Retail Management Guide PDF

1.​ Types of Ownership ​ Independent Retailers: Privately owned, flexibility in operations, strong customer relationships. ​ Chain Stores: Multiple locations under the same brand, economies of scale, standardized processes. ​ Franchises: Hybrid of independent and chain, establis...

1.​ Types of Ownership ​ Independent Retailers: Privately owned, flexibility in operations, strong customer relationships. ​ Chain Stores: Multiple locations under the same brand, economies of scale, standardized processes. ​ Franchises: Hybrid of independent and chain, established brand name, but franchise fees apply. ​ Leased Departments: Stores within a store (e.g., Sephora inside JCPenney). ​ Consumer Cooperatives: Owned by consumers, focused on community benefits. 2. Destination Retailers ​ Definition: Retailers that customers seek out specifically, rather than stumbling upon them. ​ Examples: IKEA, Bass Pro Shops, Apple Store. ​ Characteristics: Unique merchandise, strong branding, specialized customer experience. 3. Retail Strategy Mix ​ Merchandise (Product) ​ Location ​ Pricing Strategy ​ Advertising & Promotions ​ Store Atmosphere & Customer Service ​ Retailers must balance these elements to create a competitive advantage. 4. Wheel of Retailing ​ Assumption: Retailers start with low prices and minimal services, then evolve by adding services and increasing prices. ​ Lessons: New competitors emerge at the lower-price level, causing older retailers to adapt or decline. 5. Stages of the Retail Life Cycle 1.​ Introduction – High costs, low profits (Ex: Pop-up shops). 2.​ Growth – Increased sales, competition (Ex: Direct-to-consumer brands expanding).  3.​ Maturity – Peak sales, price competition (Ex: Walmart, Target). 4.​ Decline – Reduced sales, possible reinvention (Ex: Kmart, Sears). 6. Lifestyle & Demographic Statistics ​ Demographics: Age, income, education, gender, etc. ​ Lifestyle: Interests, values, behaviors influencing shopping habits. ​ Retailers use segmentation to target customers effectively. 7. Types of Reference Groups ​ Aspirational (Groups you want to belong to) – Celebrities, influencers. ​ Associative (Groups you are in) – Friends, coworkers. ​ Dissociative (Groups you avoid) – Opposing political/social groups. 8. Elements of Perceived Risk & Marketing Solutions 1.​ Functional – Product won’t perform well → Offer warranties. 2.​ Financial – Too expensive → Discounts, financing. 3.​ Social – Fear of judgment → Brand endorsements. 4.​ Psychological – Guilt (e.g., fast fashion) → Sustainable messaging. 5.​ Physical – Safety concerns → Certifications, safety tests. 9. Four Characteristics of Services Retailing 1.​ Intangibility – No physical product → Use testimonials & reviews. 2.​ Inseparability – Produced & consumed at the same time → Emphasize skilled employees. 3.​ Perishability – Can’t store services → Time-sensitive pricing (e.g., airline tickets). 4.​ Variability – Service quality fluctuates → Staff training, service guarantees. 10. Evaluation of Service Retailers ​ Reliability – Does the service work as expected? ​ Responsiveness – Quick problem-solving? ​ Assurance – Trust in provider?  ​ Empathy – Personalized attention? ​ Tangibles – Appearance of facilities? 11. Gap Model (Fixing Service Issues) 1.​ Knowledge Gap – Business doesn’t know customer expectations → Conduct surveys. 2.​ Standards Gap – Poor service guidelines → Improve training. 3.​ Delivery Gap – Employees don’t follow guidelines → Use mystery shoppers. 4.​ Communication Gap – Marketing promises more than reality → Align advertising with service. 12. 7 Ps of Service Marketing 1.​ Product – Service being offered. 2.​ Price – How much it costs. 3.​ Place – Where service is provided. 4.​ Promotion – How service is marketed. 5.​ People – Employees delivering service. 6.​ Process – How the service is delivered. 7.​ Physical Evidence – Tangible cues like uniforms, store design.