Untitled
MAR3231: Retail Management
Instructor: Dr. Luke Hopkins
Institution: State University of New York, Florida
Establishment Year: 1851
Plan for the Day
Focus Areas:
Information Gathering
Retail Information Systems
Data and Micromarketing
Consumer Preferences in Branding
Insights from Marketing Research
Nostalgia in Branding:
Recent insights indicate that consumers associate retro packaging with childhood memories.
Key terms highlighted in discussions with customers:
"Retro"
"Nostalgia"
Focus demographic for this sentiment: Consumers in their 30s and 40s.
Information Flow within the Distribution Channel
Key Components of Information Flow:
Information shared between the following entities:
Supplier
Retailer
Consumer
Information Sharing Protocols
What information should be shared:
Between Retailer (e.g., Publix) and Customer.
Between Retailer (e.g., Publix) and Manufacturer/Wholesaler (e.g., ConAgra Foods).
Supplier Information Requirements
Needed by Suppliers from Retailers:
Estimates of category sales.
Inventory turnover rates.
Competitive feedback.
Level of customer returns.
Needed by Suppliers from Customers:
Customer attitudes towards styles and models.
Brand loyalty levels.
Willingness to pay for quality.
Retailers' Needs from Suppliers and Customers
Needed by Retailers from Suppliers:
Advance notice of new product models.
Training materials for products.
Sales forecasts.
Justifications for price changes.
Needed by Retailers from Customers:
Reasons for shopping at the retailer.
Customer preferences.
Competitor shopping locations.
Consumers' Needed Information
From Suppliers:
Assembly and operating instructions for products.
Warranty coverage extent.
Complaint resolution contacts.
From Retailers:
Merchandise locations within stores.
Accepted methods of payment.
Store policies on returns and exchanges.
Retail Information System (RIS) Overview
Definition and Functionality:
An RIS anticipates the needs of retail managers, collecting, organizing, and storing relevant data continuously.
Directs information flow to appropriate decision-makers.
Customer Data Examples at Retailers
Specific Data Points Known about Customers:
Ethnicity.
Job history.
Reading preferences, such as magazines.
Bankruptcy history.
Marital status.
Homeownership timeline.
College attended.
Online discussion topics.
Preferred brands.
Political preferences.
Reading habits.
Charitable donations.
Number of vehicles owned.
Data Management in Retail
Data-Base Management Importance in RIS:
Gathers, integrates, and stores related information.
Utilized for:
Loyalty program management.
Customer analysis.
Promotion evaluation.
Trade area analysis.
Primary and Secondary Data
Primary Data:
Advantages:
Specific to research purpose.
Current and relevant.
From a known source.
Disadvantages:
Potentially higher costs.
Time-consuming process.
Limited organizational perspectives.
Secondary Data:
Advantages:
Cost-effective.
Rapid accessibility.
Multiple perspectives.
Generally credible.
Good for background research.
Disadvantages:
May not meet the current research needs.
Potential incompleteness.
Possible dated information.
Risks of inaccuracies or biases due to poor collection methods.
Data Mining and Micromarketing
Definition of Data Mining:
In-depth information analysis focused on extracting insights about customers, product categories, and vendors.
Micromarketing Strategies
Definition:
A marketing strategy that employs differing techniques tailored for specific customer segments.
Segmentation Criteria:
Geographic location.
Retailer customer needs.
Brand loyalty levels.
Specific Industry standards.
Customer Prioritization and Challenges
Micromarketing Connection:
Often leads to the prioritization of customers.
Discussion points:
Benefits and concerns associated with prioritization.
Challenges faced by retailers (labeled as a 'double-edged sword').
Example reference: Delta Skymiles and Hilton HHonors loyalty programs.
Next Topics
Future Discussions:
Retail Locations and related strategies.