NATIONAL UNIVERSITY

College of Business and Accountancy

Retail Management
12.9.15
(Wed)

Quote of the Day

Review

LO 10: Retail Channel

LO 11: Types of Retail Channels
LO 12: Benefits offered by the Retail Channels
LO 13: Benefits of Multichannel Retailing
LO 14: Challenges of Effective Multichannel
Retailing
LO 15: Organizing Multichannel Retailing
LO 16 : Customer Buying Behavior
LO 17: Types of Needs
LO 18: Types of Buying Decisions
LO 19: Social Factors Influencing the Buying Process

Learning Objectives

LO# 16: Impact of internet as a game changer /

E-Commerce
LO# 17 : Importance of Market Segmentation
LO # 18: Retail Strategy
* Classroom / Group Activity

How Technology is Affecting the Retail Industry?

Technology and retail operations have been going

hand in hand for years. The retailers that are winning

today have created advantage by mastering that
convergence in superior logistics and excellent
functional strategies.

Technology: A Responsive Experience is Social, and DataDriven

The rapid changes in customer adoption of mobile

and social are strong reasons to re-evaluate commerce

strategies. Customers are used to starting a task on one
device and completing it on another, and there is a
renewed focus on retailers supporting user tasks and
fulfilling orders across channels.

How the Internet is Affecting Retail Industry?

E-commerce

is experiencing an unparalleled
expansion for over a decade. From a few percent ten
years ago to almost 20% for certain categories of
products, the Internet has become a major sales
channel in the globalized commerce industry today.

Advantages of E-commerce
* 1. Lower storage and listing costs, than physical stores
2. They almost always offer better prices
3. Mode of operation. The e-retailer has fewer expenses
than the physical store
4. Sales volumes. E-shopping is more likely to negotiate
its purchase price and get discounts from suppliers. This
advantage is all the more important that we are currently
experiencing a crisis that strongly impacts the purchasing
power of consumers
5. Open 24/7, 365. This is even more important given
consumers have less free time (as travel time and work time
increases). Businesses, despite extended opening hours can
not compete with e-tailers.

Internet: A Game-Changer for Enterprises

The Internet is evolving to connect people to physical

things and also physical things to other physical things

all in real time. Its becoming the Internet of Things
(IoT): billions of interconnected smart devices
measuring, moving and acting upon all the bits of data
that make up daily life.
Internet changes business processes, business models
and whole industries. Leading-edge companies have
begun implementing innovative system solutions that
are changing the way work gets done and improving
the top and bottom lines.

Market Segmentation
Is a marketing strategy which involves dividing
a broad target market into subsets of consumers,
businesses, or countries that have, or are perceived to
have, common needs, interests, and priorities, and
then designing and implementing strategies to target
them.
Once the market is segmented, the firm then decides
which segments to target.

Importance of Market Segmentation

Companies will not survive if the marketing strategy is

dependent upon targeting an entire mass market. The
importance of market segmentation is that it allows a
business to precisely reach a consumer with specific
needs and wants. In the long run, this benefits the
company because they are able to use their corporate
resources more effectively and make better strategic
marketing decisions.

Factors to Consider in Retail Strategy

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Store Location
Merchandising / Products
Pricing
Marketing / Advertising
Target Market
Competitor
Budget
Manpower
Facilities / Equipment
Operation
Timetable / SMART Objective

Conclusion

Assignment
1. Poster Making
Design a retail store of your choice
Decide your retail slogan
2. Business Plan Proposal (Draft)
(Arial Font 12)

NATIONAL UNIVERSITY

College of Business and Accountancy

Thank You!
12.9.15