Implementation of the Retail Strategy

Question 1

The retail strategy consists of

Answer 1

Retail promotion

Blending store activities for success

Question 2

Retail promotion definition

Answer 2

Retail promotion is the communication done by the retailer to inform the customer or make
them aware of the merchandise on offer.

Question 3

The marketing mix or the 7p’s are important in market planning for a store.
The marketing
mix consists of the following:

Answer 3

Product (tangible fashion product)
Price (retail selling price)
Promotion
Place of distribution (channels)
People
Process (customer experience)
Physical evidence (presentation of the store

Question 4

Product (tangible fashion product)

Answer 4

Refers to the complete package of benefits offered to the consumer but represented in a tangible fashion product.

Question 5

Price (retail selling price)

Answer 5

Refers to the retail selling price consumers have to pay.
It must represent the value, compared with competing alternatives and real choice through offering similar product styles at a range of different price points.
Designers, buyers and financial managers need to be aware of the limits a competitive retail selling price places on product cost price and profit per product.

Question 6

Promotion

Answer 6

Refers to the wide range of activity from product labels/packaging to image based advertising or PR and in store visual merchandising.
It also refers to incentives designed to increase sales, which includes all markdowns.

Image promotion is responsible for influencing the fashionability perception consumers have on products and the attitude or personality benefits they are buying into.

Question 7

Place of distribution (channels)

Answer 7

Refers to the channels through which the products are sold. Important issues will include the accessibility, location, available selling space, layout and presentation of the channels.

Customers must have access to enough choices of styles, colours, sizes and price points with stock being changed regularly to maintain the perception of fresh fashion looks

Question 8

People

Answer 8

Refers to all individuals, including the customers, suppliers and the fashion retailer’s staff, who are involved in the buying and selling of the products.

For a fashion retailer to succeed in selling it’s products it must ensure that all involved in the supply chain have a clear understanding of the customers fashion products needs and expectations.

Question 9

Process (customer experience)

Answer 9

Refers to the intended customer experience of the retail facility from store/website layout and function to more specialist personal shopping or home delivery features.
These will vary tremendously amongst small boutiques, multiple retail outlets or department stores.

Question 10

Physical evidence (presentation of the store)

Answer 10

Refers to the presentation of the store or the website. Its facia, windows, stock and staff. Also included could be promotional material such as in-store posters, point of sale leaflets and brochure, all of which reflect the brand image of the retailer.

Question 11

Personal Selling

Answer 11

It is the face-to-face presentation of a product or idea to a potential customer by a
representative of the company or organisation

Question 12

The retail selling process contains several steps, namely:

Answer 12

Preparing for customers
Prospecting for customers
Contacting customers
Presenting the merchandise
Handling objectives
Closing the sale
Building relationships and future sales by means of follow-ups
Identifying the advantages and disadvantages of personal selling

Question 13

Preparing for customers

Answer 13

The salesperson prepare for effective interaction with the customer. Long term as well as short term preparation is needed.

Question 14

Preparing for customers long term preperation

Answer 14

Salesperson learns about the stores policies and procedures and the merchandise and service on offer.

Question 15

Preparing for customers Short term preperation

Answer 15

Involves daily and weekly activities, such as ascertaining which stock items are on sale.

Question 16

Prospecting for customers

Answer 16

Is the process of finding people who are willing to buy the merchandise and who are able to afford it.
This does not include browsing customers. Experienced salespeople can identify prospects more easily, especially when the store is busy.

Question 17

Contacting customers

Answer 17

Smile and an appearance of genuine interest in the customer and their needs are part of the initial impression.
The salesperson should make a comment that captures the buyers attention and arouses her/his interest.
Salesperson should avoid using cliche phrases: can I help you etc

Question 18

Presenting the merchandise

Answer 18

Salespeople must consistently use their creativity to adapt to a particular customer and circumstances. The salesperson must know his/her customers’ needs and wants.
Questions will allow the salesperson to discover important information.
Retailers should try to reduce the perceived risk of buying the product.
Salespeople should try to actively involve the customer with the product. Let the customer have hands on experience with the product.
Salespeople should emphasise the benefits of the products and not the product itself.
Salesperson must also make the message clear and understandable to the customer.

Question 19

Presenting the merchandise:

Value of questions

Answer 19

Questions will allow the salesperson to discover important information that may be useful in closing a sale and show genuine interest in the customer and steer him/her in active involvement in the sales process, correct any misconceptions about the product or the store and develop rapport with him/her.

Question 20

Handling objections

Answer 20

Customers often object to the product, price, place, time, salesperson or combination of all.
A salesperson should be creative and adaptable in handling objections.
Customer complains about the price- emphasise the value of the product.
Salesperson can also emphasise the importance of buying now, rather than later if customers have problems with timing of the purchase- product might be low in stock or on promotion.
Customer has a problem with the salesperson- refer them to another sale person.
Customer complains about the store- mention the managers capabilities and integrity of the store.

Question 21

Building relationships and future sales by means of follow-ups

Answer 21

A salesperson should continue to sell to his/her customer even after the sale.
visits.

Question 22

Advantages of Personal Selling

Answer 22

It contributes to a high level of customer attention.
It can customise the message for the customer.
It can provide immediate feedback.
technical and complex information can be discussed with the customer.
The performance of a product can be demonstrated.
It can help to develop long-term relationships with customers.

Question 23

Disadvantages of Personal Selling

Answer 23

Sales person can only deal with a small number of potential clients at a time.
It cost more per customer.
An ineffectual salesperson can damage a relationship and the image of a store.

Question 24

Sales promotion definition

Answer 24

Sales promotion is a blend of marketing activities and materials designed to intensify the effort of the marketer’s sales force, induce intermediaries to stock and sell the marketer’s
product offering, and/or persuade consumers to buy the product offering within a specified,
limited time period.

Question 25

Types of sales promotional items

There is a wide variety from which to choose:

Answer 25

Aisle displays
Banners and streamers
Coupons
Contests
Demonstrations
Gifts
Frequent buyer programmes
Point-of-purchase materials
Premiums
Prizes
Referral gifts
Samples

Question 26

Aisle displays

Answer 26

These will reach a local market because local customers from the region will visit the store and notice the display on offer.

Question 27

Banners and streamers

Answer 27

On the ceilings or on the walls of the store will attract the customers attention.

Question 28

Coupons

Answer 28

A system where customers pay less for a product. A customer can for example hand in a coupon for a specific brand and receive a R5 discount.

Question 29

Contests

Answer 29

Customers, must for instance, supply the correct answer to a question to come into contention for winning a prize.

Question 30

Demonstrations

Answer 30

Can be used to show customers how a product work.

Question 31

Gifts

Answer 31

Calendars, pens, notebooks, dairies etc with the retailers name printed on the items, is another popular sales promotion technique.

Question 32

Frequent buyer programmes

Answer 32

Customers are encourage to purchase more products, more regularly. Customers receive bonus points for each purchase they make.

Question 33

Point-of-purchase materials

Answer 33

Range from product demonstrations to displays and coupon dispensers, and focus the customers attention on the displayed product.

Question 34

Premiums

Answer 34

Are additional products offered to the customer as an incentive to purchase a specific product.

Question 35

Prizes

Answer 35

If a customer purchase a certain number or rands on a product he/she receives free products.

Question 36

Referral gifts

Answer 36

A gift of a certain value which is given to existing customers if they introduce new customers who then purchase from the retailer.

Question 37

Samples

Answer 37

Consumers are offered a small portion of the product.

Question 38

Value of using sales promotional items:

Answer 38

By using sales promotional items, retailers have access to a range of information about
customers’ purchase behaviour.
This is valuable, as it provides factual data about the sales of products and their various skews, as opposed to speculation about future behaviour
based on potential needs and wants.

Question 39

Tills provide data in which skews include:

Answer 39

colour, size, fitting, season and price point. S

Question 40

The segment profile:

Answer 40

Product details (style, colour, size, fit, price)
Frequency of purchase
Time of purchase
Linked items
Value of transaction – leading to average spend per customer
Store location
Reaction to sales promotion/ new lines