•Managing the Store •Store Layout, Design & Visual Merchandising •Customer Service •Retail Selling

Managing the Store

the CEO of Nordstrom’s .Nordstrom for Store Managers “This is your business. Do your own thing. We give you permission to take care of your customers. Don’t listen to us in Seattle.” James Nordstrom. listen to your customers.

Responsibilites of Store Managers Undertaken by Store Managers John Managing Store Employees Recruiting & selecting Socializing & training Motivating Evaluating & providing constructive feedback Rewarding & compensating $ Controlling Costs Increasing labor and productivity Reducing maintenance & energy costs Reducing inventory losses Displaying merchandise & maintaining visual standards Working with buyers Suggesting new merchandise Buying merchandise Planning & managing special events Marking down merchandise Managing Merchandise Providing Customer Service .

Steps in the Employee Management Process 1. Motivate & manage employees to achieve store performance goals 4. Recruit & select employees 2. Socialize & train new employees 3. Compensate & reward employees . Evaluate employee performance & provide feedback 5.

testing • Selecting applicants ­ Interviewing candidates . references.Recruiting and Selecting Employees • Job analysis • Job description • Locating prospects • Screening applicants ­ Application form.

what . when.Socializing and Training Employees • Orientation program • Training ­ Where.

Motivating and Managing Employees • Leadership ­ Task and group maintenance management ­ Participate and authoritarian • Motivation ­ Setting goals ­ Maintaining morale .

Evaluating and Providing Feedback to Employees • Evaluation ­ Who. how often? • Feedback ­ Performance outcome vs. process . when.

Factors Used to Evaluate Sales Associates at The Gap 25% Operations 25% Compliance 50% Sales/Customer Relations .

Common Evaluation Errors Ratings unduly negative Rating unduly positive Using the same rating on all aspects of the evaluation Placing too much weight on recent events rather than evaluating performance over the entire period Having the evaluation of a salesperson unduly influenced by the evaluation of other salespeople Making errors in identifying causes of the salesperson’s performance .

group incentives . intrinsic rewards • Compensation ­ Type • Straight salary • Straight commission • Salary plus commission • Quota bonus (Setting quotas) ­ Individual vs.Compensating and Rewarding Employees • Extrinsic vs.

Advantages and Disadvantages of Straight Salary Straight Salary Offers flexibility in assigning employees to activities Builds stronger employee commitment Is easy for employees to understand Has more variable cost Relates compensation to productivity Incentive Compensation Has high motivating potential Is easy to administer Allows for better performance of non­selling activities such as customer service .

Controlling Costs • Labor scheduling • Store maintenance • Energy maintenance • Reducing inventory loss .

Sources of Inventory Shrinkage • Employee theft (38%) • Shoplifting (36%) • Mistakes and inaccurate records (19%) • Vendor errors (6%) .

Preventing Shoplifting • Store design • Employee training • Good customer service ­ Security measures ­ TV cameras ­ Prosecution .

mystery shoppers • Policies and procedures Employee theft is an HR problem. . drug testing • Security personnel .Reducing Employee Theft • Trusting. supportive work atmosphere • Employee screening ­ Honesty.

Design. and Visual Merchandising .Store Layout.

magazines. seasonal display Checkouts Office & customer service Exit Cart area Entrance Vegetables .Grid Store Layout Receiving & storage Fruit Books.

Texas .J. Penney Racetrack Layout at North Park Center in Dallas.C.

Free-Form Layout Storage. Receiving. Marketing Underwear Checkout counter Casual Wear Pants Feature Feature Open Display Window Open Display Window Skirts and Dresses Clearance Items Jeans Tops Hats and Handbags Dressing Rooms Tops Stockings Accessories .

Space Planning Issues • How profitable is the merchandise? • How will the merchandise be displayed? • What items does the retailer wish to emphasize? • Will the location of certain merchandise draw the customer through the store? .

Planogram for Salad Dressing .

Merchandise Presentation Techniques • Idea-Oriented Presentation • Style/Item Presentation • Color Organization • Price Lining • Vertical Merchandising • Tonnage Merchandising .

Straight Rack .

Rounder .

Four-Way .

Gondola .

Customer Service .

Services Offered by Retailers Department and specialty store Acceptance of credit cards Alteration of merchandise Child care facilities Credit Delivery to home Demonstrations of merchandise Displaying of merchandise Dressing rooms Extended store hours Extensive signage to identify merchandise Discount stores .

Services Offered by Retailers Department and specialty store Gift wrapping Facilities for shoppers with special needs (physically handicapped. etc.) Parking Personal assistance in selecting merchandise Play areas for children Presentations on how to use merchandise Repair services Discount stores .

Problems in Providing Quality Service • Intangibility of benefits ­ Difficult for customers to evaluate service quality ­ Difficult for firms to evaluate quality of service delivered by employees • Inconsistencies of service provided ­ Employees are not machines .

Customer Service Strategies • Customized ­ Greater potential benefits to customers ­ Greater inconsistency ­ Higher cost • Standardized ­ Lower cost ­ High consistency ­ Meets but does not exceed expectations .

Role of Expectations in Evaluating Retail Service Service quality Perception of service delivered Satisfaction with service quality Past experiences Customer expectations Dissatisfaction with service quality Perception of service delivered Competitive offerings .

Cues Customers Use to Evaluate Retail Service Quality TANGIBLES  Appearance of store  Display of merchandise  Appearance of salespeople CREDIBILITY  Reputation for honoring commitments  Trustworthiness of salespeople  Guarantees & warranties provided  Return policy UNDERSTANDING & KNOWING CUSTOMER  Providing individual attention  Recognizing regular customers INFORMATION PROVIDED TO CUSTOMERS  Explanation of service & its cost  Notes sent to customers informing them of sales  Assurances that a problem will be resolved SECURITY Feeling safe in parking lot Communications & transactions treated confidentially .

Cues Customers Use to Evaluate Retail Service Quality COURTESY  Friendliness of employees  Respect shown to customers  Interest shown in customers COMPETENCE  Knowledgeable & skillful employees  Customer questions answered RESPONSIVENESS  Returning a customer’s call  Giving prompt service ACCESS  Short waiting time to complete sales transaction Convenient operating hours  Convenient location  Manager available to discuss problems RELIABILITY  Accuracy in billing  Performing service at designated time  Accuracy in completing sales transaction .

The GAPS Model for Improving Service Quality Knowledge gap Management perceptions of customer expectations Standards gap Customer expectations Service gap Standards specifying service to be delivered Delivery gap Retailer communications about services Communication gap Actual service delivered Customer perception of service .

Closing the Knowledge GAP

• Customer research

• More interactions between managers and customers • Better communications between managers and service providers

Closing the Standards GAP

• High quality service commitment

• Innovative solutions • Define the role of service providers • Set service goals • Measure service performance

Closing the Delivery GAP

• Information and training

• Internal communications • Reduce conflicts • Empower employees • Providing incentives

Closing the Communications GAP • Realistic commitments • Managing customer expectations .

Service Recovery • Listen to the customer • Provide a fair solution • Resolve problem quickly ­ Reduce number of contacts ­ Give clear instructions ­ Avoid jargon .

Retail Selling .

Steps in the Selling & Buying Process 1. Presenting & demonstrating merchandise & overcoming reservations 4. Collecting Information 3. Building future sales . Approaching the customers 2. Making the sale 5.

Postpurchase evaluation . Problem recognition 2. Alternative evaluation 4. Information search 3. Alternative choice 5.Steps in the Selling & Buying process 1.

It won’t fade because a hard leadless glaze is applied over the pattern. . All the china is fired at 2600 °F. they are molded into the cup body before it is fired. PRESENTATION EMPHASIZING BENEFITS This chinawear will last a long time. Not Features PRESENTATION EMPHASIZING FEATURES This chinawear has a hard glaze that is applied after the pattern is on the cups and plates. It is stronger than most chinawear because it is fired at 2600 °F. To prevent the cup handles from breaking off.Selling Benefits. The pattern will also last a long time. The handles are molded into the cup before it is fired.

. Timing I haven’t made up my mind. Merchandise I don’t think this is made well. Salesperson I don’t like him. Price This is too expensive. Location I can’t find it.Types of Reservations Store I don’t know about this store’s return policy.

Marker. 327-2258 . It was a pleasure meeting you and assisting you with your sunglasses from our accessories dept. Diana Carreon Neiman Marcus Diana Carreon SALES . ACCESSORIES 400 NORTHPARK CENTER DALLAS. at our Neiman’s Northpart store.Building Relationships With a Customer 11-10-97 Dear Ms. FASHION . and please do not hesitate to call for any assistance. 2127 Res. Looking forward to seeing you again soon. TX 75225 (214)363-8311 Ext. Sincerely.

submission. and John Tanner. Constant blinking. Source: Barton Weitz. Head down. Piercing eye contact.Patterns of Nonverbal Communication INTERPRETATION BODY ANGLE FACE ARMS HANDS Power. Steepling (fingertips touching). (Burr Ridge. 3rd ed. superiority Exaggerated leaning over. Selling: Building Parternships. HANDS INTERPRETATION BODY ANGLE FACE ARMS Nervousness. apprehension Fidgeting or shifting from side to side. Hands to face. Fingers clasped. . Stephen Castleberry. IL: Irwin/McGraw-Hill. Wringing hands. 1998). Rubbing back of neck. Hands on hips. hair. Hands behind neck or back. dominance. Minimum eye contact.

Fist. 3rd ed. Source: Barton Weitz. Eyes squinting. Blank stare. Drumming on display case. Chin thrusting out. IL: Irwin/McGraw-Hill. Playing with object on display case. .. Stephen Castleberry. 1998). HANDS INTERPRETATION BODY ANGLE ARMS Boredom. frown. anger. distinterest Slouching against display. Finger pointing. (Burr Ridge. at watch. Lips pursing. FACE Arms crossed. Lack of eye contact. Hands gripping edge of display. Looking at door. Negative shake of head. Finger under collar. and John Tanner. Selling: Building Parternships. out window. skepticism Turning body away.Patterns of Nonverbal Communication INTERPRETATION BODY ANGLE FACE ARMS HANDS Disagreement.

Points to Consider in Handling Objective Anticipate objections Create opportunities from objectives Maintain a positive attitude Understand customer objections .

Sources of Objections • The customer may be objecting due to lack of information • The customer may be setting a condition • The objection may be genuine .

softly Moves deliberately Makes few statements Expresses moderate opinions More Assertive “Tell” oriented Take-charge attitude Competitive Directive Risk taker Makes decisions quickly Takes initiative Leans forward Direct eye contact Speaks quickly. intensively Moves rapidly Makes many statements Expresses strong opinions .Indicators of Assertiveness Less Assertive “Ask” oriented Go-along attitude Cooperative Supportive Risk avoider Makes decisions slowly Lets others take initiative Leans backward Indirect eye contact Speaks slowly.

businesslike Moves rigidly Limited use of gestures Formal dress Disciplined about time Controlled facial expressions Monotone voice More Responsive Shows emotions Warm. friendly Moves freely Gestures frequently Informal dress Undisciplined about time Animated facial expressions Many vocal inflections . approachable People oriented Uses opinions Playful Personable. independent Task oreinted Use facts Serious Impersonal.Indicators of Responsiveness Less Responsive Controls emotions Cool.

The Social Style Matrix Low Responsiveness LS 1 CA TI LY A 2 AN Low Assertive D C B A S 1 ER IV DR 2 ES IV 3 SS RE XP E 4 B A High Assertive 4 ES 3 BL IA AM D C High Responsiveness .

showing a lot of activity Conservative dress Like individual leisure activities. individual sports Drivers Technical background Achievement awards on wall No posters or slogans on office walls Calendar prominently displayed Desk placed so contact with people is across desk Conservative dress Like group activities. team sports .Cues to Identify the Social Styles of Customers Analyticals Technical background Achievement awards on wall Office is work-oriented. such as politics. such as reading.

such as reading. individual sports Expressives Liberal arts background Motivational slogan on wall Office has friendly. open atmosphere Pictures of family displayed Personal mementos on wall Desk placed for open contact with people Casual or flamboyant dress Like individual leisure activities. unorganized desk Desk placed for open contact with people Casual or flamboyant dress Like group activities. open atmosphere Cluttered. such as politics.Cues to Identify the Social Styles of Customers Amiables Liberal arts background Office has friendly. team sports .

Versatile and Non-Versatile Behavior Less Versatile Limited adaptability to other’s needs Specialist Well-defined interests Firm of principle Predictable Single-minded More Versatile Able to adapt to others’ needs Generalist Broad interests Negotiates issues Unpredictable Looks at many sides of issue .

Techniques to Alter Sales Behaviors Reducing Assertiveness Ask for customer’s opinion Acknowledge merits of customer’s viewpoint Listen without interruption Be more deliberate don’t rush Reducing Responsiveness Become businesslike Talk less Restrain enthusiasm Make decision based on facts Stop and think Let customer direct flow of conversation .

Techniques to Alter Sales Behaviors Increasing Assertiveness Get to the point Don’t be vague or ambiguous Volunteer information Be willing to disagree Reducing Responsiveness Verbalize feelings Express enthusiasm Pay personal compliments Spend time on relationships rather than business Socialize--engage in small talk Use nonverbal communication Take a stand Initiate conversation .

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