1. RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY
MBA
SEMESTER: 4
SPECIALIZATION – MARKETING
RETAIL SALES MANAGEMENT & SERVICES MARKETING
MODULE NO 1
INTRODUCTION TO RETAILING
- Jayanti R Pande
DGICM college, Nagpur

2. Q1. What do you mean by Retailing? Describe the economic significance of retailing.
RETAILING
• Retailing is the process of selling goods or services directly to the end consumer for personal or
household consumption.
• Retailing involves a variety of activities such as selecting and procuring merchandise, pricing,
promotion, store design and layout, customer service, and inventory management.
• Retailing can take place through a variety of channels including brick-and-mortar stores, e-
commerce websites, mobile applications, and direct mail catalogues.
• The goal of retailing is to provide customers with a convenient and enjoyable shopping experience
while generating profits for the retailer.
• Retailing is an essential part of the economy and is an important source of employment and
revenue.
DEFINITION OF RETAILING
• Retailing is the process of selling goods and services directly to the end consumer.
• Cundiff and Still – “Retailing consists of all those activities involved in selling directly to ultimate
consumers.”

3. ECONOMIC SIGNIFICANCE OF RETAILING
 Providing Employment: Retailing is a significant source of employment in many countries, providing
jobs to millions of people. Retail businesses require a diverse range of employees, from sales
associates to store managers, and also offer opportunities for career advancement.
 Providing Opportunities: Retailing can provide entrepreneurial opportunities for individuals who want
to start their own business. In addition, retail businesses can create opportunities for local suppliers and
manufacturers to sell their products.
 Infrastructure Development: The growth of retailing can lead to the development of infrastructure
such as shopping centres, malls, and transportation networks. This can contribute to the development
of local communities and enhance their quality of life.
 Transformation of Retail Scenario in India: The retail industry in India has undergone significant
changes in recent years, with the emergence of organized retailing and the growth of e-commerce.
These changes have brought new players, increased competition, and offered consumers a wider
range of choices at competitive prices.
 Support for Community: Retail businesses can support their local communities by creating job
opportunities, contributing to the local economy, and supporting local events and initiatives. In
addition, many retail businesses engage in charitable activities, donating to local causes and
supporting social and environmental initiatives.

4. Q2. Differentiate between product retailing & service retailing. Explain thee growing importance of
retailing.
Product Retailing Service Retailing
Products are tangible and can be seen,
touched, and felt
Services are intangible and cannot be touched
or felt
Inventory management is essential for stock
levels, supply chain, and product quality
Customer experience is critical for service
quality and outcomes
Products can be branded and their reputation
significantly influences purchase decisions
Services can be customized to meet individual
customer needs
Products can be standardized and produced in
large quantities with consistent quality
Services are often time-based and provided for
a specific duration
Products often require packaging as a form of
advertising and protection during transportation
Quality control is essential for service quality and
customer satisfaction
Products have a specific price point and pricing
strategy management is required to remain
competitive
Services often have variable pricing due to
factors such as time, skill level, and demand
Customer service is essential in product retailing
for selection, returns, and other issues
Expertise is required for service retailing, often
requiring specialized training and development

5. GROWING IMPORTANCE OF RETAILING
 Changing Consumer Behaviour: Consumer behavior has changed significantly in recent years,
with consumers demanding more personalized, convenient, and unique shopping experiences.
Retailers need to adapt to these changing behaviors to remain relevant and competitive in the
market.
 Economic Growth: The retail industry is a significant contributor to economic growth, with retail
sales driving consumer spending and creating job opportunities across various sectors.
 Technological Advancements: The use of technology in retailing has revolutionized the industry,
enabling retailers to enhance the customer experience, optimize supply chain management, and
gain insights into consumer behavior and preferences.
 Globalization: The growth of international trade and e-commerce has made it easier for retailers
to expand their reach and tap into new markets, creating opportunities for growth and
expansion.
 Community Impact: Retailers have a significant impact on the communities they operate in,
contributing to local economies, creating job opportunities, and supporting social causes. As a
result, the retail industry has become an essential part of the social fabric and plays a crucial role
in shaping the communities they serve.

6. Q3. Explain the retail management decision process. Mention the factors influencing retail
management.
RETAIL MANAGEMENT
• Retail management involves overseeing the day-to-day operations of a retail business.
• The primary goal is to increase sales and profits while maintaining high levels of customer satisfaction.
• Retail managers must possess a range of skills including leadership, communication, and analytical
thinking.
• They are responsible for managing employees, inventory, sales, customer service, and marketing
efforts.
• Effective retail management requires staying up-to-date with industry trends and technology
advancements to remain competitive.
RETAIL MANAGEMENT DECISION PROCESS
UNDERSTANDING
WORLD OF
RETAILING
DEVELOPING A
RETAIL
STRATEGY
IMPLEMENTING THE
RETAIL
STRATEGY

7. 1 Understanding the world of retailing:
• Analysing the macro environment, including economic, political, and social factors.
• Examining the micro environment, including competitors, suppliers, and intermediaries.
• Understanding the needs and preferences of customers through market research.
2 Developing a retail strategy:
• Establishing the target market and positioning of the store.
• Defining the product mix, pricing strategy, and promotional tactics.
• Deciding on the store location and format.
3 Implementing the retail strategy:
• Managing merchandise inventory and product assortment.
• Designing an effective store layout and visual merchandising.
• Developing advertising and promotional campaigns.
• Setting competitive prices to maximize profit margins.
• Providing excellent customer service to build brand loyalty.

8. FACTORS INFLUENCING RETAIL MANAGEMENT
1.Computerization: The use of technology has revolutionized the retail industry, allowing businesses to streamline
operations and provide better customer service. Computerization enables retailers to manage inventory levels,
track sales, and process transactions more efficiently. E-commerce platforms have also opened up new channels
for selling products, expanding the reach of retail businesses beyond brick-and-mortar stores.
2.Communication: Effective communication is crucial for retail managers to coordinate efforts across different
departments and stakeholders. This includes communicating with suppliers to ensure timely delivery of products,
training employees on sales techniques and customer service, and engaging with customers to gather feedback
and address concerns. Technology such as email, social media, and instant messaging have made
communication faster and more convenient.
3.Fashion: Fashion is a critical factor for retail businesses, as customers often base their purchasing decisions on
style and trends. Classical fashion refers to timeless styles that remain popular over time, such as a little black
dress or a tailored suit. Fad fashion, on the other hand, is a short-lived trend that quickly fades away. Retail
managers need to monitor fashion trends closely and adapt their product mix to meet changing consumer
preferences.
4.Consumerism: Consumerism refers to the focus on satisfying customer needs and wants, which is the primary
goal of retail businesses. Retail managers must understand consumer behavior and preferences to provide
products and services that meet their needs. This includes conducting market research, analyzing sales data, and
gathering customer feedback. A customer-centric approach can lead to increased sales, brand loyalty, and long-
term success in the retail industry.

9. Q4. Elaborate the types of retailers in detail.
TYPES OF RETAILERS
RETAILERS BASED ON OWNERSHIP RETAILERS BASED ON CHANNEL USED
• Independent retailer
• Retail chains
• Franchising
• Leased departments
• Cooperatives
STORE
RETAILING
BASED ON
MERCHANDISE
USED
NON
STORE
RETAILING
MULTI
CHANNEL
RETAILING
General
Merchandise
Food
Merchandise
• Departmental Store
• Discount Store
• Speciality Store
• Membership Club
• Airport Retailing
• Drug Stores
• Cash & Carry
• Convenience Store
• Conventional
Supermarket
• Food based super stores
• Combination stores
• Super centres & hyper
market
• Limited line stores
• Electronic retailing
• Catalogue & direct mail
retailing
• Vending Machines
• Tele marketing
• TV Home shopping
• Video kiosks

10. RETAILERS BASED ON OWNERSHIP
1 Independent retailer:
A single store or small business owned and operated by an individual or a family. They have full control
over business decisions and operations.
2 Retail chains:
Multiple retail stores operating under the same brand or company ownership. Chains often have
standardized operations, centralized management, and economies of scale.
3 Franchising:
A business model where the franchisor grants the rights to an individual or group (franchisee) to operate
a business under their established brand. The franchisee follows specific guidelines and pays fees to the
franchisor.
4 Leased departments:
Sections within a larger retail store that are leased to independent businesses or brands. These
departments operate independently but are located within a larger store.
5 Cooperatives:
Retailers that are owned and operated by a group of members who pool resources and share profits.
Cooperative members often include small businesses or producers working together for mutual benefit.

11. RETAILERS BASED ON CHANNEL USED
A] STORE RETAILING BASED ON MERCHANDISE USED
1.General Merchandise:
Refers to stores that sell a variety of products, including clothing, electronics, home goods, and more.
a) Departmental store: Large stores with multiple departments and a wide range of products.
b) Discount store: Retailers that sell products at lower prices than traditional department stores.
c) Specialty store: Stores that focus on a specific product category or niche, such as electronics or sporting
goods.
d) Membership club: Stores that require a membership to shop, often offering bulk products at discounted
prices.
e) Airport retailing: Stores located within airports, often selling duty-free products and travel essentials.
f) Drug stores: Stores that primarily sell pharmaceuticals, but may also sell personal care items and other
products.
g) Cash and carry: Stores that cater to businesses and other institutions, selling products in bulk at wholesale
prices.
2.Food Merchandise:
Refers to stores that sell food products. a) Convenience store: Small stores that offer a limited selection of
products for quick and convenient shopping. b) Conventional supermarket: Traditional grocery stores that offer
a wide range of food products. c) Food-based superstores: Large stores that offer a broad range of food
products and other items, such as clothing and electronics. d) Combination stores: Stores that offer a
combination of grocery and general merchandise products. e) Supercenters and hypermarkets: Large stores
that offer a wide range of products, including groceries, home goods, and electronics. f) Limited line stores:
Stores that specialize in a narrow range of products, such as meat or seafood.

12. B] NON STORE RETAILING
1.Electronic retailing:
•Selling products online through websites or mobile apps, often with delivery options.
2.Catalogue and direct mail retailing:
•Sending product catalogs and promotional materials directly to consumers through mail or email.
Customers can order products through mail, phone, or online.
3.Vending machines:
•Machines that dispense products, such as snacks and beverages, without the need for human
interaction.
4.Telemarketing:
•Selling products or services through phone calls to potential customers.
5.TV home shopping:
•A form of retailing where products are promoted and sold through television broadcasts, often with
the option to purchase via phone or website.
6.Video kiosks:
•Standalone machines that allow customers to purchase or rent products, such as movies or games,
with a credit card or other payment methods.

13. C] MULTI CHANNEL RETAILING
Multichannel retailing refers to a strategy where retailers offer customers multiple ways to shop,
often integrating different channels for a seamless shopping experience. This can include using
online channels to promote in-store sales, offering in-store pickup for online purchases, or providing
personalized recommendations across channels. By offering multiple channels, retailers can reach
more customers and provide greater convenience and flexibility.
1.Store channel:
•Traditional brick-and-mortar stores where customers can browse, try on, and purchase products
in-person.
2.Catalogue channel:
•Sending product catalogues and promotional materials directly to consumers through mail or
email. Customers can order products through mail, phone, or online.
3.Electronic channel:
•Selling products online through websites or mobile apps, often with delivery options. This includes
both online-only retailers and traditional retailers who also have an online presence.

14. Q5. Describe the elements of retailing marketing environment. Differentiate between Indian & Global
scenario in retail.
RETAILING MARKETING ENVIRONMENT
Retailing marketing environment is the external context in which retailers operate and compete. It is
made up of various factors that impact a retailer's marketing strategies and decisions. These factors can
include economic conditions, technological advancements, social and cultural trends, legal and
political regulations, and competitive landscape.
The retailing marketing environment is constantly changing, and retailers must stay aware of these
changes and adjust their marketing strategies accordingly. By monitoring and adapting to the
marketing environment, retailers can better meet the needs and preferences of their customers, stay
competitive in the marketplace, and ultimately achieve business success.
INTERNAL
ENVIRONMENT
ELEMENTS
IN RETAILING
MARKETING ENVIRONMENT

15. 1.Macro environment: The macro environment includes the external factors that are beyond
the control of the retailer but can have a significant impact on its business. These factors
include the economic conditions, technological advancements, cultural and social norms,
legal and political regulations, and environmental factors.
2.Micro environment: The micro environment includes the external factors that are more
specific to the retail industry and are directly related to the retailer's business operations.
These factors include the suppliers, intermediaries, competitors, customers, and publics.
3.Internal environment: The internal environment includes the factors that are within the
control of the retailer and are directly related to its business operations. These factors include
the organizational culture, leadership style, human resources, and infrastructure.

16. Indian Scenario of retail Global Scenario of retail
1. Dominated by small and unorganized
players
1. Dominated by large organized players
2. Low level of technology adoption 2. High level of technology adoption
3. Limited e-commerce penetration 3. High e-commerce penetration
4. Traditional mom-and-pop stores are still
popular
4. Online shopping is gaining popularity
5. Limited supply chain infrastructure 5. Strong supply chain infrastructure
6. High dependence on cash transactions 6. Increased use of digital payments
7. Limited product offerings 7. Wide range of product offerings
8. High fragmentation in the market 8. Consolidation of the market
9. Low penetration of modern formats like
supermarkets and malls
9. High penetration of modern formats
10. Limited customer loyalty programs 10. Robust customer loyalty programs

17. Q6. What are the structural changes in Indian retail environment? Describe the environmental issues in
retailing environment.
STRUCTURAL CHANGES IN INDIAN RETAIL ENVIRONMENT
• Socio demographic changes: The Indian retail environment has witnessed significant changes due to socio-
demographic changes such as increasing urbanization, a growing middle-class population, and changing
lifestyles. These changes have resulted in increased demand for modern retail formats such as supermarkets,
hypermarkets, and malls.
• Socio economic changes: The rise of the Indian economy has resulted in significant socio-economic
changes such as rising income levels, increasing consumer expenditure, and changing consumption
patterns. This has led to a shift in consumer preferences towards branded products and a higher demand for
premium products and services.
• Technological changes: The increasing use of technology in the Indian retail environment has led to
significant changes in the industry. The adoption of e-commerce platforms and the use of mobile apps have
led to the growth of online retailing. Additionally, the use of technology in supply chain management has
resulted in increased efficiency and cost savings.
• Political changes: The Indian retail environment has also witnessed significant changes due to political
changes such as the liberalization of the retail sector and the implementation of GST (Goods and Services
Tax). The liberalization of the retail sector has led to increased foreign direct investment and the entry of
international players into the Indian market.
• Cultural changes: The Indian retail environment has also been impacted by cultural changes such as
changing consumer preferences towards western-style products and services. The influence of social media
and the internet has also led to increased exposure to global trends and fashions, resulting in a shift in
consumer preferences.

18. ENVIRONMENTAL ISSUES IN RETAILING ENVIRONMENT
1.Natural resources in supply chain: The retail industry relies heavily on natural resources such as water,
energy, and raw materials. The extraction, production, and transportation of these resources have significant
environmental impacts, such as deforestation, water pollution, and greenhouse gas emissions.
2.Environmental impacts of products: The production and disposal of products sold in the retail industry have
significant environmental impacts, such as the depletion of natural resources, pollution of air and water, and
contribution to climate change. Retailers are increasingly being held accountable for the environmental impact of
their products throughout their lifecycle.
3.Energy and greenhouse gases: The retail industry is a significant contributor to greenhouse gas emissions,
particularly through energy consumption in stores, warehouses, and transportation. Retailers are increasingly
implementing measures to reduce their carbon footprint, such as using renewable energy sources, optimizing
supply chain logistics, and improving energy efficiency in their stores.
4.Chemicals and toxics: Many products sold in the retail industry contain harmful chemicals and toxins that can
harm human health and the environment. Retailers are increasingly implementing measures to reduce the use of
harmful chemicals in their products and ensuring the safe disposal of hazardous waste.
5.Waste: The retail industry generates significant waste throughout its supply chain, from the production of
products to the disposal of packaging and unsold goods. Retailers are increasingly implementing measures to
reduce waste, such as implementing recycling programs, reducing packaging materials, and donating unsold
goods to charities

19. Q7. Illustrate the dimensions of segmentation. Also mention the criteria for effective segmentation.
Segmentation is an important marketing strategy in the retail industry. Retailers segment their
customers based on various dimensions to understand their needs and preferences, and to tailor
their marketing efforts accordingly. The four commonly used dimensions of segmentation in retail
are:
1 Geographic segmentation: This involves dividing the market based on geographic location.
Retailers may segment their market based on regions, countries, cities, neighborhoods, or postal
codes. This helps retailers to understand the needs and preferences of customers in a particular
geographic location and develop targeted marketing strategies.
2 Demographic segmentation: This involves dividing the market based on demographic
characteristics such as age, gender, income, education, occupation, and family status. Retailers
use demographic segmentation to understand the purchasing patterns of different demographic
groups and develop products and services that meet their specific needs.
3 Psychographic segmentation: This involves dividing the market based on the psychological
characteristics of customers such as their personality traits, values, interests, and lifestyle. Retailers
use psychographic segmentation to understand the motivations and behavior of their customers
and develop marketing messages that resonate with their interests and preferences.
4 Behavioral segmentation: This involves dividing the market based on the behavior of customers
such as their purchasing habits, brand loyalty, usage rate, and product benefits sought. Retailers
use behavioral segmentation to understand the needs and preferences of customers and develop
marketing strategies that encourage repeat purchases and build customer loyalty.

20. CRITERIA FOR EFFECTIVE SEGEMENTATION
1 Measurable: The segments should be measurable in terms of size, growth potential, and purchasing
power. This allows retailers to evaluate the effectiveness of their marketing strategies and allocate
resources to the most profitable segments.
2 Sustainable: The segments should be sustainable over time. This means that the segments should have
stable and consistent characteristics that are unlikely to change in the near future. Retailers can rely on
these segments to guide their long-term marketing strategies.
3 Accessible: The segments should be accessible through channels that the retailer can reach
effectively. This means that the retailer should be able to communicate with the segment through
advertising, promotions, and other marketing activities.
4 Differentiable: The segments should be distinct from one another and have unique needs and
preferences. This allows retailers to develop targeted marketing strategies that resonate with each
segment.
5 Actionable: The segments should be actionable, meaning that the retailer should be able to develop
and implement marketing strategies that effectively target each segment. Retailers should be able to
identify the most effective marketing channels, messaging, and promotions for each segment.
MEASURABLE SUSTAINABLE ACCESSIBLE DIFFERENTIABLE ACTIONABLE

21. Q8. Explain the process of targeting the market. Give the importance of targeting.
Targeting the market is the process of selecting specific segments to focus on and developing marketing
strategies to reach and engage with those segments.
1 Identify potential market segments: Start by identifying potential market segments based on different
dimensions of segmentation such as geographic, demographic, psychographic, and behavioral.
Evaluate the segments based on criteria such as size, growth potential, and profitability.
2 Evaluate and select segments: Once potential segments have been identified, evaluate them based
on their attractiveness and feasibility. Select the segments that are most attractive and feasible for the
business to target.
3 Develop a customer profile: Develop a profile of the target customer within each selected segment. This
includes understanding their needs, wants, preferences, behaviors, and purchasing habits.
4 Develop a marketing mix strategy: Develop a marketing mix strategy for each segment, including
product positioning, pricing, promotion, and distribution. Tailor the marketing mix strategy to meet the
specific needs and preferences of each target segment.
5 Implement marketing strategies: Implement marketing strategies for each segment. This includes
advertising, promotions, and other marketing activities designed to reach and engage with the target
customer.
6 Evaluate and adjust: Continuously evaluate the effectiveness of marketing strategies and adjust them as
needed to optimize results. Monitor changes in the market environment and adjust strategies accordingly.

22. IMPORTANCE OF TARGETING
1 Better understanding of customers: Targeting allows retailers to gain a better understanding of their
customers' needs, preferences, and behaviours. By understanding their target customers, retailers can
develop more effective marketing strategies that resonate with their interests, leading to increased
sales and customer loyalty.
2 Increased efficiency and cost-effectiveness: Targeting enables retailers to focus their marketing
resources on the most profitable segments, resulting in increased efficiency and cost-effectiveness.
This allows retailers to maximize their return on investment and allocate their resources more
strategically.
3 Improved product development: Targeting allows retailers to develop products and services that
meet the specific needs and preferences of their target customers. This leads to improved product
development and increased customer satisfaction.
4 Competitive advantage: Targeting enables retailers to differentiate themselves from their
competitors by offering products and services that are tailored to the needs and preferences of their
target customers. This can lead to a competitive advantage and increased market share.
5 Increased customer loyalty: Targeting enables retailers to build stronger relationships with their
customers by offering products and services that meet their specific needs and preferences. This can
lead to increased customer loyalty and higher lifetime customer value.

23. Q9. What is positioning decision in retailing? Explain the retail positioning strategies.
POSITIONING DECISION IN RETAILING
Positioning decision in retailing refers to the process of creating a unique image or identity for a
retailer's brand or products in the minds of their target customers. It involves identifying the unique
selling proposition, developing a concise positioning statement, and communicating it through
various marketing channels to differentiate the retailer's brand or products from its competitors. The
positioning decision is crucial because it helps retailers attract and retain customers, build a
competitive advantage, and increase profitability.
DEFINITION
• Positioning decision in retailing is the process of creating a unique and compelling image or
identity for a retailer's brand or products in the minds of their target customers.
• AI Ries and Jack Trout - “Positioning starts with a product, a price of merchandise, a service, a
company, an institution or even a person. Positioning is not what is done to product but what is
done to the mind of the prospect, i.e. you position the product in the mind of the prospect.”

24. 1.Benefit positioning: Emphasizing the unique benefits or solutions that a retailer's products or services can offer to
customers.
2.Attribute positioning: Highlighting the unique product attributes or features that set a retailer's products apart from its
competitors.
3.User positioning: Positioning the retailer's products or services as tailored to a specific group of users, such as age or
gender.
4.Merchandise category positioning: Positioning the retailer's brand or products as belonging to a particular
merchandise category, such as luxury, discount, or eco-friendly.
5.Competitor positioning: Positioning the retailer's brand or products as superior to its competitors in terms of price,
quality, or other attributes.
6.Quality and price positioning: Positioning the retailer's brand or products as offering superior quality or value for its
price.
7.Image or personality positioning: Creating a distinct brand image or personality that resonates with the target
customers' values, beliefs, or aspirations.
8.Specialty products positioning: Positioning the retailer's brand or products as specialized or niche products catering
to a particular customer need or interest.
IMAGE OR PERSONALITY
POSITIONING
BENEFIT
POSITIONING
ATTRIBUTE
POSITIONING
MERCHANDISE
POSITIONING
COMPETITOR
POSITIONING
QUALITY & PRICE
POSITIONING
SPECIALITY PRODUCTS
POSITIONING
USER
POSITIONING
RETAIL POSITIONING STRATEGIES