MAR3231 FSU Hopkins Exam 3 (study guide and power points)

CH 10

Nontraditional Retail

Single Channel

Primitive, original. Store based retailer.

You only interact with 1 company.

ex: Store based retailer only sells through..

-online

-mail order

Multi-channel

Buy from channel return from channel, separately. (still might be same company) MULTIPLE OPTIONS.

ex: store based retailer,

-such as jewelry store, also selling through online.

-such as local gift store, also selling through catalogs.

Omni Channel

All ways

ex:

-Disney- magic bands, shopping is easy, great experience.

Omni Channel- issue

"The problem is thinking that somehow customers care about channels. Customers care about experiences, solutions, about shopping with ease, and simplicity."

-Forbes Magazine

At the end of the day, we only care about the ease of shopping.

EX) SHIPT. Grocery delivery. Best run at food delivery

EX) DISNEY BAND- can buy anything with the bands

Mobile Retailing

-When customers know more, they buy more

-Data analytics is a "must have" capability

-Instant gratification is the retailer's best friend

-The boundaries between social media and retail apps are blurring

-Mobile payments are more efficient for everyone

**INSTANT GRATIFICATION

** Biggest change retailing has seen in 50 years

Direct Marketing

The act of communicating directly with customers

ex: emails sent directly to you from comp.

(opposite- billboards)

ex) texting customized texts from starbucks

How has direct marketing changed?

Direct Texts to customers. Company knowing your spending behaviors.CUSTOMIZED.

What companies (discussed during lecture) have successfully utilized direct marketing in new platforms?

Gamification of apps.

ex: McDonalds

ex: Starbucks

ex: Petsmart, #Nationaldogday 2015!

Direct Selling

Direct selling includes personal contact*** with consumers in their homes (and other nonstore locations such as offices) and phone solicitations initiated by retailer.

--often associatesd w multi level marketing (rodan and fields)

--people have good experience with these.

Limitations of Direct Selling

False idea of pyramid scheme

What type of products is ideal for direct selling?

Products you can try and see.

ex:

-the pampered chef (wine tasting at home)

-MaryKay (makeup)

-Cutco (knifes)

-Boisset Collection

*products that are expensive that require display, direct selling is good for that

Technology in Retail:

How do tools like video kiosks help retailers?

Keep labor costs down, convenience. faster transaction, cutting down lines

ex:

redbox

restaurant tablets.

Concerns with tech in retail

-technology cant tell when a customer is unhappy through non-verbal ques.

-Upselling cant occur, knowledge of wine paring with food in fine dinning restaurant.

*no customer feedback

Changes in nontraditional retail:

airport retail

Luxury stores in airport

Airport travelers:

Higher-educated

Senior positions

Higher incomes

Excess free time

Vending machines

Vending machines are a cash- or card-operated retailing format that sells goods and services.

-Eliminates the use of sales personnel and allows 24-hour sales.

-Machines placed wherever convenient for consumers.

Future of Vending Machines

Obesity Epidemic

-Glendale, California voted

5-0 to replace all sodas and

chips with fruits and

vegetables in two years

-Maryland is debating a law that would

require 75% of vending machine contents

meet minimum health food standards

*Online ordering

*personalized vending machines

Busy Schedules and Laziness

40% of millennials said cereal was an inconvenient breakfast because of the clean up required

Ch 11

Information Gathering

Information exchange between suppliers, retailers, and consumers

Suppliers need to know from the retailer...

From the Retailer:

-Estimates of category sales (manage and forecast what they need to make available)

-Inventory turnover rates

-Feedback on competitors

-Level of customer returns

Information exchange between suppliers, retailers, and consumers

Suppliers need to know from the customer...

From the Customer:

-Attitudes toward styles and models

-Extent of brand loyalty

-Willingness to pay a premium for superior quality

Information exchange between suppliers, retailers, and consumers

Retailers need to know from supplier...

From the Supplier:

-Advance notice of new models and model changes (ex: "top shelf" -tall bottles dont fit on bottom shelves.

-Training materials

-Sales forecasts

-Justifications for price changes

Information exchange between suppliers, retailers, and consumers

Retailers need to know from customer...

From the Customer:

-Why people shop there

-Customers' likes and dislikes

-Where else people shop

Information exchange between suppliers, retailers, and consumers

Consumers need to know from supplier...

From the Supplier:

-Assembly and operating instructions

-Extent of warranty coverage

Where to send a complaint

Information exchange between suppliers, retailers, and consumers

Consumers need to know from retailer...

From the Retailer:

-Where specific merchandise is stocked in the store

-Methods of payment acceptable

-Rain check and other policies

FOR EXAM

What type of senario can be explained by these.

"Bryan is curious about where he can get more information on a how to rain check his stuff at publix, what are his options?"

Consumer needs to know from retailer.

"assembly instructions is a type of information shared..."

from suppliers to consumers

Retail Information System (RIS)

-Anticipates the information needs of retail managers

-Collects, organizes, and stores relevant data on a continuous basis

-Directs the flow of information to the proper decision makers

How are firms currently collecting data about you?

Guest ID

"Create a new account or login through facebook."

-now they know: likes, groups, posts, everything.

ex: Target knows a lot about you

-your ethnicity

-job history

-the magazines you read

-if you've ever declared

-bankruptcy

-married, single, divorced

-the year you bought (or lost) your house

-where you went to college

-what kinds of topics you talk -about online

-whether you prefer certain

-brands of coffee, paper towels, cereal or applesauce

-your political leanings

-reading habits

-charitable giving

-the number of cars you own

How is this data about you being used?

DATA BASE MANAGMENT

-A major element in an RIS

-System gathers, integrates, applies, and stores information in related subject areas

-Used for:

Loyalty program management

Customer analysis

Promotion evaluation

Trade area analysis

Primary Data ADVANTAGES

-Collected for specific purpose

-Current

-Relevant

-Known and controlled source

Primary Data DISADVANTAGES

-May be more expensive

-Tends to be more time consuming

-Information may not be acquired

-Limited perspectives

Secondary Data ADVANTAGES

-Inexpensive

-Fast

-Several sources and perspectives

-Generally credible

-Provides background information

Secondary Data DISADVANTAGES

-May not suit current study

-May be incomplete

-May be dated

-May not be accurate or credible

-May suffer from poor collection techniques

Data Mining

Data mining is the in-depth analysis of information to gain specific insights about customers, product categories, vendors, etc.

"Digging into the data."

What does data tell retailers about your shopping behaviors?

ex: Harrah's Casino

Took data from obvious question, : "would you rather have 60 $ in chips or 30 $ and a free hotel room for the night?"

where they found ppl were taking the 60 $.

82% of revenue came from 26% of customers...

Their core customers were:

-Middle aged to senior adults

-Middle class income

-Did not stay in the hotel (locals)

Micromarketing

Micromarketing is an application of data mining whereby retailers use differentiated marketing and develop focused retail strategy mixes for specific customer segments

(niche)

Customer Prioritization

ex: Delta, Hilton

Diamond, Platinum, Premium membership.

Can prioritize customers by knowing info on them and marketing directly to them.

CH 12

Trade Area Analysis

Trade Area Analysis

A trading-area is a geographic area containing the customers of a particular firm or group of firms for specific goods or services

What information is gathered before a retailer chooses a location?

Criteria to consider include:

-population size and traits

-Competition

Good or bad?

-transportation access

-parking availability

-nature of nearby stores

-property costs

-length of agreement

-legal restrictions

Choosing a Store Location

Steps

Step 1: Evaluate alternate geographic (trading) areas in terms of residents and existing retailers

Step 2: Determine whether to locate as an

isolated store or in a planned shopping center

Step 3: Select the location type

Step 4: Analyze alternate sites contained in the specific retail location type

ex: Chick-fil-a (Franchiser)

Very respectful in trading.

Benefits of Trading-Area Analysis

-Discovery of consumer demographics and socioeconomic characteristics

-Opportunity to determine focus of promotional activities (college kids vs professors incentives)

-Assessment of effects of trading area overlap

-Ascertain whether chain's competitors will open nearby

-Discovery of ideal number of outlets, geographic weaknesses

-Review of other issues (e.g. transportation.)

Which type of retailer should be more or less concerned about a new competitor opening five miles away?

"Is overlap concerning?"

ex: New Publix Greenwise

What do we do with this?

Geographic Information Systems

Digitized mapping with key location-specific data used to graphically depict trading-area characteristics such as"

-population demographics

-data on customer purchases

listings of current, proposed, -competitor locations

"Shows you info about location specific data,such that it can help you make decisions on trading area."

GIS Software examples

1. You are making a decision on location. Most business from north. what do you do?

2. How much traffic is built from what buildings.

3. How much you're getting from household size, annual income.

The Size and Shape of Trading-Areas

Primary trading-area:

50-80% of a store's customers

Secondary trading-area:

15-25% of a store's customers

Fringe trading-area:

all remaining customers

Trading Areas and Store Types:

-How does the size of a trading area affect factors like competition?

Department Stores: Large trading area.

Convenience Store: Small trading area.

-This makes sense: Department stores are worth the drive to go to, Conv. stores are all about...CONVENIENCE.

you wouldn't get off the highway to go pee at a WalMart)

(High to Low:

Department stores

Supermarkets

Apparel stores

Gift stores

Convenience stores)

The Trading-Area of a New Store

Different tools must be used when an area is evaluated in terms of opportunities rather than current patronage and traffic patterns:

"If you dont have a current store to base data on:"

-Trend analysis

-Consumer surveys

-Computerized trading-area analysis models

What factors do you consider when considering travel time with different retailers?

ex: Lunch specials

So important to save money, forget about the travel expense.

-Bang Bang Shrimp deal.

ex: Birthday gift for parent

Will drive far to get it.

Ch 13

Site Selection

Flagship stores

-Most prominent location

-Store that holds/sells the highest volume of merchandise

-A chain's largest store

ex: apple, LV, tiffanys, REI seattle

Three Types of Locations

1. Isolate Stores

2. Planned Shopping Center

3. Unplanned Business District

There is no best location type...

just trade offs between them.

Isolate Stores

A freestanding retail outlet with no adjacent retailers

ex:

Convenience

7-11

Dollar Tree

Isolated Stores ADVANTAGES

-No direct competition

-Flexibility

-Good for convenience stores

-Adaptable facilities

-Easy parking

-Excellent for store that generates own traffic

Isolated Stores DISADVANTAGES

-Difficulty attracting customers

-Lack of cumulative attraction for customers

-High advertising expenses

-No cost sharing for promotions

Planned Shopping Centers

Centrally owned or managed and well-balanced.

Characteristics:

-Architecturally unified

-Centrally owned (or managed)

-Operated as a unit

-Based on balanced tenancy

-Accompanied by parking

ex: outlet mall

Shopping center- Lulu, WholeFoods, 4Rivers, francesca's.

Planned Shopping Centers

ADVANTAGES

-Well-rounded assortments

-Strong suburban population

-One-stop, family shopping

-Cost sharing of promotions

-Transportation access

-Pedestrian traffic

Planned Shopping Centers

DISADVANTAGES

-Limited flexibility

-Higher rent

-Restricted product offerings in lease

-Competition

-Requirements for association memberships

-Domination by anchor stores

-Impact of store closings on affinities

Unplanned Business Districts

(3)

1. Central Business Districts

2. Secondary Business Districts

3. Neighborhood Business Districts

Central Business Districts -

formed around a geographic point where all public transportation systems converge

Secondary Business Districts-

revolves around a major street intersection. SBDs evolve with the spread of the city.

Neighborhood Business District-

formed to satisfy the convenience-oriented shopping needs of a neighborhood

Secondary Business Districts

ADVANTAGES

-Closer to residential areas

-Higher level of convenience oriented products

-Access to main roads

Thomasville

Monroe

Mahan

Central Business Districts

ADVANTAGES

-Access to public transportation

-High(er) pedestrian traffic

-Near commercial and social facilities

Neighborhood Business Districts ADVANTAGES

-Convenient location

-Parking

-Less hectic than other business districts

For example, is balanced tenancy associated with a particular location type?

Planned Shopping Centers

• The ideal location for a nail salon would be _____.

• The ideal location for a concert venue would be a central business district because_____.

• Because of their access to main roads, retailers like Publix are often located in _____.

FINE DINING- central

DRY CLEANERS- neighborhood

TRADER JOES- Secondary

- Planned Shopping Centers

- downtown, many highways cross it, near commercial and social facilities

- Secondary Business District

CH 14

Operations Managment (ex: which which filling out sandwhich form)

Operations Blueprinting

The systematic listing of actions performed by employees and customers

***Touchpoints: the ways in which a customer experiences a product or service

Elements included in blueprinting

Customer actions

Onstage actions

Backstage actions

All Actions example:(Pharmacy)

-CA: Patient gives prescription to clerk>(Line of Interaction)

-OA: Clerk Stamps prescription> Clerk gives rx to pharmacist.>

(Line of Visability)

-BA: Pharmacist fills rx> Pharmacist gives med. to clerk>

(Line of Visability)

-OA: Clerk receives med.> Clerk gives med. to patient.>

(Line of Interaction)

-CA: Patient recieves medicine

example question:

The way in which John orders through a mobile app is addressed in which section of the operations blueprint?

Customer Actions

Customer actions:

Customer steps taken as part of service delivery

-Train your customers (Starbucks language)

-Co-Creation (Cust involved)

Visible contact employee actions:

Face-to-face encounters with the customer

-Use the customer's name

-"reset internal clocks"

-Own the relationship

Backstage/employee actions:

not-face-to-face with consumers

Support processes:

necessary functions crucial to carrying out the services

Physical evidence:

tangibles that customers are exposed to during contact with the retailer

Maximizing Personnel Productivity

1. The Role of Employees

-Jim Collins said "Great vision without great people is irrelevant"

Hiring the right people

2. Hire for attitude

-Look for a match in personal values

Google's interview questions

-Observe people skills

The other side of customer service

-Assess emotional strength

"how have you handled a frustrating or disappointing situation with a coworker

3. Job Standardization and

4. Cross-Training

-Job standardization: creating uniform tasks for similar positions in different departments

-Cross-training: the act of training in more than one role

-Employee empowerment: allowing your employee the freedom to make decisions

Retail Self Service

-A national bank reported a significant decrease in overall satisfaction as the transactions shifted from face-to-face to using ATMs

-Large restaurant chain reported increase in overall complaints when using self service technology

-Technology has a very difficult time delighting the customer but it can easily disappoint the customer

-If the customer is trained properly, they can benefit from self service

-The use of self service must be aligned with the goals of the retail firm

examples of job standardization

how every store folds shirts same way.