Retailing Business

Retailing

Short Note

1. The Marketing Concept

The Marketing Concept is the philosophy that overall goal of every business organization is the satisfy consumer need at a profit.  The marketing concept, then stresses keying supply to demand rather than keying demand to supply.

1. Intrinsic Qualities

Intrinsic Qualities are the internet physical attributes such as product form, features, materials, and workmanships that satisfy consumer needs. The intrinsic qualities of a product are important because they determine whether the product is capable of doing what it is supposed to do looking the way it is supposed to look.

1. Augmenting Extras

Augmenting extras are auxiliary product dimensions that provide supplementary benefits to the customer Warranties, delivery, installation, packing, instructions and alteration are some of the major extras that can general enhance the customer’s  satisfaction with the product.

1. Channel Flows

The five major types of channel flows are

1. Physical Flow the actual movement of a physical product from one channel participant to another.
2. Ownership flow transferring title (right of ownership and usage) from one channel participants to another.
3. Information flow – the two way communication of useful data between channel participants
4. Payment flows – the transfer of monies from one participants to another as compensation for services rendered and /or goods delivered.
5. Promotion Flow- the flow of persuasive communication directed at influencing the decisions of consumers ( Consumer promotion) and other channel participants (trade promotion)

    5.        Organization Objectives

        Strategic objections are general long term goals the retail firm intends to pursue

Operational objections are general long term operational requirement necessary to achieve a strategic objective

Functional objectives are specific task objectives that identify a specific function and how it is to be accomplished.

   6.        Specialization and Departmentalization

Specialization and departmentalization are internet part of any efficient retail organizational structure.

 Specialization employees, concentrate that efforts on a limited number of tasks.

Departmentalization, an extension of the specialization pnnciple, occurs when task and employees are grouped together into department to achieve the operating efficiencies of specialization for a group performing similar tasks.

Long Question

1. The Right Audiences

Mass market audience. A retailer that decides to appeal to all of the consumer within a market area should use a board appeal to the mass market. By using aboard appeal, the retailer hopes to attract a few customer from all segment of the market.

Target market audience – The retailer may decide to appeal to a select group of customer within a market area. The process of dividing a market into smaller subsets is called “market segmentation” and the market segment to which the retailer directs its apples is the “target market”.

Demographic characteristics include age, sex, income, race, occupation, family structure and social class profiles are composite “picture” of different consumer life styles.

1. BCG Portfolio Approach

The BCG portfolio approach is best illustrated by the use of two matrices, the market/ growth market share matrix and the cash generation/cash usage matrix.

        Market growth/market share matrix, the vertical axis identifies the annual growth rate (percentage) of each SBU’s operating market. The horizontal axis indicates the relative market share of SBU, a ration of SUB share of the market to that of the largest competitor. Market share is considered important based on research indicating that profitability of an SBU is directly related to its market share.