Lesson 0 - Introduction To Class Retail

ENTR422
Sunday, November 17, 13

Welcome to the
world of retail
ENTR422
!rellm - lnLroducuon Lo 8eLalllng, 1ypes of
8eLallers, Muluchannel 8eLalllng, neLwork
Markeung vs. yramldlng, lranchlslng, Consumer
8uylng 8ehavlor
!MldLerm - 8eLall MarkeL SLraLegy, 8eLall Locauon
and SlLe Selecuon, SLore LayouL, ueslgn and vlsual
Merchandlslng, Merchandlse ManagemenL
!llnal - 8eLall rlclng, 8eLall Communlcauons Mlx
2
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!rellm - lnLroducuon Lo 8eLalllng, 1ypes of
8eLallers, Muluchannel 8eLalllng, neLwork
Markeung vs. yramldlng, lranchlslng, Consumer
8uylng 8ehavlor
!MldLerm - 8eLall MarkeL SLraLegy, 8eLall Locauon
and SlLe Selecuon, SLore LayouL, ueslgn and vlsual
Merchandlslng, Merchandlse ManagemenL
!llnal - 8eLall rlclng, 8eLall Communlcauons Mlx
2
what to expect?
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!llnal - 8eLall Markeung lan
3
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!llnal - 8eLall Markeung lan
3
FINAL OUTPUT
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4
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re||m|nary]Introductory
M|dterm]Lnab||ng
Cr|ter|a
I|na|]
Cu|m|nanng
Cr|ter|a
Ma[or exam 30 Culzzes 20

Culzzes 20 Cnllne Culzzes 10
Cnllne Culzzes 10 Class aruclpauon 10
AssessmenLs 30
00
AssessmenLs 30
Class aruclpauon 10 LLCA 30
1oLal 100 1oLal 100
4
ASSESSMENT
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re||m|nary]Introductory
M|dterm]Lnab||ng
Cr|ter|a
I|na|]
Cu|m|nanng
Cr|ter|a
Ma[or exam 30 Culzzes 20

Culzzes 20 Cnllne Culzzes 10
Cnllne Culzzes 10 Class aruclpauon 10
AssessmenLs 30
00
AssessmenLs 30
Class aruclpauon 10 LLCA 30
1oLal 100 1oLal 100
3
3
Retail MANAGEMENT
Levy & WEITZ
8th Edition
6
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SCHOOLBOOK
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Access code: XXVU-HVPY
www. Dlsud.edu20 .org
!!"#$%&$'#( ?ou may be absenL only (due Lo
slckness or exLremely unavoldable
clrcumsLances), for a maxlmum of 9 hours,
lncluslve of Lardlness. ?ou are held responslble
for all lessons and requlremenLs LhaL you
mlssed durlng your absence. All absences aer
LhaL shall mean excesslve absences, whlch
merlL a grade of 0.00.
7
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!!"#$%&$'#( ?ou may be absenL only (due Lo
slckness or exLremely unavoldable
clrcumsLances), for a maxlmum of 9 hours,
lncluslve of Lardlness. ?ou are held responslble
for all lessons and requlremenLs LhaL you
mlssed durlng your absence. All absences aer
LhaL shall mean excesslve absences, whlch
merlL a grade of 0.00.
7
COURSE POLICIES
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!!))*+$,#$-( AsslgnmenLs wlll be due aL Lhe
beglnnlng of class unless oLherwlse lndlcaLed.
Cnllne asslgnmenLs/assessmenLs' deadllne wlll
be lndlcaLed. LaLe submlsslons wlll be accepLed
wlLh correspondlng deducuons
!.#&-/012( 1here ls no provlslon for makeup for
any mlssed seaLwork.
8
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!!))*+$,#$-( AsslgnmenLs wlll be due aL Lhe
beglnnlng of class unless oLherwlse lndlcaLed.
Cnllne asslgnmenLs/assessmenLs' deadllne wlll
be lndlcaLed. LaLe submlsslons wlll be accepLed
wlLh correspondlng deducuons
!.#&-/012( 1here ls no provlslon for makeup for
any mlssed seaLwork.
8
COURSE POLICIES
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!34&,*$&50$)( Make-up qulzzes are glven for
excused absences only. lf you mlssed any qulz
you should see me durlng my consulLauon
hours on Lhe day you reporL Lo our class Lo
schedule Lhe makeup qulz. ?ou wlll lose Lhe
chance Lo Lake Lhe speclal qulz lf you fall Lo
Lake such as scheduled.
9
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!34&,*$&50$)( Make-up qulzzes are glven for
excused absences only. lf you mlssed any qulz
you should see me durlng my consulLauon
hours on Lhe day you reporL Lo our class Lo
schedule Lhe makeup qulz. ?ou wlll lose Lhe
chance Lo Lake Lhe speclal qulz lf you fall Lo
Lake such as scheduled.
9
COURSE POLICIES
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!6&701 34&,*$&50$)( ?ou may Lake a speclal
examlnauon only lf your fallure Lo Lake such ls
due Lo an approved absence, slckness, or
exLremely unavoldable clrcumsLances. ?ou are
responslble for arranglng Lhe schedule wlLh
me. Speclal ma[or examlnauon ls glven only
wlLhln one week aer Lhe examlnauon
schedule.
10
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!6&701 34&,*$&50$)( ?ou may Lake a speclal
examlnauon only lf your fallure Lo Lake such ls
due Lo an approved absence, slckness, or
exLremely unavoldable clrcumsLances. ?ou are
responslble for arranglng Lhe schedule wlLh
me. Speclal ma[or examlnauon ls glven only
wlLhln one week aer Lhe examlnauon
schedule.
10
COURSE POLICIES
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Review of
Marketing
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! An organlzauonal funcuon and a seL of
processes for creaung, communlcaung,
and dellverlng value Lo cusLomers, and
for managlng cusLomer relauonshlps ln
ways LhaL beneL Lhe organlzauon and lLs
sLakeholders
13
COMPANY NAME
13
! An organlzauonal funcuon and a seL of
processes for creaung, communlcaung,
and dellverlng value Lo cusLomers, and
for managlng cusLomer relauonshlps ln
ways LhaL beneL Lhe organlzauon and lLs
sLakeholders
13
WHAT is marketing?
COMPANY NAME
13
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Is marketing only
Selling?
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15
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Is marketing
only for
PRODUCTS And services?
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WHAT IS a
MARKETING
strategy?
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18
18
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Do THE LETTERS
stp
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RING A BELL?
Consumer products - Products bought by ultimate consumers
for personal use.
Business products - Goods and services purchased for use
either directly or indirectly in the production of other goods
and services for resale.
"
A product can be either, depending on its use.
"
Example: Tires and Cookware
20
COMPANY NAME
20
Consumer products - Products bought by ultimate consumers
for personal use.
Business products - Goods and services purchased for use
either directly or indirectly in the production of other goods
and services for resale.
"
A product can be either, depending on its use.
"
Example: Tires and Cookware
20
TYPES OF MARKET
COMPANY NAME
20
GD(SL)
kCDUC1 kLLA1LD
21
COMPANY NAME
21
GD(SL)
kCDUC1 kLLA1LD
21
segmentation
COMPANY NAME
21
Class A respondent
8eferences:
8oberLo, L. (2002). !"#$"%&'( *$#+%" !%&,%-"$./-0 Makau ClLy: LlfeCycle ress.
Socio-economic
Class A respondent
"
Person:
"
Known as the LAS families: Lopez, Ayala, and Sy families
"
Wealthy mainly because of inherited money and assets and not usually
of their own labor.
"
Has an ancestral home and the others. The ancestral home maintains
its original colonial European architecture and interiors.
"
Monthly household income is over P100,001
"
Household head occupation - either a professional, big businessman,
big farm - owner or a top executive
"
Housewife must be well-educated
"
Household:
"
Made of heavy, high quality materials
"
Very well-constructed
"
Well-painted
"
Must have a lawn or garden
"
Expensive surroundings/exclusive subdivisions/villages
"
Expensive/luxurious furnishings
"
Must have two (2) household helps
8eferences:
Socio-economic
8eferences:
Class B respondent
"Person
"Household head occupation - professional, medium scale businessman, medium size farm-
owner, senior executive
"Monthly household income is P70,001-P100,000
"Housewife must be well-educated
"Two types:
"Gross nouveau rich (GNR) Rags-to-riches moneyed people. Became rich because
of hard work and lot/a bit of good luck.
"When they become rich, they realize they do not know how to live and
behave as wealthy persons.
"Hesitations make them often ask, Am I wearing the right clothes? Am I
found in the right places?
"Disparagingly referred to as the nouveau riche
"Have an indulgence to keep-up-with-the-rich psychology
"Smart nouveau rich (SNR) Stands in-between the born established rich and the
GNR but not as ostentatious as the latter.
"Unlike the GNRs who are indulgent to over-indulgent, SNR are the opposite.
For some products, will even deny himself/herself the joy of consumption.
"Between what is practicality and fashionable, SNRs would choose the former.
"Household
"Made of heavy, high quality materials
"Well-constructed
"Well-painted
"Must have a lawn or garden
"Expensive neighbourhoods
"Expensive furnishings
"Must have at least two (2) household helps
8eferences:
8eferences:
8oberLo, L. (2002). !"#$"%&'( *$#+%" !%&,%-"$./-0
Makau ClLy: LlfeCycle ress.
"C|ass C respondent
"erson
"Pousehold head occupauon - professlonal, small scale buslnessman, small farm-owner, [unlor execuuve, senlor
whlLe collar worker, skllled worker
"1wo Lypes:
"C1 - upwardly moblle, sLruggles Loward prosperlLy.
"MosL pressured among Lhe SLCs, feel Lhe raL race" of Lhe buslness and professlonal world Lhe mosL
"SeL Lhemselves up for a dally llfe of sLress and pressure and belleve LhaL Lhls ls Lhe only way Lo be
successful
"8ellevlng Lhe advanLages of pressure, apply Lhe same Lo Lhelr chlldren as Lhls wlll help Lhem Lo
succeed.
"1o Lhem, educauon ls Lhe mosL baslc and suresL means for Lhelr chlldren Lo succeed ln llfe and
move up ln Lhe SLC ladder.
"C2 - uownwardly moblle: baules agalnsL poverLy.
"Pas Lhe largesL percenLage of worklng couples.
"Conservauve people
"SLrong rellglous devouon, bellevers of maglc, blngo game paLrons
"lalLh ln maglc leads Lo bellef ln producLs wlLh maglcal" beneLs, llke: wrlnkle removers, anu-aglng
formula, amuleLs, eLc.
"nouseho|d - lncome ls elLher 30,001-70,000 (C1) or 30,001-30,000 (C2)
"Made of mlxed heavy, hlgh quallLy maLerlals
"Well-consLrucLed
"alnLed
"May or may noL have a garden or lawn
"AdequaLe furnlshlngs, buL noL necessarlly expenslve
"LocaLed ln a pleasanL nelghbourhood
"Pousewlfe falrly educaLed, one or Lwo household helps
8eferences:
8oberLo, L. (2002). !"#$"%&'( *$#+%" !%&,%-"$./-0
Makau ClLy: LlfeCycle ress.
Class D respondent
"
Person
"
Called the poor or masa segement
"
Household head occupation - farmer tenant, semi-skilled worker, foreman
"
Household
"
Made of very light, cheap materials
"
Poorly constructed
"
Generally unpainted
"
No garden or yard
"
Scanty furniture
"
Located in shabby surroundings
"
Household monthly income - P3,000-P 5,000
"
Housewife at least elementary educated, may have a household help but
not more than one
8eferences:
Class E respondent
"
Person
"
Called the very poor or bakya segment
"
Household head occupation - farm hand, unskilled worker, vendor or unemployed
"
Household
"
One-room aair in a poorly constructed house or barong-barong type
"
Dilapidated
"
With hardly any furniture
"
Located in slum districts or inferiors
"
No yard or garden
"
May rent or own house on squatted land, if rent, monthly rental is P300 and below
"
Household monthly income is below P3,000
"
Housewife has little education, no household help
8eferences:
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HOW DO YOU REACH YOU R
market?
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28
28
28
TM = UDC(N)M
28
"
Minds of consumers
"
Distinguish factor
Product
positioning
8undle of physlcal, servlce, and symbollc
aurlbuLes deslgned Lo sausfy a cusLomer's
wanLs and needs
Buy not objects but satisfaction
P1
31
COMPANY NAME
33
31
TYPes = UCSS
COMPANY NAME
33
32
PRODUCT MIX
! AssorLmenL of producL llnes and lndlvldual producL oerlngs LhaL Lhe
company sells.
! 8lghL blend of producL llnes and producLs allows a rm Lo maxlmlze sales
opporLunlues wlLhln Lhe llmlLauons of lLs resources
roducL Mlx WldLh
refers Lo Lhe number
of producL llnes a
rm oers
roducL Mlx LengLh
refers Lo Lhe number
of dlerenL producLs a
rm sells
roducL Mlx uepLh
consLanLly Lo refers Lo
varlauons ln each
producL LhaL Lhe rm
markeLs ln lLs mlx
32
Name, term, sign, symbol, design, or some
combination that identies the products
of one rm while dierentiating them
from the competition
branding
means of making goods and services
available to ultimate users
P2
36
From promotions to IMC = Coordination of
all promotional activities to produce a
unied, customer- focused promotional
message.
P3
IMC = PS+ NP
NP = A,PP,DM,PRP, GM, STP
P4
Pricing Objectives
Pricing Objectives
1. eneLrauon rlclng
Pricing Objectives
1. eneLrauon rlclng
2. Compeuuve rlclng
Pricing Objectives
1. eneLrauon rlclng
2. Compeuuve rlclng
3. Sklmmlng
Pricing Objectives
1. eneLrauon rlclng
2. Compeuuve rlclng
3. Sklmmlng
4. rlclng for SLablllLy
Pricing Objectives
1. eneLrauon rlclng
2. Compeuuve rlclng
3. Sklmmlng
3. 8eLurn on Sales
Pricing Objectives
1. eneLrauon rlclng
2. Compeuuve rlclng
3. Sklmmlng
3. 8eLurn on Sales
& lnvesLmenL rlclng
Some Specic Price Tactics
1. roduct ||ne pr|c|ng - seL prlce range
for each producL llnes.
Brand&Product Price
SAN REMO
Alfredo
Spiral
Vegetable Spiral
Spinach
Fettuccini
Spaghetti
P50.50
P64.50
P64.50
P64.50
P64.50
P93.50
Brand&Product Price
SAN REMO
Alfredo
Spiral
Vegetable Spiral
Spinach
Fettuccini
Spaghetti
P50.50
P64.50
P64.50
P64.50
P64.50
P93.50
2. r|ce bund||ng- 2 or more producL for a slngle
prlce
Brand&Product Price
SAN REMO
Alfredo
Spiral
Vegetable Spiral
Spinach
Fettuccini
Spaghetti
P50.50
P64.50
P64.50
P64.50
P64.50
P93.50
2. r|ce bund||ng- 2 or more producL for a slngle
prlce

3. Comp|ementary pr|c|ng - glvlng o
complemenLary vouchers, rebaLes,
dlscounLs, coupons, eLc.





4. Lveryday |ow pr|c|ng - conunuous low
prlces


4. Lveryday |ow pr|c|ng - conunuous low
prlces
Warehouse sales
llke unlwlde,
SaveMore, eLc.

7. Va|ue r|c|ng - prlce ls aL besL value for
your money

your money
Lx. Wensha Spa LhaL
oers Shabu-Shabu
bueL lncluslve of Lhe
massage fee.

your money
8. n|dden r|ce Increases - ways of lncreaslng
prlce by cumng Lhe quanuLy, decreaslng quallLy,
or addlng surcharges.
Lx. Wensha Spa LhaL
oers Shabu-Shabu
massage fee.

your money
8. n|dden r|ce Increases - ways of lncreaslng
prlce by cumng Lhe quanuLy, decreaslng quallLy,
or addlng surcharges.
Lx. Wensha Spa LhaL
oers Shabu-Shabu
massage fee.
Lx. Chlps and [unk food
LhaL decrease ln slze, buL
same prlce.

9. Second Market r|c|ng - also called
uuMlnC. useful prlclng sLraLegy when
excess producuon exlsL.

Lx. uS and uk base SlgnaLure brands
LhaL are no longer ln demand and
already ouL of season, are dumped and
LransporLed ln forelgn markeLs,
parucularly 3
rd
world counLrles.

10. er|od|c r|c|ng - seasonal prlclng
parucularly 3
rd
world counLrles.

10. er|od|c r|c|ng - seasonal prlclng
parucularly 3
rd
world counLrles.
S. D|erenna| r|c|ng- dlerenL prlces based
on Lhe Lype of cusLomer, quanuLy, dellvery ume,
paymenL Lerms.
paymenL Lerms.
rlclng of gasollne
raLes for consumer
and 828 markeL
6. D|rect r|ce D|scr|m|nanon - Semng a
dlerenL prlce for Lhe same producL ln dlerenL
segmenLs Lo Lhe markeL.
paymenL Lerms.
rlclng of gasollne
raLes for consumer
and 828 markeL
Universal Studios Hollywood Ticket prices
paymenL Lerms.
rlclng of gasollne
raLes for consumer
and 828 markeL
Universal Studios Hollywood Ticket prices
paymenL Lerms.
rlclng of gasollne
raLes for consumer
and 828 markeL
THANKS
FOR listening

Lesson 0 - Introduction To Class Retail

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Lesson 0 - Introduction To Class Retail

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ENTR422

Sunday, November 17, 13

Ma[or exam 30 Culzzes 20

Ma[or exam 30 Culzzes 20

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