’t control' 1a0e res)ect f(r the cust(mer2s #((d sense2o not try to trick the customer' /ou might win the battle by getting the sale.

a diminished company reputation and disillusioned employees ' (argeting the right customers also helps to ensure that customer ac&uisition is consistent with the firm’s goals and capabilities /etter students !ill esta lish the criteria t( use t( decide t( tar#et cust(mer se#ments ' !anagers should choose a portfolio of target segments that is consistent with the firm’s goals. the more profitable that customer is to serve ' (he sources of this greater profitability include: . commodity market places competing on price alone$' . or the basis of segmentation such as behavioural #usage+purchase behaviour. as well enhanced satisfaction from employees whose daily *obs are improved when they can deal with appreciative customers ' "mphasis must also be given to prevent attracting the wrong customers that typically results in costly churn.ttracting the right customers is important as they bring in long-term revenues through continued customer patronage and continued growth in customer referrals. they should consider whether the company can match or exceed competing services directed at the same customers AN+'ER . the firm’s capacity to serve many customers simultaneously. location. tailoring of the offering to gain greater satisfaction.$ and not #i'e undifferentiated. when service is available. 4ood students will define what 5right customer’ meant first 6sing or identifying the types criteria to be used for deciding the right segment to target #wealth.4uesti(n 5 a) 6iscuss !hy tar#etin# the 7ri#ht cust(mers8 is s( im)(rtant f(r successful cust(mer relati(nshi) mana#ement$ %&0mar"s) Critically discuss the im)(rtance (f cust(mer l(yalty relatin# t( retailin# usiness$ %&0mar"s) ) AN+'ER . and positioning strategy ' (hey must think carefully about how customer needs relate to such operational elements as speed and &uality. psychographic #lifestyle$ or profile #demographic$ etc$' (hey may even go as far as to define what a segment is #$and why an offering would be target at such a segment 2ifferentiation of the offering or provider. and the physical features and appearance of service facilities ' (hey also need to evaluate how well their service personnel can meet the expectations of specific types of customers in terms of both personal style and technical competence ' ) ' (he longer a customer stays with a firm.

gives rise to consumerism' • . Using appropriate examples and a framework of your choice.using e-commerce and internet to trade' • 4reater personalisation using %'(' to capture customer information and merchandise transaction' • 4lobalisation . store operations. at least on occasion.' %ncreased purchases over time ' .shortening supply chain. streamline terms of the time re&uired to reach the outlet.educed operating costs as loyal customers become more efficient to serve ' 7rofits from referrals to other customers ' 8illingness. the changes being seen in the retail marketing environment (50 ! and how "etailers are responding to them (50 !# AN+'ER Students can identify and explain the ma*or changes in the retail environment: • Consumers today have more knowledge and are more knowledge and are more aware of their options . critically discuss. *ust-intime delivery' • 7ervasive "lectronification .recent economic condition' • Slower population growth ' (50 marks! .customer service. perhaps park. to pay a price premium ' (he economic benefits of customer loyalty often explains why one firm is more profitable than another ' -owever. loyal customers may not always be more valuable than those making a onetime transaction ' (he profit impact of a customer may also vary dramatically depending on the stage of the product life cycle the service is in ' !anagers must thus analy9e the situation and look within their customer segments and determine the profitability levels for the different groups of customers 49E+TI:N . walk around to find the product and then pay' =etter store locations in the city and suburban' %ncrease in suburban heartland malls: .etail companies are driven to achieve strong financial performance in all parts of business .alue and better strategies that retailers have to prove to their consumers and customers: <''<' Its convenience .franchising. licensing. overseas investment' • Slower to economic growth . merchandising and marketing' • "very retailer is searching new sources of retailer’s life blood which is incremental sales .locally and abroad' • :ptimisation in search for speed and efficiency .

the after sale service. special offers etc' C' Expectations of value . displays. return policy arrangements. the efficiency and courteousness of the transaction. the time that an individual is willing to allocate to shopping has been declining' . loyalty rewards.lternatively some customers may value the shopping experience and want better levels of service' :nce a consumer has found a retail experience which suits him. value for money. heating or air conditioning' 3eat layouts+better shopping experience #wider aisles? -aving a wide variety products on sale e'g' (esco’s sells items ranging from food to bicycles$' @' Service encounter expectations of the friendliness of the staff. or her. guarantees' %f the retail outlet image. passing of savings to customers E a greater variety of products for customers' • (echnology: 4reater use of technology for inventory handling etc and 2ecrease &ueue times with use of 2%/ speed checkout systems #especially useful for foreigners who dislike &ueuing$' %&0 mar"s) 4ood students should recognise this as a 7"S( or 7"S(.that the variety. offer lower prices than national brands. or service delivery policy. earn higher profit margins. lighting. their knowledge.F framework and if they do then marks should be awarded' %f an answer doesn’t identify a framework then no more than a )'< grade should be awarded' . then a customer will be willing to patronise an outlet which is close but perhaps more expensive' (his is because.)' The reputation of the retailer as *udged by self. decoration. &uality and brands will fulfil the needs of the visit' !ore aggressive competition to establish customer loyalty' "'g' money-back guarantees. expectation of &ueues and other shopper numbersA %mproved customer service as companies compete intensively to retain customers' B' Expectations of the merchandise . repeat visits and store loyalty are more likely' • 4rowth of more hyper-marts: arrival of foreign competitors and from supermarkets to hypermarket' • %ncrease in "-tailing: !ore affluent E sophisticated customers e'g' busy working class' • %ncrease in number of house brands: =etter ability to control costs. due to social pressures. friends and other retailers' >' Retail environment characteristics such as ambience. corresponds to the customerDs need priority then improved loyalty is a likely result' %f the priority is convenience.value for money through fair pricing.

) ' 7osition what the brand stands for in the minds of the target audience ' (his may be difficult given the competition and media costs ' %dentify a base from which the brand can develop a defensive position and gain a competitive advantage ' "mphasis on intangible elements difficult for competitors to replicate ' For successful positioning certain criteria need to be adopted: ' .3S8". /rand definiti(n 10. aura. reputation. using appropriate examples.%<&.%<&.ble to communicate to stakeholder groups /rand )ers(nality. =rand positioning and brand personality: #IGH$ %f no examples then marks to be capped at BGH of available marks' "ach section receives e&ual marks /rand . ethos ' =rand personality creates differentiation+competitive advantage through psychological values ' -eavy use of advertisement and personal endorsement ' "ffects consumer behaviour who may buy a brand with a personality they want to be associated with ' "nhance self concept use of brands with personality traits we want to portray . how marketing managers can use brand positioning and brand personality to build retail brands' #<GGH$ .4uesti(n < 2iscuss. image.(siti(nin#.brand persona.) ' Saatchi and Saatchi =rands described the same way as people ' %ncorporates numerous factors .pparent to consumer ' =uild on real brand strengths ' 2ifferentiate the product ' .