Successful vendor relationships depend on planning for and being adept at

Successful vendor relationships depend on planning

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allowances, terms of purchase, exclusivity, and transportation costs. Successful vendor relationships depend on planning for and being adept at negotiations. LO5 Determine why retailers build strategic relationships with their vendors. Retailers that can successfully team up with their vendors can achieve a sustainable competitive advantage. There needs to be more than just a promise to buy and sell on a regular basis. Strategic relationships require trust, shared goals, strong communications, and a financial commitment. LO6 Indicate the legal, ethical, and social responsibility issues involved in buying merchandise. Buyers need to be aware of ethical and legal issues that can guide them in their negotiations and purchase decisions. There are also problems associated with counterfeit and gray-market merchandise and issues that vendors face when selling to retailers, such as exclusive territories and tying contracts. Care should be taken by vendors when placing restrictions on which retailers they will sell to, what merchandise, how much, and at what price. Some retailers are taking giant steps toward being more socially responsible.------------------------------------------------------------------------------ --------------------------- 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,

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