Retail

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"Retail stores" redirects here. For the comic strip by Norm Feuti, see Retail (comic strip).

Drawing of a self-service store.

Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mall, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used forbusiness-toconsumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world.

In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows: Food products Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting goods, etc. Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy: Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Discount stores - tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee; Variety stores - these offer extremely low-cost goods, with limited selection; Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). Mom-And-Pop : is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder. Specialty stores: A typical speciality store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores. General store - a rural store that supplies the main needs for the local community; Convenience stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases. Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. Supermarkets: is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be 2 anywhere between 20,000 and 40,000 square feet (3,700 m ). Example: SPAR supermarket. Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Category killers or Category Specialist: By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the

payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon, Pennyful and Ebay. Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products.

Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target. Other types of retail store include: Automated Retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include ZoomShops andRedbox. Big-box stores encompass larger department, discount, general merchandise, and warehouse stores. Convenience store - a small store often with extended hours, stocking everyday or roadside items; General store - a store which sells most goods needed, typically in a rural area;

Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behaviour. A good format will lend a hand to display products well and entice the target customers to spawn sales.

Mom-And-Pop or Kirana Stores: is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder. Specialty Stores: A typical specialty store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores. Department Stores: often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. For example: Food World in Bangalore. Discount Stores: offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. However the service is inadequate.

Convenience Stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases. Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic example is the Metroin Bangalore. Supermarkets: is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-40,000 square feet. Example: SPARsupermarket. Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Example: Sigma mall and Garuda mall in Bangalore. Category Killers or Category Specialist: By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the center of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. For example: Pai Electronicsstore in Bangalore. E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon and Ebay. Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. This kind of system is currently not widely used in India. For example: Soft drinks vending at Bangalore Airport. Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behavior. A good format will lend a hand to display products well and entice the target customers to spawn sales.

IMPORTANCE

Advertising

There are two main functions of advertisements: to sell more products, and to inform the customer. Through newspaper, TV, radio and internet advertisements, retailers can inform their customers of the sales, promotions and in-store events. Moreover, since the media is flooded with advertisements, the ability to create a more eye-catching or attention-grabbing ad directly influences sales. Stores that advertise--as opposed to those that dont--are kept at the top of their potential shoppers mind, which can produce sales in the short and long term.

In-Store Promotions

Stores use promotions to prompt impulse buying behavior. A shopper may not intend to buy a product, but if there is a promotion, there is an incentive for immediate action. For example, a shopper may not need another dress shirt, but might still buy one if it is on sale. Additionally, promotions can prompt consumers to recall a product and thus instigate a purchase. Retailers also use promotional periods-- corresponding with national holidays or well-know sales times--to sell off the previous seasons merchandise. Promotional periods spike sales, and are a way retailers can reduce the loss of unsold inventory

In-Store Atmosphere and Customer Relations

Store design and consumer relationship marketing (CRM) directly affected the way customers purchase and retain goods. Things like the atmosphere, music, store layout, sales help, and post-purchase support can influence things like shopping time (the longer they shop, the more likely they are to buy), and how gratified they feel with their purchase. The more content a buyer is with their shopping experience, the more likely they are to buy merchandise, and the less likely they are to return it.

Branding Retail Outlets

It is necessary for retailers to develop their brand in order to stand out amongst the many other stores. With local boutiques, specialty stores, department stores, mass-merchants and internet stores, customers have more choices when it comes to buying. There is competition within each category, and competition between categories. For example, a local boutique selling dress shirts is competing with other local boutiques, and also with the mass-merchant who might be selling dress shirts at a cheaper price. It is therefore necessary for the boutique to create a brand position that a customer can identify with, to keep them loyal.

Private Labeling

Solidifying a retail brands private label is the apex of the retail marketing evolution--and the most recent trend in high-end retailing. This is not a new concept for low- to mid-priced retail outlets, as everything from food to raincoats have been put under their brand's name. But what's new is stores that build their brand to the point where they can sell merchandise at a premium price. Doing so is more cost effective: they can reduce the costs associated with buying other brand names, source cheaper goods from private manufacturers and reap higher profits. As an added bonus, stores benefit from consumer loyalty to their stores and their products.

The Role of Retail Marketing

Retail marketing is an essential component of an overall marketing strategy. It supports the use of external marketing campaign efforts including advertising, events and promotions. Retail marketing tactics include in-store signage, copies of newspaper sales circulars, coupons, demonstrations and inaisle promotions and displays. Effectively executed, retail marketing serves to "close" the sale once

shoppers come inside the store. Incentives and navigational devices are strategically used to sell specially advertised products and cross-sell additional products and services. Read more: The Role of Retail Marketing | eHow.com http://www.ehow.com/about_6543278_role-marketingretail.html#ixzz1mA4Ft6gK

Support Advertising

Retail advertising is used inside of stores to support national, regional and local advertising. For example, if a national manufacturer for detergent is conducting a television commercial campaign offering consumers 20 percent off for a limited time, the role of retail marketing is to provide support via signage and displays inside of stores when shoppers arrive to support the effort.

Drive Category Sales

Manufacturers and distributors for products sold in stores are "categorized" by the type of product they offer to retail customers. Products sold in grocery stores are defined in terms of categories for food, beverage, laundry, snacks and other categories. Department stores are categorized in terms of clothing, furnishings, dcor, perfume and more. The top sellers within each respective category compete to become the "category leader." By becoming the category leader the manufacturer gains authority and credibility to recommend an increase of how much space they can obtain for the products and brands carried inside of the store.

Cross-Selling and Up-Selling

Retail marketing also includes strategies and tactics to cross-sell and "up-sell" products and merchandise to increase overall expenditures by each shopper. During the summer barbecue season a grocery store might combine and "cross-sell" a promotion that gives shoppers 50 percent off on the purchase of fire lighting fluid with the purchase of a 10-lb. bag of charcoal. The up-sell strategy could be to give the fire lighting fluid free with the purchase of a 20-lb. bag of charcoal.

Shopper Navigation

Aisle and category signage and other devices to direct shoppers to locate products is a role of retail marketing whose importance should never be underestimated. A busy mom needs clear directional signage to get to the right store aisle to purchase what she wants. A husband depends on store navigation to guide him to the right shelf to purchase a drug medication needed for his children, while the wife is at home giving care. Shopper marketing experts estimate that a shopper can spend less than four seconds in making a decision on what to purchase on a retail shelf. Providing proper navigation to the appropriate aisles and store shelves helps guide customers to products and generate merchandise sales.

Customer Relationship Management

Customer relationship management (CRM) is the term used to describe information captured about shoppers. The information is used to develop databases that can be mined to target consumers based on their geography, product preferences, expenditures and more. CRM is a tool that savvy retail marketers use to develop advertising, promotions and events by offering products and services that align with the tastes and preferences of their customers and shoppers.

The nine essential e-commerce processes required for the successful operation or management of e-commerce activities consist of: Access control and security Profiling and personalizing Search management Content management Catalogue management Payment Workflow management Event notification Collaboration and trading E-commerce processes must establish mutual trust and secure access between the parties in an e-commerce transaction by authenticating users, authorizing access, and enforcing security features. Profiling processes gather data on an individual and their website behaviour and choices, and build electronic profiles of their characteristics and preferences. User profiles are developed using profiling tools such as user registration, cookie files, website behaviour tracking software, and user feedback. Efficient and effective search processes provide a top e-commerce website capability that helps customers find the specific product or service they want to evaluate or buy. Content management software helps e-commerce companies develop, generate, deliver, update, and archive text data, and multimedia information at e-commerce websites. E-commerce content frequently takes the form of multimedia catalogs of product information. Generating and managing catalog content is a major subset of content management. Content and catalog management may be expanded to include product configuration processes that support Web-based customer self-service and the mass customization of a company`s products. Configuration software helps online customers select the optimum feasible set of product features that can be included in a finished product. E-business workflow systems help employees electronically collaborate to accomplish structured work tasks within knowledge-based business processes. Workflow management in both e-business and e-commerce depends on a workflow software engine containing software models of the business processes to be accomplished. The workflow model expresses the predefined sets of business rules, roles of stakeholders, authorization requirements, routing alternatives, databases used, and sequence of tasks required for each e-commerce process. Most e-commerce applications are event-driven systems that respond to a multitude of events. Event notification processes play an important role in e-commerce systems, since customers, suppliers, employees, and other stakeholders must be notified of all events that might affect their status in a transaction. This category of e-commerce processes are those that support the vital collaboration arrangements and trading services needed by customers, suppliers, and other stakeholders to accomplish e-commerce transactions.
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5 P's to Effective Marketing
Written by: Eugenia Bivines Web Site: The E-Book Connection

Date Submitted: 02/20/2004

5 P's to Effective Marketing ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The E-Book Connections ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The E-Book Connections Newsletter 5 P's to Effective Marketing Febuary 2004 #1 The E-Book Connection (C)Eugenia Bivines, 2004eb ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 5 P's to Effective Marketing ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ You've done everything right in your site design. Your navigation is clear and simple to use, graphics load quickly and the design is pleasing as easy to look at. Even the best design cannot guarantee your site success. If you want to succeed and stand out, you will need to incorporate important marketing elements into your site's design. The essential elements of marketing are easy to remember and include the following:eb product, price, promotion, physical distribution and people. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Product ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Identify what it is that you are really selling. Don't worry about complicated schemes, just focus on making it clear what you are selling. Start by identifying the benefits of your product. Be sure to point out the things that your customers can really identify with. It is a good idea to focus on how the product solves problems and adds value for your customer base. Once you've identified the benefits and values, take a step back and ask the hard question, "So what?" This forces you to uncover the core benefits of your product and anticipate your customers' concerns. You will also discover even deeper benefits and value that you never even thought of for your product.

To more indepth information of on The 5 P's of Effective Marketing Products mailto:tmisbizop1@sitesell.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Price ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ What numbers can say about your product. Internet buyers are more price sensitive than traditional consumers. Why? Because they can easily shop around for competitive pricing and features. Your pricing should be competitive, yet still allow you to turn a profit. Your pricing structure can say a lot about your product. If priced too high, it can drive customers away, while a price that is too low may leave potential customers wondering what is wrong with the product. Find ways to create values. Justify your pricing. Spell out what customers get. If it is 24/7-customer support and weekly updates, let them know. A low price shouldn't be the only competitive edge your product has. While the price may motivate customers to buy, don't forget to back it up with features and value because if price is the only thing that entices your customers, rest assured that someday, someone will beat your price and nab your customers. To discover " How much money Your leaving on the table?" Get more indepth information The 5 P's of Effective Marketing Pricing mailto: tpmsbizop1@sitesell.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Promotion ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Promote on your site. Don't spend all the time and effort trying to attract visitors without promoting your products and services. Motivate your customers to positive action by adding call to action statements throughout your site. List testimonials and customer statements about the value of the product. If your product is related to other Web sites, list links to those sites for customers to look at. Case studies are also a good way to demonstrate how your product produces results or solutions in a variety of situations. Don't overlook the traditional promotions that tout "saving up to 15%" or getting added support. Offer value-added services. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Physical Distribution ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Distribution beyond product delivery. The distribution of your product goes beyond just getting

the product to your customers. Don't forget to make it easy for them to not only receive the product, but also use and return it if necessary. If the product requires assembly or installation be sure that clear concise instructions are included and even available online. Have a clear return policy indicating time limits and any other conditions well in advance. Make them aware from the beginning instead of surprising them down the road. In the end, even a customer who returned a product can still be a satisfied customer-based on their experience in dealing with you and your site. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ People ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Provide customer service. Two-way communication can help you build relationships with your customers and result in more closed sales. Internet shoppers are fairly independent, but can become easily disillusioned with your site and product if the information they need is not accessible. Even if you have a small operation, customer support is fairly easy to implement. Have clear links to support information throughout the site including the purchasing process. Any place where transition is required should have clear links just in case customers need help. Make support policies clear. If you plan to offer support only for certain hours of the day, indicate that on your page. Set expectations. Let your customers know when you'll get back to them. It takes you an average of 3 hours to respond to an email, let customers know. People, in general, are easier to work with when they know what to expect ahead of time. The 5 P's of marketing can help you improve your site where it matters most-in the content and overall customer satisfaction of your site. By combining the elements of product, pricing, promotion, physical distribution and people with your site's design elements, you'll be on your way to more success on the Internet. Get your free Getting Started Action Guide http://pages.ivillage.com/qebbs/ebookconnection ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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In the management literature 5 M's of management called as; 1. Money 2. Men 3. Material 4. Method 5. Machine Marketing is defined by the AMA as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." [1] It can also be defined as "the process by which companies create value for customers and build strong customer relationships, in order to capture value from customers in return".