Retail Management: A Strategic Approach

by Berman, Barry; Evans, Joel R

• ISBN13: 9780131870161
• ISBN10: 0131870165
• Edition: 10th
• Format: Hardcover
• Copyright: 2010-01-01
• Publisher: Prentice Hall

Summary

This best seller provides a balance between theory and practice, useful career information, and a comprehensive package of ancillaries. It takes a strategic approach to decision making. The volume provides an overview of strategic retail management, and provides a careful examination of situation analysis, targeting customers and gathering information, choosing a store location, managing a retail business, merchandise management and pricing, communicating with the customer and integrating and controlling the retail strategy. For retail training directors.

Table of Contents

Preface	xv
Acknowledgments	xxiii
PART ONE An Overview of Strategic Retail Management	1	(100)
An Introduction to Retailing	3	(20)
Chapter Objectives	3	(1)
Overview	4	(1)
The Framework of Retailing	5	(7)
Reasons for Studying Retailing	5	(6)
The Special Characteristics of Retailing	11	(1)
The Importance of Developing and Applying a Retail Strategy	12	(7)
Target Stores: The Successful Saga of an Upscale Discounter!	13	(2)
The Retailing Concept	15	(4)
The Focus and Format of the Text	19	(1)
Summary	20	(1)
Key Terms	21	(1)
Questions for Discussion	21	(1)
Web-Based Exercise: Clickz Stats Retailing (www.clickz.com/stats/sectors/retailing)	22	(1)
Building and Sustaining Relationships in Retailing	23	(34)
Chapter Objectives	23	(1)
Overview	24	(1)
Value and the Value Chain	25	(3)
Retailer Relationships	28	(10)
Customer Relationships	28	(8)
Channel Relationships	36	(2)
The Differences in Relationship Building Between Goods and Service Retailers	38	(2)
Technology and Relationships in Retailing	40	(4)
Electronic Banking	41	(1)
Customer and Supplier Interactions	42	(2)
Ethical Performance and Relationships in Retailing	44	(6)
Ethics	44	(2)
Social Responsibility	46	(1)
Consumerism	46	(4)
Summary	50	(1)
Key Terms	51	(1)
Questions for Discussion	51	(1)
Web-Based Exercise: Kohl's (www.kohls.com)	51	(2)
Appendix on Planning for the Unique Aspects of Service Retailing	53	(1)
Abilities Required to Be a Successful Service Retailer	53	(1)
Improving the Performance of Service Retailers	54	(2)
The Strategy of Pal's Sudden Service: A Baldrige Award Winner	56	(1)
Strategic Planning in Retailing	57	(44)
Chapter Objectives	57	(1)
Overview	58	(1)
Situation Analysis	58	(9)
Organizational Mission	59	(2)
Ownership and Management Alternatives	61	(3)
Goods/Service Category	64	(1)
Personal Abilities	64	(1)
Financial Resources	65	(1)
Time Demands	66	(1)
Objectives	67	(5)
Sales	67	(1)
Profit	68	(1)
Satisfaction of Publics	68	(1)
Image (Positioning)	69	(2)
Selection of Objectives	71	(1)
Identification of Consumer Characteristics and Needs	72	(2)
Overall Strategy	74	(5)
Controllable Variables	74	(2)
Uncontrollable Variables	76	(1)
Integrating Overall Strategy	77	(2)
Specific Activities	79	(1)
Control	79	(1)
Feedback	80	(1)
A Strategic Planning Template for Retail Management	80	(3)
Summary	83	(1)
Key Terms	84	(1)
Questions for Discussion	84	(1)
Web-Based Exercise: Carrefour (www.carrefour.com)	84	(1)
Appendix on the Special Dimensions of Strategic Planning in a Global Retailing Environment	85	(1)
The Strategic Planning Process and Global Retailing	85	(2)
Opportunities and Threats in Global Retailing	87	(1)
Opportunities	87	(1)
Threats	87	(1)
Standardization: An Opportunity and a Threat	87	(1)
Factors Affecting the Success of a Global Retailing Strategy	88	(1)
U.S. Retailers in Foreign Markets	89	(1)
Foreign Retailers in the U.S. Market	90	(2)
Part One Short Cases	92	(3)
Bed Bath & Beyond's Plan for Growth	92	(1)
Netflix: Competing in a Tough Marketplace	92	(1)
What Loyalty Programs Work in Brazil?	93	(1)
eBay Expands Around the Globe	94	(1)
Part One Comprehensive Case
Mining for Growth	95	(6)
PART TWO Situation Analysis	101	(94)
Retail Institutions by Ownership	103	(24)
Chapter Objectives	103	(1)
Overview	104	(1)
Retail Institutions Characterized by Ownership	105	(13)
Independent	105	(3)
Chain	108	(2)
Franchising	110	(4)
Leased Department	114	(1)
Vertical Marketing System	115	(2)
Consumer Cooperative	117	(1)
Summary	118	(1)
Key Terms	119	(1)
Questions for Discussion	119	(1)
Web-Based Exercise: Dunkin' Brands (www.dunkin-baskintogos.com/html/home.asp)	120	(1)
Appendix on the Dynamics of Franchising	120	(1)
Managerial Issues in Franchising	121	(3)
Franchisor-Franchisee Relationships	124	(3)
Retail Institutions by Store-Based Strategy Mix	127	(26)
Chapter Objectives	127	(1)
Overview	128	(1)
Considerations in Planning a Retail Strategy Mix	128	(6)
The Wheel of Retailing	129	(2)
Scrambled Merchandising	131	(1)
The Retail Life Cycle	132	(2)
How Retail Institutions Are Evolving	134	(2)
Mergers, Diversification, and Downsizing	134	(1)
Cost Containment and Value-Driven Retailing	135	(1)
Retail Institutions Categorized by Store-Based Strategy Mix	136	(14)
Food-Oriented Retailers	136	(5)
General Merchandise Retailers	141	(9)
Summary	150	(1)
Key Terms	151	(1)
Questions for Discussion	151	(1)
Web-Based Exercise: eBay (www.ebay.com)	152	(1)
Web, Nonstore-Based, and Other Forms of Nontraditional Retailing	153	(42)
Chapter Objectives	153	(1)
Overview	154	(1)
Direct Marketing	155	(10)
The Domain of Direct Marketing	158	(1)
The Customer Data Base: Key to Successful Direct Marketing	158	(1)
Emerging Trends	158	(4)
The Steps in a Direct Marketing Strategy	162	(2)
Key Issues Facing Direct Marketers	164	(1)
Direct Selling	165	(2)
Vending Machines	167	(1)
Electronic Retailing: The Emergence of the World Wide Web	168	(8)
The Role of the Web	168	(1)
The Scope of Web Retailing	169	(1)
Characteristics of Web Users	170	(1)
Factors to Consider in Planning Whether to Have a Web Site	171	(2)
Examples of Web Retailing in Action	173	(3)
Other Nontraditional Forms of Retailing	176	(3)
Video Kiosks	176	(2)
Airport Retailing	178	(1)
Summary	179	(2)
Key Terms	181	(1)
Questions for Discussion	181	(1)
Web-Based Exercise: Stats Toolbox (www.clickz.com/stats/stats_toolbox)	181	(1)
Appendix on Multi-Channel Retailing	182	(1)
Advantages of Multi-Channel Retail Strategies	183	(2)
Selecting Among Multiple Channels Based on Their Unique Strengths	184	(1)
Opportunities to Leverage Assets	184	(1)
Opportunities for Increased Sales and Profits by Appealing to Multi-Channel Shoppers	184	(1)
Developing a Well-Integrated Multi-Channel Strategy	185	(1)
Integrating Promotions Across Channels	185	(1)
Ensuring Product Consistency Across Channels	185	(1)
Having an Information System That Effectively Shares Data Across Channels	186	(1)
Enacting a Store Pickup Progress for Items Purchased on the Web or Through a Catalog	186	(1)
Searching for Multi-Channel Opportunities with Appropriate Partners	186	(1)
Special Challenges	186	(2)
Part Two Short Cases	188	(3)
The Strong Comeback of Small Retailers	188	(1)
Subway in China: Not So Easy	188	(1)
Trader Joe's Distinctive Approach	189	(1)
Online Snapfish Seeks an Offline Presence	190	(1)
Part Two Comprehensive Case
The Outlook for Soft Goods Specialty Stores	191	(4)
PART THREE Targeting Customers and Gathering Information	195	(64)
Identifying and Understanding Consumers	197	(28)
Chapter Objectives	197	(1)
Overview	198	(1)
Consumer Demographics and Lifestyles	198	(8)
Consumer Demographics	199	(2)
Consumer Lifestyles	201	(2)
Retailing Implications of Consumer Demographics and Lifestyles	203	(3)
Consumer Profiles	206	(1)
Consumer Needs and Desires	206	(2)
Shopping Attitudes and Behavior	208	(10)
Attitudes Toward Shopping	208	(1)
Where People Shop	209	(1)
The Consumer Decision Process	210	(5)
Types of Consumer Decision Making	215	(2)
Impulse Purchases and Customer Loyalty	217	(1)
Retailer Actions	218	(3)
Retailers with Mass Marketing Strategies	219	(1)
Retailers with Concentrated Marketing Strategies	220	(1)
Retailers with Differentiated Marketing Strategies	220	(1)
Environmental Factors Affecting Consumers	221	(1)
Summary	221	(1)
Key Terms	222	(1)
Questions for Discussion	223	(1)
Web-Based Exercise: Best Buy's ``Geek Squad'' (www.geeksquad.com)	223	(2)
Information Gathering and Processing in Retailing	225	(34)
Chapter Objectives	225	(1)
Overview	226	(1)
Information Flows in a Retail Distribution Channel	226	(2)
Avoiding Retail Strategies Based on Inadequate Information	228	(1)
The Retail Information System	229	(9)
Building and Using a Retail Information System	229	(4)
Data-Base Management	233	(3)
Gathering Information Through the UPC and EDI	236	(2)
The Marketing Research Process	238	(10)
Secondary Data	240	(4)
Primary Data	244	(4)
Summary	248	(1)
Key Terms	249	(1)
Questions for Discussion	249	(1)
Web-Based Exercise: A.C. Nielsen (www.acnielsen.com)	249	(2)
Part Three Short Cases	251	(3)
Abercrombie's Ruehl No. 925 Targets a Different Customer Niche	251	(1)
Ben & Jerry's: Staying True to Its Core Customers	251	(1)
7-Eleven Turns Up Its Retail Information System	252	(1)
The Value and Challenges of Comparison Web Sites	252	(2)
Part Three Comprehensive Case
The Apparel Shopper	254	(5)
PART FOUR Choosing A Store Location	259	(64)
Trading-Area Analysis	261	(30)
Chapter Objectives	261	(1)
Overview	262	(1)
The Importance of Location to a Retailer	262	(2)
Trading-Area Analysis	264	(14)
The Use of Geographic Information: Systems in Trading-Area Delineation and Analysis	266	(4)
The Size and Shape of Trading Areas	270	(3)
Delineating the Trading Areas of an Existing Store	273	(1)
Delineating the Trading Area of a New Store	274	(4)
Characteristics of Trading Areas	278	(9)
Characteristics of the Population	280	(5)
Economic Base Characteristics	285	(1)
The Nature of Competition and the Level of Saturation	285	(2)
Summary	287	(1)
Key Terms	288	(1)
Questions for Discussion	288	(1)
Web-Based Exercise: Site Selection Magazine (www.siteselection.com)	289	(2)
Site Selection	291	(32)
Chapter Objectives	291	(1)
Overview	292	(1)
Types of Locations	292	(11)
The Isolated Store	292	(1)
The Unplanned Business District	293	(5)
The Planned Shopping Center	298	(5)
The Choice of a General Location	303	(1)
Location and Site Evaluation	304	(8)
Pedestrian Traffic	305	(1)
Vehicular Traffic	306	(1)
Parking Facilities	306	(1)
Transportation	307	(1)
Store Composition	307	(1)
Specific Site	308	(1)
Terms of Occupancy	309	(3)
Overall Rating	312	(1)
Summary	312	(1)
Key Terms	313	(1)
Questions for Discussion	313	(1)
Web-Based Exercise: Turning Around Downtown (www.brookings.edu)	314	(1)
Part Four Short Cases	315	(3)
Retail Development Comes to Hattiesburg, Mississippi	315	(1)
Small Chains, Big Store Location Tactics	315	(1)
Home Depot in New York City	316	(1)
Shopping Center Unrest: The Battle Over Leases	317	(1)
Part Four Comprehensive Case
Retailing in Germany	318	(5)
PART FIVE Managing a Retail Business	323	(82)
Retail Organization and Human Resource Management	325	(30)
Chapter Objectives	325	(1)
Overview	326	(1)
Setting Up a Retail Organization	326	(5)
Specifying Tasks to Be Performed	327	(1)
Dividing Tasks Among Channel Members and Customers	328	(1)
Grouping Tasks into Jobs	328	(2)
Classifying Jobs	330	(1)
Developing an Organization Chart	330	(1)
Organizational Patterns in Retailing	331	(5)
Organizational Arrangements Used by Small Independent Retailers	331	(2)
Organizational Arrangements Used by Department Stores	333	(2)
Organizational Arrangements Used by Chain Retailers	335	(1)
Organizational Arrangements Used by Diversified Retailers	336	(1)
Human Resource Management in Retailing	336	(16)
The Special Human Resource Environment of Retailing	338	(4)
The Human Resource Management Process in Retailing	342	(10)
Summary	352	(1)
Key Terms	352	(1)
Questions for Discussion	353	(1)
Web-Based Exercise: Federated Department Stores (www.retailology.com/college/home.asp)	353	(2)
Operations Management: Financial Dimensions	355	(22)
Chapter Objectives	355	(1)
Overview	356	(1)
Profit Planning	356	(1)
Asset Management	357	(9)
The Strategic Profit Model	360	(1)
Other Key Business Ratios	361	(2)
Financial Trends in Retailing	363	(3)
Budgeting	366	(5)
Preliminary Budgeting Decisions	367	(1)
Ongoing Budgeting Process	368	(3)
Resource Allocation	371	(2)
The Magnitude of Various Costs	371	(1)
Productivity	372	(1)
Summary	373	(1)
Key Terms	373	(1)
Questions for Discussion	374	(1)
Web-Based Exercise: QuickBooks (www.quickbooks.intuit.com)	374	(3)
Operations Management: Operational Dimensions	377	(28)
Chapter Objectives	377	(1)
Overview	378	(1)
Operating a Retail Business	378	(16)
Operations Blueprint	378	(1)
Store Format, Size, and Space Allocation	379	(3)
Personnel Utilization	382	(2)
Store Maintenance, Energy Management, and Renovations	384	(1)
Inventory Management	385	(1)
Store Security	386	(1)
Insurance	387	(1)
Credit Management	387	(2)
Computerization	389	(3)
Outsourcing	392	(1)
Crisis Management	393	(1)
Summary	394	(1)
Key Terms	395	(1)
Questions for Discussion	395	(1)
Web-Based Exercise: Outsourcing Center (www.outsourcing-center.com)	395	(2)
Part Five Short Cases	397	(3)
The Employee Culture at Umpqua Bank	397	(1)
Sony Looks to a Small-Store Format	397	(1)
Improving Productivity at Albertson's	398	(1)
European Retailers Experiment with RFID Technology	399	(1)
Part Five Comprehensive Case
Dealing with Disengaged Employees	400	(5)
PART SIX Merchandise Management and Pricing	405	(132)
Developing Merchandise Plans	407	(32)
Chapter Objectives	407	(1)
Overview	408	(1)
Merchandising Philosophy	408	(3)
Buying Organization Formats and Processes	411	(5)
Level of Formality	411	(1)
Degree of Centralization	412	(1)
Organizational Breadth	412	(1)
Personnel Resources	412	(2)
Functions Performed	414	(1)
Staffing	414	(2)
Devising Merchandise Plans	416	(13)
Forecasts	416	(2)
Innovativeness	418	(3)
Assortment	421	(4)
Brands	425	(2)
Timing	427	(1)
Allocation	428	(1)
Category Management	429	(2)
Merchandising Software	431	(3)
General Merchandise Planning Software	432	(1)
Forecasting Software	432	(1)
Innovativeness Software	432	(1)
Assortment Software	433	(1)
Allocation Software	433	(1)
Category Management Software	433	(1)
Summary	434	(1)
Key Terms	435	(1)
Questions for Discussion	435	(1)
Web-Based Exercise: Planning Factory (www.planfact.co.uk/mp_resources.htm)	436	(3)
Implementing Merchandise Plans	439	(28)
Chapter Objectives	439	(1)
Overview	440	(1)
Implementing Merchandise Plans	440	(11)
Gathering Information	440	(2)
Selecting and Interacting with Merchandise Sources	442	(3)
Evaluating Merchandise	445	(1)
Negotiating the Purchase	445	(1)
Concluding Purchases	446	(1)
Receiving and Stocking Merchandise	447	(3)
Reordering Merchandise	450	(1)
Re-Evaluating on a Regular Basis	451	(1)
Logistics	451	(7)
Performance Goals	452	(1)
Supply Chain Management	453	(1)
Order Processing and Fulfillment	454	(2)
Transportation and Warehousing	456	(2)
Customer Transactions and Customer Service	458	(1)
Inventory Management	458	(6)
Retailer Tasks	458	(2)
Inventory Levels	460	(1)
Merchandise Security	460	(2)
Reverse Logistics	462	(1)
Inventory Analysis	463	(1)
Summary	464	(1)
Key Terms	464	(1)
Questions for Discussion	465	(1)
Web-Based Exercise: UPS Supply Chain Solutions (www.ups-scs.com/solutions/retail.html)	465	(2)
Financial Merchandise Management	467	(30)
Chapter Objectives	467	(1)
Overview	468	(1)
Inventory Valuation: The Cost and Retail Methods of Accounting	468	(8)
The Cost Method	470	(2)
The Retail Method	472	(4)
Merchandise Forecasting and Budgeting: Dollar Control	476	(8)
Designating Control Units	476	(1)
Sales Forecasting	477	(2)
Inventory-Level Planning	479	(2)
Reduction Planning	481	(1)
Planning Purchases	482	(2)
Planning Profit Margins	484	(1)
Unit Control Systems	484	(4)
Physical Inventory Systems	485	(1)
Perpetual Inventory Systems	486	(2)
Unit Control Systems in Practice	488	(1)
Financial Inventory Control: Integrating Dollar and Unit Concepts	488	(4)
Stock Turnover and Gross Margin Return on Investment	488	(2)
When to Reorder	490	(1)
How Much to Reorder	491	(1)
Summary	492	(1)
Key Terms	493	(1)
Questions for Discussion	494	(1)
Web-Based Exercise: GMROI (www.interactiveedge.com)	494	(3)
Pricing in Retailing	497	(40)
Chapter Objectives	497	(1)
Overview	498	(2)
External Factors Affecting a Retail Price Strategy	500	(7)
The Consumer and Retail Pricing	500	(2)
The Government and Retail Pricing	502	(3)
Manufacturers, Wholesalers, and Other Suppliers---and Retail Pricing	505	(1)
Competition and Retail Pricing	506	(1)
Developing a Retail Price Strategy	507	(18)
Retail Objectives and Pricing	507	(2)
Broad Price Policy	509	(1)
Price Strategy	510	(7)
Implementation of Price Strategy	517	(4)
Price Adjustments	521	(4)
Summary	525	(1)
Key Terms	525	(1)
Questions for Discussion	526	(1)
Web-Based Exercise: Sam's Club (www.samsclub.com)	526	(2)
Part Six Short Cases	528	(3)
The Zumiez Merchandising Approach to Luring Teens	528	(1)
Starbucks: A Lot More Than Coffee	528	(1)
The Growing Popularity of ``Slightly Used'' Merchandise	529	(1)
Retailer Pressure on Suppliers: The Markdown Showdown	530	(1)
PART SIX Comprehensive Case
Pricing's Role in Merchandise Management	531	(6)
PART SEVEN Communicating with the Customer	537	(66)
Establishing and Maintaining A Retail Image	539	(28)
Chapter Objectives	539	(1)
Overview	540	(1)
The Significance of Retail Image	541	(3)
Components of a Retail Image	541	(1)
The Dynamics of Creating and Maintaining a Retail Image	542	(2)
Atmosphere	544	(15)
A Store-Based Retailing Perspective	545	(12)
A Nonstore-Based Retailing Perspective	557	(2)
Encouraging Customers to Spend More Time Shopping	559	(3)
Community Relations	562	(1)
Summary	563	(1)
Key Terms	564	(1)
Questions for Discussion	564	(1)
Web-Based Exercise: Cheesecake Factory (www.thecheesecakefactory.com)	565	(2)
Promotional Strategy	567	(36)
Chapter Objectives	567	(1)
Overview	568	(1)
Elements of the Retail Promotional Mix	568	(16)
Advertising	568	(7)
Public Relations	575	(2)
Personal Selling	577	(3)
Sales Promotion	580	(4)
Planning a Retail Promotional Strategy	584	(9)
Determining Promotional Objectives	584	(3)
Establishing an Overall Promotional Budget	587	(1)
Selecting the Promotional Mix	588	(2)
Implementing the Promotional Mix	590	(3)
Reviewing and Revising the Promotional Plan	593	(1)
Summary	593	(1)
Key Terms	594	(1)
Questions for Discussion	594	(1)
Web-Based Exercise: Office.com's ``Promote Your Business'' (www.office.com)	595	(1)
Part Seven Short Cases	596	(3)
The Evolving Image of Amazon.com	596	(1)
Building Retail Brands: The Gasoline Experience	596	(1)
Limited Brands Bets on Bigelow	597	(1)
Stop & Shop and the IBM Personal Shopping Assistant	598	(1)
Part Seven Comprehensive Case
The Role of Marketing in Retailing	599	(4)
PART EIGHT Putting It All Together	603	(32)
Integrating and Controlling the Retail Strategy	605	(30)
Chapter Objectives	605	(1)
Overview	606	(1)
Integrating the Retail Strategy	606	(13)
Planning Procedures and Opportunity Analysis	608	(2)
Defining Productivity in a Manner Consistent with the Strategy	610	(1)
Performance Measures	611	(5)
Scenario Analysis	616	(3)
Control: Using the Retail Audit	619	(6)
Undertaking an Audit	619	(3)
Responding to an Audit	622	(1)
Possible Difficulties in Conducting a Retail Audit	623	(1)
Illustrations of Retail Audit Forms	623	(2)
Summary	625	(1)
Key Terms	626	(1)
Questions for Discussion	626	(1)
Web-Based Exercise: American Customer Satisfaction Index (www.theacsi.org/industry_scores.htm)	627	(1)
Part Eight Short Cases	628	(2)
Sam Ash: A Musical Instrument Store Rolls On	628	(1)
Neiman Marcus: How to Stay an Icon	628	(2)
Part Eight Comprehensive Case
Wal-Mart in the Year 2010	630	(5)
APPENDIXES
A: Careers in Retailing	635	(8)
Overview	635	(1)
The Bright Future of a Career in Retailing	635	(1)
Owning a Business	636	(1)
Opportunities as a Retail Employee	637	(3)
Types of Positions in Retailing	637	(1)
Career Paths and Compensation in Retailing	638	(2)
Getting Your First Position as a Retail Professional	640	(3)
Searching for Career Opportunities in Retailing	641	(1)
Preparing for the Interview	641	(1)
Evaluating Retail Career Opportunities	642	(1)
B: About the Web Site That Accompanies Retail Management (www.prenhall.com/bermanevans)	643	(2)
Overview	643	(1)
Web Site Components	643	(2)
Interactive Study Guide	644	(1)
Chapter Objectives/Chapter Overviews	644	(1)
Key Terms and Glossary	644	(1)
Text-Related Web Site Links	644	(1)
Careers in Retailing	644	(1)
Retail Resources on the Web	644	(1)
Web Exercises	644	(1)
Computer Exercises	644	(1)
Trade Associations	644	(1)
C: Glossary	645	(14)
Name Index	659	(8)
Subject Index	667