Positioning and the Relevance of Department Store - Essay Example

? Department Store al Affiliation) Department Store Introduction A department store is a business establishment, retail in nature, which offers a large and extensive range of goods and is to serve in different departments. All the departments have a contribution to the success of the departmental store and in most cases all departments are under the same roof. They have different roles such as offering customer care, after sale services, restocking merchandising and control of all the operations in the store. The name department store is derived from the fact that they offer different product categories at different prices in different departments. The product categories include home appliances, cosmetics, stationary, furniture, hardware, sporting goods, and electronics among others. They are all provided under the same roof at each specific department store. Department stores are part of other larger retail chains which are in a particular country or worldwide. Due to globalization, most department stores are all over the world which helps them to acquire a larger market share. However, most stores are located in the American, European and Asian markets where most of the consumers are middle class shoppers and business environments are favorable for setting up businesses. A department store operates in such a way that when a customer enters the store, he or she can get a range of products from the store. Different products are present at every department hence there is a lower probability that the consumer will go to shop in another store. As most store claims, they ‘conceal’ the customer. Many department stores are part of chain stores. Since department stores operate in large scale, they benefit from the economies of scale where they are able to operate in large-scale at a cheaper price (Bhabatosh 2006). The accumulated capital is used to open other branches in different locations. Positioning and the relevance of department store Positioning of department stores is a process where the stores identify the target markets in the external environment where it can set up the right type of store. This decision should go hand in hand with the requirements of the population of the selected area. The position should be set in such a manner that it leads to profit maximization by the business firm. Image positioning of the department store should be done in such a way that it contributes to the competitive strategies of the store. The image of a department store is very important in attracting customers and especially those that travel a lot (Naji 2004). For example, a loyal customer of a certain store will shop at the store even after moving to another country with the same store. In the competitive global world, stores should come up with strategies that will help them stand out when it comes to competition with other stores. When it comes to the process of positioning, different strategies should be put in place such as; ‘what’ services and capabilities are outstanding so that they can be improves to increase competitiveness, ‘who’ the store is targeting as the consumer. This helps in creating awareness and bonds between the management of the store and the consumer. The last objective is ‘how’ the store can be categorized and distinguished from the other stores. Most stores attract customers by offering low prices and unique variety of goods as compared to the other stores. Different factors should be put into consideration while choosing the position of a department store. They include the set location where the store is to be established. The location affects the type of goods to be offered and the type of customers to expect. For example, a department store in America and another in Africa will have different financial locations. The relevance of a department store to the society also affects the location where it should be established. This includes the type of goods to be offered and the set prices. Retailing current factors such as taxes in different countries will affect the positioning of the department store. It is evident in cases where some countries charge very high taxes international retail stores which reduces the amount of profit that a store would be maximizing. The main goal of the stores is to maximize profits through the position and image of the retailer. Department stores have been very relevant since their establishment in the 1950s. They have contributed a lot socially, economically and politically. Socially, they have led to social integration where shoppers and workers of different ways of life relate in these stores. Since they can have branches all over the world, they lead to a network of communication between the branches which also contributes to social integration. The stores are also able to provide a variety of goods and services under one roof to the public which saves the customers time and cost of their shopping. Economically, the stores have contributed employment opportunities to the public and provided tax incomes to the government that in turn uses the tax to run social utilities. Politically they have also caused political stability, which is through contributing to the economy that is one of the backbones of the political culture. Leverage on the Use of Technology to Improve Marketing In the past few years with the help of globalization, there has competition from other international firms. Globalization includes the process where the whole world has been transformed into a village through the help of improved transport and communication systems (Ruby 2012). Increased levels of technologies have contributed to the improved systems. The internet has connected the whole world online through a network of internet-connected computers. Adopting the right type of technological advancement by a departmental store and using it in the right manner will lead to increased profits. In most cases, firms are using technology in their marketing procedures. Technology can be used to improve the marketing skills and procedures of a department store. This is through the use the internet which is used by the larger population worldwide. Technology has led to the creation of internet-enabled phones which can be used to access internet without the need of a computer. Online advertisement will increase the market share of a department store. The advertisement can be done with through posting of advertisements in social networks such as Face book, Twitter, and Google+ among others. Advanced technology has contributed to the creation of these social networks. With the target population in place, the advertisement will cause awareness to lots of consumers and potential consumers. They can also share the advertisements with friends hence increasing the number of customers. Marketing can also be carried out in other websites such as YouTube in the form of videos. Unlike in the television advertisements, the adverts are cheaper while performed in the internet. Since department stores are branches of a larger retail chain, they can be linked together using the internet. They can be monitored from on location with ease. Technology has also been used to create software that can be used by stores in their marketing activities. The software is efficient, fast and effective as compared to the use of workers. Technology firm giants such as Oracle and Microsoft are the main producers of this software. Due to the increased competition, department stores need to adopt these technological advancements to ensure competition in the market. This strategy will lead to acquisition of a larger market shares and an added advantage over competitors. Customer relationship management can be enhanced by technology. It improves the relationship between the customer and the management. In case of any problems during sales, the customers can contact the customer care centre through email or text messaging. It can be done without the need to go back to the store to file complaints. The customers can also be notified when there is the presence of new products or requests through electronic mail or text messaging. Social media may also be used where the changes can be posted in the social network websites (William & Ferrell 2011). The stores where there are question-answer formats, which are used to get feedback from customers, can also use of automated surveys. Through this process, the store is able to get both negative and positive feedbacks that will later help in its success strategies and competitive skills. Importance of good interpersonal relationship within the concept store environment Interpersonal relationships refer to an involvement between two or more people through work interests or business engagements to come up with a similar understanding leading to expected results. To enhance the success of a department store, the work environment should have good interpersonal relationships. They should be included in both vertical and horizontal channels. Vertical channels involve communications and relations between higher workers in rank to lower ranked workers. An example of this channel is communication from the manager to the seniors where roles are transferred in a vertical manner. There should be excellent bonds that will lead to a good interpersonal relationship at the workplace. A store should ensure that there is good communication between the senior staff and junior staff that will lead to increased motivation and output leading to increased profits. Horizontal channels include relations of workers in the same level or rank. This is the most important channel since it includes higher number of workers. Great and healthy relationships will help create a strong bond between the workers (William & Ferrell 2011). Good communication will also help in the establishment of a health interpersonal relationship at the workplace. A good healthy relationship should also be evident between the workers and customers. This can be done using improved communications skills by the workers to the customers. One of the rules of business is that the customer is always right hence however the customer is abusive or rude, the worker should be calm to protect the image of the store. Good interpersonal relationships are of great importance to the success of a store. One of its relevance is that two heads are better than one and when there is a close relationship, all workers contribute their ideas without any barrier. The relationships also help in saving time since when all the workload performs the allocated duties together, they are liable to complete in the stipulated period. Additionally, the most important action that a firm should exercise to come up with a good relationship between the workers and the management is to value its employees. By valuing and appreciating the employees, a firm strengthens the interpersonal relationships. When workers are appreciated, their motivation towards work is increased which in turn boost the output. They are able to come up with ideas as a group after brainstorming which helps in the success of the firm. Several barriers prevent the creation of healthy interpersonal relationships at a work place such as cultural, social, and economic factors. Workers at a store’s workplace may be from different cultures, which create a gap between the two workers. To have a healthy connection, the two workers should forget their cultural differences and form a bond on behave of the store leading to a good interpersonal relationship. The economic status of employees may also create communication barriers and happens when workers do not earn the same wages. It also happens when workers are low wages. A department store should have an excellent strategy to set the salaries of its employees hence preventing economic barriers that affect the interpersonal relationships of the store. Effective Communication Strategies Relevant to Department Stores Effective communication includes the passing of the right information to the required party and getting the required feedback. The two means of communication include verbal and non-verbal. Verbal communication includes oral and written, whereas nonverbal includes the use of symbols and signs. In business, communication can be used to relay the correct information about a product or service. Communication can be internal or external. External communication is out with the external environment. It is evident between the department store and the customers, suppliers and competitors. It may entail public relations, customer relations and advertisement. Internal communication on the other hand is between the employees and management. It is to come up with strategies to enhance profit maximization. For communication to convey the expected results at a workplace, it should be effective. In addition, to have a conducive and friendly environment at the work place, effective communication should be put in place. Use of open body language and illustrations may set up an efficient communication channel. Use of abusive language is not at a workplace due to the presence of respect between the employees. Credit should also be credited where it is due during meetings. Internal efficient communication will help create a good interpersonal environment between the employees. When it comes to communication with the customers, efficient communication should also be emphasized to increase the number of customers in the store. In case of complaints by customers, they communicated to and served in the right manner. It will help create a strong bond and relationship between the employee and the store. Employees should undergo training to help them to serve customers in the expected manner. This is because they are the bridge between the store and the customer and any problem may lead to the failure of the store. Good communication skills also attract customers. Since almost all stores have all strategies to compete in the global market, use of customer relations through effective communication is an added advantage. Since language is one of the main barriers of effective communications, there is a need that the store should come up with strategies to curb this problem. Employees should have efficient communication skills and learn other international languages to ease the communication process. As a strategy to effective communication, the store’s management should come up with the following factors. Completeness in business messages, concise business messages which are cost and time effective, consideration whereby the particular needs of the listener are satisfied, concreteness which emphasizes on definite information, clarity which ensures understanding, courteous and correctness which include the use of proper grammar and punctuation (Donald & Elizabeth 2011). Together they make up the 7Cs that entail a good and efficient communication structure. Good communication contributes a large share on the marketing skills of a business firm. Employees should ensure good communication with potential clients to help increase the number of customers shopping in the store. Conclusion Use of department stores in the business world has been used as a strategy to compete with supermarkets and other shopping malls. Stores at different locations can be used to cater for each other’s profits and losses. For example, losses in one store can be catered for by supernormal profits in another store. Customers also have an added advantage where one can buy a product in one store and later chance it at another store in case of defects of complaints. Economies of scale have helped the expansion of these stores since they enjoy cheap prices from supplies due to purchasing in bulk. The retail chain to cater for all the departmental stores carries out the marketing process. This is due to the presence of similar goods and services offered in these stores. However, there are different problems that accrue to these stores. They require high start-up capital and high operational costs to run their operations. Their large sizes also lead to coordination and supervision problems. Thefts are also evident in some store from customers and workers. They lack a personal touch and there are no sufficient feedbacks from customers to help in the improvement of service provision (Christopher, Margaret & Grete 2012). In spite of the department stores claiming to offer all product varieties, some customers claim that they do not meet all the demand. However, these stores will always have an added advantage as compared to other shopping malls and hypermarkets. References Bhabatosh Banerjee., 2006. Cost accounting: Theory and Practice. New Delhi: PHI Learning Pvt. Christopher Moore, Margaret Bruce and Grete Birtwistle., 2012. International Retail Banking. London: Routledge publishers Donald W. Stampfl and Elizabeth Hirschman., 2011. Competitive Structure in Retail Markets: The Department Store Perspective. Decatur: Marketing Classics Press. Naji Fatayerji., 2004. Electronic Marketing: Advantages and Disadvantages. New Delhi: PHI Learning Pvt. Ruby Roy Dholakia., 2012. Technology and Consumption: Understanding Consumer Choices and Behaviors International series on consumer science. New York: Springer Publishers. William M. Pride and O. C. Ferrell., 2011. Marketing. Stamford: Cengage Learning publishers. Read More