retail management-ppt.pptx
- 1. Table of Contents Retailing Overview 01 Retailing Sectors 02 Retail Challenges & Theories 03 Understanding Retail Consumers 04
- 2. RETAILING
- 3. Retail Retail is the end or final stage of any economic activity
- 4. The Word retail has been derived from the french word ‘re-tailler’ which means, ‘to cut off, trim or divide’.
- 5. RETAILING ❖ Retailing is buying and selling both goods and consumer services. ❖ It can also be defined as the timely delivery of goods and services demanded by consumers at prices that are competitive and affordable. ❖ Retailing is a set of business activities that adds value to the products and services sad to consumers for their personal or family use.
- 6. Retailer • Retailer may be defined as a dealer or a trader who sells godos?services in small quantities to consumers for personal or family use. • Is any business Enterprise whose sale volumen comes primarily from retailing
- 7. RETAIL MANAGEMENT ▪ Retail Management is a process of promoting greater sales and customer satisfaction by gaining a better understanding of the consumers of goods and services produced by a company. ▪ It includes all the steps required to bring the customers into the store and fulfill their buying needs. ▪ It is an art as it requires a number of management tolos for a complete end user satisfaction.
- 9. ▪ Department Store ▪ Specialty Store ▪ Discount/Mass Merchandisers ▪ Warehouse/Wholesale clubs ▪ Factory Outlet Retail Sectors
- 10. Retail Sectors Department Stores Department stores are large retail establishments that are made up of a number of sections, or departments. A specific group of products is available in each department, each of which specializes in selling a particular grouping of products.
- 11. Retail Sectors Specialty Stores Specialty stores are the retail establishments that specialize in the selling of a single type or specific range of merchandise and related items. These establishments typically concentrate their efforts on selling a single type or very limited range of merchandise.
- 12. Retail Sectors Discount/Mass Merchandisers Discount stores are stores that typically sell a broad range of products at lower prices than other retail establishments. However, they generally also offer lower levels of service than higher-priced retailers. These stores tend to offer a wide array of products and services, but they compete mainly on price.
- 13. Retail Sectors Warehouse/Wholesale clubs A warehouse club is an off-price retail store that sells a general line of merchandise at low prices. These stores have a no-frills setting that resembles a warehouse, and they usually require a membership in order for customers to shop at the store and get the reduced members prices. That’s why they are called warehouse clubs
- 14. Retail Sectors Factory Outlet A factory outlet is a premises in which a manufacturer offers goods for sale direct to the public. Such outlets are often cheaper than retail stores because retail costs are not included. Factory outlets are owned and operated by manufacturers and normally carry the manufacturers' surplus, discontinued, or irregular goods.
- 16. Retail Challenges Today consumers are choosing multichannel buying experiences and expect that to be a seamless experience. To attract customer loyalty, retailers need to provide an experience that stands out from others. Learn the challenges faced by the retail sector today. Consumers today have changed the way they interact with businesses.
- 17. Legal and security Ethical issues Technological Non-store retailing etc Retail Challenges Write your subtitle here
- 18. Organized retailing in major cities began as an experiment, expanding business organizations and establishing stores in unorganized sectors. Legal and Secuirity Retail industry expansion poses challenges and losses for a significant portion of society's reliant population. Ethical Issue Retail management system requires technology advancements for modern amenities and challenges in supply chain, affecting suppliers, employees, and end users. Techonologic Retail locations face increased workload and disorganized supply distribution network due to Non-Retailing Store B Retail Challenges
- 19. Retail Theories Retail growth has been boosted by new enterprises and innovative strategies. Various theoretical viewpoints can be used to analyze retail growth, as diverse market circumstances and socio-economic situations contribute to its intolerability.
- 20. The Theories are; Wheel of Retailing Retail Accordion Theory Theory of Natural Selection Retail life cycle
- 21. The theory by Malcolm P. McNair explains how retailing has evolved structurally over time. Retail businesses seek to expand their clientele through modernization, product additions, and service introductions. As the market expands and prices increase, they shift to catering to affluent clients, transitioning from low-income to affluent customers. 1.Wheel of Retailing:
- 22. The accordion hypothesis suggests that general stores transform into specialty shops before returning to their original form. Hollander's idea, inspired by the orchestra, suggests closed accordions for specialty products or open accordions for general stores. 2.Retail Accordion Theory:
- 23. Retail establishments adapt to changing environments, with merchants who effectively adapt to technology, economics, demographics, politics, and law more likely to expand and succeed. This theory is superior to the Wheel of Retailing, but lacks consumer preferences, expectations, and wishes. 3.Theory of Natural Selection:
- 24. Retail businesses undergo various stages of innovation, development, maturity, and decline, similar to products and brands. In the invention stage, organizations have few rivals. In the accelerated growth phase, firms experience rapid sales growth, competition, and leadership to maintain stability. To survive, organizations must adopt a unique strategy at each stage of their life cycle. 4.Retail Life Cycle:
- 25. Understanding retail consumers involves comprehending their shopping habits and understanding who purchases Understanding Retail Consumer
- 26. Understanding retail consumers involves understanding their shopping habits, purchasing patterns, and reactions to sales promotions. This includes understanding who, when, and how purchases are made. Understanding Retail Consumer
- 27. Customer’s Buying Behavior Patterns Place of Purchase Product Purchased Time and Frequency of Purchase Method of Purchase Response to Sales Promotion Methods
- 28. Customers divide their place of purchase. Even if all the products they want are available at a shop, they prefer to visit various shops and compare them in terms of prices. When the customers have a choice of which shop to buy from, their loyalty does not remain permanent to a single shop. Place of Purchase
- 29. Availability/Shortage of product Perishability of product Storage requirements Purchasing power of oneself Product Purchased It pertains to what items and how many units of items the customer purchases. The customer purchases a product depending upon the following − Requirement/Choice of product
- 30. Weather Season Location of customer 1 2 3 Time and Frequency of Purchase Retailers need to keep their working time tuned with customer’s availability. The time of purchase is influenced by −
- 31. Method of Purchase It is the way a customer purchases. It involves factors such as − ● Is the customer purchasing alone or is accompanied by someone? ● How does the customer pay: by cash or by credit? ● What is the mode of travel for the customer?
- 32. Factors Influencing Retail Consumer Understanding consumer behavior is critical for a retail business in order to create and develop effective marketing strategies and employ four Ps of marketing mix (Product, Price, Place, and Promotion) to generate high revenue in the long run. ● Market Conditions/Recession ● Cultural Background ● Social Status ● Income Levels ● Personal Elements ● Psychological Elements
- 33. Factors Influencing Retail Consumer ● Market Conditions/Recession In a well-performing market, customers don’t mind spending on comfort and luxuries. In contrast, during an economic crisis they tend to prioritize their requirements from basic needs to luxuries, in that order and focus only on what is absolutely essential to survive
- 34. Factors Influencing Retail Consumer ● Cultural Background Every child (a would-be-customer) acquires a personality, thought process, and attitude while growing up by learning, observing, and forming opinions, likes, and dislikes from its surrounding. Buying behavior differs in people depending on the various cultures they are brought up in and different demographics they come from.
- 35. Factors Influencing Retail Consumer ● Social Status Social status is nothing but a position of the customer in the society. Generally, people form groups while interacting with each other for the satisfaction of their social needs. These groups have prominent effects on the buying behavior. When customers buy with family members or friends, the chances are more that their choice is altered or biased under peer pressure for the purpose of trying something new. Dominating people in the family can alter the choice or decision making of a submissive customer.
- 36. Factors Influencing Retail Consumer ● Income Levels Consumers with high income has high self-respect and expects everything best when it comes to buying products or availing services. Consumers of this class don’t generally think twice on cost if he is buying a good quality product. On the other hand, low-income group consumers would prefer a low-cost substitute of the same product. For example, a professional earning handsome pay package would not hesitate to buy an iPhone6 but a taxi driver in India would buy a low-cost mobile.
- 37. Factors Influencing Retail Consumer ● Personal Elements Gender − Men and women differ in their perspective, objective, and habits while deciding what to buy and actually buying it. Age − People belonging to different ages or stages of life cycles make different purchase decisions Occupation − The occupational status changes the requirement of the products or services. For example, a person working as a small-scale farmer may not require a high-priced electronic gadget but an IT professional would need it. Lifestyle − Customers of different lifestyles choose different products within the same culture. Nature − Customers with high personal awareness, confidence, adaptability, and dominance are too choosy and take time while selecting a product but are quick in making a buying decision.
- 38. Factors Influencing Retail Consumer ● Psychological Elements Motivation − Customers often make purchase decisions by particular motives such as natural force of hunger, thirst, need of safety, to name a few. Perception − Customers form different perceptions about various products or services of the same category after using it. Hence perceptions of customer leads to biased buying decisions. Learning − Customers learn about new products or services in the market from various resources such as peers, advertisements, and Internet. Hence, learning largely affects their buying decisions. For example, today’s IT-age customer finds out the difference between two products’ specifications, costs, durability, expected life, looks, etc., and then decides which one to buy. Beliefs and Attitudes − Beliefs and attitudes are important drivers of customer’s buying decision.
- 39. Thank You!