R ‘Retail Marketing Management covers all the essential theories needed to E RETAIL MARKETING understand the complicated business of retail: from understanding the consumer T and purchasing of the product through to store layout and communications. The A writing style is easy to follow, and the text is supported by diagrams and case I L MANAGEMENT studies which enhance understanding and learning. I would recommend this book to anyone who wants to learn more about the retail business.’ M Nicole Dunlop, Course Director, London College of Fashion, UK A R PPRRIINNCCIIPPLLEESS AANNDD PPRRAACCTTIICCEE K Retail Marketing Management offers a contemporary approach that combines retail marketing theory, E current retail management practice and international examples. It begins by looking at the nature of retailing as an activity and then introduces retail marketing, followed by a discussion of consumer T Helen Goworek behaviour, the retail marketing mix and other important issues such as location strategies, branding I N and ethics. The authors and expert contributors take an integrated approach to explaining the process Peter McGoldrick of internationalisation, and the inclusion of international examples reinforces this approach. G The book is ideal for undergraduate and postgraduate students taking courses in retailing, as well M as those studying for marketing and business degrees where retail marketing is a core module. The blend of retail theory, practice and live examples will also be of interest to practitioners in retailing A and related industries. N A KEY FEATURES G E • Case studies and seminar discussion questions in every chapter. M • Chapters and vignettes by expert contributors with a combination of academic and industry E experience. N • Retail practitioner cases which emphasise practical aspects as well as key theories in retail T marketing. • New models that help to visualise interactions between marketing environments, retail marketing management decisions and shopper behaviour. G o • Related online materials, including PowerPoint slides and an Instructors’ Manual. w o r e k a n ABOUT THE AUTHORS d M Helen Goworek lectures in the School of Management at the University c G of Leicester, where she teaches postgraduate modules in marketing, o including ‘B2B Marketing and Supply Chain Management’. She is the ld r author of two previous books about the fashion business, in addition i Cover photo: c to journal articles focusing on fashion buying and sustainability. Anya Hindmarch interior k © Andrew Meredith 2014 Dr Peter McGoldrick has held four professorial posts in retailing, and is currently at the University of Manchester, UK. He has published several books and over 150 research papers and articles, which have appeared in the Journal of Retailing and Harvard Business Review, among others. Best Paper awards include those at the World Marketing Congress and the 2014 Academy of Marketing Science. www.pearson-books.com CVR_GOWO8747_01_SE_CVR.indd 1 10/06/2015 10:01 RETAIL MARKETING MANAGEMENT A01_GOWO8747_01_SE_FM.indd 1 11/06/15 4:14 PM RETAIL MARKETING MANAGEMENT PRINCIPLES AND PRACTICE Helen Goworek Peter McGoldrick A01_GOWO8747_01_SE_FM.indd 2 11/06/15 4:14 PM RETAIL MARKETING MANAGEMENT PRINCIPLES AND PRACTICE Helen Goworek Peter McGoldrick A01_GOWO8747_01_SE_FM.indd 3 11/06/15 4:14 PM Pearson Education Limited Edinburgh Gate Harlow CM20 2JE United Kingdom Tel: +44 (0)1279 623623 Web: www.pearson.com/uk First published 2015 (print and electronic) © Pearson Education Limited 2015 (print and electronic) The rights of Helen Goworek and Peter McGoldrick to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. The print publication is protected by copyright. Prior to any prohibited reproduction, storage in a retrieval system, distribution or transmission in any form or by any means, electronic, mechanical, recording or otherwise, permission should be obtained from the publisher or, where applicable, a licence permitting restricted copying in the United Kingdom should be obtained from the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. The ePublication is protected by copyright and must not be copied, reproduced, transferred, distributed, leased, licensed or publicly performed or used in any way except as specifically permitted in writing by the publishers, as allowed under the terms and conditions under which it was purchased, or as strictly permitted by applicable copyright law. Any unauthorised distribution or use of this text may be a direct infringement of the authors’ and the publisher’s rights and those responsible may be liable in law accordingly. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the authors or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. The screenshots in this book are reprinted by permission of Microsoft Corporation. Pearson Education is not responsible for the content of third-party internet sites. ISBN: 978-0-273-75874-7 (print) 978-0-273-75878-5 (PDF) 978-0-273-79481-3 (eText) British Library Cataloguing-in-Publication Data A catalogue record for the print edition is available from the British Library Library of Congress Cataloging-in-Publication Data Goworek, Helen. Retail marketing management : principles and practice / Helen Goworek & Peter McGoldrick. pages cm ISBN 978-0-273-75874-7 (print) — ISBN 978-0-273-75878-5 (PDF) — ISBN 978-0-273-79481-3 (eText) 1. Marketing—Management. 2. Retail trade. I. McGoldrick, Peter J. II. Title. HF5415.13.G67 2015 658.8’7—dc23 2015014031 10 9 8 7 6 5 4 3 2 1 19 18 17 16 15 Print edition typeset in 10/12 pt Sabon MT Pro by 71 Print edition printed and bound by L.E.G.O. S.p.A., Italy NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION A01_GOWO8747_01_SE_FM.indd 4 11/06/15 4:14 PM Brief contents xiii Preface xiv About the authors xv Acknowledgements 1 CHAPTER 1 Introduction to retail marketing management 33 CHAPTER 2 Retail marketing strategy 55 CHAPTER 3 Retail consumer behaviour and market segmentation 83 CHAPTER 4 Retail product and brand management 109 CHAPTER 5 Retail buying and merchandising 136 CHAPTER 6 Retail pricing 161 CHAPTER 7 Retail marketing communications 190 CHAPTER 8 Retail location 216 CHAPTER 9 Retail design and layout 246 CHAPTER 10 Retail customer service 266 CHAPTER 11 Multichannel retailing 289 CHAPTER 12 Legislation and ethics in retailing 311 CHAPTER 13 International retail marketing and emerging markets 331 Glossary 337 Index A01_GOWO8747_01_SE_FM.indd 5 11/06/15 4:14 PM A01_GOWO8747_01_SE_FM.indd 6 11/06/15 4:14 PM Contents xiii Preface xiv About the authors xv Acknowledgements 1 CHAPTER 1 Introduction to retail marketing management 2 Introduction 2 Definitions of retailing 4 History and development of retail marketing 9 The development and scope of retail marketing theory and practice 10 Retail industry associations 11 Retailer categories 11 Retail business formats 13 Non-store retailing (home shopping) 13 Retail concepts and theories 14 The retail life cycle 18 Recent developments affecting the retail environment 24 Retailing management 26 The future of retailing 27 Studying retail marketing 27 Exercises and questions 28 References 31 Further reading 32 Case study: Re-evaluating the store 33 CHAPTER 2 Retail marketing strategy 34 Introduction 34 Retail marketing strategy 35 Retail marketing planning 36 Situation analysis 36 SWOT analysis 38 Mission statements 38 Setting goals and objectives 39 Identifying consumers 39 Developing retail strategies 40 Implementation of the marketing plan 43 Internal and external marketing audits 47 Market attractiveness 47 Value chain A01_GOWO8747_01_SE_FM.indd 7 11/06/15 4:14 PM viii CONTENTS 48 Sources of competitive advantage 48 Market penetration and diversification 49 Portfolio analysis 49 Competitive marketing objectives 50 Marketing strategy in relation to HRM and finance strategy 50 Chapter summary 51 Exercises and questions 51 References 52 Further reading 53 Case study: WH Smith upbeat despite sales doldrums 55 CHAPTER 3 Retail consumer behaviour and market segmentation 56 Introduction 56 Retail consumer behaviour and attitudes 57 Consumer motivation and needs 58 Consumer decision-making 61 Experiential consumer behaviour 61 Influences on consumer purchasing behaviour 66 Customer loyalty 67 Negative consumer behaviour 72 Customer profiles 73 Retail marketing research 76 Chapter summary 76 Exercises and questions 77 References 80 Further reading 81 Case study: Targeting the female consumer 83 CHAPTER 4 Retail product and brand management 84 Introduction 84 New product development 86 The Product Life Cycle 91 Retail product assortment 92 The product/service continuum 93 Brand management 94 Brand names 95 Brand identity and brand image 95 Brand equity 95 Brand extensions 96 Retail brand positioning – perceptual maps 98 Rebranding 98 Branded and own-label merchandise 102 Chapter summary 103 Exercises and questions 104 References 104 Further reading 106 Case study: GLOBAL brands – ups and downs: Consumers luxuriate in shopping on the web A01_GOWO8747_01_SE_FM.indd 8 11/06/15 4:14 PM CONTENTS ix 109 CHAPTER 5 Retail buying and merchandising 110 Introduction 110 Buying and merchandising roles 111 Centralised and decentralised buying 112 Organisational buying theories 113 Buying branded and ‘designer’ merchandise 115 Buying own-label merchandise 116 The retail buying cycle 123 Retail buying for online and mail order (home shopping) companies 127 Supply chain management and stock control by retailers 128 Retail space planning and allocation 129 Retail sales forecasting and budget planning 129 Chapter summary 130 Exercises and questions 130 References 132 Further reading 133 Case study: Supply chain – back to the source 136 CHAPTER 6 Retail pricing 137 Introduction 137 Retail market levels – mass market, middle market and luxury 139 Retail pricing – objectives and strategies 141 Implementing demand-based pricing strategies 147 Calculating retail prices 148 Price elasticity 151 The relationship between price and value 152 Markdowns: seasonal sales, reductions and offers 155 Chapter summary 155 Exercises and questions 156 References 158 Further reading 159 Case study: Price Wars threaten to reshape landscape of supermarkets 161 CHAPTER 7 Retail marketing communications By Helen Goworek and Kristine Pole 162 Introduction 162 Retail marketing communication strategies 162 Retail advertising 172 Public relations 175 Sponsorship 175 Sales promotions 177 Direct marketing 177 Retail marketing communications via digital and social media 181 Word-of-mouth 181 Personal selling 182 Relationship marketing 182 Chapter summary A01_GOWO8747_01_SE_FM.indd 9 11/06/15 4:14 PM