Retailing Principles & Practices - Chapter 18 Notes

Image
- Represents how a retailer is perceived by customers.
- Important for establishing a position in the market.
- Communication of image must be distinctive, clear, and consistent.
- Forms of communication include both visual and written methods via various media (traditional and digital).
Positioning
- Strategy to project a distinctive image relative to competition.
- Must maintain consistency across all retail channels:
- Physical stores
- Websites
- Social media and advertising
- Chains should present a uniform image across all branches.

Brand Identity
- Visual representation of the brand across all touchpoints.
Brand Management
- Tools for keeping brand elements in sync and monitoring success metrics.
Customer Activation
- Engaging customers through fresh communication strategies.
Brand Voice
- Unique/authentic voice representing the brand.
Staff Activation
- Employees are trained to understand and embody the brand's promise.

Mass Merchandising
- Focus on discount and value-based image with broad product selection and large stores.
Niche Retailing
- Targets specific consumer segments with tailored strategies rather than broad appeal.

Cues for Image Presentation
- Physical and symbolic cues work together to create a retail image.
- An ongoing approach is necessary for effective management.
Retail Image Positions
- Price Leaders: Emphasize low prices with functional store environments.
- Location Leaders: Convenient locations to enhance accessibility for customers.
- Atmospheric Leaders: Create enticing in-store experiences.
- Product Quality Leaders: Offer unique, high-quality displays.
- Selection Leaders: Good value from a wide range of appealing merchandise.
- Service Leaders: Provide excellent customer service.

Definition:
- The psychological feeling created for customers when they interact with a retailer, encompassing both store and non-store experiences.
Influences:
- Affects shopping enjoyment, duration, interaction with staff, spending behavior, and likelihood of future visits.

Goal:
- Create specific looks, display products to stimulate shopping behaviors, and enhance physical environments.
Elements to Consider:
- Store window displays, aisle width, fixture types, signage, lighting, and music.

6 Steps to Layout:
1. Allocation of Floor Space: Categorize areas for selling, stock, and personnel.
2. Classifying Offerings: Group products based on function, market segment, and storage needs.
3. Determining Traffic Flow Patterns: Straight (grid pattern) for efficiency or curving (free-flowing) for customer engagement.
4. Determining Space Needs: Calculate needed space based on product category.
5. Mapping In-Store Location: Assign departments logically across floors.
6. Arrangement of Individual Products: Group by characteristics such as package size, color, and customer interest.

Assortment Displays:
- Encourage customers to interact with products (e.g., clothing).
Theme-Setting Displays:
- Create mood around seasonal or thematic events (e.g., holidays).
Ensemble Displays:
- Present complete product combinations (e.g., outfits or table settings).

Influence of website layout similar to storefront characteristics:
- Must be inviting, informative, and user-friendly for the best experience.
Online Store Considerations:
- Advantages: Unlimited space, customization, modification flexibility, impulse purchasing facilitation.
- Disadvantages: Potential for slow connections, complexity, and lack of tactile product experience.

Experiential Merchandising: Make shopping interactive (e.g., demonstrations).
Shopper Engagement: Wider aisles, co-branding opportunities, and enticing layouts encourage longer shopping times and increased spending.