Retailing encompasses the business activities involved in selling goods & services to consumers for their personal, family, or household use.

It includes every sale to the final consumer – ranging from cars to apparel to meals at restaurants to movie tickets.

Key issues that retailer must resolve:

How can we best serve our customer while earning a fair profit?

How can we stand out in a highly competitive environment where customers have so many choices?

How can we grow our business while retailing a core of loyal customers?

A Typical Channel of Distribution

Manufacturer WholesalerRetailer

Final consumer

Manufacturer Brand A

Manufacturer Brand B

Manufacturer Brand C

Manufacturer Brand D

Wholesaler

Wholesaler

Retailer

Brand A customers

Brand B customers

Brand C customers

Brand D customers

Retailers role in sorting process

OwnershipStore-based retail

strategy mix

Nonstore-based retail strategy mix & nontraditional

retailing

• Independent• Chain• Franchise• Leased department• Vertical marketing

system• Consumer cooperative

• Convenience store• Conventional supermarket• Food-based supermarket• Combination store• Box (limited line) store• Warehouse store• Specialty store• Variety store• Traditional department store• Full-line department store• Off-price chain• Factory outlet• Membership club• Flea (louse) market

• Direct marketing• Direct selling• Vending machine• World wide web (WWW)

Suppliers Third Party Logistics

Retail Operations

Customer Mgmt.

Customers

Support FunctionsSupport Functions

SystemsSystems

The Retail Marketing

Mix

Cust

om

er

Serv

ice

People

Bra

nd

Asso

ciatio

ns

Shopping Experience

Pricing

Promotion

Place / Location

Product / Merchandise features

PresentationRetail Store Image

The Adidas Retail StoreCA, USA

Acquiring Product/Merchandise Knowledge

Studying the Customer

Approaching the Customer

Presenting the Merchandise

Overcoming Resistance

Suggestive Selling

Closing the Sale

SupplierRaw material packaging warehouse Manufacturer

Manufacturer warehouse

Retailer warehouse

Retailer

Physica

l Flo

w

Customer Service

“Customer service is a task, other than proactive selling, that involves interactions with customers in person or by telecommunication, mail or automated process. It is designed, performed & communicated with two goals in mind –

Operational Production

Customer Satisfaction

Customer Service focuses on measurement of how well a firm meets the established performance standards that are viewed as important for meeting customer needs.

Customer Satisfaction is how the customers measure externally the service performance of a firm.

Lower Value Segment

Grow able Segment

Most Valued Segment

In-store PoS

Advertisement

Merchandising

Targeted Direct Mail

Added value services

Tailored, cross-learning based relationship

No. of customers

Value per customer

Lower value segment

Grow able Segment

Most Valuable Segment

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