through analysis, ABC analysis, and the multi-attribute model. The sell-through analysis is useful for examining the performance of individual SKUs in the merchandise plan. The buyer compares actual with planned sales to determine whether more merchandise needs to be ordered or whether the merchandise should be put on sale. In an ABC analysis, merchandise is rank-ordered from highest to lowest. The merchandising team uses this information to set inventory management policies. The multi-attribute analysis method for evaluating vendors uses a weighted-average score for each vendor based on the importance of various issues and the vendor’s performance on those issues. Buyers choose the vendor with the highest weighted score. COMMUNICATION MIX LO1 Identify the traditional media elements. Retailers communicate with customers using a variety of traditional media elements. These include mass media advertising, sales promotions, in-store marketing, personal selling, and public relations. LO2 Identify the new media elements. In the past decade or so, retailers have embraced several new media elements. The online elements include websites, e-mail, and mobile. Examples of the social media elements embraced by retailers are YouTube, Facebook, blogs, and Twitter. LO3 Understand how retailers use communication programs to develop brand images and build customer loyalty . An important use of communication programs is to develop strong brand images that enhance customer loyalty. Brands are very valuable to both customers and retailers because they provide information that helps enhance the shopping
experience and create loyalty toward the retailer and its products and services. To enhance customers’ brand image, retailers undertake communications activities that create a high level of brand awareness, develop favorable associations with the brand name, and reinforce the image of the brand. LO4 List the steps involved in developing a communication program. Retailers go through four steps to develop and implement their communication program: establish objectives, determine a budget, allocate the budget, and implement and evaluate the program. Marginal analysis is the most appropriate method for determining how much should be spent to accomplish the retailer’s objectives because it maximizes the profits that could be generated by the communication mix. Because marginal analysis is difficult to implement, however, many retailers use rule of-thumb methods to determine the size of the promotion budget.--------------------------------------------------- Managing the Store (SALES MANAGEMENT) LO1 Describe how to improve the ability of workers through efficient recruiting, socializing, and training. Store managers can improve the abilities of their employees through effective recruiting, socializing, and training. To recruit skillful, or potentially skillful, employees, store managers prepare a job description, find potential applicants with the desired capabilities, and screen the best candidates to interview. Having hired employees with the required
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