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8-1,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Chapter 8,Information Gathering and Processing in Retailing,RETAIL MANAGEMENT:A STRATEGICAPPROACH11th EditionBERMAN EVANS,1,8-2,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Chapter Objectives,To discuss how information flows in a retail distribution channelTo show why retailers should avoid strategies based on inadequate informationTo look at the retail information system, its components, and recent advancesTo describe the marketing research process,2,8-3,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Figure 8-1: How Information Flows in a Retail Distribution Channel,Informationand theSupplier,Informationand theRetailer,Informationand theConsumer,3,8-4,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Suppliers Need To Know,From the RetailerEstimates of category salesInventory turnover ratesFeedback on competitorsLevel of customer returns,From the CustomerAttitudes toward styles and modelsExtent of brand loyaltyWillingness to pay a premium for superior quality,4,8-5,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Retailers Need To Know,From the SupplierAdvance notice of new models and model changesTraining materialsSales forecastsJustifications for price changes,From the CustomerWhy people shop thereCustomers likes and dislikesWhere else people shop,5,8-6,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Consumers Need To Know,From the SupplierAssembly and operating instructionsExtent of warranty coverageWhere to send a complaint,From the RetailerWhere specific merchandise is stocked in the storeMethods of payment acceptableRain check and other policies,6,8-7,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Retail Information System (RIS),Anticipates the information needs of retail managersCollects, organizes, and stores relevant data on a continuous basisDirects the flow of information to the proper decision makers,7,8-8,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Figure 8-2: A Retail Information System,8,8-9,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Data-Base Management,A major element in an RISSystem gathers, integrates, applies, and stores information in related subject areasUsed forFrequent shopper programsCustomer analysisPromotion evaluationInventory planningTrading area analysis,9,8-10,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Five Steps to Approaching Data-Base Management,Plan the particular data base and its components and determine information needsAcquire the necessary informationRetain the information in a usable and accessible formatUpdate the data base regularly to reflect changing demographics, recent purchases, etc.Analyze the data base to determine strengths and weaknesses,10,8-11,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Figure 8-4: Data-Base Management in Action,11,8-12,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Figure 8-5: Data Warehousing,12,8-13,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Components of a Data Warehouse,Physical storage location for data the warehouseSoftware to copy original databases and transfer them to warehouseInteractive software to allow processing of inquiriesA directory for the categories of information kept in the warehouse,13,8-14,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Data Mining and Micromarketing,Data mining is the in-depth analysis of information to gain specific insights about customers, product categories, vendors, etc.Micromarketing is an application of data mining whereby retailers use differentiated marketing and develop focused retail strategy mixes for specific customer segments,14,8-15,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Figure 8-6: Applying UPC Technology to Gain Better Information,15,8-16,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Figure 8-7: The Marketing Research Process,16,8-17,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Marketing Research in Retailing,The collection and analysis of information relating to specific issues or problems facing a retailer,17,8-18,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,Secondary Data,AdvantagesInexpensiveFastSeveral sources and perspectivesGenerally credibleProvides background information,DisadvantagesMay not suit current studyMay be incompleteMay be datedMay not be accurate or credibleMay suffer from poor collection techniques,18,8-19,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,
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