Topics

Consumer goods and purchases

Classes of Layout designs
Presented to
Maam Huma

Group Members
Nagina Anwar
Zeena Anwar

641
640

CONSUMER GOODS AND

PURCHASHES

Who is Customer?
A customer is also known as a
client,
buyer,
or
purchaser.
Example;
- Purchase of Antihypertensive
as B-blocker, CCB or
Diuretic

such

Types of Customers
Customers are generally categorized
into two types:

Intermediate Customer or
Trade Customer
Ultimate Customer

 An intermediate customer or trade customer;

who is a dealer that purchases goods for resale.
Pharmaceutical products purchased by the retail
pharmacist

An ultimate customer; who does not in turn resell the things bought but either passes them
to the consumer or actually is the consumer.
Insulin purchased by a diabetic or care taker

Difference Between CUSTOMER

and CONSUMER
A customer may or may not also be
a consumer, but the two notions
are distinct.

Customer Consumer

Purchases Good

Uses Goods

CONSUMERISM
Consumerism refers to wide range of
activities of government , business and
independent organizations designed to
protect rights of the consumers.
Consumerism is a process through
which the consumers seek
redress(to set right) ,restitution and
remedy for their dissatisfaction and
frustration.

 This term is used to refer to the

consumerists movement or consumer
protection act, which seeks to protect and
inform consumers by requiring such
practices as:
Honest packaging and advertising
Product guarantees
Improved safety standards

CONSUMER
GOODS
AND
PURCHASES

Consumer Goods
Consumer goodsaregoodsthat
are ultimately consumed rather than
used in the production of
anothergood.
For example, antibiotic injections, a
Fa
inibicycle
sh
microwave
oven
or
.
Consumer
e
Goods

Industrial
Goods

d
Produ
ct

Unfnish
ed
Product

Tenormin tablet
Cars

Raw
material
Wheel

Classification of
Consumer Goods

BASED ON RATE OF
CONSUMPTION AND
PRODUCTS LENGTH
OF LIFE

TRADITIONAL
CLASSIFICATION

Convenience products
DURABLE GOODS
Shopping products
NON DURABLE
GOODS

SERVICES

Speciality products
Unsought products.

CHARACTERISTI
C OF GOODS
THEORY

CLASSIFICATION BASED ON RATE OF

CONSUMPTION AND PRODUCTS LENGTH OF LIFE

This classifcation distinguishes three

categories of goods:
1. DURABLE GOODS
2. NON DURABLE GOODS
3. SERVICES.

1. DURABLE GOODS:
A category of consumer products that
do not need to be purchased
frequently because they are made to
last for a long time (usually lasting for
three years or more).
Example:
Refrigerator,
Automobiles
Other home appliances

2. NON-DURABLE GOODS:
These are physical, tangible products
which are normally consumed in one or
short period of use.
Frequently bought
Examples;
soap,
food,
paper,
shoes, etc.

3. SERVICES
These are intangible products such as
activities, benefts, satisfaction, and
behaviors which are for sale.
Examples;
Auto repairs,
Haircuts,
Entertainment,
Transportations

Traditional Classification
This classifcation is referred to as the
traditional classifcation, in which
goods are categorized as;
1.

CONVENIENCE

2.

SHOPPING

3.

SPECIALTY

4.

UNSOUGHT

1. CONVENIENCE GOODS :
Inexpensive goods that require little time and
effort on the purchase decisions and are
purchased regularly.
- Heavily advertised
- Found in most retail stores.
Examples: Grocery items, cigarettes, candies,
newspapers, and medicines such as Strepsils

 CONVENIENCE GOOD are Subdivided into 3

types:
i. STAPLES GOODS
Used often regularly and are kept on hand.
E.g; Bread

ii. IMPULSE GOODS

Unplanned Purchase e.g; magzine or candy in a
grocery store
No pre-shopping intention
Sudden purchase
a. Reminder Buying
b. Suggestion Buying

EMERGENCY GOODS
Less frequently
Purchased to satisfy an immediate need
e.g; Medicine purchased on a way to a
sporting event to sooth a headache
Ambulance services

 2. SHOPPING GOODS:
- More expensive than a convenience product
- Found in fewer stores.
- Consumers buy a shopping product only after
comparing several brands or stores on style,
practicality, price, and lifestyle compatibility. They
are willing to invest some effort into this process
to get the desired benefts

Shopping Goods may be;

HOMOGENEOUS shopping goods are products that the customer

sees as similar or standardized except on one variable, price.
Lowest price brand having desired feature.
e;g; Comparison of LG , Samsung, Kenomore for Refrigerators or
Television
HETEROGENEOUS shopping goods are products that consumers
see as non-standardized, hence, are compared for suitability,
style and quality.

3. SPECIALTY GOODS:
A product thatconsumers search extensively and are very
reluctant to accept substitutes.
Brand Loyal
Omega Watches, Rolls Royce automobiles, and highly
specialized forms of medical care are generally considered
specialty products.
Distribution is often limited to one or a very few outlets in a
geographic area.
Brandnames and quality of service are often very
important.

4. UNSOUGHT GOODS:
Goodsthat theconsumerdoes not know about or
does not normally think of buying, and the
purchase of which arises due to danger or the fear
of danger and lack of desire.
Example;
Funeral services
Coffin
Life insurance
Fire extinguishers

CHARACTERISTIC OF GOODS THEORY

Advanced by Leo V. Aspinwall

An attempt to make the assumptions
about convenience, shopping and
specialty goods more explicit and
more exact.
Provides a useful expansion of the
traditional 4 way classifcation of
goods, but is still limited as a
pragmatic marketing tool.

CONSUMER
PURCHASES

 The study of individuals, groups, or organizations and the

processes they use to select, secure, use, and dispose of
products, services, experiences, or ideas to satisfy needs and the
impacts that these processes have on the consumer and society.

OR
The dynamic interaction of cognition, behaviour and
environmental events by which human beings conduct the
exchange aspects of their lives. (American Marketing
Association)

 A discipline dealing with HOW and

WHY consumers purchase (or dont
purchase) products and services.
Those behaviours performed by
decision- making units in the
purchase, usage and disposal of
goods and services

Why study Consumer

Behaviour?
Consumer behaviour theory provides
the manager with the proper
questions to ask
Marketing practice designed to
influence consumer behavior
influences the frm, the individual,
and society.
All marketing decisions and
regulations are based on
assumptions about consumer

Consumer Chain

4 PSTO CONSUMER DELIGHT

Traditional four Ps of marketing

(Product, Price, Place, Promotion) are
changing places for the new four
Cs:

Consumer
Cost
Convenience
Communications

Companies must:
- Focus on consumers, not products
- Understand cost to satisfy
consumers, not stickerprice
- Learn how consumers want to
buy (convenience), over
determining place of purchase
- Concentrate on communications
with consumers, not just

 Consumer behaviour is product- person-situation

specifc
Product specifc:
Depends on the nature of the product
Person-individual:
Different customers behave differently due to needs,
personalities and values
Situation:
Buying behaviour is dependent on the given situation

Nature of Consumer
Purchases
Situations and Consumer Decisions
Consumer decisions result
from perceived problems
and opportunities.
Consumer problems arise in specifc
situations and the nature of the situation
influences the resulting consumer Using
Outdoor Media to Trigger Problem
Recognition behavior.

Market Driven Logistics

A service level of 98 % means nothing less than a failure
rate of 2 %. A failure rate of 2 % is not acceptable in
matters of life and death.
A failure rate of 2 % in a hospital means that 40 babies die
every year because they fall on the floor.
A failure rate of 2 % in a power utility means, that
households (and hospitals) have no electricity for 7 days a
year.

The message is that maximum

customer service is a matter of life and
dead for any company in the current
competitive environment.

Consumer behaviour and marketing

strategy
Positioning strategy
Once the brand is positioned, not easy
to shift. So, position correctly.

Market segmentation
Designing and implementing strategies to target segments
Global marketing
Marketing on world wide scale
Fulfll universal demands
Marketing mix
Tactics used to promote a brand/ product
Consumerism
Promotion of the consumer's interests

Customer satisfaction
The degree of satisfaction provided
by the goods or services of a
company
Measured by the number of repeat
customers.

Layout
An arrangement or a plan ,
especially the schematic
arrangement of parts or areas.

Importance of layout
It plays signifcant role in the
development of the customers
perception which have a positive
impact on its sale potential.

Objective of layout
To attract a large number of
customer
To increase the sale and
decrease the selling expenses
To have space reserve for
stock, office and resting place
for the employees
Proper entrance for goods
To minimize the movement of
customers within the
premises of the drug store

Types of layout
Office layout
Retail layout
Warehouse layout
Fixed position layout
Process oriented layout
Work cell layout
Product oriented layout

Strategies of Layout
Fixed-position layout
large bulky projects such as ships and buildings
Product remain in one place
Worker and equipment come to site

Process-oriented layout
deals with low-volume, high-variety production (job
shop, intermittent production)

Office layout
Grouping of workers, their equipment, and spaces to
provide comfort, safety, and movement of information

Strategies of Layout
Retail/service layout
allocates shelf space and responds to customer behavior

Warehouse layout
addresses trade-offs between space and material
handling

Product-oriented layout
seeks the best personnel and machine use in repetitive
or continuous production

Work cell layout

A special arrangement of machinery and equipment to
focus on production of a single product or related
product.

Strategic Importance of Layout

Proper layout enables:
Higher utilization of space,
equipment, and people
Improved flow of information,
materials, or people
Improved employee morale
and safer working conditions
Improved customer/client
interaction
Flexibility

Requirements of a Good Layout

An understanding of
capacity and space
requirements
Selection of appropriate
material handling
equipment
Decisions regarding
environment and aesthetics
Identifcation of the cost of
moving between the
various work areas

Types of Layout

Free Flow Layout

The free flow layout allows customers
to roam around the store freely and to
browse.
This type of layout works well in small
fashion stores, usually smaller than
5,000 square feet, in which customers
wish to browse through all of the
merchandise.
Advantage:
Increases impulse buying

Disadvantage:
Possible confusion
Waste of floor space

Grid Layout
Grid is another traditional
form of store layout in which
the counters and fxtures are
placed in long rows or "runs,"
usually at right angles,
throughout the store.
The grid is a true "shopping"
layout, best used in retail
environments in which the
majority of customers wish to
shop the entire store, such as
is in supermarkets.

Grid Layout
Advantages:
Easy to locate merchandise
Cost efficient
Easy accessible for customers

Disadvantages:
Limited browsing
Limited creativity in decor

Loop/Race Track Layout

The'Loop Layout'isalso
known as the racetrack layout.
It is mostly used in
department stores. It loops
with a major aisle that draws
customers to look around the
whole store and has multiple
entrances

Advantages:
Exposes customers to the
greatest amount of
merchandise

Spine Track Layout

Herringbone Circulation
Herringbone
Circulation is used
for a narrow store of
maximum 40 feet
width where the
highway is a single
two way one,
bisecting the store
along its length with
side roads leading
to the walls from it.

Example of an attention-getting
retail design

Store Layout Management

Store Image
is the overall perception the customer
has of the stores environment.

Space Productivity
represents how effectively the retailer
utilizes its space and is usually
measured by sales per square foot of
selling space or gross margin dollars per
square foot of selling space.

Pharmacy layout Planning

Allocating Space
Circulation
Shrinkage Prevention

Allocating Space
Types of space needed:
Back room
Office and other functional spaces
Aisles, services areas, and other
nonselling areas of the main sales floor
Wall merchandise space
Floor merchandise space

Prime Locations for Merchandise

Highly trafficked areas
Store entrances
Near checkout counter

Highly visible areas

End aisle
Displays

Allocating Space
Warehouse stores are
able to take advantage
not only of the width
and depth of the store,
but also the height, by
using large
warehouseracks that
carry reachable
inventory at lower
levels with large
pallets or cartons of
excess inventory at
higher levels.

Circulation

Free Flow
Grid
Loop
Spine

Shrinkage Prevention
When planning stores, the prevention
of shrinkage due to theft, damage,
and loss must
be considered.
It is done by increasing the visibility
of the
merchandise

Principles of layout design

It involves
fxture types,
merchandising presentation,
visual merchandising,
Merchandise Presentation Planning

Fixture Types
Hardlines Fixtures
Softlines Fixtures
Wall Fixtures

Fixture Types: Hardlines

The workhorse fxture in
most hardlines
department is known as
the gondola.
The gondola can hold a
wide variety of
merchandise - in fact,
virtually all hard lines - by
means of hardware hung
from the vertical spine.

Merchandise
Presentation Techniques

Idea-Oriented Presentation
Style/Item Presentation
Color Organization
Price Lining
Vertical Merchandising
Tonnage Merchandising
Frontal Presentation

Visual Merchandising
Visual Merchandising Is the artistic
display of merchandise and is used as
scenesetting decoration in the store.
Lead them to temptation.
When an item, such as a watch is
displayed in a glass case, it implies
luxury. An item in a glass case with a lot
of space around it implies real luxury.

Atmosphere
Is the overall feeling or mood
projected by a store through its
aesthetic appeal to human senses.
Sometimes known as store
atmosphere

Elements of Atmosphere

Atmosphere
The psychological feeling a
customer gets when visiting a
retailer
Store retailer: atmosphere refers to
stores physical characteristics that
project an image and draw customers
Nonstore retailer: atmosphere refers to
the physical characteristics of catalogs,
vending machines, Web sites, etc.

Store Design (the book

analogy)
Storefront Design. If the retail
store can be compared to a book,
then the storefront or store
exterior is like the book cover. It
must be noticeable, easily
identifed by passing motorists or
mall shoppers, and memorable,
and must clearly identify the
name and general market
positioning of the store and give
some hint as to the merchandise
inside.

Interior Design can be broken

into architectural elements and
design fnishes, and encompasses
floor covering, walls, and ceilings.

Store Design (contd)

Lighting is one of the most important though often

overlooked-elements in a successful store design. Retailers
learned that different types and levels of lighting can have a
signifcant impact on sales.

Sounds and Smells: Total Sensory Marketing. Research has

shown that senses other than sight can be very important, too,
and many retailers are beginning to engineer the sounds and
smells in their stores

Visual Communications

Name, Logo, and Retail Identity

Directional, Departmental, and
Category Signage
Point-of-Sale (POS) Signage
Lifestyle Graphics

Directional, Departmental, and

Category Signage

Directional and Departmental Signage are large signs that

are usually placed fairly high, so they can be seen
throughout the store.

Category Signage are smaller than directional and

departmental signage and are intended to be seen from a
shorter distance; they are located on or close to the fxture
itself where the merchandise is displayed.

Digital Signage
Visual Content
delivered digitally
through a
centrally managed
and controlled
network and
displayed on a TV
monitor or flat
panel screen

Point-of-Sale (POS)Signage
Is relatively small signage
that is placed very close
to the merchandise and is
intended to give details
about specifc items.
POS signage for
clearance and sale items
tend to be in more
attention grabbing colors
in order to draw a
consumers attention.