1. RETAIL MARKETING
MANAGEMENT
Presented by_ Anoop.R

2. RETAILING
RETAILING includes all those busn
activities involved in selling g/s to
consumers for their personal , family , or
household use.
 Retailers sell to final consumers
 They buy and sell in large quantities
 Buy products from distant sources
 Can sell services
 Sell to many distant consumers

3. RETAILING VS. WHOLESALING
manufacturer
wholesaler
retailer
Final
consumer

4. CLASSIFICATION OF RETAIL
STORES
Store-based Non-store retail
Form of
ownership
Independent ret
Chain retailer
Franchise
Leased depts
Consumer co-op
Merchandise
Offered
Convenience
Supermarkets
Hypermarkets
Speciality
Dept stores
Off price
Direct selling
Mail order
Telemarketing
Automated vending

5. LEVELS OF SERVICE
 Self-sevice
 Self- selection
 Limited service
 Full service

6.  RETAIL INSTITUTIONS CHARACTERISED BY
OWNERSHIP
1. INDEPENDENT
 2. CHAIN
3. OWNERSHIP
4. FRANCHISE
 5. LEASED DEPT
 6. VMS
7. CONSUMER CO-OPERATIVE

7. INDEPENDENT RETAILER
 OWNS ONE BUSN UNIT
 OCCUPIES 40 % OF THE TOTAL RETAIL
SEGT
 RUN BY OWNERS & THEIR FAMILIES
 EASE OF ENTRY INTO THE MARKET PLACE

8. ADVANTAGES
 FLEXIBILITY IN CHOOSING THE RETAIL
FORMAT & DEVISING STRATEGY
 ACT AS SPECIALISTS IN A NICHE OF
PARTICULAR GOODS
 DECISION MAKING IS CENTRALISED &
LAYERS ARE FEW
 OWNERS HAVE INDEPENDANCE

9. DISADVTG
 INDEPENDANTS MAYNOT HAVE MUCH
POWER IN BARGAINING WITH THE
SUPPLIERS
 GENERALLY CANNOT GAIN ECONOMIES OF
SCALE
 OPERATIONS ARE LABOUR INTENSIVE

10. CHAIN
 OPERATES MULTIPLE RETAIL OUTLETS UNDER
COMMON OWNERSHIP
 SOME LEVEL OF CENTRALISED / CO-
ORDINATED PURCHASING AND DECISION-
MAKING IS POSSIBLE
 RELATIVE STRENGTH OF CHAIN RETAILING IS
GREAT EVENTHOUGH THE NUMBER OF FIRMS
IS SMALL
 CHAINS ACCONT FOR MORE THAN 60% OF US
STORE SALES
 MANY BIG CHAINS HAVE 1000 OUTLETS EACH

11. ADVTG
 HAVE BARGAINING POWER DUE TO THEIR
PURCHASE VOLUME
 LARGE CHAINS GET SOME EXCLUSIVE
RIGHTS IN SELLING ITEMS UNDER CHAIN
BRAND
 COST EFFICIENCY IS ACHIEVED WHEN
BOUGHT IN LARGE VOLUMES DIRECTLY
FROM THE MANUFACTURER
 EFFICIENCY IS GAINED ON SHARING
WAREHOUSE FACILITIES,PURCHASING
STANDARDISED STORE FIXTURES,
CENTRALISED BUYING & DECISIONMAKING

12. •COMPUTERISED ACTIVITIES IN ORDERING
MERCHANDISE ,TAKING INVENTORY
,FORECASTING ,RINGING UP SALES & BOOK KEEPING
MOST CHAINS HAVE WELL DEFINED MGMT
PHILOSOPHIES WITH DETAILED STRATEGIES
& RESPONSIBILITIES
CHAINS ,REGIONAL/NATIONAL CAN TAKE ADVTG OFA
VARIETY OF MEDIA.

13. DISADVTG
 ONCE ESTABLISHED ,FLEXIBILITY
WILL BE LIMITED.
 NEW NON OVERLAPPING STORE
LOCATIONS WILL BE HARD TO FIND
 INVESTMENTS ARE HIGH DUE TO
MULTIPLE LEASES & FIXTURES
 MANAGERIAL CONTROL IS MORE
COMPLEX WHEN GEOGRAPHICALLY
DISPERSED

14. FRANCHISING
 IT IS A CONTRACTUAL AGREEMENT B/W
FRANCHISOR (A MANUFACTURER ,WHOLESALER OR
SERVICE-SPONSORER) AND A RETAIL FRANCHISEE
WHICH ALLOWS THE FRANCHISOR TO CONDUCT
BUSINESS UNDER AN ESTABLISHED NAME AND
ACCORDING TO A GIVEN PATTERN OF BUSINESS

15.  THE FRANCHISEE TYPICALLY PAYS AN
INITIAL FEE AND A MONTHLY
PERCENTAGE OF GROSS SALES IN
EXCHANGE FOR THE EXCLUSIVE RIGHTS
TO SELL GOODS AND SERVICES IN AN
AREA
 SMALL BUSN BENEFIT ON BEING A PART
OF A LARGE , CHAIN –TYPE RETAIL
INSTITUTION

16. TYPES
 PRODUCT/TRADEMARK FRANCHISING
A FRANCHISEE ASSUMES THE
IDENTITY OF A FRANCHISOR TO SELL THE
FRANCHISOR’S PDT AND/ OPERATE UNDER
THE LATTER’S NAME
FRANCHISEE OPERATES RATHER
AUTONOMOUSLY. THOUGH THERE ARE
CERTAIN OPERATING RULES ,THE
FRANCHISEE SETS THE STORE HOURS
 AUTO DEALERS, GASOLINE SERVICES

17. BUSINESS FORMAT FRANCHISING
 MORE INTERACTIVE RELATION B/W A
FRANCHISOR & FRANCHISEE
 THE FRANCHISEE RECEIVES ASSISTANCE
ON SITE LOCATION , QC,ACCONTING
SYSTEMS, MGMT TRAINING ,….
 PROTOTYPE STORES,STANDARDISED PDT
LINES , AND COOPERATIVE ADVERTISING
FOSTER ALEVEL OF COORDINATION
PREVIOUSLY FOUND ONLY IN CHAINS
 BUSN FORMATS COMMON FOR
RESTAURANTS & OTHER FOOD OUTLETS
,REAL ESTATE & SERVICE RETAILING
 McDonald’s

18. STRUCTURAL ARRANGEMENTS IN
FRANCHISING
 MANUFACTURER-RETAILER : the manf. gives
independent franchisee’s the right to sell goods & related
services through a licensing agreement . Eg.
GeneralMotors ,ExxonMobil
 WHOLESALER-RETAILER:
a. voluntary:a wholesaler sets franchise system and grants
franchises to individual retailers.
b co.operative: a group of retailersets afranchising
systemand shares the ownership and poerations of a
wholesaling organisation
 SERVICE SPONSOR RETAILER: A service firm licenses
individual retailers so they can offer specific service packages
to consumers

19. BENEFITS
Franchisee
 Own a retail enterprise with a rel. small capital
investment
 Acquire well known names & goods /services
lines
 Std operating procedures & mgmt skills may be
taught to them

20. BENEFITS
Franchisor
 A national /global presence is developed
more quickly
 Franchisee qualifications are set n
enforced
 Agreements require strict abidance of
rules & regulations
 Money is obtained when goods are
delivered rather than when it is stored.

21. LEASED DEPTS
 A dept in a retail store – usually a dept , discount
or specialty storethat is rented to an outside
party
 The leased dept proprietor is responsible for all
aspects of its business, including fixtures and
normally pays a percentage of sales as its rent.

22. VERTICAL MARKETING SYSTEM
 Independent system –all are independant
manfacturer
wholesaler
retailer

23. PARTIALLY INTEGRATED VMS
 Two channel members own all facilities and
perform all functions
FULLY INTEGRATED SYSTEM
 all production and distribution functions re
performed by one channel member

24. CONSUMER CO-OPERATIVE
 A RETAIL FIRM OWNED BY ITS CUSTOMER
MEMBERS.
 A GROUP OF CUSTOMERS INVESTS , OWNS,
MANAGES OPERATIONS ,ELECTS OFFICERS
,..& SHARES PROFIT /SAVINGS THAT
ACCRUE

25. STORE-BASED RETAIL
STRATEGY MIX
FOOD ORIENTED
RETAILERS
 CONVENIENCE
STORE
 CONVENTIONAL
SUPERMARKET
 FOOD BASED
SUPERSTORE
 COMBINATION
STORE
 BOX(Ltd.LINE)
STORE
 WAREHOUSE STORE
 SPECIALITY STORE
GENERAL
MERCHANDISE
RETAILERS
 VARIETY STORE
 TRAD. DEPT. STORE
 FULL-LINE
DISCOUNT STORE
 OFF- PRICE CHAIN
 FACTORY OUTLET
 MEMBERSHIP CLUB
 FLEA MARKET

26. NON-STORE BASED RETAIL STRATEGY MIX
&
NON-TRADITIONAL RETAILING
 DIRECT MARKETING
 DIRECT SELLING
 VENDING MACHINE
 WORLD WIDE WEB
 OTHER EMERGING
RETAIL FORMATS

27. THE RETAIL MARKETING DECISIONS
1. TARGET MARKET
2. PRODUCT ASSORTMENT & PROCUREMENT
3. SERVICES & STORES ATMOSPHERE
4. PRICE DECISIONS
5. PROMOTION
6. PLACE

28. DERIVED VALUE FACTORS OF A CUSTOMER
IN RETAILING
STORE/ PRODUCTVALUE
SERVICES VALUE
RETAIL PERSONNEL VALUE
RETAIL EXPERIENCE VALUE
IMAGE / BRAND VALUE
LOYALTY SCHEME VALE
MONETARY COST
TIME COST
ENERGY/ TRAVEL COST
RETAIL EXPERIENCE COST
PSYCHOLOGICAL RISK COST
TOTAL CUSTOMER VALUE
TOTALCUSTOMER COST
CUSTOMER
DERIVED
VALUE

29. CLASSIFICATION OF
SERVICE QUALITY
QUALITY
INTERNAL – CONFORMANCE TO SPECIFICATIONS
EXTERNAL - RELATIVE CUSTOMER PERCEIVED VALUE
CHARACTERISTICS OF QUALITY
*Merchandise/products -
performance ,features,reliability,conformance
to
standards , durability ,serviceability
,aesthetics, image
*Services-
Tangibles ,reliability ,response of
staff,competence ,empathy

30. COMPONENTS OF SERVICE
QUALITY
 Technical quality- the outcome dimension of
the service operations process
 Functional quality-process dimension in terms
of interaction between customer & service
provider (how technical elements are transferred
or perceived )

31. MODELS OF SERVICE
QUALITY
 GRONROOS MODEL OF PERCEIVED
QUALITY MGMT
 PARASURAMAN ,ZEITHAMYL & BERRY
MODEL

32. TECHNICAL
QUALITY
FUNCTIONAL
QUALITYKNOW
HOW
TECHNICAL SOLUTIONS
MACHINES
COMPUTERISED
SYSTEMS
ATTITUDES
CCUSTOMER
CONTACTS
ACCESSIBILITY
APPEARANCE
INTERNAL
RELNS
BEHAVI
OUR
SERVICE.
MINDEDNESS
IMAGE
PERCEIVED QUALITY
EXPECTED
SERVICE
PERCEIVED
SERVICE
TRAD.MKTG
ACTIVITIES
GRONROOS MODEL OF PERCEIVED SERVICE QUALITY

33. PERSONAL NEEDS
EXPECTED SERVICE
PERCEIVED SERVICE
SERVICE DELIVERY
(PRE & POST)
TRANSLATION OF PERCEPTION
INTOSERV-QUAL
SPECIFICATIONS
MGMT OF PERCEPTION
PAST EXPERIENCEWORD OF
MOUTH COMM
EXTERNAL COMM
GAP1
GAP 2
GAP 3
GAP 5
GAP[ 4