Retail Trends & Strategies


  • Better market positioning: This involves more careful identification of market segments and providing service superior to that of competition.
  • Market intensification: This involves clustering more stores in the same metropolitan area and contiguous markets.
  • Secondary markets: Expansion will be increasingly focused on secondary markets  of under 100,000 population because there may be less competition from larger retailers, and costs, such as wages, may be lower.
  • Differences in store size: Retailers will have a more flexible portfolio of different sized stores depending on the size of the community and existing retail competition. More use of second-hand space will occur because this can result in savings of 30 percent or more in rent.
  • Productivity increases: The application of central checkout, self-selection, and low gross margins to areas of trade where these techniques have not been used before will occur. Look now at toy supermarkets, home-decorating centers, and self-service shoe stores.
  • Fewer product options: Product lines will increasingly be consolidated, and new product development will be cut back.
  • Service growth: Services retailing will continue to grow as a percentage of total retail sales. Services already represent about 50 percent of the gross national product.
  • More mergers: Increasingly, smaller and weaker firms will be absorbed as more retail outlets struggle to survive.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Factors of Production


Each business has its own mix of the four factors of production, vis-à-vis, natural resources, labor, capital, and entrepreneurship.

Natural resources refers to everything useful in its natural state as a productive input including agricultural land, building sites, forests, mineral deposits, and so on. Natural resources are basic resources required in any economic system.

Labor is critically important. It refers to everyone who works for a business, from the company president to the production manager, the sales representative, and the assembly line worker.

Capital is defined as the funds necessary to finance the operation of a business. These funds can be provided in the form of investments, profits, or loans. They are used to build factories, buy raw materials, hire workers, and so on.

Entrepreneurship is the taking of risks to set up and run a business. The entrepreneur is the risk taker in private enterprise system. In some situations the entrepreneur actively manages the business; in others this duty is handed over to a salaried manager.

All four factors of production must receive a financial return if they are to be used in a private enterprise system. These payments are in the form of rent, wages, interest, and profit. The specific factor payment received varies among industries, but all factors of production are required in some degree for all businesses.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Converting Needs to Wants


Every consumer must acquire goods and services on a continuing basis to fill certain needs. Everyone must satisfy the fundamental needs for food, clothing, shelter, and transportation by purchasing things or, in some instances, temporarily using rented property and hired or leased transportation. By focusing on the benefits resulting from these goods and services, effective marketing converts needs to wants. A need for clothing may be translated into a desire (or want)  for designer clothes.

As easier-to-use software has enabled millions of nontechnical consumers to operate personal computers and as falling retail make these computers affordable to most households, computers have become fixtures in many offices and homes.

Companies that adopt the marketing concept focus on providing solutions to consumer problems. They promote product benefits rather than features to show the added value that computers will receive from the product.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Recognizing Markets


There are two major markets in marketing: the consumer market and the industrial market. The consumer market consists of all the individuals or households who want goods and services for personal consumption or use.

The industrial market consists of all the individuals and organizations that want goods and services to produce other goods and services or to sell, rent, or supply the goods to others. Oil drilling bits, cash registers, display cases, office desks, public accounting audits, and corporate legal advice are examples of industrial goods and services (products).

The important thing to remember is that buyer’s reason for buying and the end use of the product are what determine whether a product is considered a consumer product or an individual product.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Maintaining Accounting Records


Firms must maintain accounting records. The most important number in these records is the one at the bottom—the “bottom-line” net profit or loss. To compute this number, the firm keeps track of the number of products sold and the amount of money spent on production, salaries, rent, insurance, interest on loans, building repairs, and other items.

Large firms produce a tremendous amount of accounting information. Managing this information and using it wisely are great challenges. All business firms—large and small alike—produce accounting information for three basic purposes: internal decision-making, financial reporting to lenders and investors, and tax reporting to government.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

High Stress Level


A small business is likely to provide a living for its owner, but not much more. There are always worries about competition, employee problems, new equipment, expanding inventory, rent increases, or changing market demand. In addition to other stresses, small business owners tend to be victims of physical and psychological stress. The small business person is often the owner, manager, sales force, shipping and receiving clerk, bookkeeper, and custodian. Many creative persons succeed or fail, not because of their business concepts, but rather because of difficulties in managing their business.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Implementing the Sales Program


As with any kind of management, implementing a sales program involves motivating and directing the behavior of other people—the members of the sales force. To be effective, the sales manager must understand why the people in his or her sales force behave the way they do. Then policies and procedures can be designed to direct their behavior toward the desired objectives.

The model of the activities involved in implementing a sales program suggests that five factors influence a sales rep’s job behavior and performance:

  1. Environmental variables: Regardless of how highly motivated or competent salespeople are, their ability to achieve a particular level of job performance is influenced—and sometimes constrained—by environmental factors. The ability to reach a given sales volume, for instance, can be affected by such things as the market demand for the product being sold, the number and aggressiveness of competitors, and the health of the economy. Similarly other elements of a firm’s marketing mix, such as the quality of its products and the effectiveness of its advertising, can affect a salesperson’s ability to reach a high level of sales performance.
  2. Role perceptions: To perform adequately, a salesperson must understand what the job entails and how it is supposed to be performed. The activities and behaviors associated with a particular job are defined largely by the expectations and demands of other people, both inside and outside the organization. Thus, a salesperson’s job (or role) is defined by the expectations and desires of the customers, sales manager, other company executives, and family members. The salesperson’s ability to do the job well is partly determined by how clearly the sales rep understands those role expectations. Also, the salesperson may sometimes face conflicting demands, as when customer wants a lower price but company management refuses to negotiate. The salesperson’s ability to resolve such conflicts helps determine success or failure on the job.
  3. Aptitude: A salesperson’s ability to perform the activities of the job is also influenced by the individual’s personal characteristics, such as personality traits, intelligence, and analytical ability. No matter how hard they try, some people are never successful at selling because they do not have the aptitude for the job. Of course, different kinds of sales jobs involve different tasks and activities, so a person with certain characteristics may be unsuited for one selling job but tremendously successful at another one.
  4. Skill levels: Evan when salespeople have the aptitude to do their jobs and an understanding of what they are expected to do, they must have the skills necessary to carry out the required tasks.
  5. Motivation level: A salesperson cannot achieve a high level of job performance unless motivated to expend the necessary effort. A person’s motivation is determined by the kind of rewards expected for achieving a given level of performance and by the perceived attractiveness of those anticipated rewards.

A sales manager can use several policies and procedures to influence the aptitude, skill levels, role perceptions, and motivation of the sales force. Implementing a sales program involves designing those policies and procedures so that the job behavior and performance of each salesperson are shaped and directed toward the specified objectives and performance levels.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

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