Chapter 1

Retail Management?
Introduction, scope and trends in Retailing

Faiza Nasir

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 Refreshor!!!!
 Management
 Marketing
 Product Marketing vs. Service Marketing
 SWOT analysis
 4 Ps or Marketing Mix
 Branding
 Distribution & Placement
 Positioning
 Retail Managers (in organizations & in
retail outlets)
 Franchising, Dealership, Service Retailing

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 Distribution Network
 Distributor

 Broker / Agent

 Factory Outlet

 Wholesalers

 Retailers

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 Issues in Retailing
 How can we best serve our
customers while earning a fair profit?
 How can we stand out in a highly
competitive environment where
consumers have too many choices?
 How can we grow our business, while
retaining a core of loyal customers?

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A Typical Channel of Distribution

Manufacturer
Retailer

Final
Wholesaler
Consumer

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The Retailer’s Role in the Sorting
Process (link to Mkt. Mix)

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Relationship Management Among
Retailers and Suppliers
 Disagreements may occur:
control over channel
profit allocation
number of competing retailers
product displays
promotional support
payment terms
operating flexibility

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 Distribution Types
 Exclusive: suppliers make
agreements with one or few retailers
that designate the latter as the only
ones in a specified geographic area to
carry certain brands or products
 Intensive: suppliers sell through as
many retailers as possible
 Selective: suppliers sell through a
moderate number of retailers
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Special Characteristics Affecting
Retailers

Small
Impulse
Average
Purchase
Sale

Retailer’s
Strategy

Popularity
of
Stores
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Eliminating Shopper Boredom

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 Customer Service
 Activitiesundertaken by a
retailer in conjunction with the
basic goods and services it sells.
Store hours
Parking
Shopper-friendliness
Credit acceptance
Salespeople

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 Relationship Retailing
 Seek to establish and maintain long-term
bonds with customers, rather than act as if
each sales transaction is a completely new
encounter

– Concentrate on the total retail experience

– Monitor satisfaction
– Stay in touch with customers
– Develop customer database

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 Key Drivers
 Consumer Pull
 Rising incomes
 Explosion of media
 Change in consumer behavior
 Consumerism cycle
 The Rural market: Waking up
 Supply chain establishment
 Entry of Corporate sector
 Expansion of family owned businesses
 New Entrepreneurs
 Reducing Brand dominance
 Foreign retailers seeking entry
 Technological impact
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