BA 495 Notes Chapters 7 and 8 Retail Location and Retail Site Location Be able to identify what types of locations are available to retailers and discuss the advantages and disadvantages Unplanned Retail locations Freestanding sites individual store that s not connected to other retailers Advantages High traffic lower rent parking fewer restrictions ease of expansion Disadvantages Lack of synergy with other stores City town Locations Central business districts traditional downtown business area has multiple owners and access from the street Gentrification Bringing population back to cities Advantages Affluence returned young professionals returned empty nesters incentives to move provided by cities low occupancy cost high pedestrian traffic Disadvantages vehicular traffic is limited due to congestion in urban areas and parking problems reduce consumer convenience store signage can be restricted in these locations Neighborhood Community Shopping Centers Advantages offer customer convenient locations and easy parking low occupancy costs Disadvantages smaller centers have limited trade area due to their size and they lack entertainment and restaurants No protection from the weather Shopping Malls Advantages More assortment entertainment complementary tenant mix no concern for external environment Disadvantages High Rents too much competition within shopping centers Others Pop up stores temporary stores Store within a store Merchant Kiosks Airports Location Strategy Evaluating an Area Economic conditions Competition Strategic fit selecting an area where primary target is located Cost of operation thinking about rent in a popular area transportation in distribution area state and local taxes Evaluating a Site Characteristics of the site Traffic flow when traffic is greater then there will be more shoppers However more traffic isn t always better because it can be hard to get in and out of the store Parking visability and adjacent tenants are important in locating a store Characteristics of the trading area Estimated potential sales Huff gravity model Regression analysis evaluating what variables attract customers into their store Ex looking at certain demographics of an area Analog Approach Shopping Situations Convenience shopping Minimize the customer s effort to get the product or service by locating store close to where customers are located Comparison shopping Customers have a good idea of what type of product they want but don t have a strong preference for brand model Like category specialists because they see almost all brands and models in one store Specialty shopping customers know what they are looking for designers Chapter 9 HR Management HRM Objectives Build a sustainable competitive advantage Short term and long term goals of the firm Employees productivity sales number of employess Short term Employee turnover no of employees leaving their job during the year No of positions Long term Issues affecting HR Management HR at corporate vs Needs of store employees vs store management Expense control 1 Hire employees with little or no experience 2 Increase in part time employees Diversity Organization Structure Loss prevention customer service STORE HR merchandising logistics distribution store planning and design visual merch CORPORATION Accounting finance planning buying advertising marketing Attracting Talent Employment Marketing interviewing current employees to figure out what they love about their job and then creating a marketing program Developing Talent Selective Hiring Training Motivating Talent Policies and supervision Compensation based incentives Organization culture Keeping Talent Empowerment Creating Partnering Relationships 1 Reducing the status differences 2 Promote from within 3 Enable employees to have more of a balance with work life Managing Diversity Training Support groups and mentoring Career development and promotions Legal Issues in HR Management Equal Employment Opportunity Compensation Labor relations Employee safety and health Sexual harassment Employee privacy Chapter 11 18 Three basic tasks of retailing 1 Get consumers into your store 2 Convert them into customers 3 Operate as efficiently as possible Customer service Must be integrated into all the following aspects of retailing Merchandising management building and fixture management promotion management price management credit management It consists of all those activities performed by the retailer that influence The pre transaction The transaction The post transaction Common Customer Services entering the store Convenient hours Information aids PRE transaction services provided to the customer prior to Transaction Services Provided to the customers when they are in the store shopping and transacting business Credit layaway check cashing gift cards personnel shopping Post transaction services provided to customers after they have purchased merchandise or services Complaint handling Merchandise returns Servicing repair and warranties Delivery Post sale follow up Determining Custoemr Service Level CUSTOMER SERVICE MIX cost of providing service Retailers characteristics services offered by the competition type of merchandise handled price image of store income of target market Customer Relationship Management Is a business philosophy and set of strategies programs and systems that focus on identifying and building loyalty with a retailers most valuable customers Goal is to develop a loyal customer base who patronize the retailer frequently CRM Process A cycle of Collecting Customer Data LEARNING Analyzing customer data and identifying target customers Developing CRM programs ACTION Implementing CRM programs I Collecting Customer Data Customer Data warehouse Database information Transactions customer contacts customer preferences descriptive information responses to marketing activities Identifying information Asking customers frequent shopper cards tracking internet purchases Customers decision to offer information Discounts special treatment and personal attention Disclosure of information unwanted sales contacts II Analyzing Customer Data Identify Market segments and Best Customers Data Mining Technique used to identify patterns in data Market Basket Analysis Analyze the composition Identifying best customers 1 Lifetime customer value LTV The expected contribution from the customer to the retailer s profit 80 20 rule customers 2 Customer pyramid 80 of your sales will come from Does not consider
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