Page 135 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes

Notes Retailing Versus E-Tailing: E-tailing is a form of retailing utilizing the Internet, the
World Wide Web (WWW), and other electronic forms of commerce to take the place of
supplement a physical retail location. E-tailing is a specialized form of e-commerce.
E-commerce is “the conduct of selling, buying, logistics, or other organization-management
activities via the Web.”
Examples of e-tailers, both Service and Products Include eBay.com and Amazon.com.

The overall objectives of e-tailing is to create sales, manage additional retail functions such as
buying and logistics, and find and identify new retail markets and opportunities using electronic
technologies. Retailers have begun to utilize the web as an integrated marketing communication
(IMC) vehicle to provide information to customers about products and services. Retailers can
create their own web stores and enter into partnerships, or strategic alliances, to leverage their
human and capital resources.

A business may need both e-tailing and retailing to create an effective integrated retail
management plan.

One key to successful e-tailing is to achieve high gross margins for products. Simply stated, a
gross margin is the revenue remaining from the sales of products after subtracting production
costs. The larger the margin, the more money there is to spend on advertising and brand
development. Successful e-tailers, such as eBay, have high gross margins.

The main distinction between e-tailing and retailing is the venue used to create effective
marketing. The key to successful retailing and e-tailing is the total integration of all the
controllable elements of the retail management mix, along with an effective retail plan and
strategy.

8.1.3 Training

Training is an important aspect of human resource management in retail. Typically in retail,
training needs arise at the following times:

Inducting new person/staff into the organization,
Training of sales staff, as they are the persons who are in direct contact with the customers,
and

Training of staff/personnel for skill enhancements.
When new persons join any organization, an induction programme is conducted. The purpose
of such an induction program is to familiarise the new entrants about the organization, policies
and methods of doing business.

In retail, special importance is given to the training of the sales staff, as they are commonly
termed as the face of the organization. Training of the sales staff usually involves the following:
1. Communication Skills: This is necessary to enable the staff to understand the basics of
effective communication. They also need to understand the barriers to communication
and how to overcome to them. Body language, its importance and interpretation in various
sales situations, also needs to be understood by the staff to enable them to communicate
effectively with the customer.

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