Implementation of the Retail Strategy Flashcards
The retail strategy consists of
Retail promotion
Blending store activities for success
Retail promotion definition
Retail promotion is the communication done by the retailer to inform the customer or make
them aware of the merchandise on offer.
The marketing mix or the 7p’s are important in market planning for a store.
The marketing
mix consists of the following:
Product (tangible fashion product) Price (retail selling price) Promotion Place of distribution (channels) People Process (customer experience) Physical evidence (presentation of the store
Product (tangible fashion product)
Refers to the complete package of benefits offered to the consumer but represented in a tangible fashion product.
Price (retail selling price)
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.
Promotion
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.
Place of distribution (channels)
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
People
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.
Process (customer experience)
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.
Physical evidence (presentation of the store)
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.
Personal Selling
It is the face-to-face presentation of a product or idea to a potential customer by a
representative of the company or organisation
The retail selling process contains several steps, namely:
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
Preparing for customers
The salesperson prepare for effective interaction with the customer. Long term as well as short term preparation is needed.
Preparing for customers long term preperation
Salesperson learns about the stores policies and procedures and the merchandise and service on offer.
Preparing for customers Short term preperation
Involves daily and weekly activities, such as ascertaining which stock items are on sale.
Prospecting for customers
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.
Contacting customers
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
Presenting the merchandise
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.
Presenting the merchandise:
Value of questions
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.
Handling objections
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.
Building relationships and future sales by means of follow-ups
A salesperson should continue to sell to his/her customer even after the sale.
visits.
Advantages of Personal Selling
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.
Disadvantages of Personal Selling
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.
Sales promotion definition
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.
Types of sales promotional items
There is a wide variety from which to choose:
Aisle displays Banners and streamers Coupons Contests Demonstrations Gifts Frequent buyer programmes Point-of-purchase materials Premiums Prizes Referral gifts Samples
Aisle displays
These will reach a local market because local customers from the region will visit the store and notice the display on offer.
Banners and streamers
On the ceilings or on the walls of the store will attract the customers attention.
Coupons
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.
Contests
Customers, must for instance, supply the correct answer to a question to come into contention for winning a prize.
Demonstrations
Can be used to show customers how a product work.
Gifts
Calendars, pens, notebooks, dairies etc with the retailers name printed on the items, is another popular sales promotion technique.
Frequent buyer programmes
Customers are encourage to purchase more products, more regularly. Customers receive bonus points for each purchase they make.
Point-of-purchase materials
Range from product demonstrations to displays and coupon dispensers, and focus the customers attention on the displayed product.
Premiums
Are additional products offered to the customer as an incentive to purchase a specific product.
Prizes
If a customer purchase a certain number or rands on a product he/she receives free products.
Referral gifts
A gift of a certain value which is given to existing customers if they introduce new customers who then purchase from the retailer.
Samples
Consumers are offered a small portion of the product.
Value of using sales promotional items:
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.
Tills provide data in which skews include:
colour, size, fitting, season and price point. S
The segment profile:
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
