RTMNU 4th sem MBA Subject - Retail Sales Management & Services Marketing [ Marketing ] Module 3 SUMMARY RETAIL MERCHANDISING AND CRM BY Jayanti R Pande MBA free notes pdf download JRP MBA notes Free RTMNU Marketing notes by Jayanti Pande

1. 1
Jayanti R Pande
email: jayantipande17@gmail.com
RTMNU MBA Sem 4 – RETAIL SALES
MANAGEMENT & SERVICES MARKETING
[MARKETING]
MODULE NO 3: RETAIL MERCHANDISING &
CRM
RETAIL MERCHANDISING
Retail merchandising involves presenting
products attractively, analyzing trends, and
managing inventory. Pricing, visual displays,
and promotions drive sales while aiming to
increase profitability and customer
satisfaction. The goal is to create a seamless
shopping experience and offer products that
resonate with customers.
DEFINITION OF RETAIL MERCHANDISING
Retail merchandising is the art of presenting
and promoting products in a way that attracts
customers and drives sales.
American Marketing Association-
“Merchandising is the planning involved in
marketing the right merchandise at the right
place at the right time in the right quantities
at the right price.”
MERCHANDISING PROCES
1 Market Opportunity Analysis: Assessing
trends, customer preferences, and
competitors to identify potential success
areas.
2 Merchandise Planning: Creating a strategic
plan for product assortment, pricing, and
promotions to meet sales targets.
3 Supply Base Selection: Choosing reliable
suppliers based on quality, pricing, and ability
to meet demand.
4 Product Development & Supplier
Management: Collaborating with suppliers for
new product creation and ensuring timely
delivery and quality control.
5 Point of Sale Presentation: Using visual
techniques like displays and signage to attract
customers and enhance the shopping
experience.
MERCHANDISE MANAGEMENT
Merchandise management involves strategic
planning and execution of activities for
procurement, handling, and control of
products. It oversees the entire merchandise
lifecycle to ensure availability, in the right
quantities and locations, to meet customer
demand and maximize profitability.
Analysis: Market research to understand
customer preferences, trends, and
competitors.
Planning: Creating merchandise plans for
assortment, pricing, promotions, and
inventory management.
Acquisition: Selecting reliable suppliers and
negotiating procurement terms.
Handling: Managing logistics, including
transportation, warehousing, and stock levels.
Control: Monitoring performance, analyzing
sales, and adjusting strategies.
ACTIVITIES OF A MERCHANDISER:
• Market research and analysis of customer
preferences, trends, and competition.
• Development of merchandise plans and
strategies to meet customer demands and
align with company objectives.
• Collaboration with suppliers for product
sourcing, pricing negotiations, and
managing supplier relationships.
• Inventory management, including tracking
availability, implementing inventory
control techniques.
• Sales performance monitoring, data
analysis, and making data-driven decisions
to optimize merchandise performance.
MERCHANDISING MANAGEMENT PROCESS:
Forecasting Sales: Estimating future sales
based on past data and market trends.
Assortment Planning: Deciding which
products to offer, including brands, styles,
sizes, and colors.
Inventory Management: Determining the
appropriate inventory level to meet customer
demand and ensure product availability.
Inventory Strategy: Developing strategies for
managing inventory, including reordering,
quantity, and replenishment speed.
Store Merchandise Allocation: Allocating
merchandise to stores based on factors like
store size, customer demographics, and sales
history.
Merchandise Purchasing: Selecting and
negotiating with suppliers to purchase the
needed merchandise.
Performance Monitoring and Adjustment:
Tracking sales, inventory, and metrics to
evaluate merchandise performance and make
necessary adjustments.

2. 2
Jayanti R Pande
email: jayantipande17@gmail.com
ELEMENTS OF MERCHANDISE
MANAGEMENT:
1 Merchandise Analysis: Studying market
trends, customer preferences, and
competitors for informed decision-making.
2 Merchandise Control: Monitoring and
managing inventory, stockouts, and
profitability.
3Planning Assortments: Creating product
offerings that align with customer preferences
and market demand.
4 Buying Systems: Establishing efficient
processes for supplier selection and
merchandise procurement.
5 Buying Merchandise: Actively procuring
merchandise from suppliers.
6 Pricing: Determining pricing strategies
based on customer value, competition, and
profitability goals.
7 Retail Communication: Using advertising
and in-store displays to promote merchandise
and engage customers.
PRIVATE LABELS
Private labels are retailer-branded products
offering affordable alternatives to national
brands, meeting customer needs and building
brand loyalty. They differentiate retailers,
create value for money, and foster customer
loyalty.
CHARACTERISTICS OF PRIVATE LABELS:
1. Value for Money: Affordable pricing and
cost savings for consumers.
2. Similar Quality: Comparable quality to
national brands.
3. Customer-Oriented: Developed to meet
customer needs and preferences.
ROLES OF PRIVATE LABELS:
1. Benefits to Consumers: Affordable
options without compromising quality.
2. Quality Image for Retailers: Reputation
for providing quality products.
3. Differentiation from Competitors:
Exclusive offerings to attract customers
and enhance market position.
GROWTH DRIVERS OF PRIVATE LABELS:
1. Right Product: Tailoring products to meet
customer needs and preferences for a
competitive advantage and consumer
loyalty.
2. Competitive Price: Offering affordability
compared to national brands to attract
price-conscious customers and gain
market share.
3. Strong Marketing Program: Investing in
brand awareness, showcasing value and
quality through advertising and
promotions to generate interest and
foster repeat business.
DIFFERENTIATE BETWEEN PRIVATE BRAND
AND NATIONAL BRAND
Store/Private Brands:
 Owned and sold exclusively by a specific
retailer.
 Available only in the retailer's stores or
online platforms.
 More control over pricing, quality, and
marketing.
 Often offered at a more affordable price
point.
 Limited brand recognition beyond the
retailer's customer base.
 Focused on specific product categories or
a wide range of products.
 Lesser marketing investment compared to
national brands.
 Cater to the preferences of the retailer's
target customers.
 Can create exclusivity and differentiation
for the retailer.
National Brands:
 Owned and sold by specific manufacturers
or companies.
 Widely available across multiple retailers
and distribution channels.
 Controlled by the respective
manufacturers.
 Generally have a higher price point.
 Higher brand recognition due to extensive
marketing efforts.
 Offer a broad product assortment.
 Heavy investment in marketing,
advertising, and brand building.
 Cater to a wide range of customer
preferences.
 May face competition from similar
national brands in the market.
GLOBAL SCENARIO OF PRIVATE LABELS:

3. 3
Jayanti R Pande
email: jayantipande17@gmail.com
Increased Market Share: Private labels have
gained market share globally due to
competitive pricing and value for money.
Retailer Expansion: Retailers have expanded
private label portfolios, offering a wider range
of products.
Consumer Perception: Perception of private
labels has improved, seen as reliable
alternatives to national brands.
International Expansion: Private labels have
expanded globally, leveraging global sourcing
and manufacturing capabilities.
INDIAN MARKET SCENARIO OF PRIVATE
LABELS:
Growing Modern Trade: Modern trade's
share in the Indian market has doubled,
driving the growth of private labels.
E-commerce Traction: Private labels are
gaining traction in e-commerce, increasing
their market share.
Expanding Categories: Private labels are
expanding into new categories, targeting
commoditized and emerging sectors.
Leading Retail Players: Major retail
companies like Future Group, Aditya Birla,
Tata Croma, Reliance Fresh, and Shoppers
Stop have their own private label offerings.
Competitive Pricing and Profitability: Private
labels in India offer competitive pricing,
higher profit margins, and appeal to cost-
conscious consumers.
ADVANTAGES OF PRIVATE LABELS:
1. Control over pricing: Retailers can offer
competitive pricing for private label
products.
2. Marketing freedom: Retailers have the
flexibility to implement their own
marketing strategies for private labels.
3. Personalized brand image: Private labels
allow retailers to create unique brand
identities and build customer loyalty.
4. In-store prominence: Private label
products can be prominently displayed in
stores, increasing visibility and sales.
5. Resilience during downturns: Private
labels provide affordable options for
consumers during economic downturns.
DISADVANTAGES OF PRIVATE LABELS:
1. Lack of standardization: Quality and
consistency may vary among private label
products.
2. Lesser brand power: Private label brands
often have lower brand recognition
compared to established national brands.
3. Perception of lower quality: Lower prices
may lead to a perception of inferior
quality among consumers.
4. Similar brand image: Differentiating
multiple private label products across
categories can be challenging.
5. Production challenges: Sourcing reliable
suppliers and managing supply chain
logistics can be complex for private label
products.
Integrated Marketing Communications (IMC)
IMC is a strategic approach that combines
marketing tools to deliver a consistent
message. It helps retailers communicate their
brand value, engage customers, and build
strong relationships. By integrating marketing
efforts, retailers enhance brand awareness,
generate loyalty, and drive sales. IMC ensures
all communication channels work together to
create a unified brand presence and identity.
It promotes a seamless customer experience
across various touchpoints.
DEFINITION OF IMC
IMC is the strategic coordination of various
marketing tools and channels to deliver a
consistent brand message and engage
customers effectively
American Marketing Association- “IMC is
planning process designed to assure that all
brand contacts received by a customer or
prospect for a product, service, or
organisation are relevnt to that person and
consistent over time”
IMC TOOLS
1. Retail Advertising: Paid advertisements in
various media channels to promote retail
products or brands.
2. Retail Sales Promotion: Short-term
incentives and activities to boost sales,
such as discounts or loyalty programs.
3. Retail Personal Selling: Direct interaction
between sales representatives and
customers to build relationships and make
sales.

4. 4
Jayanti R Pande
email: jayantipande17@gmail.com
4. Retail Public Relations: Managing brand
image through media relations, events,
and community engagement.
5. Retail Publicity: Generating non-paid
media coverage to create awareness and
shape public perception.
6. Retail Word of Mouth: Customers sharing
positive experiences to generate organic
brand advocacy.
CRM
(Customer Relationship Management) in
retailing focuses on managing and nurturing
customer relationships through data analysis,
personalized experiences, and targeted
marketing campaigns. It helps retailers build
stronger customer relationships, increase
satisfaction and loyalty, and make data-driven
business decisions for long-term success in
the retail industry.
DEFINITION OF CRM
Gartner – “ CRM is a business strategy
designed to optimise profitability, revenue &
customer satisfaction”
GOALS OF CRM:
Customer acquisition: Attract new customers
through targeted marketing and lead
generation strategies.
Customer satisfaction: Provide personalized
experiences, quality products, and excellent
service to meet customer expectations.
Customer retention: Build long-term
relationships through loyalty programs,
incentives, and regular communication.
Customer enhancement: Maximize customer
value through upselling, cross-selling, and
additional value-added services.
PRINCIPLES OF CRM:
Understanding customer motivations: Tailor
marketing strategies to meet customer needs
based on insights into their behavior.
Managing customers as assets: Invest in
building strong relationships and maximizing
customer lifetime value.
Increasing loyalty: Foster loyalty through
personalized communication, rewards
programs, and exceptional service.
Providing efficient and consistent service:
Deliver products, services, and support
consistently across all touchpoints.
Treating customers individually: Offer
personalized recommendations and tailored
experiences to strengthen relationships.
CRM (CUSTOMER RELATIONSHIP
MANAGEMENT):
CRM is a business strategy that focuses on
managing and nurturing customer
relationships to drive satisfaction, loyalty, and
growth. It involves data analysis, targeted
marketing, and personalized experiences.
Loyalty Programs: Loyalty programs are
tactical initiatives within the CRM strategy
designed to incentivize and reward customer
loyalty. They offer benefits like discounts and
rewards to encourage repeat purchases and
enhance the customer experience.
Strategic Differences: Under the strategic
differences, the content remains the same as
previously mentioned:
CRM aims to build long-term customer
relationships, acquire new customers, satisfy
their needs, and retain them, while loyalty
programs specifically target fostering
customer loyalty and encouraging repeat
purchases.
Tactical Differences:CRM focuses on
personalized experiences and customer
relationships, while loyalty programs
incentivize repeat business.
CRM involves targeted marketing and
communication, while loyalty programs offer
specific rewards for customer loyalty.
Technical Differences:CRM systems collect
and manage customer data, while loyalty
programs require infrastructure for
enrollment and rewards.
CRM integrates with other business systems,
while loyalty programs may use dedicated
software or integrate with CRM.
CRM TOOLS
1. Marketing: Understanding customer
preferences and behavior to create
targeted campaigns and personalized
offers.
2. Customer Management: Capturing and
organizing customer data to have a
comprehensive view of customers'
interactions and preferences.

5. 5
Jayanti R Pande
email: jayantipande17@gmail.com
3. Customer Service: Providing exceptional
support, resolving issues promptly, and
ensuring a positive customer experience.
4. Relationship Strategy: Developing
strategies for customer engagement,
loyalty programs, and retention to foster
long-term relationships.
5. Communication: Facilitating effective
outbound and inbound communication to
engage customers and address their
needs.
6. Customer Satisfaction: Monitoring and
measuring customer satisfaction levels to
continuously improve and enhance
loyalty.
TECHNOLOGY IN RETAIL MARKETING
DECISION
Technology empowers retailers in making
informed marketing decisions through data
analytics, CRM systems, marketing
automation, and digital advertising. These
technological advancements enable retailers
to engage customers and drive business
growth effectively.
ROLE OF IT IN RETAILING
Streamlining Operations: IT automates
transactions, manages inventory, and
optimizes supply chains, boosting efficiency.
Enhancing Customer Experience: IT enables
personalized marketing, mobile apps, self-
checkout, and digital signage, enhancing
convenience and interactivity. Enabling Data-
Driven Decision Making: IT collects and
analyzes data to inform decisions on pricing,
assortment, and marketing strategies.
IT Applications in Retail:
1. Electronic Data Interchange (EDI):
Streamlines communication and
transactions between retailers and
suppliers.
2. Barcoding Technology: Enables efficient
product identification, inventory
management, and checkout processes.
3. Electronic Point of Sale (EPOS) System:
Automates sales transactions, inventory
tracking, and customer data collection.
4. Electronic Funds Transfer (EFT):
Facilitates secure and convenient
electronic payment processing.
5. Radio Frequency Identification Device
(RFID): Enhances inventory management,
reduces theft, and improves supply chain
visibility.