BA 495 NotesChapters 7 and 8: Retail Location and Retail Site LocationBe able to identify what types of locations are available to retailers and discuss the advantages and disadvantages.Unplanned Retail locationsFreestanding sites- individual store that’s not connected to other retailersAdvantages: High traffic, lower rent, parking, fewer restrictions, ease ofexpansionDisadvantages: Lack of synergy with other storesCity/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 trafficDisadvantages: 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, lowoccupancy costsDisadvantages- 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 environmentDisadvantages- High Rents, too much competition within shopping centers. Others: Pop-up stores/ temporary storesStore within a storeMerchant KiosksAirportsLocation StrategyEvaluating 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 taxesEvaluating 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 customersare 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 control1. Hire employees with little or no experience2. Increase in part-time employees- DiversityOrganization StructureLoss 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- TrainingMotivating Talent- Policies and supervision- Compensation-based incentives- Organization cultureKeeping Talent- Empowerment- Creating Partnering Relationships1. 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 privacyChapter 11 & 18Three basic tasks of retailing1. Get consumers into your store2. Convert them into customers3. Operate as efficiently as possibleCustomer 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-transactionCommon Customer Services- PRE transaction services- provided to the customer prior to entering the store- Convenient hours- Information aids- 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-upDetermining Custoemr-Service LevelCUSTOMER SERVICE MIX- cost of providing service, Retailers characteristics, services offered by the competition, type of merchandise handled, price image of store, income of target marketCustomer 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 contactsII. Analyzing Customer Data- Identify- Market segments and Best Customers- Data Mining- Technique used to identify patterns in data.Market Basket Analysis- Analyze the composition
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