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Pricing in principles of marketing
Retail management chapter 4
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Retail and Service Management Assignment
SECTION A
A1.
a) Retailing
Retailing is the sale of goods and services to the ultimate consumer for personal, family or household use.
According to Kotler:
“Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non-business use”
Retailing involves a direct interface with the customer and the coordination of business activities from end to end, right from the concept or design stage of a product or offering, to its delivery and post delivery service to the customer. It is necessary to understand that in the complex world of trade today, retail would include not only goods but also services, which may be provided to the end consumer. In an age
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This expansion may be internal or external or a combination of both. Internal expansion is the process of growing a business through the use of resources within the business, and not involving the use of any type of outside activities to solicit new customers. Internal strategies would involve finding ways to reduce operational expenses without minimizing quality or support to customers, allowing the business to retain more profit on each unit sold. Along the same lines, the company may even expand its customer base by means of referrals provided by current customers.
For example a KFC expanding through, coffee shop and a restaurant. There are many types which a business can expand externally. It’s an expansion of business through outside influences. External growth strategies develop actual company size and asset worth. External strategies focus on strategic mergers or acquisitions, increasing the number of mutual relationships through third parties, and may even include franchising the business
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Organizational Approach
Corporate chains - Two or more outlets that are commonly owned and controlled.
Voluntary chains - Wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising.
Retailer cooperative - A group of independent retailers that band together to set up a joint-owned, central wholesale operation and conduct joint merchandising and promotion effort.
Franchise organizations - Based on some unique product or service; on a method of doing business; or on the trade name, good will, or patent that the franchisor has developed
Franchise organizations - Based on some unique product or service; on a method of doing business; or on the trade name, good will, or patent that the franchisor has developed.
D) Marketing Elements
The four marketing elements are designed to meet the designed the needs of customers.
Price is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. Price is the only element to produce revenues. It can be changed quickly and is most flexible element.
Products must be ensured to meet the needs of customers in terms of Appearance, Function, and Cost. Products should be conveniently available for customers to
Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.
Over the previous couple of decades, modern business has been evolving rapidly and the retail industry has been no exception. Whereas previously the customers received retail ads and offers from disconnected sources, today retailers are operating a combination of all available retail marketing methods to reach the customer.
Retailers and wholesalers of Apple products serve to make products available across sectors that hold a large product variety, such as JB HiFi and Officeworks. Apple enhance the store experience and sales in these channel partners by positioning and displaying merchandise for maximum promotional
Schmidt, Ruth., & Pioch, Elke A. (2005). Community pharmacies under pressure - can branding help? International Journal of Retail & Distribution Management, 33(6/7), 494-504. Retrieved on January 2014 from Proquest at http://search.proquest.com.ezproxy.trident.edu:2048/docview/210942979
truly believed in by today's society. The retail ranges from books to clothing to toys.
Even the slowdown in current global economies could not bring retail sector down as retailers keep seeking for opportunities overseas to avoid challenging economic condition, which make this sector becoming more globalised and competitive. As an heir of an industrial components retailer, I also believe there are bountiful opportunities to grow in this emerging industry. But without deeply and truly understanding in every aspect of retailing, one could not survive in the battle. For this reason, I would like to pursue my education further by studying Master in retail management to obtain knowledge in retailing and hopefully become successful in the field.
The retail business requires new ideas, innovations constantly, and must have the ability to enthuse the customer as much as possible. This retail company is a firm believer in doing what it takes to help the growth of
New Geographical markets: this involves selling outside the region or a country and offering them same existing product. Expanding into new market place with the same existing product is a very effective way to grow the business.
Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand without having to pay such a large initial cost to open a new store since the franchise purchaser pays a cost to open the business. As well, the company can regulate many of the business activities so that there is a sense of consistency throughout all of the locations. The purchaser is allowed to use the trademarks and goods of the franchise which already have a large market presence. As well, they are provided with training and work standards by the company to help their business run smoothly (Kalnins & Lafontaine, 2004, p.761). Looking at the business model of the world’s largest food retailer, McDonald’s, provides great insight into franchising and business growth in general as well a better understanding of a global business that utilizes the franchising technique.
There are many competitors; there are various rules and regulations to deal with in the expansion program. The company also considers the economic environment as it can adversely affect the performance of the company. Technology is another factor which cannot be left out. Geographic factors, demographic factors and the environmental factors also impact the company’s business. To start with, the competitors of the company incudes McDonalds and other such as the Burger Kings. The competition is stiff and for the company to remain afloat, it must ensure that the audience knows of the product for easy penetration. Failure to tis would bring the company to its knees and fail. The geographical factors also affect the company in that the consumption patterns of some products are affected by climate patterns. The company should maximize in the high seasons and reap big profits then. The legal factors also impact the company. In the expansion plan, the company intends to spread her services to other states. In the country, there are many states which have different rules and regulations governing the conduct of a business. This also relates to the type of advertisements that the company can bring forth, thus, for the company to cushion against such forces as the legal differences, there should be proper analysis of the legal requirements in the northern states before venturing into the business. The demographic environment is
The nature of the business of retailing puts retailers at a assumed risk of incurring costs because products are bought with the assumption that consumers will purchase. Additionally there are external factors that may also pose risks such as natural disasters, theft, spoilage and fire. In other circumstances retailers also extends financial credit to customers in the form of credit sales which facilitates the smooth transition from retailers to the marketplace. Retailers are in constant contact with customers which gives them the opportunity to research and study buyer’s behaviour. This involves collecting information about changes in customer preferences, perception and shifts in the demand curve. Through advertising within their stores retailers are able to exhibit and introduce existing and new products to the marketplace. Ultimately retailers are in the business of selling products to customers to achieve their goals of generating
Manufacturing Franchise: These types of franchises provide an organization with the right to manufacture a product and sell it to the public, using the franchisor’s name and trademark. This type of franchise if found most often in the food and beverage industry. Most bottlers of soft drinks receive a franchise from a company and must use its ingredients to produce, bottle, and distribute the soft drinks.
Another definition of marketing is the "selling of products or services: the business activity of presenting products or services in such a way as to make them desirable" (MSN Encarta). However, according to (Kotler & Keller, 2006) the formal definition of "marketing is an organizational function and a set of processes for creating, communication, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its shareholders"(Kotler & Keller, p.4). According to these definitions, marketing needs to cover customers' necessities and at the same time sell products to increase future revenues. However, marketing is more extensive than just selling a product. Moreover, marketing activities are all activities associated with identifying the particular wants and needs of a target market of customers, and then going about satisfying those customers better than the competitors. This involves doing market research on customers, analyzing their needs, and then making strategic decisions about product design, pricing, promotion and distribution.
the business activity of presenting products or services to potential customers in such a way as to make them eager to buy. Marketing includes such matters as the pricing and packaging of the product and the creation of demand by advertising and sales campaigns.4
A franchise is simply investing money in a location or store, and then having the store become your own business after learning how to manage the entire business. You earn the majority of the profits, and you also don't have to worry about operations. You'll be taught by the company on how it run the entire business, and this is the reason why this is a huge and very easy way to become rich. Franchises require quite a hefty investment depending on the business you plan to buy. However, if the business is in high demand, there is profits to be made. Take for exMple the Cold Stone Creamery business. Countless people purchase one of their many franchises. The money is very good, the opportunities are endless, and the fact that there is no more need for advertising is what makes this more worth the investment in the long