Retail Notes

Retailing

• All the activities involved in selling goods directly to the final consumer for their use.
• Includes nonstore retailers, such as those operating via mail, internet, or telephone.

Trends in Retailing

• Personalized In-Store Experiences: Tailoring the shopping visit to individual customer preferences.
• Convenience/Speed via Technology: Increasing integration of technology to enhance speed and convenience.
• Privacy Concerns: Heightened awareness and sensitivity regarding retailers using data to predict shopping behavior.
• Mobile Wallet Usage: Growing adoption of mobile payment solutions.
• Omni-Channel Retailing:
  • Connected customers can shop for and purchase the same items across different channels.

Direct Retailing

• Definition: Selling products directly to consumers, often outside of traditional retail locations.
• Types:
  • Door-to-Door sales
  • Office-to-Office sales
  • Home Sales Parties

Direct Marketing

• Definition: Communicating directly with customers to generate a response (e.g., order, visit).
• Types of Direct Marketing:
  • Direct Mail: Sending promotional materials via postal service.
  • Catalogs & Mail Order: Distributing catalogs and fulfilling orders through the mail.
  • Telemarketing: Contacting potential customers by telephone.

Retailing Strategy / Retail Mix

• Components of the Retailing Mix:
  • Customer Service: The assistance and support provided to customers.
  • Pricing: Determining the optimal price points for products.
  • Atmosphere: Creating a desirable shopping environment.
  • Location: Selecting appropriate store locations.
  • Merchandise: Choosing the right products to offer.
  • Promotion: Communicating with customers about products and offers.

Factors of Atmosphere (A OULIES)

• Factors that retailers manage to influence the atmosphere:
  • Physical Surroundings: The tangible aspects of the store environment.
  • Image: The overall impression or perception of the store.
  • Safety: Ensuring a secure environment for shoppers.
  • Temperature: Maintaining a comfortable temperature.
  • Parking: Availability and convenience of parking.
  • Spacing: Layout and arrangement of merchandise and aisles.
  • Crowding (+/-): The level of congestion in the store (can be positive or negative).

Atmospherics and Shopping Behavior

• Atmosphere:
  • Encompasses elements such as layout, design, textures, and sensory experiences.
• Emotional Response:
  • The feelings evoked by the atmosphere, such as pleasure/displeasure or heightened senses.
• Behavior:
  • Impacts how consumers act, including:
    • Time spent in the store
    • Affiliation with people (interactions with staff and other shoppers)
    • Buying actions