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MKT 007: RETAIL MANAGEMENT

Week 2: Learning Module

A. Module Overview
Congratulations because you finished the week one module! Before you begin, let's provide an overview of the lessons you'll engage with
this week. Throughout this module, you'll explore essential lessons that deepen your understanding of retail management. Activities are
also plotted all throughout the module. Furthermore, interactive activities are observed here to ensure you still have time to interact with
your peers.

In terms of lessons, each of them will have readings and self-assessments to complete.

B. General Objectives
By the end of this week’s module, you should be able to:
1. Read and watch discussion videos of the lessons;
2. Collaborate with your peers through the discussion forum; and
3. Assess your learnings through the self-assessment and exit assessment.

C. Study Plan
Directions: Please review your week 1 study schedule below before proceeding. Detailed instructions as to what you need to accomplish in every
part are provided. As you progress through the lesson, tick the box so you’ll be guided properly with your progress. Also, in the “progress tracker”
column please put a star ( ⭐) if you completed the task without difficulties; a circle (🟡) if you had minor problems in the activities, and; square
🟨) if you found the activities too hard to complete.
(

Learning Duration Progress


Checklist Instruction
Checkpoint (12 hrs) Tracker

Please go through the module overview, general objectives, and study plan of this module. Make
Preliminary
no sure to familiarize yourself with these parts as this will serve as your guide for your learning 30 minutes
Parts
journey. Afterward, please open the course guide provided to you.

RAD Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Please start plotting the time and day when you will study your lessons through the provided study
Study Schedule schedule template below. We are allowing you to plot your schedule because we believe you know 30 minutes
your study time. We just want you to make sure that you will follow your study schedule.

In this section, you're expected to accomplish the provided activity by word puzzle and answering
Introduction the questions afterward. 1 hour
This activity aims to gauge your present understanding of the topics at hand.

Concept A case study about a Star Salesperson is provided for you to analyze. Make sure to do inferences, 1 hour and
Building and don’t forget to answer the questions provided. 30 minutes

Discussion Please share your answer in the concept-building activity with your peers through the forum ⭐
1 hour
forum posted in the LMS. Don’t forget to leave at least 1 comment on any of your peers’ answers.

Study the different topics this week such as non-store retail channels, internet retailing channels,
1 hour and
Concept Notes challenges in multichannel retailing and competitive analysis of different retail platforms that will
30 minutes
broaden your knowledge about retail management.

Also, make sure to access the additional learning resources provided by clicking on the link or scan
Other Learning 1 hour and
the QR code. Self-assessment is also waiting for you to be accomplished. This way you’ll see your
Resources 30 minutes
understanding of the concepts you just studied.

After reading through the lessons, and watching the provided learning videos, make sure to
Self-assessment answer all the self-assessments embedded in the concept notes. You may check the correctness of 1 hour
your answer through the key to correction provided on the last page of this module.

Consult your RAD At any given point this week you may reach out to your RAD teacher to ask, clarify, or consult any
1 hour o
I
Teacher academic concerns you have.

At the end of this week 2 modules, you are required to create a Competitive Analysis and
1 hour and
Exit Assessment Strategic Plan for your ideal business. This will be done thru microsoft word application and will
30 minutes
be submitted via pdf format in your google classroom.

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Thinking about We want you to reflect on your experiences this week. Please answer the questions provided for us
1 hour
Learning to have an understanding of your challenges and takeaways.

D. Study Schedule
Directions: Using the table below please plot your schedule this week keeping in mind that this is when you will study your lessons, and do the
activities provided.

Time Monday Tuesday Wednesday Thursday Friday Saturday Sunday

4:00pm-5:00pm

7:00pm-10:00pm

RAD Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Lesson Proper
I. Introduction
Hello, PHINMAEd Student! In this learning discussion, we will discuss non-store retail channels, internet retailing channels:
electronic and mobile retailing, challenges in multichannel retailing, challenges in multichannel retailing, and competitive analysis
of Different Retail Platforms (Online and Physical Stores). Our aim is to enhance understanding, critical thinking, and application of
retail management concepts. Before starting your learning journey, let’s play a game to see your prior knowledge of the lessons this
week.

Directions: The words in the puzzle may be hidden


horizontally, vertically, diagonally, forward, or
backward. Circle discovers words with different colors,
and crosses them off the list when you've found them.
Choose 1 word from the list and explain its importance
to marketing. When all of the words are found, you will
know many important terms related to marketing.

Marketing Plan
Word: __________________

Explanation:
The importance ofmarketing foryour
________________________________________________________
business is thatitmakes the customers
________________________________________________________
aware ofyourproducts orservices,
________________________________________________________
engages them,and helps them make the
________________________________________________________
buying decision.Furthermore,a marketing
plan,a partofyourbusiness plan helps in
creating and maintaining demand,
relevance,reputation,competition,etc.

RAD Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
II. Concept Building
Directions: Read the case study and answer the questions that follow.
Do research about Shopee and Lazada, their classifications and which of them is the leading online retail platform. Use the
table below in writing your answer, and make a conclusion. Share your conclusion to the discussion forum; don’t forget to
leave a comment on your classmate’s answer.

Type Lazada Shopee

1. Background Lazada i
san internati
onale-commerce Shopee i san e-commerce company
company.Ithel psengage and brand new based i n Si
ngapore thatcame i nto servi
ce
boundariesofretailwhich are therefore in 2015.Since then,ithasspread i ts
customized bythe market'sneeds.It servicesworldwi de.Thiscompanyi snow
Singapore-based e-commerce pl atform is the l
argeste-commerce pl atform i
n
now the l
argeste-commerce operatori n SoutheastAsi a,catering to consumers
South EastAsia and Asia Paci fi
cRegi ons. and sell
ers.

2. Average Traffic (desktop & mobile) Lazada.com.ph'


straffi
chasincreased Shopee.ph'
straffi
chasincreased by
by 12.13% compared to l
astmonth 5.64% compared to l
astmonth (Desktop)
(Desktop)

3. Average Visit Duration


The average time spentbyan onl ine The average durati
on spenton
shopperi n the Lazada portalwas shopee was18:17 mi nutespervi
sit.
13:09 minutes.

4. Global Market Presence lazada.com.ph isranked #2 i


n shopee.ph isranked #1 i
n the
the Marketpl
ace categoryand Marketplace categoryand
#1250 globally i
n December #548 globally i
n December2023.
2023.

5. Single Day Sale Performance Lazada Phi l


ippines,marked i ts Shopee achi eves record-breaki ng
fl
agship 11.11 shoppi ng festi
valwith resul tsi
n 11.11 sale,hitti
ng total
record-breaking performance,servi ng globalgrossmerchandi se value of$1
mi l
li
onsofusersand achi eving nearl
y300 billion i
n a day.
percentsalesupl i
ft

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6. Shipping Fee The sel
lershipping fee i
s Based on parcelwei ghtand
charged based on the greateractual di
mensi ons provi
ded bythe sell
er,as
orvolumetri
cwei ghtatthe parcel wellasthe ratesofdi fferentl
ogi
sti
cs
l
evel. partners.

Conclusion:
Laz ada and Shopee both have headquartersi n Si ngapore and mai nlyoperate i n the SoutheastAsi an
___________________________________________________________________________________________________________________________________
Regi on.Lazada wasthe l eadi ng e-commerce pl atform i n SoutheastAsi a notunti l
lShopee entered the
___________________________________________________________________________________________________________________________________
mar ket .Now, Shopee has quic kly ov ertak en t
o be t
he mos t downl oaded s hoppi ng app i n the regi on and the
___________________________________________________________________________________________________________________________________
f
actthatShopee i sthe mostpopul aronl i
ne shoppi ng pl atform i n the Phi li
ppi nes,wi th the mostnumberof
___________________________________________________________________________________________________________________________________
visi
ts. But Bot h hav e t
hei r own mer its and downs ides . This activity helps me know more aboutthi stwo
___________________________________________________________________________________________________________________________________
popul ar e- commer ce plat f
or m in the Phi lippines .I my s elfis one of thos e per sons who c ontribut e to the rising
___________________________________________________________________________________________________________________________________
rate ofthi sonl i
ne shop.
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________

III. Concept Notes


Directions: Read and study all the concepts below. Don’t rush, you have plenty of time to finish it. While you are at it reading, please make
sure to make inferences based on the information provided.

REFERENCES:

https://www.l
azada.com/en/about/
https://gol
ocad.com/e-commerce/shopee/
https://www.hopstack.i
o/bl
og/l
azada-vs-shopee-vs-qoo10-vs-zal
ora-for-si
ngapores-e-commerce-sel
lers
https://www.si
mi l
arweb.com/website/shopee.ph/

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Topic 1: Non-Store Retail Channels

Lesson Objectives:
At the end of this section, you should be able to:
1. Describe a wide variety of non-store retail channels
2. Match retailer description with its non-store channels type
To view the recorded 3. Compare and contrast the benefits of store, catalog, and internet channels
discussion on this topic,
please click the link below Non-Store Retail Channels refer to methods of selling goods or services to consumers without a physical storefront. These
or scan the QR code channels have evolved over time, providing consumers with diverse options for making purchases. Here's a description of a
provided. wide variety of non-store retail channels: Non-store retailing is a form of retailing in which a firm sells its products without a
physical retail store/space. The firm sells its products via online platforms and delivers the product to the customer's
https://bit.ly/MKT007_Le doorstep. Although companies have been doing non-store retailing for the past three or four decades, it rose to prominence
arningModuleWeek2 during the 21st century. However, non-store retailing is not an average line of business by any means. Firms nowadays are
switching to non-store retailing because of its “unlimited” benefits.

Importance of Non-Store Retail Channels


With the changes in customer preferences, the non-store retailing business has grown immensely during the 21st century. A
lot of non-store retailing brands have established themselves as trustable sellers. Therefore, more and more people now
prefer to shop without physically visiting the brick-and-mortar stores. Moreover, non-store retailing has now taken a
significant share of the retailing business. In fact, one of the world’s largest retailers, Shopee and Lazada are perfect
examples of non-store retailing. The company has massive warehouses but no physical store. Customers buy the products
online, and they deliver the products at the customer’s mentioned designation anywhere in the world. But, does that mean
that non-store retailing means selling products over the Internet? Well, there are many other forms of non-store retailing,
and we are going to have a detailed look at all of them.

RAD Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References: Non-store retailing is classified into six types:

Directions: Below are


the references used in
this lesson. If you want
to check them you may
do so by accessing the
link below.

1. Ranjhaa, S. A.(2021,
January 31). Non-Store
Retailing – Meaning,
Types, Examples, pros &
Cons. Marketing Tutor.
https://www.marketingt
utor.net/non-store-retail
ing/

2.
https://leapoutdigital.co
m/top-10-ecommerce-c
ompanies-philippines/

RAD Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
RAD Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Here's a comparison and contrast of the advantages of these three retail channels:

RAD Learning Modules by PHINMA Education is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
In summary, each retail channel has its own set of advantages and challenges, and the choice between them depends on
the nature of the product, target audience, and overall business strategy. Many modern retailers often use a combination of
these channels, known as omnichannel retailing, to leverage the strengths of each and provide a seamless shopping
experience for customers.

Self Assessment:
Directions: Identify what type of non-store retailing companies below, and write your answer in the column
where it is classified. Read the following statement and write your answer on the provided space in at least
two to three sentences. As a student majoring in Marketing Management, what do you think is the best form
of retailing when it comes to purchasing products non-store or store-based?

Lazada Shopee PLDT Avon TV Shop Spotify PC Collection


Concentrix Shop TV MSE Smart Boardwalk Coca-cola Accenture
Globe Telecom Amazon Pepsi Sitel eBay O Shopping Zalora
San Miguel Machines Facebook Shop Convergys Natasha

Online Retailing Direct Selling Telemarketing Automatic Vending Television Shopping

Conclusion
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________

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Topic 2: Internet Retailing Channels: Electronic and Mobile Retailing
Lesson Objectives:
At the end of this section, you should be able to:
1. Discuss the growth of internet retailing.
2. Identify the changing behavior of e-consumers
3. Explain the advantages and disadvantages of electronic retailing
To view the supplemental
E-retail,
video discussion on this
topic, please click the link
The Philippines' e-commerce industry, commonly known as e-retail, is witnessing substantial growth, with a forecasted
below or scan the QR
annual growth rate of 14.1% from 2018 to 2028, and an anticipated digital economy expansion at a 20% CAGR to $35 billion
code provided.
by 2025. This surge, primarily fueled by the COVID-19 pandemic, has led to an increased reliance on online shopping due to
physical store closures. The Philippines, with its digital-native young population, a growing middle class, and accessible
Internet Retailing
technology, is poised to reach a digital economy gross merchandise value of $100-$150 billion by 2030. E-commerce, a
Channels: Electronic
significant sector in this growth, is expected to reach $22 billion by 2025. As of January 2023, the Philippines had 85.16
and Mobile Retailing
million internet users, which is 73.1% of its total population, showing a substantial increase in internet users within a year.
https://www.youtube.co
m/watch?v=wE5_vRHE1 Despite this growth, the Philippine e-commerce market faces challenges like low rankings in mobile and fixed broadband
Do internet speeds, fewer cellular towers compared to other ASEAN countries, and a general hesitancy among consumers
towards online transactions. Many Filipinos still prefer cash-on-delivery and use partner payment centers over traditional
banking methods. However, there is potential for improvement, as the government could foster a more
e-commerce-friendly environment by enhancing internet infrastructure, reducing tech costs, increasing online transaction
security, and regulating delivery services. This evolution in the e-commerce landscape is expected to alter consumer
behaviors and daily life in the Philippines significantly.

The behavior of e-consumers, or consumers who engage in online shopping, has been continually evolving due to
technological advancements, changes in consumer preferences, and shifts in retail.

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Here are some key trends and changing behaviors of e-consumers:

References:
Directions: Below are
the references used in
this lesson. If you want
to check them you may
do so by accessing the
link below.

1. E-Commerce in the
Philippines:
Opportunities and
challenges.
(2023, July 25).
https://beglobalecomm
ercecorp.com/e-comme
rce-in-the-philippines-o
pportunities-and-challe
nges/

2. What is e-retail?
(2022, March 31).
https://www.optimizely.
com/insights/blog/what-
is-e-retail/

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Advantage and Disadvantage of E-Retail
The benefits of e-retail include:
● Customers save time and effort when selecting merchandise. For example, there’s no standing in line at the
checkout counter.
● There are no “store hours.” The customer can make purchases at any time and from any location.
● In a physical store, a customer may need to flag down a salesperson and wait until they are available to get
assistance on a product. In e-retail, product descriptions, including photos and perhaps a video, are available online
to assist the customer in making the decision. Some e-retail websites may even include chatbots to answer buyer
questions.
● E-retail provides a variety of payment methods, such as credit cards and PayPal.
● If the customer isn’t satisfied, e-retail also offers a refund policy, such as a 30-day refund. The seller typically waives
the return shipping fee if the product is defective.
● For businesses, the infrastructure cost is lower for e-retail than for brick-and-mortar.
● Businesses can reach more customers in their own country and others.
● When businesses sell in bulk, they can offer more competitive pricing.
● Automation reduces the need for personnel for particular tasks, such as checkout and level-one customer support.
● Businesses save on marketing expenses by leveraging email, social media, and search engine optimization (SEO).
● E-retail businesses can study consumer behavior through analytics tools to improve the shopping experience and
generate more revenue.

There are a few disadvantages:


● The buyer has to wait until the product arrives vs. being able to walk out with it right away from a store.
● An image on a website or buyer reviews can only go so far. Ultimately, the customer won’t know if they made a good
purchase until the product arrives.
● The element of haggling doesn’t exist.
● Online shopping may lack an emotional connection since the buyer can’t feel or smell the product before purchase.
● Operating expenses can increase due to business expansion.

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Self Assessment:
Directions: Please read the instructions carefully.
Part I. True or False. Write True if the statement is correct, otherwise False on the provided space.

______________1. One of the advantages of e-retail is that customers save time and effort when selecting merchandise.
_____________2. In e-retail, a business or individual sells retail products and services through online stores.
_____________3. Mobile apps and responsive websites have become crucial for retailers to provide a seamless and
user-friendly experience.
_____________4. Online shopping may lack an emotional connection since the buyer can’t feel or smell the product before
purchase is an example disadvantage of e-retail.
_____________5. An e-retail company can be a purely digital presence, meaning there is no physical store for a customer to
enter.
_____________6. E-commerce platforms must prioritize and communicate strong security measures to gain consumer trust.
_____________7. E-retail, also known as internet retail.
_____________8. One of the pros of e-retail is when businesses sell in bulk, they can offer more competitive pricing.
_____________9. According to Pascual, these economic assets are the “young and digital native population, a growing middle
class, available and affordable technologies, and significant surpluses in the financial sector”.
_____________10. There are no “store hours.” The customer can make purchases at any time and from any location is an
example of the pros of e-retail.

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Topic 3: Challenges in Multichannel Retailing and Competitive Analysis of Different Retail Platforms

Lesson Objectives:
At the end of this section, you should be able to:
1. Describe how retailers use multiple channels to improve their offering and build competitive advantage
To view the supplemental 2. Enumerate the challenges faced by multichannel retailers as well as the ways they can adapt and overcome them
video on this topic, please 3. Describe a customer’s “seamless experience” across channels
click the link below or 4. Discuss data that could be collected to support the multichannel shopping experience of the future
scan the QR code
provided.

Challenges in Retailers use multiple channels


Multichannel Retailing to enhance their offering and
https://www.youtube.co build a competitive advantage by
m/watch?v=IIlKHQuFnIE creating a seamless and integrated
shopping experience for their
customers. This approach, often
referred to as omnichannel
retailing, involves the use of
various channels such as physical
stores, e-commerce platforms,
mobile apps, social media, and
more. Here are several ways in
which retailers leverage multiple
channels:

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Competitive Analysis of
Different Retail
Platforms
https://www.youtube.co
m/watch?v=34Hgq1XUx
uQ

By effectively integrating and leveraging multiple channels, retailers can provide a seamless and enhanced shopping
experience, ultimately building customer loyalty and gaining a competitive advantage in the market.

Multichannel retailers face several challenges in managing diverse channels, but there are strategies and solutions to adapt
and overcome these obstacles. Here's a list of challenges and corresponding ways to address them.

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Specific Challenges Adaptation
References:
Directions: Below are 1. Inventory Management Coordinating inventory across Implement integrated inventory management
the references used in multiple channels to prevent systems that provide real-time visibility across all
this lesson. If you want overstock or stockouts. channels. Use data analytics to forecast demand
to check them, you may accurately.
do so by accessing the
link below. 2. Consistent Brand Experience Maintaining a consistent brand Develop and enforce brand guidelines. Train staff
experience across various and implement standardized processes to ensure a
1. Shaw, A. (2021, channels. unified customer experience
October 27).
Multi-Channel Retailing 3. Data Integration Integrating and managing data Invest in robust data integration tools and
– definition, Pros, Cons from different channels. platforms. Ensure seamless communication
& challenges. Marketing between different systems to maintain accurate
Tutor. and up-to-date information.
https://www.marketingt
utor.net/multi-channel-r 4. Customer Segmentation Tailoring marketing and Leverage data analytics to understand customer
etailing/ promotions to diverse behavior. Implement personalized marketing
customer segments. strategies, using customer segmentation to target
2. The Ultimate Guide to specific demographics with relevant promotions.
Providing a Seamless
5. Logistics and Fulfillment Managing logistics and Implement flexible fulfillment options such as
Customer Experience.
fulfillment efficiently across click-and-collect and ship-from-store. Utilize
(2023, September 6).
multiple channels. third-party logistics providers to optimize
https://gettalkative.com
distribution.
/info/seamless-custome
r-experience
6. Cybersecurity: Securing customer data and Invest in robust cybersecurity measures, including
transactions across various encryption, secure payment gateways, and regular
online channels. security audits. Educate staff on cybersecurity best
practices.

7. Customer Service Providing consistent and quality Implement an omnichannel customer service
customer service across all strategy. Use integrated customer relationship

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3. Lumen Learning.
channels. management (CRM) systems to track customer
(n.d.). Data to support
interactions across channels and provide seamless
the multichannel
support.
shopping experience |
Retail Management. 8. Adapting to New Technologies Keeping up with rapidly Stay informed about emerging technologies
https://courses.lumenle evolving technologies. relevant to retail. Foster a culture of innovation and
arning.com/wm-retailm invest in ongoing training for employees.
anagement/chapter/dat
a-to-support-the-multic
hannel-shopping-experi Adapting to the challenges faced by multichannel retailers requires a combination of technology, strategic planning, and a
ence/ customer-centric approach. By investing in integrated systems, data analytics, and employee training, retailers can enhance
their ability to provide a seamless and consistent experience across various channels.

What is a seamless customer experience?


The term customer experience refers to the entire journey a
customer will take when researching, buying, and using a
product or service. It also includes the buyer’s impressions and
perceptions of a business and their feelings about the
interactions along the way. With this definition in mind, a
seamless customer experience is a customer journey that is
devoid of any mistakes, delays, or setbacks. In other words, this
kind of customer experience is efficient, smooth, and
enjoyable. It should also be consistent across all channels.

For example, whether the customer is buying in-store or online, the business should demonstrate consistent branding and
tone, high levels of customer service, and a dedication to fulfilling customer orders.

In essence, with every touchpoint meeting or exceeding expectations, a seamless customer experience is a wholly positive
experience in which customers face no obstacles to their purchase.

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Why is this approach important?
A seamless customer experience is important as it’s the most effective way to keep customers happy and loyal to your
business. For instance, 51% of customers are more likely to stay loyal to businesses that offer timely personalized
suggestions and updates as part of their customer experience. Consistently offering this kind of approach is also proven to
attract new customers: 65% of customers say they find great experiences to be more influential than advertising. It’s for
these reasons that customer experience has now been crowned the key brand differentiator for customers. It’s why offering
a seamless customer experience is the best way to set yourself apart from your competitors too.

To understand how a seamless customer experience will look, it’s worth developing an understanding of the customer
journey’s basic stages. For this discussion, we’ve broken down the stages into five easy steps:‍
1. Awareness - The customer becomes aware of a need/a particular product.
2. Consideration - The customer researches and considers one or multiple products.
3. Purchase - The customer purchases a product.
4. Retention - The customer finds the product useful or enjoyable and purchases with the business again.
5. Advocacy - The customer recommends the business/products to others.

Notice how the business meets or exceeds the customer’s needs and expectations at each step of the journey creating an
experience that results in customer satisfaction, loyalty, and advocacy.
Awareness:
1. The customer browses social media.
2. The customer sees a t-shirt advertised by a company.
Consideration:
3. The customer visits the site and reads the reviews.
4. The customer connects with customer service on live chat to ask a question about sizing.
Purchase:
5. Happy with the answer to their query, the customer is offered the chance to purchase the t-shirt with the agent. They
accept.
6. The customer is asked for feedback on customer service. They are happy and give a positive response.
7. The t-shirt arrives on time with some extra goodies, and the customer loves their purchase.

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Retention:
8. The customer receives a free discount voucher via email as a thank-you for their order.
9. When they are updated on a new product, the customer explores the site again. They purchase a new item using their
discount and receive the same excellent service.
Advocacy:
10. The customer leaves a glowing review and recommends the product to others after enjoying such a great experience.‍

As we can see, there’s several stages in this example where the business has aimed to make it as easy as possible for the
customer to discover their products, learn about them, buy them, and enjoy them.

Data to Support the Multichannel Shopping Experience


Measurement of retail performance is important, but especially for multi-channel retailers as it provides a basis for
comparing performance across channels. Among a number of other details, brick & mortar stores track:

● Traffic: the number of shoppers in-store within a given period


● Average Inventory: (beginning inventory for a period + ending inventory for the same period) / 2
● Return on Inventory: Revenue / Average Inventory
● Inventory Turn-over: cost of goods sold in a period / average cost of goods in inventory
● Gross Margin Return on Inventory Investment: (sales – product costs) / average inventory
● Cost Per Sale: marketing costs / sales revenue

Marketers consider a number of metrics that assess interaction and engagement online, using these as indicators of impact.
Traffic is measured through website visits, separated by unique and returning, as well as hits, which are requests for a file
from a web server, and impressions, which is the number of times an ad loads on a viewer’s screen. They measure
engagement through page views, duration of time spent on the site, and events, which includes clicks, page views,
downloads, video plays, etc. Engagement is also measured by the click-through rate (CTR), which is the number of visitors
who click on a link divided by the number of visitors who were served the link, and conversion rate, which is the number of
visitors who complete any desired action divided by the total number of visitors.

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A final set of metrics for marketers to use to assess apps relates to profitability. The measures are cost per user (acquisition
costs divided by total users), average revenue per user (revenue in a period divided by users during that same period), and
gross margin per user, which is the average revenue per user (ARPU) minus the cost per user (CPU). Overall, metrics for
assessing retail performance are similar online and offline, focused on measuring traffic and engagement. In tracking these
metrics, retailers can be most effective in prioritizing channels and investing appropriately to support customer interaction.

Self Assessment:
Directions: Read the provided case study carefully and answer the follow-up questions on a clean sheet of
paper, and submit to our GCR. After completing your answers, share them in our online discussion forum and
engage with your classmates by commenting on their responses. This activity is an excellent opportunity to learn
from each other and deepen our understanding of the subject.

Case Study: Lululemon & video chat


Between 2019 and 2020, Canadian athleisure retailer Lululemon saw a staggering 40% increase in brand value. The secret to
their colossal success was making purchases as easy as possible, all through offering a seamless digital customer
experience. This approach continued even during the Covid pandemic. While other companies failed to adapt, Lululemon
quickly realized that their customers were facing a new obstacle: with stores and shopping centers being closed the world
over, customers who wanted a personal customer service experience were failing online. It was an obstacle that could’ve
undoubtedly damaged the company’s bottom line - like it has with so many other businesses worldwide. However,
Lululemon decided to address this customer obstacle head-on. To make sure its online customers were getting the same
service that they used to receive in person, the company took the opportunity to expand its omnichannel presence. Their
biggest innovation was the use of video chat for customer service. By offering virtual personal stylist appointments via video
chat, Lululemon is able to provide their online customers with the same stellar customer experience that they’re used to
receiving in-store. Customers can even engage with the company’s contact agents over live chat, before escalating
seamlessly to a video call whenever it suits them. Lululemon has always offered its customers the best experiences possible,
from prioritizing their social media customer service to offering yoga classes in-store. Nevertheless, thanks to their
adoption of on-demand video chat, they’ve been able to offer amazing customer service online, even when they were
unable to in-store. It’s a prime example of removing an obstacle to offer a completely seamless customer experience.

Question 1: What do you think is/are the problems that arise during that time?

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Question 2: What are the alternative courses of action the company did to survive?

Question 3: What is their main objective to improve their services?

Question 4: As a marketing management student, what do you think is the importance of flexibility and innovation?

IV. Exit Assessment


Directions: To gauge your understanding of the steps and components involved in creating a Competitive Analysis and Strategic Plan. Please
read first the guidelines and rubric before proceeding to the activity.

Guideline:
1. Write a competitive analysis of Nike and Adidas using the table below.
2. After creating your competitive analysis, proceed in making the strategic plan.
3. Using the competitive analysis table below create your strategic plan for your future dream business based on the competitive analysis of
the two companies as inspiration.
4. Keep it short and simple.

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Competitive Analysis

Online Presence Nike Adidas

1. E-commerce Platform
Ni
ke.com Adi
das.com

Nike'suse ofsoci almedi a pl


atforms Adidashassuccessful lyused technol ogyand
2. Digital Marketing
l
ike Instagram,Twi tter,and YouTube al l
owsthe onli
ne pl
atformsto connectwith.One ofthe key
brand to connectwi th consumersi n real-ti
me, aspectsofAdi das'di
gitalmarketing strategyi
s
creating a sense ofimmedi acyand rel evance. i
tsfocuson socialmedi a.

3. Customer Experience Nike isprovi


ding styl
ish productsthat Adidas isworking outwhere itcan add
perform excepti
onal l
y well. the mostval
ue to the customer
experience both onl
ine and i
n-store.

Nike'stechnol ogyand i nnovation conti


nue to The company hasa rich history
4. Technology and Innovation
work in orderto strengthen runners'feetand ofinnovation through theirproducts that
legs,giving them more powerand speed whi l
e makes them known forbeing innovative
reducing the ri
skofi njury. and sustainable.

Physical Stores Nike Adidas

1. Store Presence The Adidas targetaudience i


slocated
AsofMay31,2023,Nike operated a totalof
i
nternati
onal
ly,and the company hasa
1,032 retai
lstores throughoutthe enti
re worl
d,
marketpresence i n over160 countri
es.

Nike' s in-store experience issimil


arlyfl
exi
ble.
2. In-Store Experience Customerscan demand the hi ghestlevelof Adidas Original
screatesa unique shopping
attention possible oravoid human contact experience by making thei
rretailspace i
nto
entirel
yand j ustshop a sortofartgall
ery.

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3. Customer Service

4. Community Engagement

Overall Considerations Nike Adidas

1. Brand Image

2. Innovation

3. Omnichannel Strategy

4. Global Reach

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STRATEGIC PLAN

Vision Mission

Target Market Market Needs Communication Channel Strategic Goals

Strategic Priorities Targets


1. 1.
2. 2.
3. 3.
4. 4.
5. 5.

Conclusion:
_________________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________

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Your Competitive Analysis and Strategic Plan will be graded according to the rubric below.
Novice Competent Proficient Advanced
Criteria (1 point) (2 points) (3 points) (4 points)
Limited understanding of Basic understanding of Sound understanding of Comprehensive
Understanding of
competitive analysis concepts. competitive analysis competitive analysis concepts understanding of advanced
Competitive Analysis
principles. and their application. competitive analysis concepts
Concepts & Strategic Plan
and strategies.
Plan lacks coherence and Plan is somewhat clear and Plan is clear and logically Plan is highly clear,
Clarity and Coherence clarity. coherent. organized. well-structured, and logically
organized.
Inadequate analysis and Basic analysis and the data are Clearly explain the analysis Thorough and insightful of
Realistic and Analysis of unrealistic data presented. somehow realistic. and the data is realistic. realistic data and can easily
Data understand the explanation of
analysis.
The student didn’t show any The student showed a little The student showed some The student showed creativity
Creativity and effort evidence of creativity at all. creativity in constructing the creativity in the competitive in constructing the
competitive analysis. analysis. competitive analysis.
The physical appearance is not The physical appearance of The activity is presentable and The overall appearance of the
Overall Presentation and
presentable at all. the activity needs attractive. activity is outstanding.
Professionalism
improvement.

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V. Thinking about Learning
Directions: Congratulations on coming this far. You are at the last part of this week’s module. Please carefully read the following questions below
and give your honest answer so we can assess your learning experience better.

1. What are your identified difficulties this week?

2. How did you overcome these challenges?

3. What are your key takeaways from this week’s sessions?

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Answer Key:
Directions: To check if your understanding of self-assessment in each lesson is correct, please refer to the answer key provided below.

Review 1. False. Non-store retail channels encompass various methods of selling goods or services without a physical storefront, and this includes
Time methods beyond online retailing, such as catalog shopping, direct selling, etc.
2. True. Catalog shopping is a form of non-store retailing where consumers can order goods from a printed catalog.
3. True. Vending machines are a classic example of a non-store retail channel as they allow for the automated sale of goods without a traditional
brick-and-mortar store.
4. False. While non-store retail channels reduce the need for physical interaction, some level of interaction is often still involved, such as through
online customer service, phone orders, or in the case of direct selling.
5. False. Direct selling involves selling products directly to consumers without intermediaries like wholesalers or retailers. It often involves
independent sales representatives or consultants selling directly to customers, bypassing traditional retail channels.
6. False. Consumers often make decisions based on emotions, personal preferences, and various psychological factors, not just rationality.
7. False. Brand loyalty can significantly impact consumer buying behavior, influencing their choices and preferences.
8. False. The decision-making process in consumer buying behavior can be complex and may involve various stages, not always following a linear
path.
9. False. Cultural factors play a significant role in shaping consumer behavior, influencing their values, beliefs, and preferences.
10. False. The post-purchase stage is crucial in understanding customer behavior as it can affect future buying decisions, brand loyalty, and
word-of-mouth recommendations.

Concept
Building
Type Lazada Shopee

1. Background A marketplace started by Rocket Internet from Mobile-first marketplace owned by SEA group
German and currently owned by Alibaba (formerly known as Garena)

2. Average Traffic (desktop & mobile) 31.2 million 10.88 million

3. Average Visit Duration 6 minutes and 41 seconds 10 minutes and 1 second

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4. Global Market Presence Singapore, Thailand, Philippines, Vietnam, Singapore, Thailand, Philippines, Vietnam,
and Indonesia Indonesia, and Taiwan

5. Single Day Sale Performance 1.2 million orders in the first hour 11 millions order in total

6. Shipping Fee Sellers pay for 1st kg. Anything exceeding 1st Buyers pay
kg is paid by buyers.

Lesson 1 Identification
Online Retailing Direct Selling Telemarketing Automatic Vending Television Shopping

- Lazada - Avon - Convergys - San Miguel Machines - O Shopping


- Shopee - Natasha - Concentrix - Coca-cola - TV Shop
- Zalora - PC Collection - Accentures - Pepsi - Shop TV
- Amazon
- Boardwalk - PLDT
- ebay
- MSE - Sitel
- Facebook Shop
- Globe Telecom
- Smart
- Spotify

Essay. Answers may vary and will be graded based on the rubric below.
Features Marks
1. Organization of Idea 7 points 4 points
Very informative and well-organized ideas Poorly organized ideas
2. Grammar 3 points 1 point
No wrong spelling or grammatical errors. A number of spelling and grammatical errors

Sample answer:
The choice between non-store (online) and store-based retailing depends on various factors, and there is no one-size-fits-all answer. Both online
and store-based retailing have their advantages and disadvantages, and the effectiveness of each can vary based on the nature of the product,

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target market, and overall business strategy.

Lesson 2 True or False


1. True 6. True
2. True 7. True
3. True 8. Truee
4. True 9. True
5. True 10. True

Lesson 3 Essay. Answers may vary and will be graded based on the rubric below.
Features Marks
1. Organization of Idea 7 points 4 points
Very informative and well-organized ideas Poorly organized ideas
2. Grammar 3 points 1 point
No wrong spelling or grammatical errors. A number of spelling and grammatical errors

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