How to position for retail success
Article Abstract:
Retailers must rethink positioning policies to differentiate themselves from competitors during slow-growth or no-growth periods. Market positioning helps customers identify differences between retailers. Customer loyalty must be attracted by emphasis either on price or services. The low-price, low-service approach is appealing for new, large-volume retailers, but small, new stores and existing traditional stores must adopt a high-price, high-service approach with service as the key to retail positioning strategies. Department stores and specialty shops must avoid the tendency to compete on the basis of price, because cost structure and other variables are only flexible in the long term. Improved services must also be included in their positioning strategies, with sufficient profit margins to cover the costs of providing these services.
Publication Name: Business
Subject: Business
ISSN: 0163-531X
Year: 1988
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Identifying and eliminating weak products
Article Abstract:
A study of the decision-making process for eliminating products at 12 companies showed that most companies do not have a formal policy on product elimination. Product elimination was usually given a low priority among other product management activities, and product profitability and sales volume were the main criteria used for identifying products for elimination. A follow-up mail survey of 1,073 US corporations and 265 Canadian corporations largely substantiated these findings. Companies can improve profitability by having an efficient process for eliminating products that are no longer profitable. Companies should assign responsibility for product review and elimination to a specific management function, and should have to specify the factors to be used in eliminating products.
Publication Name: Business
Subject: Business
ISSN: 0163-531X
Year: 1988
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Using advertising media more effectively
Article Abstract:
Inefficient media advertising can reduce sales growth or compromise key financial objectives. Too much advertising is an inefficient practice that represents a major misallocation of resources and contributes to lower profit margins. Recommendations are given for increasing advertising media efficiency, reducing expenditures and improving the financial health of an organization. The discussion is focused on four basic concepts for understanding media advertising: effective reach, audience turnover rate, cost-per-effective-reach, and unaided advertising recall. Interference in the communication process must considered when using the three-hit approach to product advertising. Most organizations would benefit from optimal insertion levels and optimal scheduling strategies.
Publication Name: Business
Subject: Business
ISSN: 0163-531X
Year: 1988
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