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Q 1. (a) Define Retail Marketing, how it is emerging in Indian Market? Answer.

Retail Marketing or Retailing Selling of merchandise directly to the consumer. Retailing began several thousand years ago with peddlers hawking their wares at the earliest marketplaces. It is extremely competitive, and the failure rate of retail establishments is relatively high. Price is the most important arena of competition, but other factors include convenience of location, selection and display of merchandise, attractiveness of the establishment, and reputation. The diversity of retailing is evident in the many forms it now takes, including vending machines, door-to-door and telephone sales, directmail marketing, the Internet, discount houses, specialty stores, department stores, supermarkets, and consumer cooperatives. Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase. In the retail banking industry there are four emerging consumer patterns that will shape the future. First, customers want to feel comfortable dealing with a Financial institution. Second, customers continue to thirst for financial knowledge presented in an easy to understand and personable way. Third, they want products and services delivered conveniently. Fourth, customers will reward useful relationships. The fascinating thing about each of these patterns is that they do not represent revolutionary thinking. Rather, the opportunity lies in the simple fact that no retail bank has adapted its marketing mix to address all of them adequately. To adapt to emerging consumer patterns, banks must institute a marketing theory based on solid principles. They must build their business vision, objectives and strategies on achieving those principles. Where do you look for a retail marketing program that will allow your bank to be successful? The answer lies in "Affinity Retail Marketing."

Indias Growing Consumer Product and Retail Market Taking on a Life of Its Own Indias top petrochemicals and non-retail conglomerate, Reliance Industries Ltd., announced in June of this year that it would invest $5.6 billion in the Indian retail market through a new subsidiary, Reliance Retail, in everything from food to clothes and travel services in a mixture of convenience stores, supermarkets and hypermarkets around the country, as well as in distribution centers aimed at connecting farm with retail (Reliance has also been in discussions with Target and Home Depot of the U.S.). This represents nearly 20% of the companys market value symbolizing the significance of Indias burgeoning consumer market. The other indicator of the growing attractiveness of Indias consume market was the recent 1

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sojourn by the CEO of Wal-Mart International to India to meet with government officials, including Prime Minister Singh, in the hopes of persuading them to lift the ban on foreign direct investment by multi-purpose retailers in India. Income Growth Spurs Consumer Spending India ranked number one in A.T. Kearneys Global Retail Development Index in both 2005 and 2006 for the consumer markets potential and attractiveness. The gist of the index is that a retailer is thinking about entering the Indian retail market now is the time to do it. Fueled by a GDP growth rate that has averaged slightly over 6% over the last a 15 years, second only to Chinas, and expected to reach 8% in 2006, per capita income on a purchasing power parity basis (PPP) has risen 70% since 1998 to around $4,360 ($877 on a non-PPP basis), roughly the same as Chinas was in 2001 (currently $7,044), and is expected to roughly double by 2014. India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India have witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which have become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort.

India Shopping Malls Scope of the Indian Retail Market Indian Organized Retail Market Growth Factors in Indian Organized Retail sector Opportunities in Indian Organized Retail sector Challenges facing the Indian Organized Retail sector Role of Supply Chain in Indian Organized Retail Employment Generation by Indian Organized Retail Sector Indian Organized Retail Sector's Impact on Lifestyles Emerging Trends in Indian Organized Retail Sector Growth of Retail Companies in India Evolution of Indian Retail FDI in Indian Organized Retail Sector Formats in Indian Organized Retail Sector Consumer Durables Retail 2

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Key Findings

Organized retail market in India is expected to reach US$ 50 Billion mark by 2011. Number of shopping malls is expected to increase at a CAGR of more than 18.9% from 2007 to 2015. Rural market is projected to dominate the retail industry landscape in India by 2012 with total market share of above 50%. Organized retailing of mobile handset and accessories is expected to reach close to Rs. 5000 Crore by 2010. Driven by the expanding retail market, third party logistic market is forecasted to reach US$ 20 Billion by 2011. Apparel, along with food and grocery, will lead the organized retailing in India.

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Q 1. (b) Describe the functions of retailing and its place in Marketing Channel. Answer: FUNCTIONS OF RETAILING Retailing is supposed to provide: Product Utility Place utility Time Utility Ownership Utility I have already told you, it includes all activities involved in providing goods and services to the ultimate consumers. So it provides final end products to the consumers, not raw materials, end products in usable form to the consumers. Thereby it creates product utility. Second one, it is given in the place where it is required by the consumer. That is, retailing outlets are open in the places according to the convenience of the customer and also based on the demand of the consumer. Third One, it creates Time Utility. In the sense that, the shops are open as per the requirement of the consumer that is between 10 and 8 or 10 to 5. Whenever the consumers want to go and shop they can go and shop at a particular period convenient to the customer. Next one, when the product is sold finally it creates Ownership Utility. So, we can conclude that retailing is a marketing intermediary which creates Product Utility, Place Utility, Time Utility and Ownership Utility in providing goods and services to the Consumers CLASSIFICATION OF RETAIL INDUSTRY Retail Sector can basically be classified in to two segments. One is organized segment and another one is unorganized segment. As far as India is concerned this organized segment contributes only to 3% of the retail trade and the unorganized segment contributes to remaining 97% of the retil trade. Why is it so?? Because all these days we have been purchasing only from the street vendors and from the local shops and organized retailing was not in vogue in India. Only after 1991, after opening up of economy and due to liberalization, this organized sector has come to light and presently it exists in various formats. Super markets Hypermarkets Departmental stores Speciality stores First one is, presently there are Supermarkets. Eg. Spencers, Nilgiris, Reliance. Basically they operate on low cost and low margin basis. These are called as Supermarkets. The next important one, which is coming up in a very big way is Hyper Markets. Big Bazaar is one example for Hyper Markets. The important characteristic of Big Bazaar is they provide a variety of things right from food and non food things and they provide them in a very large area. The third format in which it exists is Departmental stores. These are large scale retail outlets. Pantaloons, Globus are some of the examples for this Departmental kind of retail outlets. Next type of outlet is, they exist as speciality stores for sales of books and sales of music cassettes. We all know that in previous years we have never heard of Music world or some stores selling especially books. But presently we have Landmark, Music World, and Planet M which are these speciality kinds of stores selling respective things, either books or cassettes. Now under this unorganized sector we have, Mom and Pop stores and Street Markets, these are sometimes called as Kiosks. All these days, until economic liberation, all the shops were in the form of mom and pop stores, street markets and kiosks. Now also along with this organized sector most of the stores in retailing are unorganized and they exist in these formats. With all these unorganized and organized sectors, retail industry has seen a phenomenal growth in the last 5 years.Now our discussion will be on the reasons why such revolution has taken place.

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Make retail marketing work for you through creative channel marketing opportunities. "Channel marketing" is sometimes incompletely explained as a manufacturer determining which items will be promoted through which distribution outlets, at what price, and during what period. This may have been a complete definition at one time. Today's competitive pressures, however, combined with the powerful tools afforded by new technology, have created additional channel marketing opportunities. Evolving technology and new marketing techniques have wrought enormous changes in the way products are sold. Yet, some things remain the same. As always, huge numbers of customers continue to wield their purchasing power at retail stores and dealerships. In fact, most products still make their way to the end customer via these distribution "channels" - the retail stores or dealerships where customers purchase every type of manufactured product from software to eighteen-wheelers.

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While for many companies the distribution channel is regarded in an adversarial manner, the channel must become a partnership-extension of the manufacturer in order to be maximally effective. These channel partners (distributors, dealers, resellers and retailers) and the manufacturers which supply the products they sell, share at least one thing in common: they both benefit by selling more product. Yet manufactures face intense competition from all sides, with the end result that both the channel partner and the end customer enjoy a wide variety of product choices. The ultimate marketing challenge faced by nearly every manufacturer has two parts. First, successfully and consistently influencing dealers and retail outlets to carry their product. Second, working in tandem with dealers to attract the right customers. Manufacturers are grappling with these challenges now more than ever before. "Channel marketing" is sometimes incompletely explained as a manufacturer determining which items will be promoted through which distribution outlets, at what price, and during what period. This may have been a complete definition at one time. Today's competitive pressures, however, combined with the powerful tools afforded by new technology, have created additional channel marketing opportunities. Manufacturers have long offered marketing programs and incentives to their dealers and retailers. Regardless of industry, most dealers have experienced more manufacturer marketing programs than they care to remember, and many dealers have become intensely skeptical of such programs amidst the ceaseless hype and fanfare of the "program du jour." Sadly, this feeling of cynicism towards manufacturers is fitting because most programs succeed only in wasting time and money. Dealers are too busy for run-of-the-mill or complex marketing programs. The average dealer now receives more than 100 direct mail pieces monthly from manufacturers-that is more than five per business day.

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Q 6 What is Retail Information system (RIS)? Explain in detail by drawing a suitable figure. Answer: Retail Information System (RIS): In the early 1990s, 7-Eleven developed a proprietary Retail Information System (RIS), which deployed to all stores by 1999. The system builds efficiencies into ordering, distribution and merchandising processes and is designed to provide timely, accurate sales information on an item-by-item basis. Implementation of the first phase, which automated basic in-store accounting processes, began in 1994 and was completed in 1996. The second phase, completed in late 1999, provides information about important aspects of the store's operation and facilitates inventory management. RIS includes:

Touch-screen point-of-sale (POS) cash registers with scanners, The integration of credit-card authorization and gasoline sales into the POS register, 7

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Item-level information to assist in making product-ordering decisions, Hand-held Mobile Ordering Terminals to facilitate ordering, Tools to help store personnel determine appropriate product assortment and slow-moving items, Daily weather reports and merchandising information and updates, The automation of some daily reporting requirements, such as merchandise and gasoline sales, and A payroll time-keeping mechanism.

By effectively using the point-of-sale cash register and the in-store processor, 7-Eleven franchisees and store managers have immediate access to the information needed to make informed ordering decisions by store, by day and day-part and by item. Additionally, the product assortment tools supply necessary data to improve decisions on deleting slow-moving items and to make room for top-selling and new items, all with the goal of making sure the right product is available at the right time for each customer. The system is not designed as a time-saving tool as much as a tool to use time more effectively and to make sound business decisions that will boost store sales and profits.

Retail management involves running a store where merchandise is sold. Retail management information systems include the use of hardware, software and procedures to manage activities such as planning, inventory control, financial management, logistics and point of sale transactions. Use a retail management information system in your business when you need to manage your store, finances and inventory from one office. Features Retail management information systems support distributed stores by linking them. By allowing the instant exchange of information, store managers can stay in contact to more effectively control profits for the whole company. The system should support product management. It should also enable detailed analysis of customer data. A flexible system allows managers to set prices for variable time periods based on the store location. To meet the needs of sales and inventory managers, retail management information systems include a mobile user interface. Function Supporting the basic functions of procurement, storage and delivery, a retail management information system allows a manager to manage customers, inventory, suppliers and product sales. The system allows you to track purchase orders and update inventory records dynamically. You can analyze cash, check and credit card transactions to reconcile information. Improve efficiency by examining overage and shortages to reveal trends that can be rectified. Types Retail management information systems can be customized for each industry, including, for example, fashion, department store, supermarket, furniture or prescription drugs. Some systems support multiple languages, currencies, tax systems and cost structures. In addition, some retail management information systems can support different business models such as franchise, consignment, direct sales or online. Benefits Integration between payments, inventory and transactions improves operations and reduces costs by preventing duplicate entries. By tracking inventory effectively you can more quickly respond to customer requests. By being able to respond expediently you can also improve service, expand your customer base and increase profits. Accessing data easily allows you to identify opportunities to improve waste reduction, recycling materials and choosing environmentally friendly packaging. These strategies enable a profitable business. System safeguards ensure adherence to legal restrictions on pricing, promotion and other policies. 8

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Considerations Exploit your databases and utilize sophisticated data mining techniques to identify new customers and personalize their service. Avoid overstocking by analyzing customer behavior to predict sales and the market need. Retail management information systems are an essential tool for managers in a complex, dynamic global marketplace. Information Traffic in Retail The ultimate condition for obtaining an efficient information distribution channel consists in the freedom and efficiency of information movement between the three parts that form the economic system: supplier, retailer and consumer. The following figure emphasizes the information flow in retail:

Information and the supplier

Information and the retailer

Information and the consumer

Information Flow in Retail Further more, we shall see what information is required by the commerce aggregates : he supplier requires the following information: T from the retailer: sales approximation, stock rotation, competition feedback, loyal consumers situation; from the consumer: attitude towards certain styles and models, brand loyalty expansion, the will to pay more for higher quality; The retailer requires the following information: from the supplier: notices on the new models and on modifications brought to the models, guidance for use of complex products, sales prognosis, justification for price increases; from the consumer: the reasons why they buy from the retailer, what they like and what they dont like, where else do they buy from; The consumer requires the following information: from the supplier: assembling and using instructions, expanding warranty; from the retailer: about warehousing special merchandise, about accepted payment possibilities; Retailers often play an important part in collecting data for other members from the distribution chain, due to their direct connection to the consumers. For a better information circulation, collaboration and cooperation are imperative especially between suppliers and retailers. This is not always easy, as a senior executive retailer claims: Retailers and suppliers, normally, do not like to share information about the supply chain. They have the tendency to keep secret this information even if revealing it may be in their own interest. Thats why there still is a conflict between suppliers and retailers at all levels of the supplying chain. For this reason the supplying chain shows a deficit[2]. Fortunately many retailers started to improve the traffic of information, due to the fact that they started to realize the importance of transparency of information to their activity. Retailers fall often into temptation of guiding research strategies on incomplete and inadequate information 9

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because of the lack of time and funds, but also because of the lack of experience in marketing research. The consequences can be devastating. Here are some examples: Use of intuition: A theatre asks $10 for a ticket no matter the day or the performance. The manager believes that because the performance is the same, the audience should pay the same price for a ticket for the Mondays morning performance or for Saturdays evening performance. If he had analyzed the theatres informational system, he would have known that the audience is lower on Mondays, people preferring to go to theatre on Saturdays. Therefore, tickets should be cheaper in weekend so that clients be as many as possible. Copying the strategy of a successful competitor. A local independent book shop decides to reduce the price to the best sellers down to the prices of a book shop chain nearby. It has losses and goes bankrupt. The costs are too high to face competition. The firm missed its strengths: personnel service, friendly ambiance for clients and close connection to the local community. Low acknowledgement of consumers perception: A florist reduces the price for flowers that have more than two days since theyve been in his shop from $17 down to $5 per dozen, due to the fact that, even if they have a shorter life time, they dont sell. What the florist didnt know is that old flowers are seen as low qualitative flowers, and customers do associate low price to low quality, and the low price confirms their doubt and determines them not to buy those low price flowers. What are the conclusions to be drawn from these examples? Inadequate information can lead to a bad strategy that will not achieve the desired goals, or even worse, that will have exactly the opposite effect. This can be avoided by marketing researches that set the bases for gathering proper information. Informational System in Retail Collecting and analyzing data mustnt be seen as a quick solution to one problem. It is a part of an integrated ascending process. A Retail Informational System (RIS) anticipates the needed data, organizes and stores relevant data in a continuous data base; it directs the informational flow towards taking the best decisions. The way an Informational System is built and used is showed in the following figure:
Retailers philosophy and goals

Environment

Strategic plans

Collecting data, and and analysis interpretation

Data control center

Data store analyze data update

Retail operations Implementation Feedback

A good informational system has a few strengths: Information is organized and centered on the company; Data is stored and verified, so to anticipate opportunities and avoid crisis situations; Strategic elements are controllable; 10

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Making new strategies is faster; Quantitative results are obtained and cost-benefit analysis is possible; Information is directed towards the right addressee; RIS initially requires a lot of effort and time, and setting the basis of such a system takes complex decisions. Building a RIS requires the following decisions to be taken: What active role should it have? The RIS ought to be pro-active and supply any relevant data, and answer any possible question. Should the RIS be managed from the inside, or by an external source? Any way is convenient as long as the RIS is guided by the information required by the retailer. How much should it cost? Usually, retailers spend between 0.5% up to 1.5% of the income on such a system. What kind of technology should the RIS be managed with? Many companies rely lately on technologies meant to lead the informational process (PC, low cost networks, low cost software, etc.). How much data is required? The purpose of the informational system is to supply enough quantity of information to allow the retailer to build proper strategies. There must be a balance between few information and information overload. How should information be stored for future use? Storing the information must allow a fast search and finding. Most retailers hire a CIO Chief Informational Officer, to supervise the system. Informational System Departments often have annual planning. Computers are used by most companies that have data analysis systems, as well as the Internet for certain functions of the system. 25 years ago most computerized systems in retail were used only to decrease errors from the pay desks, or to improve, fasten and ease inventory. Nowadays, they set the bases for informational systems and are used for monitoring, ordering, and transfers between shops. Such activities can be managed by all retailers.

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Q 5 (a) Narrate the strategy of direct marketing, what are the key issues involved in it, explain? Answer: Strategy of Direct Marketing: Direct marketing is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing. The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves commercial communication (direct mail, e-mail, telemarketing) with consumers or businesses, usually unsolicited. The second characteristic is that it is focused on driving a specific "call-to-action." This aspect of direct marketing involves an emphasis on trackable, measurable positive (but not negative) responses from consumers (known simply as "response" in the industry) regardless of medium. If the advertisement asks the prospect to take a specific action, for instance call a free phone number or visit a website, then the effort is considered to be direct response advertising. The term direct marketing is believed to have been first used in 1967 in a speech by Lester Wunderman, who pioneered direct marketing techniques with brands such as American Express and Columbia Records. The term junk mail, referring to unsolicited commercial ads delivered via post office or directly deposited in consumers' mail boxes, can be traced back to 1954. The term spam, meaning "unsolicited commercial email", can be traced back to March 31, 1993, although in its first few months it merely referred to inadvertently posting a message so many times on UseNet that the repetitions effectively drowned out the normal flow of conversation. Although Wunderman may have been the first to use the term direct marketing, the practice of mail order selling (direct marketing via mail) essentially began in the U.S. upon invention of the typewriter in 1867. The first modern mail-order catalog was produced by Aaron Montgomery Ward in 1872. The Direct Mail Advertising Association, predecessor of the present-day Direct Marketing Association, was first established in 1917. Third class bulk mail postage rates were established in 1928. Direct marketing's history in Europe can be traced to the 15th century. Upon Gutenberg's invention of movable type, the first trade catalogs from printer-publishers appeared sometime around 1450.

Strategy of Direct Marketing Direct marketing is attractive to many marketers, because in many cases its positive effect (but not negative results) can be measured directly. For example, if a marketer sends out one million solicitations by mail, and ten thousand customers can be tracked as having responded to the promotion, the marketer can say with some confidence that the campaign led directly to the responses. The number of recipients who are offended by the junk mail/spam, however, is not easily measured. By contrast, measurement of other media must often be indirect, since there is no direct response from a consumer. Measurement of results, a fundamental element in successful direct marketing, is explored in greater detail elsewhere in this article. Yet since the start of the Internet-age the challenges of Chief Marketing Officers(CMOs) are tracking direct marketing responses and measuring results. While many marketers like this form of marketing, some direct marketing efforts using particular media have been criticized for generating unwanted solicitations. For example, direct mail that is irrelevant to the recipient is considered junk mail, and unwanted email messages are considered spam. Some consumers are demanding an end to direct marketing for privacy and environmental reasons,[citation needed] which direct marketers are able to provide by using "opt out" lists, variable printing and more targeted mailing lists. Many of the world's largest marketing and advertising agencies started off as direct marketing specialist agencies, namely Carlson Marketing, GyroHSR, Proximity and Iris Nation. Due to declining client budgets and the 13

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proliferation of audiences, many of these agencies have diversified and expanded to offer "integrated marketing" rather than simply selling DM services. The term Integrated Marketing is used by agencies to describe how they sell the complete marketing communications package, covering DM, digital, SP, PR, events and advertising. Direct Mail The most common form of direct marketing is direct mail, sometimes called junk mail, used by advertisers who send paper mail to all postal customers in an area or to all customers on a list. Any low-budget medium that can be used to deliver a communication to a customer can be employed in direct marketing. Probably the most commonly used medium for direct marketing is mail, in which marketing communications are sent to customers using the postal service. The term direct mail is used in the direct marketing industry to refer to communication deliveries by the Post Office, which may also be referred to as "junk mail" or "admail" or "crap mail" and may involve bulk mail. Junk mail includes advertising circulars, catalogs, free trial CDs, pre-approved credit card applications, and other unsolicited merchandising invitations delivered by mail or to homes and businesses, or delivered to consumers' mailboxes by delivery services other than the Post Office. Bulk mailings are a particularly popular method of promotion for businesses operating in the financial services, home computer, and travel and tourism industries. In many developed countries, direct mail represents such a significant amount of the total volume of mail that special rate classes have been established. In the United States and United Kingdom, for example, there are bulk mail rates that enable marketers to send mail at rates that are substantially lower than regular first-class rates. In order to qualify for these rates, marketers must format and sort the mail in particular ways which reduces the handling (and therefore costs) required by the postal service. Advertisers often refine direct mail practices into targeted mailing, in which mail is sent out following database analysis to select recipients considered most likely to respond positively. For example a person who has demonstrated an interest in golf may receive direct mail for golf related products or perhaps for goods and services that are appropriate for golfers. This use of database analysis is a type of database marketing. The United States Postal Service calls this form of mail "advertising mail" (admail for short). Telemarketing The second most common form of direct marketing is telemarketing,[citation needed] in which marketers contact consumers by phone. The unpopularity of cold call telemarketing (in which the consumer does not expect or invite the sales call) has led some US states and the US federal government to create "no-call lists" and legislation including heavy fines. This process may be outsourced to specialist call centres. In the US, a national do-not-call list went into effect on October 1, 2003. Under the law, it is illegal for telemarketers to call anyone who has registered themselves on the list. After the list had operated for one year, over 62 million people had signed up.[3] The telemarketing industry opposed the creation of the list, but most telemarketers have complied with the law and refrained from calling people who are on the list.[citation needed] Canada has passed legislation to create a similar Do Not Call List. In other countries it is voluntary, such as the New Zealand Name Removal Service Email Marketing Email Marketing may have passed telemarketing in frequency at this point, [citation needed] and is a third type of direct marketing. A major concern is spam, which actually predates legitimate email marketing. As a result of the proliferation of mass spamming, ISPs and email service providers have developed increasingly effective E-Mail Filtering programs. These filters can interfere with the delivery of email marketing campaigns, even if the person has subscribed to receive them,[4] as legitimate email marketing can possess the same hallmarks as spam. 14

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Door to Door Marketing Leaflet Distribution services are used extensively by the fast food industries, and many other business focussing on a local catchment Business to consumer business model, similar to direct mail marketing, this method is targeted purely by area, and costs a fraction of the amount of a mailshot due to not having to purchase stamps, envelopes or having to buy address lists and the names of home occupants Broadcast faxing A fourth type of direct marketing, broadcast faxing, is now less common than the other forms. [citation needed] This is partly due to laws in the United States and elsewhere which make it illegal.[citation needed] Voicemail Marketing A fifth type of direct marketing has emerged out of the market prevalence of personal voice mailboxes, and business voicemail systems. Due to the ubiquity of email marketing, and the expense of direct mail and telemarketing, voicemail marketing presented a cost effective means by which to reach people directly, by voice. Abuse of consumer marketing applications of voicemail marketing resulted in an abundance of "voice-spam", and prompted many jurisdictions to pass laws regulating consumer voicemail marketing. More recently, businesses have utilized guided voicemail (an application where pre-recorded voicemails are guided by live callers) to accomplish personalized business-to-business marketing formerly reserved for telemarketing. Because guided voicemail is used to contact only businesses, it is exempt from Do Not Call regulations in place for other forms of voicemail marketing. Couponing Couponing is used in print media to elicit a response from the reader. An example is a coupon which the reader cuts out and presents to a super-store check-out counter to avail of a discount. Coupons in newspapers and magazines cannot be considered direct marketing, since the marketer incurs the cost of supporting a third-party medium (the newspaper or magazine); direct marketing aims to circumvent that balance, paring the costs down to solely delivering their unsolicited sales message to the consumer, without supporting the newspaper that the consumer seeks and welcomes. Direct response television marketing Direct marketing on TV (commonly referred to as DRTV) has two basic forms: long form (usually half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials) and short form which refers to typical 0:30 second or 0:60 second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website). TV-response marketingi.e. infomercialscan be considered a form of direct marketing, since responses are in the form of calls to telephone numbers given on-air. This both allows marketers to reasonably conclude that the calls are due to a particular campaign, and allows the marketers to obtain customers' phone numbers as targets for telemarketing. Under the Federal Do-Not-Call List rules in the US, if the caller buys anything, the marketer would be exempt from Do-Not-Call List restrictions for a period of time due to having a prior business relationship with the caller. Major players are firms like QVC, Thane Direct, and Interwood Marketing Group then cross-sell, and upsell to these respondents. One of the most famous DRTV commercials was for Ginsu Knives by Ginsu Products, Inc. of RI. Several aspects of ad, such as it's use of adding items to the offer and the guarantee of satisfaction were much copied and came to be considered part of the formula for success with short form direct response TV ads (DRTV) 15

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Direct selling Direct selling is the sale of products by face-to-face contact with the customer, either by having salespeople approach potential customers in person, or through indirect means such as Tupperware parties. Integrated Campaigns For many marketers, a comprehensive direct marketing campaign employs a mix of channels. It is not unusual for a large campaign to combine direct mail, telemarketing, radio and broadcast TV, as well as online channels such as email, search marketing, social networking and video. In a report [5] conducted by the Direct Marketing Association, it was found that 57% of the campaigns studied were employing integrated strategies. Of those, almost half (47%) launched with a direct mail campaign, typically followed by e-mail and then telemarketing. Key Issues There are a number of key issues here that students need to identify before they can resolve the issues not least of which are the following: there is little loyalty in this market at the moment and, therefore price is becoming a major issue which leaves participants vulnerable to price wars; do Dunnans stay with Fieldstone given that they have old and inefficient practices which may mean they may find it difficult to compete in the future especially as there is excess capacity in the market; do Dunnans owe any loyalty to Fieldstone or is the loyalty to Peter who has now retired; the unpredictability of orders is causing problems. There are many good points that can be identified in this direct marketing campaign, including a clear idea of the objectives, the way in which the mailing lists were collected, the use of TGI profiling to identify distinctive characteristics that could be exploited for marketing purposes, etc. However, the main weakness is that they concentrated on retention rather than acquisition, although they had already identified that their target market was ageing and they needed to attract new, young users, in addition the activities used did nothing to move the brand away from its staid and old-fashioned position. Certain financial controls would need to be put in place given the lack of resources. Estimates, in terms of levels of response, would also be needed so that effective human resource and database management planning could be done. 3. They would need to follow the stages in the acquisition process starting with the setting of objectives. They could base the acquisition around the TGI profiling looking for demographic and lifestyle similarities but in younger people. Conclusion. The aim of direct marketing is to deal with customers on a one-to-one basis through careful analysis of information held on an organizations database. Two key aspects of direct marketing are customer-acquisition and customerretention and with the introduction of new technologies and a general move towards media fragmentation, direct marketing is definitely set to grow even more.

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Q 5 (b) While choosing the retailer, what are the basic questions comes to the mind of a consumer for considerations of choice of retailers. Answer:
Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase. To become a truly flourishing industry, retailing needs to cross the following hurdles:[19]

Automatic approval is not allowed for foreign investment in retail. Regulations restricting real estate purchases, and cumbersome local laws. Taxation, which favours small retail businesses. Absence of developed supply chain and integrated IT management. Lack of trained work force. Low skill level for retailing management. Lack of Retailing Courses and study options Intrinsic complexity of retailing rapid price changes, constant threat of product obsolescence and low

margins When we choose any retailer or a consumer select the retailer then there is some basic questions arose in the mind i.e. 1. Location:- While choosing a retailer the first question comes in consumers mind is the location of the store. Basicly its more important factor that is mostly ignored by the retailers. Customer wants the location according to Accessibility, Visibility and Traffic. So that they can easily approach the Retailer. 2. Assortment:- The Second most important question arise in the mind of customer that a. What kind of variety is there? b. What type of collection the retailer will provide. c. What is the range of the product? d. What is the quality? 3. Credit Facility: 4. Service:

Assortment planning, where retailers decides which products to place on their store shelves, is one of the most fundamental decisions in retailing. Consumers view the assortment as an important category management service output that drives their decisions on where to shop (Kok and Fisher [2007]). Consistent with this view, in a recent meta analysis, Pan and Zinkhan [2006] reviewed 14 papers all concluding that assortments are an important driver 17

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for consumers' purchase decisions. A recent survey by Nielsen found that store assortment is the second most important factor driving consumers' decisions (Nielsen, Dec 17, 2007). Moreover, category managers believe that their assortments are important competitive tools that allow them to di_erentiate. Understanding the mechanics behind assortment decisions is important for retailers, manufacturers and policy makers alike. Over the last few decades there has been an sharp increase in the number of products sold in retail stores, from 14k in 1980 to 49k in 1999 (Food Marketing Institute [2004]). With this increase in available products, retail category managers face a complex decision when selecting the \right" assortment for their categories. These assortment decisions are impacted by local consumer preferences, competition and costs. Given the large number of available options, the optimization problem is mathematically daunting and empirically challenging. Researchers often consider simpli_cations to the problem to make it more tractable, for example, considering only a small number of products in a subcategory (Draganska et al. [2007]) or relying on heuristics that the retailer can use (Kok and Fisher [2007]). In this paper we develop a different approach to address the analytical and empirical challenges of modeling retailers' assortment decisions. In the analytical model, we consider the two decisions made by a retail store category manager: category assortment and retail prices. We show that the optimal retail assortment can be described by ranking the products based on a combination of demand and cost parameters. The advantage of this representation is that it can be used to study a large number of options in the retailer's consideration set. This provides a realistic view of managerial decision making, and there is evidence in the literature that retailers do indeed use a form of rank ordering to make their assortment decisions (Esbjerg et al. [2004]). When considering the empirical analysis, we take the view that data are generated from a market equilibrium (Bresnahan [1987]) where demand is based on consumer purchase decisions and supply is based on retailers' pricing and assortment decisions. Therefore in each market and category we simultaneously model the demand and supply processes. A key advantage of the derived analytical result is that it allows us to consider the retailer's assortment decision as a sorting problem. This allows us to include information about products not in the assortment when modeling demand and supply parameters. For example, the fact that a store in an a_uent neighborhood does not store value products informs us that consumer preferences for value products are low in this area. Our empirical study models supermarket assortment decisions across 10 categories and 34 local markets across the United States. Studying multiple categories allows us to make generalizations about retailers' assortment decisions. In our model we introduce a _xed cost of introducing a product on the retail shelf. This _xed cost represents a minimum threshold pro_t that an introduced product must add to the category pro_ts. Our estimates suggest that the di_erences in _xed costs across categories are driven by the size of products in thecategory and whether or not they require refrigeration. In our framework we empirically estimate the three main drivers of local retail store assortments: demand, costs, and com- petition. This allows us to consider the impact of changes in any of these characteristics on retailer assortment decisions. With our analytical framework and econometric estimates we can quantify the e_ect of changes in assortment sizes on demand or pro_ts (Broniarczyk et al. [1998], Boatwright and Nunes [2001]). When considering changes to the size of the assortment, we describe which UPCs a retailer should store and the prices the retailer should charge. In our data, we estimate that a 25% reduction in total assortment size results in about a 3% reduction in total pro_ts. This suggests that retailers might strategically reduce their assortments with small impact on category pro_ts if the additional shelf space created can be used to carry additional categories. This methodology can be a powerful tool that retailers can use to make assortments decisions across multiple categories.

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Q 2 (a) Enumerate the degree of relationship between retailers and suppliers with proper narration of conflict of interest; support your answer with suitable market examples. Answer:
Retailer Supplier Relationship Cooperative relationship between suppliers and retailers to use one anothers knowledge Suppliers have better knowledge of lead times and production capacities Retailers have better knowledge of demands

Quick Response Strategy Suppliers receive POS data from retailers Suppliers use this information to synchronize their production and inventory activities with actual sales at the retailer. Retailers still prepare individual orders POS data are used by suppliers to improve forecasting and scheduling and to reduce lead time Continuous Replenishment Strategy Also called rapid replenishment Suppliers receive POS data Suppliers use these data to prepare shipments at previously agreed-upon intervals to maintain specific levels of inventory. Advanced form of continuous replenishment o Suppliers may gradually decrease inventory levels at the retail store or distribution center as long as service levels are met. Vendor Managed System (VMI) levels. o o Also called vendor-managed replenishment (VMR) system Supplier decides on the appropriate inventory levels and the appropriate inventory policies to maintain these Supplier suggestions initially approved by retailer Goal of many VMI programs is to eliminate retailer oversight on specific orders. Wal-Mart and Procter & Gamble VMI Partnership, begun in 1985 Has improved P&Gs on-time deliveries to Wal-Mart while increasing inventory turns

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Main Characteristics of Retailer Supplier Relationship

Criteria Type Quick response

Decision maker Retailer

Inventory Ownership Retailer

New skills employed by vendors Forecasting skills

Continuous replenishment Contractually agreed-to levels party Either

Forecasting and inventory control

Advanced continuous replenishment VMI

Contractually agreed-to and continuously improved levels Either party Vendor Either party

Forecasting and inventory control Retail management

Retailer Supplier Relationship Requirements o o o o Presence of advanced information systems Top management commitment Especially because information will be shared across companies A level of trust among partners Supplier manages retailers inventory Retailer provides sales information to supplier Reduced inventory leads to space savings Should not be given to competitors

Retailer Supplier Relationship Inventory Ownership Who makes the replenishment decisions? Who owns the inventory until it is sold? o Consignment relationship in VMI programs Supplier owns the inventory until it is sold Issues with consignment relationship: o Retailer lowers inventory cost o Supplier can manage inventory more effectively o Supplier can move as much inventory as contract allows o Higher costs to supplier because of longer inventory holding Power relationship between supplier and retailer may move the supply contract to consider higher system savings rather than savings from one party only (Global v. Local)

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Retailer Supplier Relationship Implementation Performance measurement criteria must also be agreed to. o Non-financial measures as well as the traditional financial measures. Initial problems can be worked out through communication and cooperation. Manufacturing technology or capacity at supplier may need to be modified/enhanced to respond to specifics in the contract: o Fast response to emergencies o Situational changes at the retailer Steps in Retailer Supplier Relationship Implementation Initially, the contractual terms of the agreement must be negotiated on the following: o Inventory ownership o Credit terms o Ordering responsibilities o Performance measures such as service or inventory levels, when appropriate. The following three additional steps need to be executed: o Development of integrated information systems o Development of effective forecasting techniques o Establishment of a tactical decision support tool to assist in coordinating inventory management and transportation policies Advantages of Retailer Supplier Relationship o o Better knowledge the supplier has about order quantities an ability to control the bullwhip effect A variety of side benefits provides a good opportunity for the reengineering of the retailersupplier relationship. eliminate redundant order entries automate manual tasks can be automated reassign tasks for better efficiency Eliminate unnecessary control steps

Disadvantages of Retailer Supplier Relationship o o Necessary to employ advanced technology, which is often expensive. Essential to develop trust in what once may have been an adversarial supplier retailer relationship. Supplier often has much more responsibility than formerly. May force the supplier to add personnel to meet this responsibility. Expenses at the supplier often increase as managerial responsibilities increase. Consignment arrangement may increase inventory costs for the supplier. Float Retailers accustomed to waiting 30 to 90 days to pay for goods may now have to pay upon delivery

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Q 2 (b) How do you visualize the current issues in retailing? How does the retailing affect the countrys economy? Answer:

Retail landscape in India

Retailing in India is emerging as one of the largest industries, with a total market size of USD 320 billion in 2006 and growing at a healthy CAGR of 5 per cent till date. Rising incomes and increased onsumerism in urban areas along with an upswing in ural consumption will further fuel this growth to around 7-8 per cent. This driver is further illustrated in the statistic (Fig. 1.1) that the percentage of people in urban areas in India has been growing steadily to reach 29 per cent from just 17 per cent fifty years ago. In addition, India has been ranked as the most attractive market for global retailers to enter now, according to A.T. Kearney's Global Retail Development Index (GRDI) for 2006 (Fig. 1.2). The GRDI is conducted annually to follow the attractiveness of top emerging markets for retail. For the past five years, A.T. Kearney has helped retailers prioritize their global development strategies by publishing the GRDI. The Index ranks 30 emerging countries based on more than 25 macroeconomic and retail-specific variables. Many factors contribute to India being the most attractive retail target market. A stable democracy provides an economic and social background that comforts big international organizations. On the economic front, the country has seen over 7% GDP growth for the last few years, driving increasing prosperity and consumerism. A look at India's demographics further lends credibility to the retail story. India's consumer market today encompasses over 400 million people with rising disposable incomes. Population shifts towards urban areas and income shifts towards higher income classes are key factors driving consumerism. Also higher incomes are now in the hands of a younger population with lesser dependencies. This implies more income available for spending rather than for savings and investment. Can any retailer now afford to miss this story? Another important factor announcing India's significance for retailers is the current optimal stage of readiness within India for retail and for the entry of retailers. Key issues in the way of retail growth in India That Indian retailing is poised for growth is known to all. But that's not the whole story. We believe there are infrastructure and policy bottlenecks that need to be removed if Indian retailing needs to get on a faster growth trajectory. These bottlenecks become even more prominent in case of organized retail development. In this section, we shall identify and prioritize key issues in the way of retail growth in Characteristics of retail will not be homogenous across states - hence it becomes necessary to segment the country into clusters with homogeneity across issues. For this study, we have segmented India into five clusters using economic and demographic indicators. The demographic indicator used is population. As an economic indicator, we have used Market Potential Value (MPV). It is a comprehensive index that includes purchasing power, consumption behaviour, media reach and awareness. 2.1 shows the five clusters - metros, large cities, small cities, towns and rural. It must be noted that cluster analysis will be used to identify issues and prioritize them - however while some issues can be tackled at the cluster level; a majority will need government intervention due to policy impact.

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Key issues identification

An analysis of the retail landscape across India highlights ten key issues that hinder development of the sector. Since these issues can be pertinent for the retail sector specifically or for the overall Indian industry, they were rated based on their importance for the retail sector and the Indian industrial sector. The origin of these issues and hence their ownership lies with different stakeholders. Therefore, these issues were also rated based on the extent to which government and industry could control them. A 2 x 2 matrix was subsequently created which used the two dimensions to segment the issues. The issues were then classified into four categories: _ Generic infrastructure issues - These are environmental challenges faced by the Indian industry as a whole and some of the issues like underdeveloped supply chain are critical for retail sector. Generic policy issues - They are issues affecting the industrial sector that are shaped by government policies. Some of these issues like real estate hurdles can have significant impact on the growth of the retail sector _ Specific infrastructure issues - Issues that are specific to the retail sector and are also controlled by it comprise this category. Since the retail industry can affect these issues, they are very critical from the industry perspective. _ Specific policy issues - Retail sector specific policies like sector incentives fall into this category. Fig. 2.2 illustrates the categorization of ten key issues. The key issues are outlined below: _ Underdeveloped Supply Chain - The country lacks quality logistics infrastructure which hinders scaling up of retailing operations. _ Inadequate Utilities - Lack of basic infrastructure like power, transport and communication creates difficulty in sustaining retail operations across the large geographical spread of country. _ IT Infrastructure Hurdles - Reliable IT infrastructure is important for managing modern supply chains which are the backbone of any retailing business and India faces a clear problem in this area as the non-urban areas have limited IT infrastructure. _ Real Estate Hurdles - Archaic laws prevent the much needed growth in real estate development, which is imperative for retail growth. _ Taxation Hurdles - The tax structure in India is still complex and evolving, creating challenges for retailers. _ Supply Base Hurdles - The supply base for the retail sector is fragmented due to government policies and legacy issues which prevent economies of scale in retail sector. _ Inadequate Human Resources - There is hardly any systematic effort to train manpower for the retail sector, which can create a bottleneck for growth. _ Limited Consumer Insights - There is limited knowledge about the consumer behavior due to limited market research conducted on the huge population in towns and rural areas. 23

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_ Insufficient Government Incentives - Government is yet to create any major sector specific policies to boost the retail sector. _ Policy Related Hurdles - The policy environment in India is complex, creating challenges for growth and establishment of new business.

Q 7. SHORT NOTES (a) Electronic Retailing is the process whereby consumers directly buy goods, services etc from a seller interactively in real-time without an intermediary service over the Internet. If an intermediary service is present the process is called electronic commerce. An online shop, eshop, e-store, internet shop, webshop, webstore, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or in a shopping mall. The metaphor of an online catalog is also used, by analogy with mail order catalogs. All types of stores have retail web sites, including those that do and do not also have physical storefronts and paper catalogs. Online shopping is a form of electronic commerce used for business-to-business (B2B) and business-to-consumer (B2C) transactions. In general, shopping has always catered to middle class and upper class women. Shopping is fragmented and pyramid-shaped. At the pinnacle are elegant boutiques for the affluent; a huge belt of inelegant but ruthlessly efficient discounters flog plenty at the pyramids precarious middle. According to the analysis of Susan D. Davis, at its base are the worlds workers and poor, on whose cheapened labor the rest of the pyramid depends for its incredible abundance. Shopping has evolved from single stores to large malls containing many stores that most often offer attentive service, store credit, delivery, and acceptance of returns. These new additions to shopping have encouraged and targeted middle class women.

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In recent years, online shopping has become popular; however, it still caters to the middle and upper class. In order to shop online, one must be able to have access to a computer, a bank account and a debit card. Shopping has evolved with the growth of technology. According to research found in the Journal of Electronic Commerce, if we focus on the demographic characteristics of the in-home shopper, in general, the higher the level of education, income, and occupation of the head of the household, the more favourable the perception of non-store shopping. An influential factor in consumer attitude towards non-store shopping is exposure to technology, since it has been demonstrated that increased exposure to technology increases the probability of developing favourable attitudes towards new shopping channels. Online shopping widened the target audience to men and women of the middle class. At first, the main users of online shopping were young men with a high level of income and a university education. This profile is changing. For example, in USA in the early years of Internet there were very few women users, but by 2001 women were 52.8% of the online population. Sociocultural pressure has made men generally more independent in their purchase decisions, while women place greater value on personal contact and social relations. (f) Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity. In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase. In retail commerce, visual display merchandising means maximizing merchandise sales using product design, selection, packaging, pricing, and display that stimulates consumers to spend more. This includes disciplines in pricing and discounting, physical presentation of products and displays, and the decisions about which products should be presented to which customers at what time. This annual cycle of merchandising differs between countries and even within them, particularly relating to cultural customs like holidays, and seasonal issues like climate and local sporting and recreation. In the United States for example, the basic retail cycle begins in early January with merchandise for Valentine's Day, which is not until mid-February. Following this, Easter is the major holiday, while springtime clothing and garden-related merchandise is already arriving at stores, often as early as mid-winter. Mothers Day and Fathers Day are next, with graduation gifts (typically small consumer electronics like digital cameras) often being marketed as "dads and grads" in June (though most semesters end in May). Summer merchandise is next, including patrioticthemed products with the American flag, out by Memorial Day in preparation for Independence Day (with Flag Day in between). By July, back-to-school is on the shelves and autumn merchandise is already arriving, and at some arts and crafts stores, Christmas decorations. By September, the summer merchandise is on final closeout and overstock of school supplies is marked-down some as well, and Halloween (and often even more of the Christmas) merchandise is appearing. As the Halloween decorations and costumes dwindle in October, Christmas is already being pushed on consumers, and by the day after Halloween retailers are going full-force with advertising, even though the "official" season doesn't start until the day after Thanksgiving. Christmas clearance sales now begin even before Christmas at most retailers, and continue on at least until New Year's Day but sometimes as far out as February. Merchandising also varies within retail chains, where stores in places like Buffalo might carry snowblowers, while stores in Florida and southern California might instead carry beach clothing and barbecue grills all year. Coastalarea stores might carry water skiing equipment, while ones near mountain ranges would likely have snow skiing and snowboarding gear if there are ski areas nearby. In the supply chain, merchandising is the practice of making products in retail outlets available to consumers, primarily by stocking shelves and displays. While this used to be done exclusively by the stores' employees, many retailers have found substantial savings in requiring it to be done by the manufacturer, vendor, or wholesaler that provides the products to the retail store. In the United Kingdom there are a number of organizations that supply merchandising services to support retail outlets with general stock replenishment and merchandising support in new 25

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stores. By doing this, retail stores have been able to substantially reduce the number of employees needed to run the store. While stocking shelves and building displays is often done when the product is delivered, it is increasingly a separate activity from delivering the product. In grocery stores, for example, almost all products delivered directly to the store from a manufacturer or wholesaler will be stocked by the manufacturer's/wholesaler's employee who is a full time merchandiser. Product categories where this is common are Beverage (all types, alcoholic and nonalcoholic), packaged baked goods (bread and pastries), magazines and books, and health and beauty products. For major food manufacturers in the beverage and baked goods industries, their merchandisers are often the single largest employee group within the company. For nationwide branded goods manufacturers such as The Coca-Cola Company and PepsiCo, their respective merchandiser work forces number in the thousands. (d) Marketing research process is a set of six steps which defines the tasks to be accomplished in conducting a marketing research study. These include problem definition, developing an approach to problem, research design formulation, field work, data preparation and analysis, and report generation and presentation. Step 1: Problem Definition The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. Step 2: Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic considerations. 'Step 3: Research Design Formulation' A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. More formally, formulating the research design involves the following steps: 1. 2. 3. 4. 5. 6. 7. 8. Secondary data analysis Qualitative research Methods of collecting quantitative data (survey, observation, and experimentation) Definition of the information needed Measurement and scaling procedures Questionnaire design Sampling process and sample size Plan of data analysis

Step 4: Field Work or Data Collection Data collection involves a field force or staff that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), or through mail (traditional mail and mail panel surveys with prerecruited households). Proper selection, training, supervision, and evaluation of the field force helps minimize data-collection errors.

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Step 5: Data Preparation and Analysis Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or input directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously.

Step 6: Report Preparation and Presentation The entire project should be documented in a written report
which addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and presents the results and the major findings. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact. For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature, where it is relatively easy to identify and approach the experts. This method is also helpful in situations where little information is available from other sources, as in the case of radically new products. (e) Reilly's law of retail gravitation states that larger cities will have larger spheres of influence than smaller ones, meaning people travel further to reach a larger city. The law presumes the geography of the area is flat without any rivers, roads or mountains to alter a consumer's decision of where to travel to buy goods. It also assumes consumers are indifferent between the actual cities. The law was developed by William J. Reilly in 1931.

A plain English paraphrase would be that the balance or Break Point (BP) is equal to the Distance (d) between two places, divided by the following: Unity or Total (1) plus the Square Root of, the size of Place One (p1) divided by the size of Place Two (p2). d is distance and p1 and p2 are the sizes of the places between which the distance exists; the answer will give the distance from p2, also called a break-point. What is the break-point? As an example: after leaving a store a you remember something that you wanted to buy; it just so happens that you are headed towards an alternative store b. The break-point can be thought of as the point after which you would travel towards store b instead of store a because of its notional "gravity". This would happen sooner, for example, if store b is an equivalent store but with greater square footage, suggesting that you are more likely to go to store b for greater available utility. This notional gravity can be influenced by a number of things, but square footage is simple and effective.

(b) Demographic and life style factors in Retailing

Statistical socio-economic characteristics or variables of a population, such as age, sex, education level, income level, marital status, occupation, religion, birth rate, death rate, average size of a family, average age at marriage. A census is a collection of the demographic factors associated with every member of a population

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The retail industry is very vast in world, specailly in INDIA and CHINA. The demographic effect is very known factor of the retailing anywhere. The location of the store or retailer must be according to the demographical analysis. One must know about the Population, Economica standard of that particular area. The same effect would be from Life style, people must see their status of living before choosing the retail outlet.

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