ST.JOSEPH COLLEGE OF ENGINEERING DEPARTMENT OF MANAGEMENT STUDIES BA5005 RETAIL MARKETING UNIT I PART - A

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1 ST.JOSEPH COLLEGE OF ENGINEERING DEPARTMENT OF MANAGEMENT STUDIES UNIT I PART - A 1. Define Retailing According to Cundiff and Still, Retailing consists of all those activities involved in selling directly to ultimate customers. 2. Mention the nature of retailing Direct interaction with customers. Lower average amount of sales transaction. Point- of purchase display and promotions. Lower number of retail business units. 3. What are the scopes of retailing? Store Management Supply chain management Vendor Management Inventory management Category management Customer relationship management Functions Of Retailing: Sorting Breaking Bulk Holding Stock Additional services Channel of communication Target and advertising functions Assortments 4. What are the factors influencing retailing? Computerisation Communication Fashion Classic fashion Fad fashion Consumerism

2 5. List out the opportunities in Retailing: Retail Management Position. Staff at all Levels of Retail Operations. Market Research. Retail Design Consultants. Franchising. Retailing Software and Consultancy services. Retail Advertising. Retailing Equipment Suppliers. Retail Banking. Buying and Merchandising. 6. Define policy? A course or principle of action adopted or proposed by an organisation or individual. The government s controversial economic policies 7. What are the government policies in retail sector? Indian government policy with regard to development of retail industry has been liberal and motivating. The Indian traders/ retailers register their outlets/ shops with concerned authorities in various states and by honouring sales tax and other obligations of the state concerned, they can run their retail business. 8. What is global retailing? Global retailing operations are fundamentally changing the methods consumer goods are distributed globally. 9. Give the advantages of global retail marketing? Personal interaction Real- time control Serious customers Loyalty programs 10. List the socio economic factors in retail marketing? Acceptance of internet commerce Advertising preferences Age distribution Buying habits Comfort with technology Customer service expectations Disposable income levels Family Gender distribution Green consciousness

3 Health awareness Immigration Population growth Quality expectations Social organisation Value perceptions 11. How will you classify retail sector in India? 1. Food retailers 2. Health & Beauty products 3. Clothing & Footwear 4. Home furniture & Household goods 5. Durable goods 6. Leisure & Personal goods 12. Give any four applications of information technology in retail sector? Netiks International Sal Innovative Technology Sarl, Itec Select Info Sal Syscom Techonologies Sarl 13. What is retail branding? Retail branding requires strategy, which is the tactics a company adopts to arouse consumer s interest in its brand. According to the marketing website Design Damage, strategy starts when a company s marketing department defines a brand that embraces its business model. 14. What is Universal Product Code (USB)? A UPC, short for Universal Product Code is a type of code printed on retail product packaging to aid in identifying a particular item. It consists of two parts- the machine- readable barcode, which is a series of unique black bars, and the unique 12-digit number beneath it. 15. What is Public Distribution System (PDS)? Public distribution system is a Major commodities distributed include staple food grains, such as wheat, rice, sugar and kerosene, through a network of fair price shops (also known as ration shops) established in several states across the country. 16. What do you mean by sorting? Retailers display the products in attractive manner such a way that the consumers can understand and select the product easily. 17. What is assortment? Consumers are offered with wide variety of products and choices in terms of brands, flavours, designs, sizes, colours and prices under one roof.

4 18. What are the advantages of technology in retailing? Reduced waste Increased productivity Fewer workforce Higher profits Higher income Advanced communication 19. What are positive implications of FDI in retailing? Infusion of capital Technology transfer Higher consumer well being Competition and inflation control Employment generation 20. Mention the Government policy of India on retailing. Removal of restrictions on FDI Uniform tax policy Providing adequate infrastructure Removal of labour employment problems PART - B 1. Give an overview of Global Retailing. 2. What are the Challenges and opportunities retailing. 3. Give in detail about Retail trends in India 4. What are Socio economic and technological Influences on retail management? 5. Explain the Government of India policy implications on retails. 6. Describe the functions of retailing in detail. 7. Explain implications of FDI on retailing in India. 8. Elaborate market entry strategies of retailers to global 9. Explain scope of retailing in India with examples. 10. Give the overview on involvement of government on retail marketing.

5 UNIT-II PART - A 1. What are organized sectors? Organised sector is a sector where the employment terms are fixed and regular, and the employees get assured work. 2. What are unorganized sectors? Unorganised sector is one where the employment terms are not fixed and regular, as well as the enterprises, are not registered with the government. 3. Define retail format The format of a retailer is the overall appearance and feel that it presents to customers, primarily its look and layout, the sort of range it stocks and the approach taken to pricing. Format is distinct from fascia which, strictly speaking, refers solely to external appearance. 4. What are the types of retail format? Mom-and-pop stores Department stores Category killers Malls Discount stores Supermarkets Street vendors Hypermarkets Kiosks 5. What are the characteristics of retail format? They have a clear vision They evolve the offering They execute They develop a strong culture and set of values They deliver emotional and self-expressive benefits They address a real unmet need They scale They integrate social and environmental programs into the brand. 6. List the emerging trends in retail formats Mom-and-pop stores and traditional Kirana Stores E-commerce Department stores Discount stores Category killers Specialty stores

6 E-tailers 7. Define organised sector? The sector, which is registered with the government, is called an organised sector. In this sector, people get assured work, and the employment terms are fixed and regular. A number of acts apply to the enterprises, schools and hospitals covered under the organised sector. Entry into the organised sector is very difficult as proper registration of the entity is required. The sector is regulated taxed by the government. 8. Give the importance of retail formats? Providing assortments Breaking bulk Holding inventory Providing services 9. What are the ethical issues in marketing decision? Ethical marketing decisions and efforts should meet and suit the needs of customers, suppliers, and business partners. Unethical behaviour such as price wars, selective advertising, and deceptive marketing can negatively impact a company s relationships. 10. Explain the impact of the internet on markets? The Impact of Internet Marketing; Internet marketing is a business imperative because the internet is an irrevocable and unstoppable trend. An ad in an internet directory us generally free, and you can include links directing customers to your web site for more information. 11. Explain customer driven organisation? Any organisation must develop and maintain a base of loyal customers or clients, and a customer-driven organisation recognize customer service and product quality as foundations of competitive advantages. 12. Discuss the techniques of acquiring the customers on the web? Radio, Television, and Print Advertising On-line advertising Strategic partnerships Word of mouth Free links PR- Public relation 13. Discuss the advantages and limitations of online marketing? Advantages of internet marketing: Lower cost Global audience Reliable technology

7 Disadvantage of internet marketing: Face-to-face contact is limited Marketing complexity 14. Define MNC s A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they coordinate global management. 15. Why retail formats important? A good format will both draw in customers (generating footfall) and help present products well to generate sales. Because the format is so important, growth investors can often benefit by identify developed formats that are good enough to provide a platform for sustained growth. 16. What is leased department? A leased department consist of space in a larger retail store that is rented to an outside vendor. The retail business that leases the space runs that area as if it were a small business within the larger business unit. 17. What is departmental store? Departmental stores are retailers that carry a broad variety and deep assortment, offer some customer service, and are organized into separate departments for displaying merchandise. 18. What do you mean by super market? Supermarket is a form of grocery store; it is a self-service store offering a wide range of food and household merchandise, organized into departments. 19. What is a hyper market? A hyper market is a format combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof. 20. Write short note on E-Retailing. The importance of internet retailing is growing all over the world. Some internet retailers such as ebay and rediff.com are providing a platform to vendors to sell their products online and they take the responsibility of delivery the product to buyer. PART - B 1. Explain the characteristics of organized and unorganized retail formats. 2. Describe the different types of organized retail format 3. Enumerate the Characteristics of each format. 4. Explain the emerging trends in retail formats 5. Explain the MNC's role in organized retail formats. 6. Explain the importance and issues of organized retail formats.

8 7. Write in detail about online marketing. State the advantages of online marketing. 8. Discuss in detail about the types of retail stores in India. 9. Discuss about the origin of retailing in India. 10. Discuss about the advantages and dis-advantages of organized and un-organized retail stores in India. UNIT III PART - A 1. List out the Importance of Location in Retailing. Consumer Choice Need for Competitive Advantages Consideration of Trends High Investment Property Asset Declining Number of Sites Cost Factor Revenue Factor 2. What is Community Shopping Centres? Community shopping centres are substantially smaller than regional centres or mega malls. Community shopping centres tend to be between 100,000 and 400,000 square feet. 3. What is Lifestyle and Outlet Centres? Lifestyle centres are gaining momentum. A Planned shopping centre targeted to upperincome shoppers. Typically outdoors with a Main Street ambience, tenants that sell nonessential items, higher building and landscaping costs than those of other retail developments, and parking in front of the stores. 4. List out the issues in selecting retail location Consumer Choice Need for Competitive Advantages Consideration of Trends High Investments Property Assets Declining Number of Sites 5. What do you mean by Retail Atmospherics? Atmospherics is referred to as a store s physical characteristics that are used to develop the retail unit image and draw customers. It describes the physical elements in a store s design that appeals to consumers and encourages them to buy.

9 6. What is internal Atmospherics? Interior atmospherics refers to all aspects of the physical; environment found inside the store. Interior atmospherics affects sales, Time spent in the store, and approaches/avoidance behaviour of the target segment. 7. What is external Atmospherics? Exterior atmospherics refers to all aspects of physical environment found outside the store. It significantly affects store traffic and sales. It is generated by all aspects of the store exterior. 8. What are the Roles of Retail Atmospherics? Creates Attention Creates Message Creates Affect Store Atmospherics Influence Shopping Behaviour In-store Music Builds Business and Sales In-store Messaging and Visual Imaging are Sales Motivators 9. Define Positioning of Retail Shops According to AI Ries and Jack Trout, Positioning starts with a product, a piece of merchandise, a service, a product company, an institution or even a person. Positioning is not what is done to the product but what is done to the mind of the prospect, i.e., you position the product in the mind of the prospect. 10. Define retail store image. Arons and Dichter think retail store image is an individual s cognitions and emotions that are inferred from perceptions or memory inputs that are attached to a particular store and which represent what that store signifies to an individual. 11. Define Customer Service According to the ACS group, Customer Service is the ability of an organisation constantly and consistently gives the customer what they want and need. 12. List out the type of Customer Service in Retail Pre-Transaction Services Transaction Services After Sale Services/Post-Transaction Services

10 13. Define Service Quality According to the American Society for the Quality Control, Quality refers to the totality of features and characteristics of a product or a service that bear on its satisfy stated or implied needs. 14. Define Supply Chain Management According to Christopher, SCM is the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole. 15. Define Merchandise Management According to American Marketing Association, Merchandising is the planning involved in marketing the right merchandise at the right place time in the right quantities at the right price. 16. List out functions of Merchandise Management Analysis of the Market opportunity Creation of Merchandise Plan Selecting the supply Base Product development and supplier performance management Presentation of merchandise at Point of sale 17. Define Category Management According to Partnering Group, A Category is a distinct, manageable group of products/services that consumer perceive to be interrelated and/or sustainable in meeting a consumer need. 18. What are the Importance of Category Management? Increased sales Reduced Inventory Investment Improved Route and warehouse Efficiency 19. What do you mean by Traffic Building? This strategy focuses on drawing consumer traffic to the store. Such a strategy may be sustainable for products which have a high amount of price awareness and household penetration and require frequent purchase. 20. What are the objectives of Retail Pricing objectives? Product quality objective Skimming objective Market share objective

11 Market share Survival objective Profit objective Cash flow objective PART B 1. How do you choose the Choice of retail locations? 2. Explain the internal and external atmospherics in retail sector. 3. How will you Position of retail shops as to improve it in better manner? 4. How will you Building retail store Image? 5. Explain in detail about Retail service quality management and its process. 6. Explain the Retail Supply Chain Management. 7. What are the factors to be considered to have an effective Retail Pricing Decisions? 8. Describe GAP model of services quality. 9. Elaborate merchandise management in retailing. 10. Explain the process of category management. 1. What is supply chain management? UNIT IV PART - A Supply chain management (SCM) is the systematic, strategic co-ordination of the traditional business function and the tactics across these business functions within a particular company and across business within the supply chain, for the purposes of improving the longterm performance of the individual companies and the supply chain as a whole. 2. Define retail branding Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. Retail Branding is different from just branding. In branding, companies build the brand name on the basis of what they want to communicate about what the brand stands for. 3. What is Integrated Marketing communication programme? An integrated marketing communication programme can be developed using all the element of the marketing mix.integrated marketing communication is integration of all marketing tools, approaches, and resources. 4. Mark-ups versus markdowns. When does a retailer use each of them? A mark-up is the gross margin that a retailer charges on its cost of merchandise. Retailer uses mark-ups so as to cover all the operating expenses incurred in the sale of the product and to generate desirable profits.

12 Whereas a markdown from the original retail price of an item can meet the lower price of another retailer. It is used to adapt to inventory overstocking, clear out shop-worn merchandise, reduce assortments of odds and ends, and to increased customer traffic. 5. What is meant by Online Retail? It is often referred to web retailing, internet retailing, electronic retailing or e-tailing. In this retail classification, the retailer and customer communication with each other in a typically non-personal way via some type of electronic, interactive system, generally a computer facilitated by the internet. 6. What is meant by space management? The placement of merchandise within the store in the most profitable manner is called space management. It is one of the most important activities because the location of merchandise at different location, have different values. 7. What are the Roles of Visual Merchandising? Increasing sales Informing and Educating Customers Enabling Ease of Shopping Creating and Enhancing the store's Image 8. Define retail inventory management The American Institute of Certified public Account (AICPA) defines "Inventory in the sense of tangible goods which are held for sale, in process of production and available for ready consumption". 9. What is retail accounting? Accounting system is an integral part of management concerned with identifying, presenting and integrating information that relates to retail trading. 10. What are the types of retail audits? Retail audits can be categorised into two parts: 1) Retail process audits 2) Customer audit 11. What are the components of balance sheet? 1) Current assets 2) Liabilities

13 3) Net worth 12. What are the limitations of retail audits? 1) Lack of cooperation 2) Incomplete and Inadequate dada 3) Consumer behaviour 4) Expensive 13. What are the types of retail store brand? The retail store brands are 3 types. These are described as follows: 1) National brand /Manufacturers brand 2) Local brands 3) Private label brands 14. What are the roles of branding in retailing? Following are the roles played by retail branding in business: 1) Improved sales 2) Higher price 3) Higher profitability 4) Barriers against competitors 5) Higher customer loyalty 15. What are the roles of retail advertising? 1) Increases awareness of retail store 2) Increase knowledge 3) Create linking 4) Induces preference 16. What are the components of retail shopper profile? The components of customer profile are as follows: 1) Geographic 2) Demographic

14 3) Psychographic 4) Buyer behaviour 17. What are the methods of communication with customers? The classification is based on whether the methods are impersonal or personal and paid or unpaid. 1) Paid impersonal communication 2) Paid personal communication 3) Unpaid impersonal communication 4) Unpaid personal communication 18. What are the factors affecting retail promotion? Following are the major factors considered by retailers while determining the promotion mix strategy: 1) Types of product 2) Nature of market 3) Stage in product life cycle 4) Budget availability 5) Company policy 6) Type of product market 7) Buyer-Readiness stage 19. What are the business ratios? 1) Quick ratio 2) Current ratio 3) Collection period 4) Accounts payable to net safes 5) Overall gross profit 20. What are the components of an income statement? Essentially, an income statement has nine main categories:

15 1) Net sales 2) Cost of goods sold 3) Gross profit 4) Operating expenses 5) Net income from operations 6) Net income before taxes 7) Income taxes 8) Net income after taxes 9) Other income PART - B 1. Explain briefly about Visual Merchandise Management. 2. Enumerate the Space Management in retail sector. 3. How the Retail Inventory Management will be executed in retail sector. 4. How the Retail accounting and audits plays vital role in retail sector. 5. What are Retail store brands? Explain in details. 6. Discuss how retail accounting is used in retailing business. 7. Discuss about the popularity of Wal-Mart in India. 8. What are Retail advertising and promotions in retail marketing? 9. Explain in detail about Retail Management Information Systems 10. Give an importance of online retail Emerging trends. 1. What are the stages of a family life cycle? Stages of family life cycle Bachelorhood Honeymooners Parenthood UNIT V PART A

16 Post-parenthood Dissolution 2. What is meant by complaints management? Complaints offer business an opportunity to correct immediate problems.in addition, they frequently provide constructive ideas for improving products, adapting marketing practices, upgrading services, or modifying promotional material, and product information. 3. How Service quality as a competitive advantage? The quality of service becomes a strategic element that confers a competitive advantage those who seek to achieve, maintain and improve it. Managing service quality as a competitive advantage means addressing the whole process of service provision. 4. Mention any three ways to motivate and manage floor managers of a retail store Ways to motivate and manage floor managers: Trust Respect Encouragement 5. What do you mean by value delivery in retailing? The value delivery mechanism of the retailer need to be consistent and reinforcing to maximize its brand equity, failing which, it stands the risk of dilution. The performance of the retailer depends upon the value it can offer to the customers. 6. What is life style in retail shopping behaviours? It refers to an individual s mode of living as identified by his or her activities, interests, and options. Lifestyle variables have been measured by identifying a consumer s day- to-day activities and interests. It is considered to be highly correlated with consumer s value and personality. 7. What are the components of retail shopper profile? Geographic Demographic Psychographic Buyer Behaviour 8. Define retail shopper behaviour. According to Leon G.Schiffman and Leslie Lazar Kanuk, Consumer behaviour can be defined as the behaviour that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs.

17 9. Mention the techniques of shopper profile analysis. Surveys Point of purchase Profile by parameter Demographics Enterprises and business management 10. Define buying motives Accoding to D.J.Durian, Buying motives are those influences or considerations which provide the impulse to buy, induce action or determine choice in the purchase of goods or services. 11. Mention the buying role of retail shopper. Initiator Influencer Decider Gatekeeper Buyer User 12. List out the types of buying decisions. Complex buying behavior Dissonance-Reducing buying behavior Variety-seeking buying behavior Habitual buying behavior 13. Write the shopping decision process. A. Problem recognition B. Information search C. Evaluation of alternatives D. Purchase decision E. Post purchase behaviour 14. Define complaints management. According to ISO 10002:2004, a complaint is an expression of dissatisfaction made to an organization, related to its products or the complaints handling process itself, where a response or resolution is explicitly or implicitly expected. 15. What are the types of customer complaints?

18 Instrumental complaints Non-instrumental complaints Reflexive complaints Ostensive complaints 16. Write down the objectives of complaints management. Stabilizing customer relation Preventing negative word of mouth Increasing customer satisfaction Obtaining information Preventing opportunity cost Preventing loss of sales 17. What are the significance of complaints management? Customer retention Brand reputation Operational efficiency Improved internal communications and relations Flexibility 18. Mention the method for determining size of sales force. Work load method Sales potential method Incremental method 19. What are the uses of job analysis in retail human resource? Recruitment and selection Compensation Performance appraisal Training Understand the carrier ladders 20. Write down the meaning of retail sales force management. Retail sales force management involves several HR functions in a manner consistent with the retailer s organization structure and strategy mix. It is required of all retailers, with policy dependent on their line of business, the number of employees, the location of outlets, and other factors.

19 PART B 1. How will you understand the Retail shopper behaviour? 2. Explain the Shopper Profile Analysis. 3. What are the Shopping Decision Process by the customers in retail sector? 4. What are the factors influencing retail shopper behaviour? 5. Explain the effectiveness of Complaints Management. 6. Explain about the Retail sales force Management. 7. What are the Challenges in Retailing in India? 8. Explain in detail about the steps in Buyer Decision Process. 9. Explain in detail about the factors which influence the customer s decision making process. 10. Explain about Complaint Management in Retailing. Subject in-charge HOD Principal