Page 90 - DMGT553_RETAIL_STORE_MANAGEMENT

Unit 5: Retail Arithmetic

Notes
configurations using variable buffer polygons to emulate various spatial configurations
of catchment areas (i.e., trade areas) associated with each fast food store. The socio-economic
profiles in the partitioned polygons have been analyzed with a series of regression models.
The result of the study has brought out a better understanding of how location factors
influence the performance of the stores as well as how the socio-economic attributes of the
catchment areas affect the store revenues.
Source: http://etd.ohiolink.edu/view.cgi/Niti%20Duggal.pdf?kent1196133312

5.3 Marketing in Retail

Marketing has been defined as “the process by which individuals and groups obtain what they
want and need through creating, offering and freely exchanging products and services of value
with others”.
Meaning of marketing is to identify the customer needs and satisfy those needs as desired by the
customer. But every player who exists in the market is doing the same. Therefore the companies
started wondering what next? They realized that they need to focus on long term profitable
customers. Only the way is to best of the best action plan and relationship building. For that
purpose every marketer is quoting their own business equations.
The Return Exchange is evolving to become the Retail Equation. This change is all about growth
and opportunity. While The Return Exchange has been focused on return authorizations, today
we are seeing strong demand for broader return optimization solutions that extend well beyond
fraud. Therefore, our new name is an evolution, not a dramatic change, reflecting the fact that
our business growth will be driven by our ability to predict shopper behaviour and optimize all
retail transactions

Lab Exercise Go to website http://www.ikea.com/ms/en_US/customer_service/
return_policy/index.html and gather more information on appliance warranty and repair.
Due to the globalization every body come and launch their products in India, theory by most of
the Indian business were lost certain percentage of market share. Most producers no longer sell
their product to the final consumer. The marketing channel design is largely based on the level
of service desired by the target consumer. Here, the retailer provides valuable inputs to the
manufacturers on the products and the consumers.
Manufacturers or suppliers who offer products for immediate consumption are known as direct
manufacturers or suppliers.

Example: Eureka Forbes, whose door to door sales men offer its products to customers,
is an example of a company which offers its products directly to the consumers.
Most of the market occupied with unorganized products. The hyper markets became the good
platforms to the unregistered brands. Just to spend on manufacturing cost and push it out in the
market through retailer.
The other perspective of looking at the marketing-retail relationship is from that of the retail
industry itself. Every retailer needs marketing. The marketing efforts of multibrand retailer
like Food World and shopper’s stop are different from those of an own brand retailer like Wes
side. However the basic principles of marketing are no different for a retailer than for any other
supply organization.

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