MAR3231 exam 3 study guide

omnichannel retailing

a multichannel approach to sales that seeks to provide a seamless shopping experience to customers whether they are shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store

Example of an omnichannel retailer:

Disney

The key difference between multichannel and omnichannel retail is...

how the customer experience is joined up across those channels

An online clothing store that sells online and through catalog is a

multichannel retailer

direct selling

Personal contact with customers in their homes or offices to sell to them

- is often in-house and involves aggressive sales techniques and demonstrations.

Examples of direct selling

Mary K

CutCo

The pampered chef

limitations of direct selling

- Have to generate business on your own and depend on your network of friends/family

- Company structure/ % of sales

What type of products are ideal for direct selling?

Premium products that require visual display

Technology in retail includes

video kiosks and apps

How do tools like video kiosks help retailers?

They facilitate the interaction, remove employees, faster transaction, and lower labor costs

- Bad: can't increase customer satisfaction/service and can't up-sell

direct marketing

The act of communicating directly with customers to inform them of a product/service

How has direct marketing changed?

Companies can auto text you, apps, etc.

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

Starbucks (app)

PetSmart (national dog day tweets)

Changes in nontraditional retail include...

new laws and airports

- Luxury stores are in airports bc of the demographics of frequent airport travelers

- Vending machines are becoming healthier

____ % of millennials said cereal was an inconvenient breakfast

40

How are firms currently collecting data about you?

- Most of it is public information

- Guest ID number: emails, cookies, coupons

How is this data being used?

Used to sell/market specific products to specific customers

advantages of primary data

collected for a purpose, current, relevant, known and controlled source

Disadvantages of Primary Data

more expensive, more time consuming, may not be acquired, limited perspectives

advantages of Secondary Data

already exists, inexpensive, fast, several sources/perspectives, generally credible, provides background info

Disadvantages of Secondary Data

not current, incomplete, dated, may not be accurate or credible

data mining

digging into the data/ in depth analysis

Consumer Insight

helping make decisions based on data (Harrahs)

Information exchange from retailer to supplier

estimates of category sales, inventory turnover rates, feedback on competitors, level of customer returns

Information exchange from customer to supplier

attitudes toward styles and models, extent of brand loyalty, willingness to pay a premium for superior quality

Information exchange from supplier to retailer

advance notice of new models/changes, training materials, sales forecasts, justifications for price changes

Information exchange from consumer to retailer

why people shop there, customer likes and dislikes, where else people shop

Information exchange from supplier to consumer

assembly/operating instructions, extent of warranty coverage, where to send a complaint

Information exchange from retailer to consumer

where specific merchandise is stocked in the store, methods of payment, rain check and other policies

What information is gathered before a retailer chooses a location?

- Population, size, traits

- Competition (good or bad?)

- Transportation access/parking availability

- Nature of nearby stores

- Property costs

- Length of agreement

- Legal restrictions

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

convenience stores (smaller trading area)

- department stores have the largest trading area

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

- Parking

- Importance of product (price/deals)

- transportation accessibility

GIS system

mapping system with key location specific data used to graphically display trading-area characteristic

Isolated stores

a freestanding retail outlet with no adjacent retailers

planned shopping center

centrally owned/managed and well balanced, architecturally unified, operates as a unit, has parking

unplanned business district

- Central

- Secondary

- Neighborhood

Central Business District

around a geographic point (NYC)

secondary business district

near a street intersection/ main road

neighborhood business district

unplanned shopping area that appeals to the convenience shopping and service needs of a single residential area

Is balanced tenancy associated with a particular location type?

planned shopping centers

Isolated advantages

no direct competition, flexibility, good for convenience stores, adaptable facilities, easy parking, generates own traffic

Isolated disadvantages

hard to attract customers, lack of cumulative attraction, high advertising expenses, no cost sharing

Planned advantages

good assortment, suburban population, one stop shopping, cost sharing, transportation access, foot traffic

Planned disadvantages

limited flexibility, higher rent, restricted product offerings in lease, competition, membership requirements, domination of anchor store, impact of store closings on affinities

What makes a store a "flagship store"?

Has one of the following... most prominent location, store that holds/sells highest volume, or a chain's largest store

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

neighborhood business district

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

tied to big social settings/lots of people

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

secondary business districts

Operations Blueprinting

the systematic listing of actions performed by employees and customers

Touchpoints

the ways in which the customer experiences the product/service (Disney & Apple go above and beyond)

Elements included in operations blueprinting

- Customer actions, training customers, co-creation

- Onstage/visible contact employee actions: use customers name, reset internal clocks, own the relationship

- Backstage/ employee actions

- Support processes (delivery service)

- Physical evidence (tangible product)

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

customer actions

what is cross training and how can it improve personnel productivity?

- The act of training in more than one role, they can do the job in multiple roles

- Stocking personnel can also be the cashier

- Less people working

job standardization

creating uniform tasks for similar positions in different departments

- helps in the training process so an employee can function in any department/ not limited

Forbes magazine said that _____ is the biggest change to hit retail in 50 years

mobile retailing

A large portion of the success in airport retail can be attributed to the

demographics of frequent flyers

Disney does a great job with customer experience. Much of their success can be attributed to the way in which they manage __________ given the many times a customer interacts with the brand during a typical brand experience.

touchpoints

As an independent retailer, Kevin's is a viable competitor to chain retailers who sell outdoor apparel because of Kevin's

flexibility of retail strategy

As a supplier for Publix, it is important that Publix lets Pepsi Co. know

inventory turnover rates

As a customer at Publix, it is important that Publix lets you know

where merchandise is located

The information needs of retail managers are collected, organized, and stored on a continuous basis in a

retail information system (RIS)

Which location type is generally characterized by no competition, good road visibility, and easy parking?

isolated retailers

The concept stating that the type and number of stores within any planned center should complement each other as to the quality and variety of their product offerings is

balanced tenancy

The following are location forms that are unplanned as a unit?

central, secondary, and neighborhood business districts

A major disadvantage to an isolated store location is that

costs like outside lighting and security can not be shared

Planned shopping centers are characterized by

central ownership or management and balanced tenancy

The trading area with the highest average purchase by a customer is the

primary trading area

The most important trading area for a retailer to study is the

primary trading area