Monday, February 25, 2013

Retail Promotional Strategy


Retail Promotional Strategy
Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm
Elements of the Promotional Mix
·         Advertising
·         Sales promotion
·         Store atmosphere
·         Web site
·         SEM

·         Personal selling
·         E-mail marketing

·         Publicity
·         SEM

·         Word of mouth
Planning a Retail Promotional Strategy- It involve the following aspects-
Promotional Objectives
          Increase sales
          Stimulate impulse and reminder buying
          Raise customer traffic
          Get leads for sales personnel
          Present and reinforce the retailer image
          Inform customers about goods and services
          Popularize new stores and Web sites
          Capitalize on manufacturer support
          Enhance customer relations
          Maintain customer loyalty
          Have consumers pass along positive information to friends and others
Public Relations- Any communication that fosters a favorable image for the retailer among its publics
        Nonpersonal or personal
        Paid or nonpaid
        Sponsor-controlled or not
Publicity – Any nonpersonal form of public relations whereby messages are transmitted through mass media, the time or space provided by the media is not paid for, and there is no identified commercial sponsor
Advantages
          Image can be presented or enhanced
          More credible source
          No costs for message’s time or space
          Mass audience addressed
          Carryover effects possible
          People pay more attention than to clearly identified ads
Disadvantages
         Some retailers do not believe in spending on image-related communication
          Little control over publicity message
          More suitable for short run
          Costs for PR staff, planning activities, and events
Advertising- Paid, nonpersonal communication transmitted through out-of-store mass media by an identified sponsor
          Key aspects
        Paid form
        Nonpersonal presentation
        Out-of-store mass media
        Identified sponsor
Advantages
          Attracts a large audience
          Gains pass along readership (for print)
          Low cost per contact
          Many alternatives available
          Control over message content; message can be standardized
          Message study possible
          Editorial content surrounds ad
          Self-service operations possible
Disadvantages
          Standardized messages lack flexibility
          Some media require large investments
          Geographic flexibility limited
          Some media require long lead time
          Some media have high throwaway rate
          Some media limit the ability to provide detailed information

Personal Selling- Oral communication with one or more prospective customers for the purpose of making a sale
Advantages
          Message can be adapted
          Many ways to meet customer needs
          High attention span
          Less waste
          Better response
          Immediate feedback
Disadvantages
          Limited number of customers handled at one time
          High costs
          Doesn’t get customer in store
          Self-service discouraged
          Negative attitudes toward salespeople (aggressive, unhelpful)
Sales Promotion- Encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness
Advantages
          Eye-catching appeal
          Distinctive themes and tools
          Additional value for customer
          Draws customer traffic
          Maintains customer loyalty
          Increases impulse purchases
Fun for customers
Disadvantages
          Difficult to terminate
          Possible damage to retailer’s image
          More stress on frivolous selling points
          Short-term effects only
          Used as a supplement

Sunday, February 24, 2013

What Does Retail Management Involve?


What Does Retail Management Involve?
Courtesy Gregory Thompson
If a business person is wondering what retail management involves, then the first thing he or she should know is that retail management is not just about revenue. Knowledge of merchandising, expenses and human resources are three things a retail manager must know besides how to generate revenue to succeed. One should have a business background, but it's not necessary.
Customers
A retail manager ensures customers are properly and efficiently served, especially in regards Employees
to complaints and issues.
Morale and overall happiness of employees need to be kept at a high level. Also, keeping them busy to abstain from boredom helps with morale. Effective retail management knows how to delegate and oversee time distribution.
Merchandising
Retail management oversees merchandising by ensuring stores are clean and visually appealing, while utilizing space to maximize sales.
Payroll and Reviews
A retail manager ensures employees are paid promptly and correctly. Timely reviews and appropriate raises for employees keep them at a store to reduce turnover.
Expenses
Bills need to be paid and controllable expenses monitored so the retail manager doesn't lose money.

About Retail Management


About Retail Management
Courtesy Sylvia Cochran
Retail management is a challenging career in an economically precarious industry. Getting started is simple, but remaining in demand and getting consistent opportunities for advancement may be tricky. Learn some insights about retail management, find out how to get started, how to pick a good retailer to work for, and how to get promoted to higher tiers of management.
Forms of Retail Management
Retail management differs in scope, depending on the position you attain, the size of the store you work for and the retail sales volume your store generates. Assistant store managers and store managers are the quintessential first tier of retail management.
Next come regional managers, who may manage two or more stores in a geographic locale. Store managers report to regional managers, receive their merchandising instructions from them, and rely on feedback and occasional visits to stay on track.
Home office retail managers are in charge of two or more geographic regions. They are in constant contact with region managers and seek to make all regions profitable with respect to their retail sales numbers.
Retail store owners are the highest tier of retail management. Their involvement varies, depending on the management structure they put in place. Some owners are very hands-on when it comes to the day-to-day store operations; others prefer to remain in the background and review quarterly figures.
Choosing a Retailer to Work for
Visit the National Retail Federation (see the link in Resources) and research the information available on various industry trends. It's unlikely that your career will take off if the retailer you choose to work for is on the verge of bankruptcy. Instead, find a retail venue, chain store or retail field that is currently profitable, going strong and shows a growth trend.
Getting Started in Retail Management
The easiest way to get started in retail management is to work your way up. Start as a cashier or stocker, impress your supervisor with your customer service skills, good attitude and dependability, and over the course of a few years you could find yourself promoted to shift supervisor and eventually assistant manager. When the time is right, you may also apply for manager positions and get a promotion into retail management. This is a time-consuming process, but many retail managers find this is how they got started.
Another option is to attend a career college, such as the online Ashworth College (see the link in Resources) and earn a retail management diploma. Associate degrees in marketing or business management--or bachelor's or master's degrees in management, business administration or marketing--might make you more appealing to a hiring manager. You may even start out as lead cashier, assistant manager or supervisor right away. From there, you still need to prove yourself to make it to the higher tiers of retail management.
Skills Needed in Retail Management
Retail management is a balancing act that requires a mix of human resources management, marketing, communications and sales experience. Other skills include the art of turning a customer's shopping experience into a positive outing, using a greeting to make a great first impression, understanding the steps of a sale in progress, and learning how to heighten employee efficiency when dealing with customers. Loss prevention is another skill that must be honed when working in retail management.
Misconceptions
It's a common misconception that retail management is similar from store to store. This is untrue, considering that the clientele, target demographics and merchandising schemes vary between locales. This is true even at chain stores; retail managers routinely cross-train in other venues to learn how to deal with different customers, their unique needs and the expectations they have.