Retailing is the set of activities that

markets products or services to final

Retail

consumers for their own personal or

household use. It does this by organizing
their availability on a relatively large
scale and supplying them to customers on
a relatively small scale.
• Buying Behaviour is the
decision processes and the acts of people
involved in buying and using the products.
 Purpose of Marketing?
To make
To MONEY
make MONEY
Or
Or
To create
To create aa Satisfied
Satisfied Customer
Customer

Focus on
 Focus
 on Consumer
Consumer’s’s need
need rather
rather than
than
Products.
Products.
Identify Consumer
 Identify
 Consumer’s’s latent
latent Needs.
Needs.
Understand Consumer
 Understand
 Consumer’s’s behaviour.
behaviour.
 Consumer Behaviour
• Consumer Behaviour means more than just
how a person buys products?
• It includes:
1. What do CONSUMERS THINK about
our products and that of our
competitors?
2. What possible improvements do they
want?
4. How do they ACTUALLY USE OUR
PRODUCT?
5. What are their hopes and dreams
for themselves and their families?
 Need to understand:

• Why consumers make the purchases

that they make?
• What factors influence consumer
purchases?
• The changing factors in our society.
Attributes Affecting Retail Outlet
Selection
s a co m pa r i so n
l e c ti on in v o l ve
i l o u tl et s e r ’s
• Reta u t le t s o n c o ns u me
a ti v e o
of the altern
v e cr it e r ia :
evaluati
O u t le t I m a g e
i le r B r a n d s
 Re ta
A d ve r ti s i n g
 Retail
o n a n d S i ze
 Outlet Locati
 Categories that Effect the Consumer
Buying Decision Process
Unique
Unique toto a
a particular
particular
Motives,
Motives, person.
person. Demographic
Demographic
Perception,
Perception, Factors.
Factors. Sex,
Sex, Race,
Race, Age
Age
Ability
Ability etc.
etc.
1. Personal and
and Who
Who inin the
the family
responsible
family is
is
Knowledge,
Knowledge, responsible for
for the
the
2. Psychological Ability
Ability and
and
Knowledge,
decision
decision
making.
Knowledge, making.
3. Social Attitudes,
Attitudes,
Personality,
Young
Young people
things
people purchase
things for
purchase
for different
different
Personality,
Lifestyles.
Lifestyles. reasons
reasons
than
than older
older people.
people.

Opinion
Opinion leaders,
leaders, Roles
Roles and
and
Family
Family Influences,
Influences,
Reference
Reference Groups,
Groups, Social
Social
Class,
Class, Culture
Culture and
and Subculture.
Subculture.
Saturday
Saturday 2323
 Key Challenges

C AT I ON
1 . LO I S E
R C H A N D
2. M E
R IC IN G
3. P D I E N C E
E T A U
4. TARG P ER A T I O N S
L E O F O
5. S C A
Present Indian Scenario
8 3 , 0 0 0 cr o res.
e d m a r k e t : Rs. 5
 Unorganiz R s .5 , 0 0 0 c r ores.
005 .
e d m ar k e t : e n 2 0 0 0 - 2
 Organiz r e ta i l in g b etwe
w t h i n o rg anized e l a s t 3 y e a rs.
 5X gro o d e r n O u t l e t s i n th
m en t
0 n e w m r d e ve l op
 Over 4,00 t . o f m a l l s p a c e unde
0 s q . f t . o f retail
r 5 ,0 0 0 , 0 0 0 sq. f tr o l ov e r 7 50,00
 Ove e r n r e t a i l ers con
od
The top 3 m e v e r y w e e k.
a ce . o u g h t h ei r doors
s p r s w a l k th r n s and
0 0 s h o p p e x p e c t a t i o
 Over 400,0 g o n p a r w i th e ,0 0 0 c ro res
i z ed retaili n t o u c h Rs. 3 5
o r g a n cour s e t o
 Growth in h e last 5 Y e a r s : o n
o n s o f t
proje c t i
o r e b y 2 0 05-06
$ 7 B i ll i o n ) or m
(U S
Perception is everything

Half Empty
We perceive our
environment
through our
senses.

We respond to
Half Full stimuli.

Those responses
are our
Behavior.
 Change in Purchase Pattern

 Analysis shows that over the years,

the expenditure on non-food items
has grown faster than that the
expenditure on food items.
 Convenience foods like instant coffee
and noodles are now very popular. The
number of modern gadgets like
washing machines in the number of
house holds is now on the increase.
Yesterday’s
luxuries are now
becoming
today’s
necessities.