Price helps define value of merchandise and service General price range of

Price helps define value of merchandise and service

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Price : helps define value of merchandise and service. General price range of store defines image. Price must always be aligned with: product, promo, & place. Manufacturer & retailer profit & what customers will pay Promotion : can mean difference b/w flat sales & growing customer base. Newspapers, magazines, TV important to get customers into stores. Tech increase. Real time promos online. Coupons, rebates, discounts, BOGO play critical role driving traffic to stores, increasing purchase size, repeat purchases. POP ads, retail environment, music, scent, lighting. Also salespeople influential with risky, complicated, expensive items (diamond ring, computer, air conditioning) some sales people being replaced by kiosks/tech. Mobile Commerce (M-Commerce ): communicating w/ selling to consumers thru wireless phones. Typical retailer website not designed for phones so special mobile site necessary/ or apps. Cooperative Advertising (Co-op ): agreement b/w manufacturer & retailer which manufacturer agrees to defray some advertising costs. Share of Wallet : % of consumer’s purchases made from a particular retailer. May modify price, promo, to increase SOW after researching CRM . Online browsing history emails about those promos, g/s. Place : convenience location key to success. Competition cannot duplicate. Walgreen’s free standing stores for drive thru’s . “location, location, location” BENEFITS OF STORE FOR CONSUMER : o Browsing : see what’s available before making final decision what to buy. Can do in store or on internet. o Touching/Feeling : greatest benefit to stores. Use all 5 senses o Personal Service : sales associates have ability provide info. Can be helpful when purchasing complicated product (electronics, Japanese denim jeans) o Cash/Credit Payment : only channel that accept cash payment. Doesn’t result in interest payments. For people that don’t have credit cards. o Entertainment & Social Experiment : can be stimulating experience for some people providing break in daily routine and enabling interaction with friends. o Immediate Gratification : allowing customers get merchandise immediately after paying for it. o Risk Reduction : physical presence of store reduces perceived risk of buying/increases confidence any problems with merchandise will be corrected . BENEFIT OF INTERNET AND OMNICHANNEL RETAILING : how addition of internet channel to traditional stores retailers has improved ability to serve customers and build competitive advantage. Deeper & Broader Selection : vast # alternatives retailers can make available to consumer w/o crowding aisles/increase sqft. Stores/catalog limited in size . More colors, sizes, brands. Personalization : personalize promos, services economically (heightened service/individuals offerings) Personalized Customer Service : FAQ pages, email/1800 # not timely tho. Offering live, online chat options to shopper’s way of increasing value o Online Charts : instant messaging, voice conversation w/ online sales rep. Enables firms send proactive chat initiations at specific times to visitor sites (mins on site/ # visits on site). (Virgin Airlines)
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