Transcript Retail Value Creations

Retail Value CreationsBy
Dr. U. Srinivasa Raghavan
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Retail Communications
• The purpose of Retail
communications is(i) to build Brand images
(ii) to attract customers to the
stores/internet sites
(iii) to encourage customers to
buy
merchandise
OBJECTIVE of Communications
Programme
• Objective of a communications
programme can be –
(A) Long term to create and
maintain a long , differentiated
image of the retailer and/or of
its private labels
(B) Short term to increase the
sales during a particular period
What is Marketing
• “ Marketing is a social and managerial
process by which individuals and groups
obtain what they need and want through
creating, offering and exchanging products
of value with others . “
Need – Want - Demand
• Need is a state of deprivation of some
basic satisfaction.
• Wants are specific satisfiers of needs
• Demands are wants for specific products
that are backed by an ability and
willingness to buy them
What is “Market”
• “A Market consists of all the
potential customers sharing a
particular need or want who
might be willing and able to
engage in an exchange to
satisfy their need or want “
Marketing Management
• Marketing Management is the
process of planning and executing
the conception, pricing, promotion
and distribution of ideas, goods and
services to create exchanges that
satisfy the individual and
organizational goals.It has the task
of influencing the level, timing and
composition of demand in a way that
help the organisation achieve its
objectives “
Product Concept
• Product Concept holds that customers will
favour those products that offer most
quality, performance and innovative
features
• It is the second stage towards the
evolution of the ‘ Marketing Concept’
• It implies the creation of superior prducts
for sale
Selling Concept
• Selling concept holds that customers (consumers )
, if left alone, will ordinarily not buy enough of the
organisation’s products . The organisation must ,
therefore , should aggressively sell and promote its
products.
• It implies to sell more to more people more often
for more money in order to make more profit
• This is the third stage in the evolution towards the ‘
Marketing concept’
Marketing Concept
• Marketing Concept means finding and
satisfying the needs and wants of the
customers in a market
• Marketing Concept holds that the key to
achieve the organisational goals consists
of the company being more effective than
competitors in creating, delivering and
communicating superior customer value to
its chosen target markets
What is “Brand”
• A BRAND is –
“A name, term, sign, symbol or design or a
combination of them, intended to identify
the goods or services of one seller or
group of sellers and to differentiate them
from those of the competitors. “
-American Marketing
Association
How to differentiate a
brand /
• Differences can be –
functional, rational or tangible,
related to product performance
or
symbolic, emotional or intangible,
relatedto what product
represents
Functions of ‘Brands’
1.
They simplify product handling and tracing
- Help organize inventory and accounting
records
2.
Offer firm legal protection to unique features of
the product
- Trademarks, patents, copyrights, designs
3.
Signal quality
- Predictability, security of demand, creates
barriers
What ‘Brand “ does
• Branding endows products and services
with the power of the Brand-
Who – name and brand elements
What – What the product is expected to do
Why – The reasons why the consumer
should patronize
What ‘Brand “ does
• Branding endows products and services
with the power of the Brand-
Who – name and brand elements
What – What the product is expected to do
Why – The reasons why the consumer
should patronize
Scope for “branding”
• Branding can be for anything
Physical good
service
Person
Place
Organisation
Idea
What is “brand Equity “
• It is the added value endowed to the
product and servicesCustomer based brand equity :Differential
effect that brand knowledge has on the
customer response
If there is no effect, probably it is a
commodity
Brand Knowledgeall thoughts, feelings,
images,experiences,beliefs
Advantages in creating
strong brands
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Improved perceptions of product performance
Greater loyalty
Less vulnerability to competitive marketing actions
Larger Margins
More inelastic consumer response to price increases
More elastic consumer response to price decreases
Greater trade cooperation and support
Increased marketing communications – effectiveness
Possible licensing opportunities
Additional brand extension opportunities
What to know about
Brands
• Presence – Do we know about this?
• Relevance – Does it offer us something?
• Performance – can it deliver?
• Advantage – does it offer something better than
others?
• Bonding –does anything else beats it?