What is Retailing?

- Cons:
o Flow Issue - interaction ng customer,
- Retailing connects the entire marketing science
what do they do? Where they go first?
to the act of purchase
What they do touch, get, or interact
- The revenue platform, the climax, where your
first?
ideas and strategies as a marketer is translated
o Selection Issue – if you follow the fetch
into revenue for your respective businesses.
system, you are taking that away from
HISTORY OF RETAIL your customer, the liberty to examine
the product in their own w/o the
• Mom and Pops (1700s – 1800s) influence of staffs.
o Family own o Staffing issue – you need a people who
• Department Stores (1800s – 1900s) know what they are talking about and
• Shopping Malls (1950s) knows what to get when customer
o Collection of stores approach them.
• E-commerce looms (1990s) - Theft can be limited since nasa isang area lang
• Social Media (2007) yung products.
• Hybrid Market (today)
Theft vs Pilferage
In the Philippines
Theft – more in the external factor (customers stealing
• Hoskyn’s Dept. Store (1877) something from your shop)
o The store that sells everything, from
Pilferage – own employee, someone from the inside
needle to anchor
o Located in Iloilo City Customer Flow
• Ali Mall (1976)
o The first major shopping mall in the - The process of analyzing the arrival, the length
Philippines of stay, the activities, and the exit of customer.
• Shoemart (1958) - Analyzing what your customer does, how they
o Carriedo make their purchasing decision, etc.
o 1985 – SM introduced their first - The foundation, and basis of your knowledge as
supermall in North Edsa. a retail marketer.

RETAIL MANAGEMENT Product Selection

- Involves all processes that help customers
procure merchandise from retail stores for their
end use
- Includes all steps on how to bring customers
into the store
- Make shopping a pleasurable experience
- Help customers shop without difficulty
- The presence of alternatives, additional, excess
product offering to maximize profit.
- From the marketer’s perspective
- The cornerstone of retail marketing
- Provides a profitable revenue flow for any type
of retailing enterprise
- Can be internal or external selection

EVOLUTION Selection and Product Interaction

Fetch System - Allowing customers to experience Interaction

- Pharmacy System
- An over the counter system of procuring goods
in the 20th century
- A list is given to a clerk and the clerk compiles
all items on a basket
- Payment is done on the counter as well
Increases their attachment to products
ENDOWMENT EFFECT
- Once there is an interaction/relationship
between your product and your customer, the
endowment effect happens.
Great Atlantic and Pacific Tea Company
- Responsible in introducing Chain Grocery
Retailing – was a phenomenon that took off
around the beginning of the 20th century.
Self Service
- Clarence Saunders’ Piggly Wiggly stores,
established in Memphis in 1916, are widely
credited with introducing America to self-
service shopping.
- Concept of chain self-service (shopping carts)
are utilized.
Centralized Check Outs
- Counters where replaced with strategically
located payment centers
- Manpower reduction
- Increases the traffic coverage of the flow
Brand Consolidation
- More brands can be housed in the store due to
the comparative shopping experience
- Housing more brands in the store due to the
comparative shopping experience
Internal Selection – wherein you try to offer
alternatives, variety, an array of your products w/o
necessarily involving another brand or external
counterpart.
Type of Selections:
- In house/Private/Grey Label Brands – e.g. SM
Bonus
- Enterprise/Corporate/Third Party Brands
RETAIL PURCHASING PATHWAY
Four stages in retail process (retailing process basics)
1. Attention – facility/establishment/planogram
2. Interest – product/merch
3. Desire – interaction/endowment
4. Purchase – check out
Attention precedes interest because the difference
between the two is that attention is facility base, it
something influence, affected or by product of the
customer’s experience or interaction with the actual
facility or establishments, etc. (Retailer’s pov). This time
interest develops.
Eg. Puregold, hypermarket, tropical hut foodmart.
These three have similar color scheme (yellow, green).
It reminds nature, be a relief or breathe of fresh air,
especially if this located in busy area, that’s why green
and yellow are integrated to these establishments.
Compared to landers, they have different market.
It all starts with attention.
ATTENTION
- Is the first section of the retailing process
- Manifest itself through physical indicators
- Colors
- Shapes
- Structures
- When u try to think jabi, ck, mercury drug, lbc.
Red is the most recognizable, red is the most
use in retail. If ATTENTION PA LANG MAHINA
KANA, MEDJ MAGIGING BEHIND KA.
INTEREST
- Customer generated default motivation to be in
a retail environment
- This is something original
- Eg. Shopping list
- Once they enter your store, don nag kakaroon
ng interest.
DESIRE
- Product generated subsequent motivation
- This is not something happens w/o influences
unlike interest
- It comes to play if the customer is able to
interact with your product or sku
- When we are interested to buy something, we
go to their store
- During that intense part of the desire process
(Actual selection)
- Pag nagkaroon ka ng interaction of the product,
that’s why u have the desire
- Eg. Benefit – value – need (hunger)
- Having a single sku will not trigger desire
- Kung wala silang choice, mas mababa yung
tendency na tutuloy sila sa culmination ng retail
process
- Product selection and product interaction
serves as corner stones of retail management
- Having diff sku, will save u to potential loss
PURCHASE
- Checkout – culmination of the basic retail
process
- INITIAL GOAL: to always and culminate to
checkout. Mag tuturn na into revenue
RETAIL ENVIRONMENTS | BUYING PROCESS |
CUSTOMER MINDSET
TRADITIONAL ENVIRONMENTS
- Cover those retail establishments (physical
stores) that has been there for quite a while.
They are responsible for forming retail, and how
it looks like nowadays.
- Although, a lot has changed and already
transition to hybrid retail environment we have
today. Like, new battlefield (online retail).
- There traditional environments serve as a
connection or the bridge for the ultimate user
and the producer. It serves as a venue for the
sku, and consumers.
FOUR BASIC RETAIL ENVIRONMENT (VENUE)
1. Supermarkets
2. Specialty Stores
3. Department Stores
4. Convenience Stores
SUPERMARKETS AND HYPERMARKETS (FOUR BASIC
RETAIL ENVIRONMENT (VENUE)
- A large self-service shop offering wide variety of
consumer items organized into aisles.
- Like a maze, consumer have empowered and
encouraged to go around the shop.
- Occupies large amount of space on a single
floor. Why? Because of shopping carts.
- CONTROLLED TRAVEL PRINCIPLE – all the items
are intentionally placed on where they are.
- The planogram helps the retail manager
arrange the sku in the shelves. It serves as an
effective generated means.
CHARACTERISTICS:
• Pricing policy = low (these are necessities, you
must consider the segmentation, what type of
sku they offered. they are leaning toward
lowest price point.)
• Manpower = high (retail establishments
requires merchandisers, shelf fixer, security,
cashier)
• Warehousing = in house (have a back
warehouse wherein they store their stocks)
• Stock replenishment = overnight (they not
want to disturb their shoppers)
• Centralized check out system
• Distribution center system (pag merong
branches located each other, center of
distribution, central warehouses, they serve as
regional supply system)
• Loss leader system (they encourage just
purchased as much as they can)
• Aisle system or section system – for
organization
SUPERMARKET STORE LAY OUT PRINCIPLES
1. Circulation
2. Coordination
3. Consumer Convenience
Circulation – is created by arranging product so the
supermarket can control the traffic flow of the
consumer
- Each aisle, shelves, sku, arranged intentionally.
- Along this path there will be high-draw, high-
impulse items that will influence the consumer
to purchase which he or she did not intend to
- Service areas such as rest rooms are placed in a
location which draws the consumer past certain
products to create extra buys
- Necessity items such as bread, milk, are found
at the rear of the store to increase the start of
circulation
- Cashier’s desks are placed in a position to
promote circulation
- The entrance will be on the right hand side
because research has shown that consumers
who travel in a clockwise direction spend more
- Manipulating the flow to expose customers to
certain types of merch
- Usually for high draw high impulse items or
special concern items
- These items na need iboost, they place it in
strategic locations (entrance, cashier)
Coordination – consumers tend to purchase items that
are related with one another
- eg. What we usually purchase with soy sauce?
Vinegar. Soap? Shampoo. Toothbrush?
Mouthwash.
- CROSS-CATEGORY SALES STRATEGY – some
goods or some related sku, do not necessarily
have to be beside each other. In fact, through
coordination, is all about breaking part
merchandise that is related to each other, in
order for you to encourage more movement or
flow inside the retail establishment.
- Eg. Sa mayo, di mo need ilagay katabi ng
macaroni, u can put it two aisles apart para
magkaroon ng product interaction to other sku.
- TRUE-COORDINATION – breaking apart
merchandise that usually goes together to
extend customer flow
Consumer Convenience – grocery, supermarket,
hypermarket are built to make it easy for consumers to
live their daily life (bc nandyan yung lahat ng
necessities)
- Enable the supermarket to think of ways to
make it easier for shoppers to do their
shopping.
- Eg. Provide shopping carts, what if onti lang
bibilin? Provide basket. What if mabigat?
Provide mini cart.
ISSUE OF OPERATION (Supermarket or hypermarket)
• Generate Food Waste – especially in fresh good
• High Slotting Fees – ethically consideration, r u
really empowering local producer to participate
to your shop? Or may advantage yung bigger
brands?
• Taking Advantage of Small Business
PRODUCT CATEGORIES:
1. Staples = High Turn Over
• Necessities
• di na nila need ng boosting
• day to day item
2. Seasonal = Based on Interest Levels
• depending on seasons
SPECIALTY STORES (FOUR BASIC RETAIL
ENVIRONMENT (VENUE)
- A store specifically designed to carry one type
of range
- Range: interconnected lines of product that is
usually defined by a store’s business objective
- Eg. Kpop merch, fully booked, sunnies studios,
healthy option,
- Needs based specialty stores:
o Diabetics grocery store
o Vegetarian health store
o Pesticide free stores
CHARACTERISTICS:
- Small stores specializing only on limited or
specific range of well stocked items
- Advantage of high levels of service, dedication
and product expertise
- Extensiveness of related products
o Eg. Boutiques
- Extensive depth of stocks
- Manpower requirement = minimal
- Pricing policy = medium to high
- Operations = owner operated/chain
- Stock acquisition = bulk/volume purchase or
individual key item purchase
- Special orders = possible (behind the counter
transactions)
- Stock system = internal stocking (owner
operated) centralized warehousing (chain)
TYPES OF SPECIALTY SOTRES STORES BY LOCATION:
- Central Business District – cluster of multiple
strips of establishment interlinked by
infrastructures
o Eg. Araneta center, Makati, bgc
 o Main streets are where common - Dept. stores have different nature and not
arteries converge necessarily considered staples.
- Strip/String – a chain of continuous stores (5 - Boutiques like bench, uniqlo, zara, have wide
succession) range of products considered specialty store not
o Eg. Makita ng mag isa lang pwede yon dept. store because dept store have holistic
o Unplanned shopping areas primarily range of products (eg. Clothes, appliances, etc)
composed of specialty stores - Dept. store have brand and off brand items.
- Freestand/Isolated Freestanding – a single Collection of different brands, not all dept. store
establishment structure has in-house brands (eg. Sm youth)
o A store that is out of the common way - CALIBRATION PRINCIPLE
without adjacent retailers o Calibrated Promotion - Being carried
under a department store arrangement
SPECIALIZED PLANOGRAM THEMES
means losing independence when it
- Frontal Orientation comes to certain decisions
o Maximum exposure o Eg. Nasa loob ka ng moa dept store, u
o Minimal slotting cannot say “no hindi ako magsasale”, u
- Sideward Orientation have to be able to follow the policies
o Maximum slotting implemented by the dept store, since
o Minimal exposure they are the house, u are a tenant.
- Folded Orientation o Consolidated Flow – combined interest
o Max slotting generates more foot traffic (because
o Least depth and configuration there is a holistic range of product
convenience inside the dept. store, compare to
- Feature Orientation specialty store the foot traffic is bigger)
o Placed on an elevated platform § Desire phase leads to a dynamic
brand consolidation (bc of the
SLOTTING mere presence of brand and off
- Amount of item that can be placed on active brands items.
selling Shares Manpower
- Facilitated depth and configuration convenience
- Internal merchandiser system is employed
EXPOSURE - Ensures continuity of staff presence even with a
- Amount of the product visualization absent the single shift employee
need for interaction - Most economical way in terms of operation cost
- Facilitates interest desire mechanics - Eg. Sm ladies (they are hired by one company,
and they are deployed by assignment basis.
DEPARTMENT STORES (FOUR BASIC RETAIL
ENVIRONMENT (VENUE) Environment Statistics

- A multi section stores that combines, brand and - Warehousing

off brand items - In house
- A huge space that is supposed to be able to - Pricing policy
provide a holistic range of products - Uniform
- Unlike in supermarkets where it strictly follows - Replenishment
the controlled travel principle, that doesn’t - Real time
necessary apply to dept. stored because - Manpower
shopping carts or pushcarts are not necessity in - Low
dept. stores. And items are supposed to be - NEXT SYNC: ARE FOODCOURT CONSIDERED
bought together. Unlike in supermarket, DEPT STORE OR SPECIALTY STORE?
products are staple.
CONVENIENCE STORES (FOUR BASIC RETAIL
ENVIRONMENT (VENUE)
- Maliit na version ng supermarket
- just bring u potential not direct
- A lot of staples but varies in quantity or stock
available even sa product variation
- A lot of sku that dictate if they’re going to be
present to a specific convenience store is due to
variable stocking system (vss)
- Variable Stocking System – the sku carried by a
convenience store is dictated heavily by its
location triggers
o Dictates what skus, you will find more in
a specific branch or location
o Eg. Yung mga sku na makikita sa loob is
heavily dictated by triggers around the
area
- MARKET TRIGGERS – a developmental
endeavor that usually results to an inflow of
potential regular customers.
o The starting point
o An origin
o A first step
o That results to series of steps
o Eg. In a specific location in qc, merong
tinatayo na commercial district, 3000
workers, if u gonna put up infront or
beside this specific area, u will find what
sku these 3000 workers will need
o Market triggers play an important role
of VSS.
o Requires a combination of an individual
and a need
o Brings direct customers to a retail
establishment
o Because of the needs and the presence
of these infividuals, there is now a high
tendency that there will be a direct
inflow of customers towards that
specific establishents
o Highway as market triggers? Nlex and
sctex
- INFRASTRUCTURE TRIGGERS
o A developmental endeavor that usually
results to a traffic of potential regular
customers
o TRAFFIC – state of movement from one
point to the another
o Has to be motivated by a purpose
oriented destination and a return trip to
reverse the movement
o Comparing to market triggers, traffic
customers
o Purpose: to cross infrastructure
- ENVIRONMENT STATS
o High turnover items (rarely see seasonal
items, novelty items)
o Price policy = high (placed on locations
in more convenient to its segment or
market w/o putting much consideration
on price position
o Manpower = low (size of the store)
o Stock replenishment = call to order
o Warehousing = centralized (just like in
specialty stores, chain)
o Positioning intensive
TRADITIONAL ENVIROMENTS
- We cannot simply deny the fact, the four still
play a major role in growth and development
and continuous evolution of the entire retail
industry in the region.
CUSTOMER BUYING BEHAVIOR RETAIL MARKET
SEGMENTS
Product and Service Retail Continuum (All goods/no
services -> All services/no goods)
- Wholesale club
- Supermarket
- Category specialist – no longer used nowadays,
another term for specialty stores
- Specialty/department store
- Optical center
- Restaurant
- Airline
- Bank/university – these establishments literally
just offer their services. You don’t buy any
intangible or particular sku by them.
THREE MAJOR FACTORS (in analyzing product and TYPES OF NEEDS:
service retail continuum, they are differentiated by
Utilitarian Needs
these factors)
- satisfied when purchase accomplish a specific
1. Intangibility - exchange of money, you can feel,
task. Shopping needs to be easy, and effortless
touch, smell, taste (senses).
like a grocery store.
2. Timing of production & consumption –
- The objective is clear. Eg. Supermarket. Naka-
goods/product side, time difference between
dictate kung bakit mo need gawin yung
the time of production of these
purchase.
goods/merchandise and the time when it is
consumed. Hedonic Needs
a. Compare to service retail continuum,
the time of production is almost - satisfied when purchases accomplish a need for
simultaneous with the time of entertainment, emotional, and recreational
consumption. experience as in department stores or specialty
b. Eg. In a restaurant, right after they cook stores.
your food, you eat it - More subjective and personal
3. Perishability (of the experience or what we pay - It doesn’t always relate to service retail
for) – in service retail, after the experience, establishments.
that’s it. But it’s perishable, u can no longer take o Hedonic needs that retailers can
it with u any physical attachment to that satisfy:
experience. But in terms of perishability of what § Stimulation
we pay for in product retail, that may vary in • Eg. Background music,
what type of merchandiser as sku to consume. visual displays, scents.
• The need for
STAGES IN THE BUYING PROCESS stimulation has to be
consistent with what
your brand is or what
your brand stand for.
• Eg. SM (signature scent)
§ Satisfy need for power and
status
• Eg. Ayala malls vs SM
• More subjective
• Customers want to
feels socially superior.
Their buying decisions,
if they want to satisfy
their hedonic need,
they will probably
choose premium
options.
§ Adventure
• Treasure hunting for
RECOGNIZE NEEDS - It all start with need recognition.
bargains
Your clients, passengers, customer, etc. they recognize
• Customer need for
the need that they have. Need that something to fulfill.
excitement experience.
When customers experience or have a need, it will
Eg. Ukay.
differ in terms of what type of need are trying to satisfy.
Conflicting Needs - Provide goods assortments
- Everyday low pricing
- Ex. Eva’s hedonic needs (wearing a Lacoste suit
- Credit
to enhance self-image) conflict with her budget,
- Consistent and accessible social media
and her utilitarian need to get a job.
- Eg. SM
- Customers make trade-offs between their
conflicting needs EVALUATION OF ALTERNATIVES
o Cross shopping – when clients have
- Multi-attribute model:
conflicting needs and they cannot
o Customers see a retailer, product, or
satisfy all their hedonic needs.
service as a collection of attributes or
SEARCH FOR INFORMATION ABOUT RETAILERS – they characteristics
search for information about their options in terms of o Predict a customer’s evaluation of a
the retailers they want to purchase from. retailer, product, or service based on
§ Its performance on relevant
EVALUATE RETAILERS AND CHANNELS – after that they
attributes
evaluate retailers and channels
§ The importance of those
SELECT A RETAILER CHANNEL – then, they select attributes to the customer
retailer and channel. Before they go store/website.
INFORMATION NEEDED TO USE MULTI-ATTRIBUTE
INFORMATION SEARCH MODEL

- Amount of information search depends on the - Alternatives

value from searching versus the cost of - Characteristics/benefits sought
searching - Ratings of alternative performance on criteria
- This will vary depending on the budget and - Importance of criteria to consumer
what kind of product.
- Factors affecting amount of information search
o Product characteristics
§ Complexity
§ Cost
o Customer characteristics
§ Past experience
§ Perceived risk
§ Time pressure
o Market characteristics
§ Number of alternative brands

SOURCES OF INFORMATION

- Internal
o Past experiences
o Memory
- External
o Consumer reports
o Advertising
o Word of mouth

HOW CAN RETAILERS LIMIT THE INFORMTION

SEARCH?

- Information from sales associates

- Provide an assortment of services
Eg. Your customer is a young single woman or parent
with 4 children. These characteristics may vary
depending on retail establishment, either a service or
product or other unique characteristics.
- Your customer will make their decision based
on the overall evaluation of their option.
GETTING INTO THE CONSIDERATION SET
- Consideration set: the set of alternatives the
customer evaluated when making a selection
- Retailers develop programs influencing top-of-
mind awareness
o Get exposure on search engines like
google
o Try to be the top of the page
o More stores in the same area (eg. SB)
METHODS FOR INCREASING THE CHANCE OF STORE
VISIT AFTER GETTING INTO THE CONSIDERATION SET
- Increase performance beliefs of your store
(leverage your best feature)
- Decreases performance beliefs about
competitor
- Increase importance weight of attributes on
which you have an advantage (eg. Aling puring,
target nila micro)
- Add a new benefit on which you excel
VISIT STORE OR INTERNET SIRE OR CATALOG – visiting
the store does not automatically lead to loyalty.
PURCHASING MERCHANDISE OR SERVICES (customers
do not always purchase a brand with the highest overall
evaluation)
- The high rated item may not be available in the
store
- How can a retailer increase the chances that
customers will convert their merchandise
evaluations into purchase?
POSTPURCHASE EVALUATION
- Satisfaction
o A post-consumption evaluation of how
well a store or product meets or
exceeds customer expectations
- Becomes part of the customer’s internal
information that affects future store and
product decisions
- Builds store and brand loyalty
THREE BASIC TYPES OF BUYING DECISIONS
1. Extended Problem Solving
2. Limited Problem Solving
3. Habitual Decision Making
EXTENDED PROBLEM SOLVING – high financial or social
risk
- When customers engaged in extended problem
solving, they are making buying decision to
satisfy an important need or when they have
little knowledge about the product/service.
- Due to the high risk in such situations,
customers go beyond their internal knowledge
(consult with friends, family members, or
experts) they may also visit several retailers
before making purchase decision.
- E.g. PURCHASING A CAR (merong financial,
physical, and social risk na impact)
Consumers devote time an effort analyzing alternatives
• Financial Risks – purchasing expensive products
or services
o The more expensive the product is, the
more careful you are.
• Physical Risks – purchases that will affect
consumer’s health and safety
o Each of these purchases, have an
impact to customer’s health and safety
• Social Risks – consumers will believe product
will affect how others view them
o In terms of how this product affect
people’s perception with them.
WHAT DO RETAILERS NEED TO DO FOR CUSTOMERS
ENGAGED IN EXTENDED PROBLEM SOLVING?
• Provide a lot of information
o Use salespeople rather than advertising
to
o Communicate with customers
o we have to make it easy for customers
to get this information
• Reduce the risks
o Offer guarantees
o Return privileges
o Warranty
LIMITED PROBLEM SOLVING – some prior buying
experience
- These decisions involve moderate amount of
effort in time. Customers have had prior
experience with similar product/service you
offer.
- They might relay more in their personal
knowledge in terms of making the purchase
decision
- Majority of customers involve limited problem
solving
Purchase decisions process involving moderate amount
of effort and time
• Customers engage in this when they have had
prior experience with products or services
• Customers rely upon personal knowledge
• Majority of customer decisions involve limited
problem solving
WHAT DO RETAILERS NEED TO DO FOR CUSTOMERS
ENGAGED IN LIMITED PROBLEM SOLVING?
• It depends…
• If the customer is coming to you, provide a
positive experience and create loyalty
o Make sure customer is satisfied
o Make sure you know your market, what
o they need, what they want
o Provide good service, assortments,
value
o Offer rewards to convert to loyal
customer
• If the customer goes to your competitor’s store,
change behavior
o Offer more convenient locations, better
service and assortments
o Try to learn what aspect or ano ba yung
mga weak point ng mga competitor, in
terms pricing ba? Technology?
Packages?
ENCOURAGING IMPULSE BUYING
• IMPULSE BUYING: One common type of limited
problem solving
• Influence by using prominent point-of-purchase
(POP) or point-of-sale (POS)
o Have salespeople suggest add-ons
o Have complementary merchandise
displayed near product of interest
o Use signage in aisle or special displays
o Put merchandise where customers are
waiting
o All your signage is in place
HABITUAL DECISION MAKING – store or brand loyalty
- this happens when customers don’t really make
much effort anymore in buying decision.
Purchase decision process involving little or no conscious
effort
• For purchases that aren’t important to the
consumer
• For merchandise consumers have purchased in
the past
• For consumers loyal to brand or a store
CUSTOMER LOYALTY
• Brand Loyalty
o Committed to a specific brand
o Reluctant to switch to a different brand
o May switch retailers to buy brand
• Store Loyalty
o Committed to a specific retailer
o Reluctant to switch retailers
WHAT DO RETAILERS NEED TO DO FOR CUSTOMERS
ENGAGE IN HABITUAL DECISION MAKING?
• It depends….
• If the customer habitually comes to you,
reinforce behavior
o Make sure merchandise in stock
o Provide good service
o Offer reward to loyal customer
o Note: one wrong experience can drive
away your most loyal customer
• If the customer goes to your competitor’s store,
break the habit
o Offer special promotions that are better
what your competitor’s making
SOCIAL FACTORS INFLUENCING THE BUYING DECISION BASIC RETAIL STRATEGY
PROCESS
What’s the importance of learning about retail
strategies?

- If you don’t learn retail strategy, you will turn

into mediocre marketing practitioner.
- It is important to know the concepts of what
makes and what comprises basic retail strategy.

THREE BASIC APPROACHES IN RETAIL STRATEGY

1. UNDIFFERENTIATED STRATEGY

FAMILY INFLUENCES BUYING DECISIONS

- Purchases are for entire family to use

- Whole family participates in decision making
process
- Retailers work to satisfy needs to all family
members (especially sa family brand like
shakeys)
- Mass Marketing
REFERENCE GROUPS - Homogenous population
- The marketing team considers the entire
• A reference group is one or more people whom
population
a person uses as a basis of comparison for - e.g. commodities, most condiments, utilities
beliefs, feelings, and behaviors. (meralco), katinko
• E.g. HOME BUDDIES PH
• Celebrities/Influencers 2. CONCENTRATED STRATEGY
• Store advocates
o Customers that like a store so much
that they actively share their positive
experiences with friends and family
o Micro influencers (free marketing)
• Reference groups affect buying decisions by:
o Offering information
o Providing rewards for specific
purchasing behaviors
o Enhancing a consumer’s self-image
- Hindi lahat kasama, particular sa piling segment
CULTURE - e.g. Revicon, the generics pharmacy,
- Biogesic? Segment nila is 16-18 (ideally), those
• Culture is the meaning, beliefs, morals and
who have indications, because biogesic wants
values shared by most members of a society
to further expand their scope, they created
o Western culture: individualism
variation or another sku in order for them to
o Eastern culture: collectivism
cater to the other segments, or not originally
o Subcultures are distinctive groups of
part of their segment. Like biogesic for kids.
people within a culture
(differentiated strategy)
 3. DIFFERENTIATED STRATEGY
- If the brand wants to level up and expand their
scope and potential
- New market
- Hindi mo need mag total rebranding, you just
introduce new line
- e.g. PLDT dsl and PLDT fibr, shampoo (may
variation for men and women, same brand but
different market), colgate (toothpaste),
automotive industry
STRATEGY
- A plan of action or policy designed to achieve a
major or overall aim.
DIFFERENT EFFECTIVE RETAIL STRATEGIES
Location Redundancy
- Is the use of multiple location to capture as
much customers in terms of volume as possible
- e.g. Potato corner
- Holding Capacity – the maximum capability of
an establishment to entertain and hold into
prospective and actual customers.
- One of the riskiest in retail management
Bypass Strategy
- Pertains to the retail process
- Desire
- Where interest is quickly turned into a purchase
by-passing the desire stage
- e.g. Pre-order
- Extends the holding capacity
Customer Pull Strategy
- Provides an array of attention grabbing feature
to help lure customers in the establishments
- Attention
Merchandize Pull – wherein you literally give a
merchandise, or introduce promo or packages that
would enhance or grab the attention of your
potential customers
First degree (item) freebie
Second degree (item) freebie
Interaction Pull – a facility-oriented activity that
customer can participate with
Frequency Pull – initiatives that encourage multiple
purchase
Scarcity Strategy
- The perception that something limited deserves
urgency over something that is abundant
- They introduce it in certain season not because
of supply issues because of the particular
strategy
- Limited stock available
- e.g. Mcdo Flavors of Japan
Stock Out Replacement Strategy

- Creates a notion that there is the absence of a

product that encourages people to try
alternatives brands
- Absence of the product that encourages people
to try alternative brands
- Proves the importance of having sufficient
depth
- Customers will not suspend purchase

Tranched Payment Strategy (Deferred Payment

Strategy)

- Tranched - Payment is divided to mitigate the

impact of budget concerns (situation)
- Deferred – Payment is delayed to mitigate the
impact of budget concerns