INSTITUTE - USB

DEPARTMENT - BBA
Bachelor of Business Administration
Retail Management
21BAT-374

Importance of retailing DISCOVER . LEARN .

EMPOWER 1
 Introduction to Retail
Management
CO1 To describe the concepts, functions, types and importance of Retail
Industry in India.

CO2 To interpret and analyze the requirements of Store Design and Visual
Merchandising in Retail Stores.

CO3 To classify the factors influencing the Retail consumer, consumer behavior
and decision making process

CO4 To evaluate Merchandise Management through retail operation and pricing

[Link]

CO5 To formulate Customer Relationship strategies by Personalization, Special

Treatment Benefits, Communication Benefits, Rewards and Loyalty
Programs

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Retail Channels
• A retail channel is the way a retailer sells and delivers merchandise
and services to its customers.
• The most common channel used by retailers is a store.
• Retailers also use a variety of nonstore channels including the
internet,catalogs and direct mail,direct selling,television home
shopping and automated retailing.
Various Retail Channels
• Store
• Internet Channels
• Catalog Channel
• Direct Selling
• Television Home Shopping
• Automated Retailing
Internet Channel
• Internet retailing is also called online retailing, electronic retailing and
e-tailing, is a retail channel in which the offering of the products and
services for sale is communicated to customer over the internet.
Catalog Channel
• A catalog channel is a nonstore retail channel in which the retail
offering is communicated to the customers through a catalog mailed
to customers.
• The merchandise categories with the greatest catalog sales are drugs
and beauty aids, computers and software, clothing and accessories,
furniture and housewares, and books, music and magazines.
Direct Selling
• Direct Selling is a retail channel in which salespeople interact with
customers face to face in a convenient location, either at the
customers home or at work.
• Direct salespeople demonstrate merchandise benefits and/or explain
a service; take an order; and deliver the merchandise.
• Direct selling is a highly interactive retail channel in which
considerable information is conveyed to customers through face to
face discussions.
Television Home Shopping
• Television home shopping is a retail channel in which customers
watch a television program that demonstrates merchandise and then
place orders for that merchandise, usually by telephone or via the
internet.
• The major advantage of TV home shopping is that customers can see
the merchandise demonstrated either on their television screens or
through streaming videos on the internet.
Automated Retailing
• Automated retailing is a retail channel in which merchandise or
services are stored in a machine and dispensed to customers when
they deposit cash or use a credit card.
• Automated retailing machines, also known as vending machines, are
typically placed at convenient, high traffic locations, such as in
workplaces or on university campuses.
Benefits offered by the retail
Channels
[Link] Channel
• Touching and feeling products
• Personal Service
Sales associate have a unique ability to provide meaningful, personalized information.
Example: They can suggest a tie to go with the dress shirt,or answers questions
customer might have about what is appropriate to wear at a business or casual event.
• Risk Reduction
The opportunity to use all the senses when evaluating the product and to get
personalized information increases the likelihood that the customer will be satisfied
with the product.
In addition ,the physical presence of the store reduces the percieved risk and increases
customers confidence that any problem with the purchase will be corrected.
Benefits offered by the retail
Channels
• Immediate Gratification
Customers can get the merchandise immediately after they buy it from the stores.
Example: When customers require a last minute gift, they don’t have to wait a day or
two for the delivery of the gift from Amazon etc
• Entertainment and Social Experience
In store shopping can be a stimulating experience for some people,providing a break in
their daily routine and enabling them to interact with their friends while going for
shopping
• Cash Payment
Stores are the only channel through which consumers can make payments.
Some customers prefer to pay with cash because it is quicker,resolves the transaction
immediately,and thus not result in excessive debt.
Catalog Channel
• Safety
Security in malls and shopping areas is becoming an important
concern for many shoppers,particularly the elderly.
Non store retail channels enable customers to review merchandise and
place orders from a safe environment.
• Convenience
• Catalogs are an easier way to browse through then the websites.
• Consumers can refer to the catalog and browse through it without the
internet connection
Internet Channel
• Broader and deeper assortments
There are a vast number of alternatives that a consumer can consider.
• More timely Information for Evaluating Merchandise
Many retailers provide an opportunity for the customers to post
reviews of products or services they have brought.
• Personalization
Due to the Web’s interactiveness , the most significant potential
benefit of the internet channel is its ability to personalize merchandise
offerings and information for each customer economically.
When using Internet Channel, customers can format the information
so that it can be effectively used when they are comparing alternatives
Example: Naaptol- an online consumer electronic store provides
information about alternatives selected by consumers in a side by side
comparision.
Percieved risks in Electronic
Shopping
• Security of Credit Card transactions on the Internet.
Security breaches can ruin the retailer’s reputation and possibly
expose it to legal liability.
• Potential Privacy violations
• Consumers are also concerned about the ability of retailers to collect
information about their purchase history, personal information ,and
search behaviour on the internet.
Benefits of Multichannel Retailing
• Overcoming the limitations of an existing Format
• Current Information
• Increasing customer satisfaction and Loyalty
• Gaining insights into customers Shopping Behaviour
• Expanding market presence
• Building a strategic Advantage
Benefits of Multichannel Retailing
Traditional store based retailers are using multiple channels,typically adding and placing
more emphasis on their electronic channels for five reasons:
[Link] electronic channel gives retailers an opportunity to overcome the limitations of
their primary existing channels:
• Increased Assortments
• Low Cost Consistent Execution
In store based retailing,training and retaining knowledgable sales executives is expensive.
Personalized service can be provided at a low cost.
[Link] Information
Real time information about stock availability and price reductions on clearance
merchandise.
Benefits of Multichannel Retailing
[Link] Customer Satisfaction and Loyalty
Example: By providing information to help customers complete do-it-yourself
projects, Home depot continues to increase customer satisfaction.
[Link] Insights into customer shopping behaviour
An electronic Channel provides valuable insights into how and why customers
shop and are dissatisfied or satisfied with their experiences.
This information on how customers shop is useful for designing a store or
websites.
For eg: After a customer purchases a book, [Link] recommends
additional books that might be of interest to the customer based on purchases
made by other customers who have bought that book.
Benefits of Multichannel Retailing
[Link] Market presence:
By adding an Internet Channel, retailers can expand their market
without having to build new stores.
[Link] a Strategic Advantage
Multi channel retailers have the opportunity to develop a strategic
advantage over the single channel competitors.
Example: The strategic resource which the multi channel retailer has
and which cannot be duplicated is:
Information about customer purchase history and Shopping behaviour
ASSESSMENT PATTERN
Theory

Components Continuous Internal Assessment (CAE) Semester End Examination (SEE)

Marks 40 60

Total Marks 100

Sr. No. Type of Assessment Weightage of actual conduct

1 Assignment 10 per assignment

2 Exam 20 per MST

3 Quiz/Test 4 each quiz

4 Surprise Test 12 each test

5 Attendance and class performance 2

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APPLICATIONS
• Concept of Retail Management

• Concept and importance of retail layouts and retail design

• Importance and scope of retailing

• Understanding of various formats of retail management

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References
• Retail Management by Suja R. Nair.
• The Shopping Revolution: How Successful Retailers Win Customers in an Era of Endless Disruption by Barbara E. Kahn
• [Link]

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THANK YOU