These Marketing Management 314 notes consist of chapters 1 to 20. These notes were conducted from the lectures, the slides and the textbook. These Marketing 314 notes really helped me pass the module with a distinction. Goodluck with your academic year, I really do hope these help.
OUTCOMES:
• Provide an overview of the module and retail in general.
RETAILING:
• Encompasses the business activities involved in selling goods & services to
consumers for their personal, family or household use.
• Includes every sale to the final customer.
ISSUES IN RETAILING:
• Best service – still profit?
• Choice overload, how to stand out? Differentiate?
• Low consumer confidence & increased retail competition.
• Grow, but retain loyal customers? Recreate brand regularly.
THE PHILOSOPHY:
• Apply the basic principles of retailing, as well as the elements in a well-structured,
systematic and focused retail strategy.
THE FRAMEWORK OF RETAILING:
• The willingness to adapt is essential for retailers – the most LT-successful retailers
are those which recognize that consumers and the marketplace are constantly
evolving; they do research to get feedback and act accordingly.
AN IDEAL CANDIDATE FOR A RETAILING CAREER:
• Must be a people-person (more important than technical knowledge) – technical
skills can be taught more easily than people-skills.
, • Must be flexible.
• Should be decisive.
• Must have analytical skills.
• Must have stamina.
FIGURE 1.4: A TYPICAL CHANNEL OF DISTRIBUTION:
Final
Manufacturer Wholesaler Retailer
Consumer
• Channel of distribution = all the businesses and people involved in the physical
movement and transfer of the ownership of goods and services from producer to
consumer.
FIGURE 1.5: THE SORTING PROCESS:
• Sorting process = retailers collect an assortment from various sources, buy in large
quantity, and sell in small amounts.
OMNICHANNEL RETAILING:
• A retailer sells to consumer through multiple retail formats:
- Websites
- Physical stores
- Smartphone areas
- Social media
• Not an omnichannel if it is a multichannel.
• Cross-selling across channels (in-store products availability info website).
, • Consistent pricing in all channels (credibility).
• Can buy and return product regardless of channel.
• Seamless integration.
• Role of each channel:
- Store: try on, ease of return, fast availability (immediately) compare offerings.
- Web: 24/7, product info, product reviews by customer personalization (tailored
assortment based on post purchases), most current pricing, closeout sales.
• Example: Yuppiechef:
- QR codes on every price tag in store, so that customers can quickly read reviews
of products online on their phones.
- Items are easily added to their wish-lists.
- At checkout, the customer’s billing and delivery details are instantly on hand for
guarantee and return purposes.
DISTRIBUTION TYPES:
1. Exclusive: suppliers make arrangements with one/few retailers, designating such
retailers as the only ones to carry certain brands/products within a specified
geographical area.
2. Intensive: suppliers sell through as many retailers as possible.
3. Selective: suppliers sell through a moderate number of retailers.
EXCLUSIVE VS INTENSIVE DISTRIBUTION:
• Exclusive distribution: fate of the retailer is tied to manufacturer success, retailer
has no “free-rider” concerns, retailer has less price competition, manufacturer is
better assured of high levels of customer support.
• Intensive distribution: manufacturer is better assured of maximizing sales, retailers
face strong competition for price and service.
COMPARING DISTRIBUTION TYPES:
, SPECIAL CHARACTERISTICS AFFECTING RETAILERS:
• The average amount of a sales transaction for retailers is much less than for
manufacturers:
- This low amount creates a need to tightly control the costs associated with each
transaction; to maximize the number of customers drawn to the retailer, which
may place more emphasis on ads or promotions; and to increase impulse sales
by more aggressive selling.
• Final consumers make many unplanned or impulse purchases:
- Value of in-store displays, attractive store layouts, and well-organised stores,
catalogues and websites.
• Most retail transactions are still conducted in-stores:
- Must work to attract shoppers to stores and consider factors such as store
location, transportation, store hours, proximity of competitors, product
selection, parking and ads.
RETAIL STRATEGY:
• An overall plan for guiding a retail firm.
• Influences the firm’s business activities.
• Influences firm’s response to market forces.
6 STEPS IN STRATEGIC PLANNING (NB TO BE ABLE TO APPLY):
1. Define the type of business (corporate mission).
2. Set LT & ST objectives.
3. Determine the customer market.
4. Devise an overall, LT plan.
5. Implement an integrated strategy.
6. Evaluate and correct (fine-tune).
ASPECTS OF HOME DEPOT’S STRATEGY:
• Growth through product authority
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