Learning Outcomes

To understand the macro environment To understand the micro environment To explore the analysis of the retail environment To briefly look at different retail formats To examine the types of customer served by consumer markets

To identify the types of premises and market space occupied

Marketing Strategy is the translation of objectives into activities.

Any proposed strategy should be tested using the three key determinants of every market situation:

1. The competitive market environment 2. The customers who are the target 3. The capabilities and competencies

PEST FACTORS

Porters 5 Forces Model (1980)

Morgan and Hunts Model (1994)

Existing Competitors and New Entrants

The basic questions which must be asked of existing competitors and new entrants to the market: 1. Where and how 2. How does this affect our performance? 3. What are the capabilities and resources of the competitor 4. Comparative strengths and weaknesses of the competition 5. How should we respond?

Four Key Aspects of Internal Influences

1. Front-line employees, who directly interact with customers 2. Other employees who contribute to the effective operating of a retailer 3. Formal groups, such as trade unions or staff association 4. Non-human resources available to the retailer

Circle of activities affecting employees

Employee : The company doesnt look after me why should I bother with customers? Customer : These people dont seem to care. Im not coming back to this store. Retailer : Our staff arent doing their job they need to be sorted out!

A Brief Overview of Different Retail Formats

Ways of categorising retail organisations: 1. with reference to the type of customers served consumer, industrial or re-seller 2. with reference to the type of premises and market occupied - fixed store, mobile or non-store 3. in terms of the type of merchandise offered, range and assortment, price position and level and type of service available

Forces Contributing to the Growth of Non-store Retailing (Dunne & Lusch 1999)

the consumers need to save time the erosion of fun in some shopping experiences the lack of qualified sales help to provide information the explosive development of the telephone, the computer and telecommunications in general the consumers desire to eliminate the middlemans profit and reduce prices

Buyer Influences
No customers = No business

Customers must be attracted into the store and then be encouraged to spend Satisfaction can lead to word of mouth endorsement

Worst scenario - customer not satisfied may tell friends may tell programmes such as Watchdog