E- Marketing (BBA (PU))

E Marketing

E-marketing refers to the process of marketing a product or service using the Internet. This includes not only marketing on the Internet (websites) but also marketing through e-mail, wireless media, social media, etc.

The International Monetary and Financial System

International Monetary System and Financial Environment

The international monetary system refers to the financial environment system which includes financial institutions, multinational corporations and investors.

The international monetary system provides a framework for determining the rules and procedures for international payments, exchange rates, and capital flows.

An international financial environment refers to the conditions of activity in the economy or financial markets all over the world.

When most people think of international trade, most think of only products (products or services) in imports and exports. But markets for foreign exchange and capital are equivalent to trade in product and service.

Firms regularly trade the US Dollar, Euro, INR, NPR or other major currencies to achieve their international business goals. 

Currency

Currency is a medium for the exchange of goods and services (for trade). In simple terms, currency is money in the form of paper or coins, issued by a government's authorised body and use as a mode of payment and accepted at its face value.

Foreign Currency  (Which currency is known as an international currency?   )

In the foreign exchange market, international trade, and in terms of international finance an International currency or supranational currency, is a currency that is traded and use as a medium for international trade, with no border barriers.

A foreign currency is a currency that belongs to other foreign countries.

Rank	Country	Currency
1	United States of America	United States Dollar
2	European Union	Euro
3	United Kingdom	Pound Sterling
4	Japan	Japanese Yen

Exchange Rate

The exchange rate is the value of one country's currency vs. the currency of another nation or economic region. For example, we can exchange Nepali Rupees 119.31 with the US $ 1.

Foreign Exchange

Foreign Exchange (forex or FX) is the trading of one countries currency for the exchange of another countries currency.

For example, we can exchange Nepali Rupees 119.31 with the US $ 1.

Exchange Rate System

An exchange rate system establishes the manner in which the exchange rate is determined with the value of the domestic currency and other currencies.

In simple terms, the exchange rate system refers to the system that determines the exchange rate between domestic currency and foreign currencies.

Exchange rates are decided by demand and supply. However, governments and their authorized agencies (such as the Central or Reserve Bank) can influence those exchange rates in various ways.

There are different types of exchange rate systems.

1. Floating exchange rate system

        a.    Free-floating exchange rate system,

        b.    Managed floating exchange rate system

2. Fixed exchange rate system

3. Controlled Exchange Rate System

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1. Floating exchange rate system

a.    Free-floating exchange rate system,

In the free-floating exchange rate system, the exchange rate is based on demand and supply.

 governments and their bodies ( central banks) of countries do not participate or intervene in the foreign exchange market. Governments may regulate stock markets to stop fraud, but stock values are freely allowed to float in the market on a demand and supply basis.

b.    Managed floating exchange rate system

Exchange rates are also based on demand and supply in a managed float system, but governments and their bodies intervene as buyers or as sellers of currencies in an attempt to influence exchange rates.

Sometimes governments or central banks influence exchange rates by intervention in the form of seller or buyer.

2. Fixed exchange rate system

It is a system that maintains a certain level of exchange rate through government intervention in the market. A fixed exchange rate is when a country puts the value of its currency in some other widely used commodity (gold) or currency (US dollars).

Most fixed exchange rates are pegged to the US dollar.

The government directly intervenes here to support the own country's development projects and wants to maintain the balance of international trade (imports and exports) with other nations. If the currency rate fails to maintain the country's trade balance (import and export) then the fixed exchange rate will change through currency devaluation or revaluation.

There are many countries that maintain a fixed exchange rate with the currencies of other countries.

Country	Currency	Peg (on 11/19/19)	Currency
Aruba	Florin	1.79	U.S. dollar
Bahamas	Dollar	1.00	U.S. dollar
Bahrain	Dinar	0.38	U.S. dollar
Barbados	Dollar	2.00	U.S. dollar
Bosnia and Herzegovina	Mark	1.96	Euro
Bhutan	Ngultrum	1.00	Indian rupee
Brunei	Dollar	1.00	Singapore dollar
Bulgaria	Lev	1.96	Euro
Comoros	Franc	491.97	Euro
Curacao and Sint Maarten	Ang	1.79	U.S. dollar
Denmark	Krone	7.47	Euro
Dijibouti	Franc	177.78	U.S. dollar
Eritrea	Nakfa	15.00	U.S. dollar
Hong Kong	Dollar	7.83	U.S. dollar
Iraq	Dinar	1,192.11	U.S. dollar
Jordan	Dinar	0.71	U.S. dollar
Lebanon	Pound	1,507.50	U.S. dollar
Lesotho	Loti	1.00	S.A. rand
Namibia	Dollar	1.00	S.A. rand
Nepal	Rupee	1.61	Indian rupee
Oman	Rial	0.38	U.S. dollar
Qatar	Riyal	3.64	U.S. dollar
Sao Tome and Principe	Dobra	24.56	Euro
Saudi Arabia	Riyal	3.75	U.S. dollar
Turkmenistan	New Manat	3.50	U.S. dollar
UAE	Dirham	3.67	U.S. dollar

Global Financial System

Financial System

A financial system is a group of institutions, such as banks, insurance companies, and stock exchanges, which allow the exchange of funds.

Global Financial System

The global financial system refers to a system of legal agreements and institutions that facilitate the international flow of financial capital for investment or international trade (import or export).

Components of Global Financial System

1. Foreign Exchange Market System
2. Currency Exchange Control System
3. Commercial Banking System

1. Foreign Exchange Market System

The foreign exchange market (also known as foreign currency, FX) is a global market where exchange rates of currencies are determined worldwide, where participants are allowed to buy, sell, exchange and speculate currencies. . .

2. Currency Exchange Control System

A currency exchange control system is a system where the government imposes restrictions to limit the purchase of foreign currencies of its citizens and the purchase of domestic currency from abroad.

3. Commercial Banking System

Commercial banks are a fundamental part of foreign exchange that they assist their customer and provide them a different channel to do business with people across the world in terms of payments and recipients. 

Regional Economic Integration - Types, leading Economic Blocs

Regional Economic Integration - Types, leading Economic Blocs

 क्षेत्रीय आर्थिक एकीकरण 

Economic integration is an agreement between different nations that includes the reduction or elimination of trade barriers (tariffs or non-tariff) and the coordination of monetary and fiscal policies.

Regional economic integration occurs when countries come to the formation of free trade arrangements or customs unions, giving members preferential trade access to each other's markets.

Regional economic integration has enabled countries to focus on issues that are important for their development as well as to encourage trade relations between neighbouring countries.

Reasons for Regional Economic Integration

Geographic Proximity (भौगोलिक निकटता)

Similar Consumer's Taste, Needs and Preferences 

Easy Distribution Channels (सजिलो वितरण च्यानलहरू)

Common History and Interests

Common Economic Opportunities

Common Economic Problems and Challenges

Types (Stages - Phases) of Regional Economic Integration

1. PTA - Preferential Trading Area :(Reduces only tariffs rates for member nation{SAPTA- South Asian Preferential Trading Agreements})
2. FTA - Free trade Area :(Eliminating all tariffs and non-tariff barriers {SAFTA - South Asia Free Trade Area, NAFTA - North American Free Trade Area, BIMSTEC-FTA} 
3. Custom Union :(Common tariff and non-tariff barriers on imports from non member countries)
4. Economic Union ::(Greater economic harmonisation, Single currency like Euro for European Union (EU),Uniform Monetary System, Union of regulation authorities)
5. Political-Economic Union: Single Economic Political Identity- UAE (United Arab Emirates, and EU to emerge as the one soon)

Cultural Environment and its Impact on International Business ,Regional Economic Integration

  According to Terpstran (1987)

"Integrated sum of learned behavioural traits revealed and shared by members of society"

Diseases such as corona, and other problems like terrorism, ethnic violence, gender inequality, poverty have made societies uncertain about their future. International trade deals not only cross borders, they also cross cultures.

Trading on a global basis requires a good understanding of different cultures. The method that works in our country may not work properly in another country, and it can also be understood as an insult! 

As an international business professional, raising awareness of cultural issues within our organization is important to ensure effectiveness and acceptance.

Business culture refers to the beliefs, norms, and behaviours that determine how a company's employees and management conduct business activities inside and outside the organization. It also includes how they are affected by it.

The major elements of culture for the business world are: language, religion, values, customs, and history and each of them is equally important.

The basic elements of cultures are:

The values and attitudes (मान र दृष्टिकोण)

The manners and customs (शिष्टाचार र चलनहरू)

The law and politic (कानून और राजनीति)

The technology and material culture (प्रविधि र भौतिक संस्कृति{भौतिकवाद})

The aesthetic (aesthetic art, heritage, rituals, language, resources) {सौंदर्यबोध-सौन्दर्य (सौन्दर्य कला, विरासत, अनुष्ठान, भाषा, स्रोतहरू)}

                 Regional Economic Integration - Types, leading Economic Blocs

क्षेत्रीय आर्थिक एकीकरण 

Economic integration is an agreement between different nations that includes the reduction or elimination of trade barriers (tariffs or non-tariff) and the coordination of monetary and fiscal policies.

Regional economic integration occurs when countries come to the formation of free trade arrangements or customs unions, giving members preferential trade access to each other's markets.

Regional economic integration has enabled countries to focus on issues that are important for their development as well as to encourage trade relations between neighbouring countries.

Reasons for Regional Economic Integration

Geographic Proximity (भौगोलिक निकटता)

Similar Consumer's Taste, Needs and Preferences 

Easy Distribution Channels (सजिलो वितरण च्यानलहरू)

Common History and Interests

Common Economic Opportunities

Common Economic Problems and Challenges

Types (Stages - Phases) of Regional Economic Integration

1. PTA - Preferential Trading Area :(Reduces only tariffs rates for member nation{SAPTA- South Asian Preferential Trading Agreements})
2. FTA - Free trade Area :(Eliminating all tariffs and non-tariff barriers {SAFTA - South Asia Free Trade Area, NAFTA - North American Free Trade Area, BIMSTEC-FTA} 
3. Custom Union :(Common tariff and non-tariff barriers on imports from non member countries)
4. Economic Union ::(Greater economic harmonisation, Single currency like Euro for European Union (EU),Uniform Monetary System, Union of regulation authorities)
5. Political-Economic Union: Single Economic Political Identity- UAE (United Arab Emirates, and EU to emerge as the one soon)

Relationship Marketing

 The most expensive and challenging tasks facing by any business is acquiring new customers and sustaining existing customer. Relationship marketing mainly involves the improvement of internal operations.

Relationship marketing is a process of building long-term relationships with customers. 

Relationship marketing defines the framework for the company to reach out as well as and orient themselves to the outside markets, to the end customer as well as to the business partners, the suppliers and vendors too.

Importance of relationship marketing:

Long-Term Relation
Customer Satisfaction
Creat Brand Image
Increase in Sales Volume
Decrease Advertisement and Promotion Cost
Identification of Strength and Weakness   

Barriers to Integrated Marketing Communication

 

Introduction to Integrated Marketing Communications {Pokhara University} - (Advertising and Sales Promotion)

 It is essential for organizations to promote their brands well so that they not only outperform competitors but also survive longer. Brand promotion increases awareness of products and services among customers and ultimately increases sales and revenue for the organization. 

Brand communication is a process of promoting products and services among target consumers.

(IMC) Integrated marketing communication is a concept used by organizations to brand and coordinate their communication efforts.

Integrated marketing communication refers to integrating all methods of brand promotion to promote a particular product or service among the target audience.

The American Association of Advertising Agencies defines IMC as “a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency, and maximum communication impact.”

In integrated marketing communications, all aspects of marketing communications work together with cost effectiveness for sales and maximum profit.

The various components of integrated marketing communication are:

1. Market Research
2. Product research and Development
3. Brand Focus 
4. Communication Tools
5. Promotional Tools (प्रचार उपकरणहरु)
6. Customer Relationship Management Tool (ग्राहक सम्बन्ध व्यवस्थापन उपकरण)

1. Market Research 

The preliminary stage or foundation stage involves a detailed analysis and research of the target market.
We must know the needs, attitudes, and expectations of the target audience to make them our customers. In market research, we analyze demographics including population, age, gender, education, economic status, etc. 

2. Product Research and Development

As the name suggests, it involves a detailed analysis of product research and development. We must aware of the correct specifications of products and services.

3. Brand Focus

Brand focus is the concept where we decide what we have to say to our customers and what not.

Marketing Challenges in the 21st Century [Unit-1 {chapter-1} Pokhara University- BBA 4th Semester]

1. Increased competition  (बढेको प्रतिस्पर्धा)
2. Inefficient Marketing Campaign segmentation (अपर्याप्त मार्केटिंग अभियान विभाजन)
3. Lack of Brand Awareness (ब्रान्ड सचेतताको अभाव {जागरूकता})
4. Lack of resources (स्रोतहरूको अभाव) 
5. Language barriers (भाषा अवरोधहरू)
6. Local channels/ Medium (स्थानीय च्यानल / मध्यम)

1. Lack of Brand Awareness (ब्रान्ड सचेतताको अभाव {जागरूकता})

One of the main challenges facing marketing managers is the challenge of creating awareness. Most of the time we see that people lack knowledge or are misinformed about our product and service. This is happening due to low literacy or somehow maligning us by our competitors in illegal ways. Sometimes our employees have little knowledge of our product and service and sometimes some employees remain full of overconfident. That also leads to loss or challenges for organizations.

Introduction to Marketing and Marketing Management [Unit-1 {chapter-1} Pokhara University- BBA 4th Semester]

                    शताब्दी, दशक, र वर्षहरूमा बजार अवधारणा नाटकीय रूपमा परिवर्तन भएको छ।

In marketing, we do research and development as well as share information about our product and services with our respective parties, such as customers and other stakeholders who help us benefit in the market. We do research and development activities, we do advertising and other promotional activities such as public relations, sales promotion campaigns, direct marketing, sales personnel, CSR activities, etc.

Definition:- In simple terms marketing refers to the activities performed by a company to promote the purchase or sale of a product or service. Marketing involves advertising, selling, and distributing products to consumers or other businesses.

Marketing as a discipline involves all the functions that a company undertakes in order to attract customers and maintain a relationship with them for making profits. 

The market concept has changed dramatically over the centuries, decades, and years. The production-centric system has systematically changed into a relationship-centric system. Marketing has taken a modern form since the end of the 19th century after going through various development stages. Before the (20th) twentieth century, the production-oriented practice of marketing was conservative.

The new economy has seen the buying power of customer at all time. Consumers have reached easily to all types’ information for product and services because of the digital revolution. Developments of science & technology and especially the development of information technology have now changed the way people live, the way people do business, and the way people sell and buy.

The following is a brief description of various stages of the evolution of marketing.

Evolution of Marketing Concept

1. Production Orientation Era (युग) or Stage(चरणहरू) {1770-1820}
2. Product Orientation Era or Stage {1820-1930}
3. Sales Orientation Era Or Stage {1930-1950}
4. Marketing Orientation Era or Stage {1950-1970}
5. Relationship Marketing Orientation Era or Stage

The following sentences summarize the above developments in marketing.

1. Production era: 'Cut costs. Profits take care of themselves, we can sell'

2. Product era: 'Good products will sell themselves, we make what we can sell'

3. Sales era: 'Sales are keeping the bait for the customer, we sell what we make'

4. Marketing. Market age: 'Customer is king!'

5. Relations. Relationship Marketing Age: 'Relationships with customers determine the future of our firm'.

Holistic Marketing Concept

The definition of a holistic approach is relating to the concept that things should be studied as a whole not just as a part of the event.

Marketing Communication Mix (Pokhara University)

 Marketing is a broad business function related to product research and development, sales, distribution and pricing as well as promotion. The marketing communication mix refers to the specific methods used to promote a company name or products or services to target audiences. In this way, we can say that the marketing communication mix includes all the tools we use to communicate with our customers. This can be advertising, direct marketing, social media, product packaging and labeling, websites, events, sponsorship, exhibitions, etc.

Here are five key elements of the effective marketing communication mix:

1. Advertising (विज्ञापन)

2. Personal selling (व्यक्तिगत बिक्री)

3. Sales promotion (बिक्री पदोन्नति)

4. Public relations (सार्वजनिक सम्बन्ध)

5. Direct marketing (प्रत्यक्ष मार्केटिंग)

1. Advertising (विज्ञापन)

Advertising is a means of communicating with existing or potential users of a product or service. In simple terms, advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by marketers to the target audience.

2. Personal selling (व्यक्तिगत बिक्री)

Personal selling is known as face-to-face sales, in which a person who is a salesman or representative of a company tries to convince the customer to buy the product. In simple terms, it is a promotional method whereby the seller shows his skills and tries to sell the product to the customer. Thus, the company wants to spread awareness about the product for which it adopts a face-to-face approach and establish a person-to-person contact.

3. Sales promotion (बिक्री पदोन्नति)

Sales promotion is one of the core elements of the marketing communication mix. Promotion is an incentive tool that is used to increase short-term sales. sales promotion campaign can be launched for consumers, traders, and employees. Sales promotion activity can have many purposes, for example, to grab the attention of new customers and retain existing customers. Sometimes it increases the consumption of customers.

4. Public relations (सार्वजनिक सम्बन्ध)

Companies cannot survive by being isolated. Companies are required to interact regularly with customers, employees, and various stakeholders. Public relations help a business or individual to build a positive reputation with the public through various communications, including traditional media, social media, and other engagements with the public.

“Public relations is a strategic communication process that builds mutually beneficial relationships between organizations and their publics.”

-PRSA

Some topics/tasks within PR are given below:

• Crisis Communications (संकट संचार)
• Internal Communications (आन्तरिक संचार)
• Investor Relations Communications (लगानीकर्ता सम्बन्ध सञ्चार)
• Marketing Communications (मार्केटिंग संचार)
• Media Relations (मिडिया सम्बन्ध)
• Specific Events (विशिष्ट घटनाहरू)
• Social Media (सामाजिक संजाल)

5. Direct marketing (प्रत्यक्ष मार्केटिंग)

Face to face selling, direct mail, telemarketing, TV,  Online exhibition, and kiosks are media for direct marketing. Direct marketing is a promotional method that helps us to inform the audience about our company, product, or service without the use of an advertising middleman.

Components of Marketing ((Nepal Education Board 10+2))

 Marketing refers to the functioning of related products and services, including market research and advertising to promote and sell a product and service. The overall marketing system constitutes four major components that are coordinated and interdependent with each other to achieve the desired results.

Marketing Mix: Components and Importance (Nepal Education Board 10+2)

Marketing Mix- The marketing mix refers to the set of actions, or strategies, that a company uses to market its brand or product. 

In simple words, a mixture of multiple ideas and plans by a marketing representative to promote a particular product or brand is called a marketing mix.

Several concepts and ideas combined together to formulate effective strategies helpful in making a brand popular amongst the masses form a marketing mix.

What are the 4Ps of marketing?

Elements of the marketing mix are often called the four P's of marketing.

Product (उत्पाद)

Place (स्थान) Location

Price (मूल्य)

Promotion (पदोन्नति)

Marketing Introduction:- Evolution of Marketing (Nepal Education Board 10+2)

                   शताब्दी, दशक, र वर्षहरूमा बजार अवधारणा नाटकीय रूपमा परिवर्तन भएको छ।

The market concept has changed dramatically over the centuries, decades, and years. The production-centric system has systematically changed into a relationship-centric system. Marketing has taken a modern form since the end of the 19th century after going through various development stages. Before the (20th) twentieth century, the production-oriented practice of marketing was conservative.

The new economy has seen the buying power of customer at all time. Consumers have reached easily to all types’ information for product and services because of the digital revolution. Developments of science & technology and especially the development of information technology have now changed the way people live, the way people do business, and the way people sell and buy.

The following is a brief description of various stages of the evolution of marketing.

Production Orientation Era (युग) or Stage(चरणहरू)

Product Orientation Era or Stage

Sales Orientation Era Or Stage

Marketing Orientation Era or Stage

Relationship Marketing Orientation Era or Stage

The following sentences summarize the above developments in marketing.

1. Production era: 'Cut costs. Profits take care of themselves'

2. Product era: 'Good products will sell themselves'

Sa. Sales era: 'Sales are keeping the bait for the customer'

Marketing. Market age: 'Customer is king!'

Relations. Relationship Marketing Age: 'Relationships with customers determine the future of our firm'.

Marketing Introduction - Meaning of Marketing (Nepal Education Board 10+2)

 Marketing refers to the activities undertaken to promote the purchase or sale of a product or service. Marketing involves advertising, selling and distributing products to consumers or other businesses.

In simple words, marketing refers to all the activities that a company undertakes to promote and sell products or services to existing or potential customers.

Marketing involves everything a company does to get the customer's attention and build an effective relationship with them.

At its most basic level, a marketing manager seeks to match a company's products and the need of customers who want access to those products. Matching manufactured products with the customer's actual needs and demands ultimately ensures profitability. (ग्राहकका वास्तविक आवश्यकताहरू र मागहरूको साथ उत्पादित उत्पादनहरू मिलान अन्ततः नाफा सुनिश्चित गर्दछ।)

Product, price, place, and promotion are the Four Ps of marketing. That is called marketing mix.यसलाई मार्केटिंग मिश्रण (Marketing Mix)भनिन्छ.

Global Business Environment

What is the environment?

The environment is the surrounding situation or condition where a person, animal, or plant lives or operates.

What is a business? व्यापार भनेको के हो?

An economic system where goods and services are exchanged for each other or for money (money, gold, clothing, food, etc.).

एक आर्थिक प्रणाली जहाँ सामान र सेवाहरू एक अर्काको लागि वा पैसाको लागि आदानप्रदान हुन्छन् (मुद्रा, सुन, कपडा, खाद्य पदार्थहरू आदि)।

What is the business environment?

The business environment consists of all the components (internal and external factors) surrounding a business organization, which influence or affects its actions and determine its effectiveness.

What is international business / global business?

International business refers to the exchange of goods and services between individuals and trading companies from different countries.

International business or global business included along with investment. Trade covers exports and imports of goods, services, and intellectual property. Investments include inflows and outflows of FDI as well as portfolio investments.

The international business or global business or world business consists of trade as well as investment.

What is globalisation?

Globalization is a global movement towards economic, financial, trade, and communications integration.

Globalization is a multidimensional process (economic, technological, socio-cultural, political, and institutional and ecological process) where the study focuses on economics.

Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, products, and services across the national boundaries.

What is the international business environment or global business environment?

The international business environment is a multidimensional one involving political risk, cultural differences, exchange risk, legal and taxation issues.

Therefore in  International/Global Business Environment comprises the political, economic, regulatory, tax, social & cultural, legal, & technological environments.

The main cultural and social factors affecting international trade are language, education, religion, values, customs, and social relations. These relationships include interactions between families, trade unions, and other organizations.

There are three levels of the business environment in any business firm:

• Operating 
• Industry
• and Remote Environments

Operating Environment

Integration of internal and external factors that affect the state of a company's operations: they are competitors, creditors, customers, workers, trade unions, and suppliers.

Industry Environment (उद्योग पर्यावरण)

This includes industry-specific factors identified by Porter's 5-force model (Theory of national competitive advantage): supplier capacity, demand conditions or buyer power, entry barriers, choices for firms providing similar products, and competitive rivalry. Availability.

Remote Environments (General Environment सामान्य वातावरण)

The general environment consists of factors that are beyond the control or uncontrollable. Uncontrollable factors put in an acronym of PEST-NG that stands for:

• Political & Legal Environment Factors
• Economical and Financial Environment Factors
• Socio-Cultural (and human) Environment Factors
• Technological Environment Factors
• Natural Environment Factors
• Global Environment Factors

Another famous short form of the remote or general external environment factors is presented as PESTLEG that stands for:

• Political
• Economic
• Socio-cultural
• Technological
• Legal
• Ecological/ Ethical (& Natural)
• Global Factors

Political and Legal Environment/Regulatory Environment राजनीतिक र कानूनी वातावरण / नियामक वातावरण

Political environment in international business consists of political factors and a set of governmental activities in a foreign market that can disrupt or facilitate the convenience of a business to conduct business activities in a foreign market. There is often a high level of uncertainty when doing business in a foreign country, and this risk is often referred to as political risk or sovereign risk.

The manager of international business needs to understand the importance of making political decisions in the host country that can severely affect its foreign operations.

The Political System राजनीतिक प्रणाली

The political system is the system of politics and government. The country's political system influences how businesses are run domestically and internationally.

For the study of the political system, a business firm should analyze the constitution of the concerned country, its major political parties, or the structure of government and the mechanism designed to a delegation of power from one leader to the next. A firm should also study how politicians finance their campaigns.

Nature or Assumptions प्रकृति वा अनुमानहरू

• A political system is a complete set of institutions, concerned groups (such as political parties, trade unions, and different lobby groups), the relationships between those institutions, and the political norms and rules that govern their functions (constitution, election law).

• A political system is made up of members of a social group who are in power.

• A political system is a system that necessarily has two properties: a set of interdependent components and boundaries toward the environment with which it interacts.

• The political system is one that ensures the maintenance of order and rationality in society as well as it is possible for some other institutions that their grievances arise during social existence.

• The political system is a concept which decides how a particular government makes policies and implement them.

Political system consists

The political system is consists of different elements. These elements are implemented and modified according to the influence of the different elements that includes:

Executive कार्यकारी

It consists of the Council of Ministers and the government bureaucracy or authorities.

Legislature (Assembly or Parliament) व्यवस्थापिका (विधानसभा वा संसद)

Legislature (Assembly or Parliament)

That consists of parliament with upper and lower houses. त्यसमा माथिल्लो र तल्लो सदन सहितको संसद हुन्छ

Judiciary न्यायपालिका

That consists of courts and other judicial and quasi-judicial authorities/institutions) In Nepal Apex Court of Supreme Court, Appellate Court, Special Court, and Districts Courts. There can be tribunals on settling bank loans, corruption, and human rights issues.

Political parties and Civil Society राजनीतिक दल र नागरिक समाज

Individuals (political parties, civil society) and the media are symbolically described as the main pillars of the constitution and democracy.

There are different political systems based on different political ideologies which can be discussed in two categories:

A. Collectivism, Individualism, and Socialism सामूहिकता, व्यक्तित्व, र समाजवाद

B. Democracy and Totalitarianism (Autocracy) प्रजातन्त्र र निरंकुशता

A. Collectivism, Individualism, and Socialism सामूहिकता, व्यक्तित्व, र समाजवाद

a. Collectivism सामूहिकता

Collectivism is the idea that a person's life is not for him but for the group or society of which he is only a part, having no rights and has to sacrifice his values ​​and goals for the "greater good" of the group.

b. Individualism  व्यक्तिवाद

Individualism refers to the political system where a person's life is subject to him and he has insufficient authorCharacteristics of Modern Democracy

ity to maintain the functions of his life and to pursue values.

c. Socialism  समाजवाद

Socialism is a populist economic and political system based on public ownership of the means of production (also known as collective or common ownership). In a purely socialist system, all legal production and distribution decisions are made by the government, and individuals depend on the state for everything from food to healthcare. The government determines the production and pricing levels of these goods and services. 

The government produces goods using machinery, equipment and factories that directly target human needs.

B. Democracy and Totalitarianism (Autocracy) प्रजातन्त्र र निरंकुशता

Question: What is the difference between a democracy and totalitarianism?

a. Democracy प्रजातन्त्र

Democracy means a government run by the people; a form of government in which the supreme power is vested in the people and exercised directly by them or by their elected representatives under a free electoral system.

Characteristics of Modern Democracy

1.      Majority Rule– the system of government is based on parliamentary majorities.

2. Multi-party system-voters Voters have the opportunity and right to choose from a variety of political parties that represent a wide range of political views.

retail Store Design and Retail Store Layout

“Think of yourself as a brand. You need to be remembered. What will they remember you for? What defines you? If you have it in you, do something that defines you. Invent something, develop a unique skill, get noticed for something — it creates a talking point.”

                                                            -Chris Arnold

Retail Store Design

Retail design is a creative and commercial discipline that combines several different areas of expertise together in the design and construction of retail space. Retail design is primarily a specialized practice of architecture and interior design, however it also incorporates elements of interior decoration, industrial design, graphic design, exterior decoration and advertising.

Retail store design is a branch of marketing and considered part of the overall brand of the store. Retail store design factors into window displays, furnishings, lighting, flooring, music and store layout to create a brand or specific appeal.

Retail store Layout

A store layout is the design in which a store’s interior is set up. Store layouts are well thought out to provide the best exposure possible. They are designed to create an attractive image for consumers. Stores are usually laid out with new merchandise up front to entice (to persuade someone to do something by offering them something pleasant) shoppers into the store. According to a piece in the magazine "Inside Retailing," the front of the store also creates a sense of the store's identity with displays of trademark products. The article also suggests other tips for store designers -- for example, having a centrally located checkout counter stocked with accessories to encourage impulse purchases.

“Store layout needs to guide the customer silently about where he/she wants to go and for exposing him/her to the entire store offering”. (The store itself it’s the most meaningful communication between the retailer and the customer)

•        Need to determine the basic layout of the store

•         Use signage (show information) to guide customers through the store and assist them in locating and finding info about merchandise

•         variety of approaches used to feature specific products

•         Layouts- method of encouraging customer exploration – present them with a layout which facilitates a specific traffic pattern.

•         E.g. Toys, We  uses a specific layout which forces customers to move through a sections of inexpensive impulse purchase products to larger more expensive goods

•         3 types of layouts

-        Grid

-        Racetrack

-        free form

Store layout and designing are factors that contribute to the uniqueness of a store.

Beyond just creating a good-looking store with aesthetically (philosophically) pleasing displays, retail store design is a well-thought-out strategy to set up a store in a certain way to optimize space and sales. The way a store is set up can help establish brand identity as well as serve a practical purpose, such as protecting against shoplifting (theft or loss of goods).

Prevention of losses due to merchandise pilferage (act of stealing) is a major cause of concern for all retailers. This issue should be addressed at the initial stage of store design. The retailer can use many electronic security systems like CCTV for the prevention of such losses. Thus, by appropriately integrating the various elements of store design (both exterior and interior), a retailer can create an excellent image of itself in the target customer's mind.

The exterior and interior of a store convey several messages about the store to the consumers. The building that houses retail store, (whether new or old) and the exterior design of the store are important aspects of the design of the store. Marquees(sign placed over the entrance or temporary tent), walkways, entrances, doors, display windows, the height and size of the building, colours and materials used, and theft prevention are some of the key factors to be kept in mind while developing a store's exterior. 

Managing space is the first and foremost concern of almost every retailer, when it comes to designing the store's interior. Space is always an expensive and scarce resource. Retailers always try to maximize the return on sales per square foot.

The interior layout and design of a store influences the purchasing behavior of the customers to a great extent. Designing the interior of a store in such a way as to influence customer behavior is referred to as visual merchandising. It includes optimum and appropriate use of fixtures (attached), displays, colour, lighting, music, scent, ceilings and floor, and designing all of these properly.

Objectives of an Effective Retail Store layout and Design

(1) Implement the retailer’s strategy,

(2) Influence customer buying behavior,

a. Attract new customer

b. Retention of old customer

(3) Provide flexibility,

(4) Control design and maintenance costs Affect labour costs and inventory shrinkage   fixtures- equipment used to display merchandise

(5) Meet legal requirements Americans with disabilities- 32 inch wide pathways, lower most cash wraps and fixtures so can be reached by wheelchair, create disability accessible checkout aisle, bathrooms with handrails, dressing rooms fully accessible etc.

(6) Increase sales on visit.

(7) Prevention of losses due to merchandise pilferage or shoplifting

1. Implement the retailer’s strategy

Primary objective: to implement retailer’s strategy.

Design- consistent and reinforce the retailers’ strategy by meeting the needs of the target market and building a competitive advantage. E.g. Sam`s-price sensitive- floor design and racks – metal and concrete to reinforce the brand image.

Flooring and shelving also affect retailers’ image: glass-elegance.

2. Influence customer buying behavior

•        Store design- should attract customers, enable them to locate merchandise, keep them in the store for as long time, motivate them to make unplanned, impulse purchase and provide them with a satisfied customer experience.

3. Flexibility

•        Dynamic business- what may work today, may not be applicable tomorrow- need to change the merchandise mix- need to change layout

•         Attempt to design stores with maximum flexibility.

•         Two forms: ability to physically move and store the components, and the ease with which components can be modified.

4. Cost

•        Cost of implementing the store design and maintain the store appearance

Free form design – costly- can encourage the customers to explore and increase sales

•        More lighting- expensive jewelry and other merchandise.

•        Store design – affect labor costs- traditional dept. stores with diff depts. – comfortable shopping, but require one person constantly to provide service

5. Prevention of losses due to merchandise pilferage or shoplifting

          The way a store is set up can help establish brand identity as well as serve a practical           purpose, such as protecting against shoplifting (theft or loss of goods).

Prevention of losses due to merchandise pilferage (act of stealing) is a major cause of concern for all retailers. This issue should be addressed at the initial stage of store design. The retailer can use many electronic security systems like CCTV for the prevention of such losses.

The store must offer a positive ambience to the customers. The customers must leave the store with a smile.

Circulation Planning

Circulation refers to the way people move through and interact with a building since the evolution of retail design and its impact on productivity have become clear, a series of standardisations in the techniques and design qualities has been determined.

Circulation planning is an analytical process, there’s a lot of art as well as skill to creating an effective plan.

Circulation planning is the analytical process or blueprint, there’s a lot of art as well as skill to creating an effective plan and layout designing which describe the way through people have to move through and interact with a retail store/ structure (blocks, toilets, billing section, restaurants, receptionists, stocking store etc.), while showing their shopping behaviour.  

Circulation planning is the lifeblood for retail industry. A retail industry simply can’t exist without it, and a good detailed plan makes for much easier and quicker implementation. Circulation planning is important because it ensures that the consumer moves through the store from front to back, guiding them to important displays and in the end to the cashier.

The first step of store design is the development of a comprehensive circulation plan for the overall requirements of the store. Based on market potential (the sales estimate and income received per square foot of selling area), plans can be made to meet the need for storage and selling space. The plan must specify the ways to achieve the best traffic circulation possible throughout the store and the types and sizes of fixtures necessary to display the merchandise in an appealing manner. A careful study of these factors helps make stores attractive, conducive to shopping, and as operationally efficient as possible.

Circulation planning requires developing a customer –bases holistic focus for the design and layout of the store and for the desired store image. Only after this customer focus is defined should a comprehensive plan be developed for both the exterior and interior of the store that matches the desired store image.

There are many factors retailers should consider before choosing a store location. From traffic analysis to zoning requirements, there is a lot of data to examine before deciding on the perfect spot.

Considering following factors while deciding a Store Layout can be useful:

1.   Effective Use of Space:

Space needs to be used effectively, with all the areas planned properly to break up the store into logical and functional areas such as POS, Back Office, Changing Rooms, Pantry, Toilets, etc.

          2. Inviting Customers:

Layout is designed to attract the targeted audience. It should speak on its own and guide customers to all the areas of merchandise.

         3. Interiors: Interior arrangements –

Appearance, walls, sections, and areas should be planned and positioned well. Lighting and Music arrangement needs to be taken into consideration while planning a layout. It should be placed to suit the kind of shopper. These arrangements can be changed during different hours in a store.

There are basic store layouts and circulation plans (location, store layout and design) that all provide a different experience:

Retail store Layout

A store layout is the design in which a store’s interior is set up. Store layouts are well thought out to provide the best exposure possible. They are designed to create an attractive image for consumers. Stores are usually laid out with new merchandise up front to entice (to persuade someone to do something by offering them something pleasant) shoppers into the store.

It describes the overall look and feel of the interior of a retail store, including the placement of fixtures and products within the store. It is an important part of implementing retail store strategy. Effective layouts are designed to expose customers to the most products possible given the amount of floor space available.

According to a piece in the magazine "Inside Retailing," the front of the store also creates a sense of the store's identity with displays of trademark products. The article also suggests other tips for store designers -- for example, having a centrally located checkout counter stocked with accessories to encourage impulse purchases.

A well-planned retail store layout allows a retailer to maximize the sales for each square foot of the allocated selling space within the store. Store layouts generally show the size and location of each department, any permanent structures, fixture locations and customer traffic patterns. Each floor plan and store layout will depend on the type of products sold, the building location and how much the business can afford to put into the overall store design.

Layout for retail stores depends on the retailer’s understanding of the customers’ buying habits. Retailers have three basic layout options from which to choose: grid, free form, and boutique. Some areas of a retail store generate more sales per square foot and therefore are more valuable.

“Store layout needs to guide the customer silently about where he/she wants to go and for exposing him/her to the entire store offering”. (The store itself it’s the most meaningful communication between the retailer and the customer)

•        Need to determine the basic layout of the store

•         Use signage (show information) to guide customers through the store and assist them in locating and finding info about merchandise

•         variety of approaches used to feature specific products

•         Layouts- method of encouraging customer exploration – present them with a layout which facilitates a specific traffic pattern.

•         E.g. Toys, We  uses a specific layout which forces customers to move through a sections of inexpensive impulse purchase products to larger more expensive goods

It is very vital for a business to plan the store layout, atmosphere, and create irresistible visual merchandising displays. In the process it would be necessary to view floor plans and other retail store designs, learn how to select and care for store fixtures, as well as using special lighting techniques to accent products and find store layout software and vendors selling store fixtures and displays. A well-planned retail store layout allows a retailer to maximize the sales for each square foot of the allocated selling space within the store. Store layouts generally show the size and location of each department, any permanent structures, fixture locations and customer traffic patterns.

Each floor plan and store layout will depend on the type of products sold, the building location and how much the business can afford to put into the overall store design.

The straight floor plan is an excellent store layout for most any type of retail store. It makes use of the walls and fixtures to create small spaces within the retail store. The straight floor plan is one of the most economical store designs. The diagonal floor plan is a good store layout for self-service types of retail stores. It offers excellent visibility for cashiers and customers. The diagonal floor plan invites movement and traffic flow to the retail store. The angular floor plan is best used for high-end specialty stores. The curves and angles of fixtures and walls are makes for a more expensive store design. However, the soft angles create better traffic flow throughout the retail store. The geometric floor plan is a suitable store design for clothing and apparel shops. It uses racks and fixtures to create an interesting and out-of-the-ordinary type of store design without a high cost. The mixed floor plan incorporates the straight, diagonal and angular floor plans to create the most functional store design. The layout moves traffic towards the walls and back of the store.

Store layout and designing are factors that contribute to the uniqueness of a store.

Types of layouts

1. Grid Layout
2. Racetrack Layout
3. free form Layout

1.   Grid Layout: Grid Layout is a type of store layout in which counters and fixtures are placed in long rows or “runs,” usually at right angles, throughout the store.

Has parallel aisles (a walkway between) with merchandise on shelves on both sides of aisles, Cash registers located at the entrance/exit.

    

•        Well suited for shopping trips in which customer needs to move through entire store and easily locate the products they want to buy. E.g. grocery – supermarkets.

•        Cost efficient, less wasted space, all aisles are of same width.

•        Use of shelves (frame, wall) - more merchandise on sales floor.

•        Low cost standardized fixtures

ò       Counters and Fixtures are placed in long rows or “runs” usually at right angles, throughout the store

ò       This layout is used in grocery, discount store and drugs stores, like- Reliance fresh

Following are the advantages and disadvantages of Grid layout.

Advantages

a)     Low cost

b)     Customer familiarity

c)     Merchandise exposure

d)     Ease of cleaning

e)     Simplified security

f)      Possibility of self-service

Disadvantages

a.     Plain and uninteresting

b.     Limited browsing

c.      Stimulation of rushed shopping behaviour

d.     Limited creativity in décor

A store organized using a grid layout is very simple. The aisles of the store are arranged parallel to one another and lead to the checkout lanes located at the front of the store where customers enter and exit. Most people have seen this type of layout used in grocery or drug stores.

2.   Race Track Layout/Loop Layout:

Loop Layout is also known as Racetrack layout. It is a type of store layout in which a major customer aisle begins at the entrance, loops through the store, usually in the shape of a circle, square, or rectangle, and then returns the customer the front of the store.

Used in departmental stores such as-: Shopper’s Stop, Ritu Wear.

•        Provides a major aisle that loops around the store to guide customer traffic around various depts. To direct customers through the stores, aisles must be defined by change in surface/color. Cash register stations are typically located in each dept. bordering the racetrack.

Characteristics

·        Facilitates the goal of getting customers to see the merchandise available in multiple depts. and facilitate impulse purchase.

·        Customers forced to take diff viewing angles.

·        The major customer aisle begins at the entrance, loops through the store and returns customer to the front of the store.

·        Used in departmental stores such as-: Shopper’s   Stop, Ritu Wear.

         

3.   Free Flow Layout:

Free- Flow Layout is a type of store layout in which fixtures and merchandise are grouped into free-flowing patterns on the sales floor.

•        Boutique layout, arranges fixtures and aisles in an asymmetric (different, not similar) pattern. Use in small specialty stores or within depts. of large stores.

•        Fixtures and Merchandise are grouped in Free-flowing patterns on the sales floor

•        This layout is used in specialty stores like-: Reebok, Nike

•         Works best in small stores (under 5,000 square feet) in which customers wish to browse.

Advantage-:

·        Increased impulse buying.

·        Provides an intimate and relaxing environment that facilitates shopping and browsing

Disadvantage-:

·        Possible confusion and waste of floor space.

·        No well-defined traffic pattern, customers are not drawn towards the store naturally. Personal selling becomes more important.

·        Layout sacrifices some retail storage and display space to create a more spacious environment.

·        Cost

·        Difficulty of daily basis cleaning process.

·        Difficult to manage crowd (more than expectation)

For a spacious store layout that's flexible and ideal for displaying impulse items, opt for a free flow store layout. Arrange products throughout the store using racks and shelves placed so that customers can move around the browse freely and employees can access customers immediately to assist with buying decisions. A free flow store layout is ideal for clothing stores, jewellery stores, boutiques and small specialty shops. Use caution with this type of layout because it can appear cluttered, instead of spacious and free moving, if product displays and racks aren't situated to maximize space.

Store Designing

Designing a store layout includes deciding the best methods of presenting goods to the customer. Goods are presented either on shelving units, hanging from something, on pegboard, stacked or placed on dump tables. The methods determined are designed to optimize sales volumes.

Some objectives for a store design are to

1.     Implement the retailer's strategy,

2.     Influence customer buying behavior,

3.     Provide flexibility,

4.     Control design and maintenance costs, and

5.     Meet legal requirements.

Typically, a store design cannot achieve all of these objectives, so managers make trade-offs among objectives, such as providing convenience versus encouraging exploration.

The basic elements in a design that guide customers through the store are the layout, signage, and feature areas. A good store layout helps customers to find and purchase merchandise. Several types of layouts commonly used by retailers are the grid, race track, and free-form. The grid design is best for stores in which customers are expected to explore the entire store, such as grocery stores and drugstores. Racetrack designs are more common in large upscale stores like department stores. Free-form designs are usually found in small specialty stores and within large stores ‘departments.

Signage and graphics help customers locate specific products and departments, provide product information, and suggest items or special purchases. In addition, graphics, such as photo panels, can enhance the store environment and the store's image. Digital signage has several advantages over traditional printed signage, but the initial fixed costs have made the adoption of this technology slow. Feature areas are areas within a store designed to get the customer's attention. They include freestanding displays, end caps, promotional aisles or areas, windows, cash wraps or point-of-sale areas, and walls

Space management involves two decisions:

(1) The allocation of store space to merchandise categories and brands, and

(2) The location of departments or merchandise categories in the store.

Some factors that retailers consider when deciding how much floor or shelf space to allocate to merchandise categories and brands are

(1) The productivity of the allocated space,

(2) The merchandise's inventory turnover,

(3) Impact on store sales, and

(4) The display needs for the merchandise.

When evaluating the productivity of retail space, retailers generally use sales per square foot or sales per linear foot.

The location of merchandise categories also plays a role in how customers navigate through the store. By strategically placing impulse and demand/destination merchandise throughout the store, retailers can increase the chances that customers will shop the entire store and that their attention will be focused on the merchandise that the retailer is most interested in selling. In locating merchandise categories, retailers need to consider typical consumer shopping patterns.

Retailers utilize various forms of atmospherics—lighting, colours, music, and scent—to influence shopping behavior. The use of these atmospherics can create a calming environment for task-oriented shoppers or an exciting environment for recreational shoppers.

The goal of any retail location is to draw customers into the store and then persuade them to make a purchase. Good advertising and promotion work to bring customers in, but what happens once customers get into a store largely depends on the layout and design of the store. Both play a huge role in how customers rate their experiences and whether they decide to buy, and if they return or recommend the store to others.

Opening a retail store can reap many rewards. Retail stores must offer a unique environment that set them apart from others. Well-planned retail store design ideas concerning layout should allow a retailer to maximize sales for each foot of the allocated selling space within the store. By utilizing a grid wall, for example, a retail store can accommodate almost any product. Every inch of every available space must be efficiently planned for maximum display advantage. Nothing is an accident when it comes to retail store design ideas.

A retailer should study successful floor plans and retail store design ideas. One of the secrets to successful sales is to create the right atmosphere. Selling is a seduction of sorts and setting the mood is part of the equation. Lighting is very important; it should be bright enough to enable customers to easily see products but not too harsh.

Store Design should

v    Be consistent with image and strategy

v    Positively influence consumer behaviour

v    Consider costs versus value

v    Be flexible

v    Recognize the needs of the disabled

Tips for Store Design and Layout

The signage displaying the name and logo of the store must be installed at a place where it is visible to all, even from a distance. Don’t add too much information.

1.     The signage displaying the name and logo of the store must be installed at a place where it is visible to all, even from a distance. Don’t add too much information.

2.     The store must offer a positive ambience to the customers. The customers must leave the store with a smile.

3.     Make sure the mannequins are according to the target market and display the latest trends. The clothes should look fitted on the dummies without using unnecessary pins. The position of the dummies must be changed from time to time to avoid monotony.

4.     The trial rooms should have mirrors and must be kept clean. Do not dummies unnecessary boxes or hangers in the dressing room.

5.     The retailer must choose the right colour for the walls to set the mood of the Customers. Prefer light and subtle shades.

6.     The fixtures or furniture should not act as an object of obstacle. Don’t Unnecessary add too many types of furniture at your store.

7.     The merchandise should be well arranged and organized on the racks assigned for them. The shelves must carry necessary labels for the customers to easily locate the products they need. Make sure the products do not fall off the shelves.

8.     Never play loud music at the store.

9.     The store should be adequately lit so that the products are easily visible to the customers. Replace burned out lights immediately.

10.  The floor tiles, ceilings, carpet and the racks should be kept clean and stain free.

11.  There should be no bad order at the store as it irritates the customers.

12.  Do not stock anything at the entrance or exit of the store to block the way of the customers. The customers should be able to move freely in the store.

13.  The retailer must plan his store in a way which minimizes theft or shop lifting.

1)     Merchandise should never be displayed at the entrance or exit of the store.

2)     Expensive products like watches, jewellery, precious stones, and mobile handsets and so on must be kept in locked cabinets.

3)     Install cameras, CCTVs to have a closer look on the customers.

4)     Instruct the store manager or the sales representatives to try and assist all the Customers who come for shopping.

5)     Ask the customers to deposit their carry bags at the entrance itself.

6)     Do not allow the customers to carry more than three dresses or according to norms at one time to the trial room.

Designing a store layout includes deciding the best methods of presenting goods to the customer. Goods are presented either on shelving units, hanging from something, on pegboard, stacked or placed on dump tables. The methods determined are designed to optimize sales volumes.

         

          Some Objectives for a store design are to

a)   Implement the retailer's strategy,

b)   Influence customer buying behavior,

c)   Provide flexibility,

d)   Control design and maintenance costs, and

e)   Meet legal requirements.

Store Exteriors/Store Front

The store exterior is often called the storefront, and it includes the store sign, display windows, entrances, outdoor lighting, landscaping, and the building itself. The design of a business’s exterior is often part of the place decision. The location often influences a store’s image.

The store sign is a major element of a store exterior. Many businesses develop a unique way of writing the company name, often with design elements. The display windows show a selection of merchandise available in the store. Store exterior/Store Front comprises the following:

                

1)           Location

2)           Parking

3)           Ease of access

4)           The building architecture

5)           Health and safety standards

6)           Store windows, lighting

Store Interiors

A store interior is usually divided into two sections: the selling area and the sales support area. The selling area is where the merchandise is presented to the customer. Selling area includes shelves, racks holding merchandise, displays, cash registers, etc.

The sales support area contains amenities for customers, such as restrooms, lounges, and cafes. It also includes staff areas and space for merchandise receiving and storage. Store interior includes the following:

1)   Fixtures

2)   Flooring & Ceilings

3)   Lighting

4)   Graphics & Signages

5)   Atmospherics

Following are the interior design elements considered in a retail store:

1)   Fixtures / (Racks):

Fixtures are primarily used to hold and display the merchandise, help to sell it, to guard it and to provide storage space for it. They come in different styles colours, sizes and textures to enhance the image of the merchandise displayed on it. A major consideration in developing an appropriate store design involves the use of fixtures. They are used to display merchandise, to help sell it, to guard it, and to provide a storage space for it. They should be attractive and focus customer’s attention and interest on the merchandise. One way to bring the cost of fixtures down is standardization.

Examples

 

a.   Straight rack: It consists of a long pipe suspended with supports going to the floor or to the wall.

b.   Rounder: As the name specifies it is a round fixture arrangement that sits on a pedestal. It is also known as bulk fixture or capacity fixture because it holds maximum number of merchandise.

c.    Four way fixture: Which is also known as feature fixture has two crossbars that sit perpendicular to each other on a pedestal.

d.   Gondolas: These are extensively used in grocery and discount stores.

Customisation is expensive, and construction budgets today allow this luxury only where speciality departments can justify the cost. Some stores are trying to keep a lid on fixture costs with walls that do not reach the ceiling but instead begin two feet down. Besides being cheaper and faster to put up, they do not affect sprinklers, lighting, heating ventilation and air conditioning (HVAC), and other ceiling ducts. Most stores are moving toward smaller and less dense fixtures than what they previously used, which is another way to control costs. However, even more significantly, the trend reflects the reduction in many stores’ inventory levels. Glass cubes that once consisted of sixteen inch and eighteen-inch high bins may now be housed in twelve-inch bins. This way, although there are fewer items in each unit, it still looks full. Another trend is a renewed demand for wood and glass, which in recent years were demand for wood and glass, which in recent years were over shadowed by the more affordable clear plastic.

2)   Displays:

An attractive and a creative display create interest and can help to sell the merchandise. Display an important role in a retail store. An attractive and informative display can help sell goods. Poorly designed displays can ruin the store’s atmosphere and centre an uncomfortable setting. Since displays often take up premium space within the store, they carry a heavy burden of productivity in terms of creating sales.

There are several principle rules of display that help ensure their effectiveness:

a) They should achieve balance,

b) Provide a dominant point,

c) Create eye movement

d) Low gradation,

c) Just merchandise to proper height,

d) Group the merchandise in the display,

e) Generate sales appeal,

f) Keep merchandise in proper order, 

g) Display names of products and store name.

h) Displays should also be simple and not chaotic or congested.

To ensure the effectiveness of the displays the following factors are to be considered:

a.   Balance:

In building a display, it is important to make sure that it is in balance. This is achieved by arranging the products in a systematic manner. Formal balance is achieved by arranging the similar items at equal distance from the centre. Informal balance is achieved by placing different size goods or objectives away from the centre based on their relative size.

b.   Dominance:

All displays should have a central point that will attract the viewer’s eye. Ex: Display of titan watches. The point may be achieved by using prominent piece of merchandise, such as a diamond pendant, using dramatic colours, such as a bright scarf, or using streamers arranged toward the centre of the display.

c.    Eye movement:

Displays should direct the eyes away from the point of dominance in a systematic fashion, instead of encouraging them to jump from one end to the other. If the viewer’s eyes move indiscriminately around the display, the shopper will miss some of the merchandise and will not get the full message intended. 

d.   Gradation:

The gradation is the sequence in which items are arranged. For example small items are placed in the front row, medium in next and bigger items at the back rows. This creates a sequential display with appealing illusion.

e.   Height of merchandise:

Merchandise that has the greatest effect should be placed at the eye level of the customer. Because viewers tend to look straight ahead, merchandise placed at eyes level is most likely to be seen.

f.     Grouping the merchandise:

Too many retailers place one item after another in a long row. Shoe stores, jewellery stores, and mass merchandisers tend to do this. Stores with large amounts of one item or with one line of goods are likely to build longer displays. Instead of creating long displays where the customer has problems picking out merchandise, retailers should group items so that the customer’s eyes cannot travel from group to group but stop and focus on particular products.

g.   Sales appeal:

Display should always show best merchandise that the retailer has to offer. Best way to generate sales appeal is to choose the most important feature of the merchandise and focus on it.

h.   Keep it simple:

Since displays takes up the great deal of most valuable space of the store, retailer has to get best returns out of it. Too many items in a display district confuse the consumer and tend to create an atmosphere of chaos or congestion, so the display should be selective and simple.

3)  Colour:

The psychological effect of colour is important to the retailer. Intelligent use of colour is important in store design. Since people draw to warm colours, yellow, red etc. can be used at the entrance to draw the customers into the stores, whereas the cool colours like blue and green tend to calm atmosphere and facilitate the smooth flow of customers in the store.

4)   Lighting:

Today lighting has become a display medium. It is an integral part of store design in store exterior and store interiors. Lighting should match with the retailer’s attempt to create a bright store image proper lighting is one of the most important considerations in retail design. At one point in time, the function of lighting was to provide customers with a means of finding their way through the store. Today, lighting has become a display medium.

It is an integral part of the store’s interior and exterior design. Lighting should match the mood retailer is attempting to create with the rest of the store décor and should complement, rather than detract from, the merchandise. General illumination is needed throughout the store. However, most stores need additional localized lighting to highlight special displays and showcases, help bring out colours, and relieve the monotony of even, overall light. Too much or too little lighting, or even the wrong type of lighting, can create false impressions about the merchandise on display. Incandescent lighting used alone, for example, accents yellow and red. Fluorescent lights frequently build up blues and purple. Therefore, retailers must use a lighting combination that gives a correct impression of the merchandise while de-emphasising the source of the light itself.

5)   Ceiling:

Ceiling represents a potentially important element in the interior design. Higher the ceiling, more the space to heat and cool, at increasing energy rates. Designers are making use of varied ceiling drops to create distinction for different departments within the stores.

In older stores, ceilings of twelve to sixteen feet are still common, but most department store ceilings are now in the nine – to- ten-foot range. Remember, the higher the ceiling, the more space to heat and cool at increasing energy rates. Ceiling heights are becoming much less standardized within stores. Designers are making use of varied ceiling drops to create distinct for different departments within a store.

6)   Flooring:

Retailers are taking a sophisticated “return investment” approach to flooring decisions. Firms are willing to pay higher-up-front installation costs for materials that are more expensive if they see a return in greater durability and reduced maintenance expenses. Flooring choices are im­portant because the coverings can be used to separate departments, muffle noise in high – traffic areas, and strengthen the store image. The range of choices for floor coverings is endless: Carpeting, wood, terrazzo (marbles), quarry tile, and vinyl (strong) composition all have applications in different settings.

7)   Shelving:

The material used for shelving should promote the merchandise strategy and enhance the image of the products displayed.

Signage Graphics

Signage is the design or use of signs and symbols to communicate a message to a specific group, usually for the purpose of marketing. Signs are any kind of visual graphics created to display information to a particular audience. The main purpose of signs is to communicate, to convey information such that the receiver may make cognitive decisions based on the information provided.

1.   Help customers locate specific products and departments, provide specific information, and suggest items or special purchases

2.    Graphics-

Can add personality, beauty to the stores image

3.    Location:

Use to identify the location of merchandise. Large stores display directional signage to guide customers around the store and from one area to another.
Hanging signs from the ceilings – to enhance visibility

4.   Category signage:

Used within particular dept. or sector of the store, smaller than directional signs. Purpose- to identify the types of products offered-located near the referred goods.

5.   Promotional signage:

Signage displaying special offers may be displayed in windows to entice customers into the store.

  

6.   Point of sale:

Placed near the merchandise they refer to so that customers know its price and detailed information. Help to quickly identify special offers

7.   Lifestyle images:

Use various images such as pictures of people and places to create moods that encourage customers to buy the products.

Signage can be more effective if:

•        Coordinate signs and graphics with the stores image:

Should act as a bridge between merchandise and target market. Color, tone, graphic should complement the merchandise. For e.g. formal display – not for children section. Color combinations should appeal to specific target audience – primary colors for kids, hot vivid colors- teens etc.

•         Inform customers:

Informative merchandise- make merchandise more desirable.

•        Use signage and graphics as props: using signs that masquerade as props, is a great way to unify a theme or merchandise for an appealing overall presentation.

•        Keep signs and graphics fresh:

Should be relevant to items displayed. New signs= new merchandise

•         Limit text on signs:

Signs with too much copy won’t work.

•         Use appropriate typefaces on signs

Digital Signage

Digital signage is a sub segment of signage. Digital signages use technologies such as LCD, LED and Projection to display content such as digital images, video, streaming media, and information. They can be found in public spaces, transportation systems, museums, stadiums, retail stores, hotels, restaurants, and corporate buildings etc., to provide way-finding, exhibitions, marketing and outdoor advertising.

•        Typically developed and produced at corporate level and distributed to stores.

•        Visual content is delivered digitally through centrally managed and controlled centrally.

•         Content = video clips to price of merchandise

•         Superior in recall and content

•         Enhance stores environment and atmospherics

•         Can be customized according to the strategy.

•         Ensures timely output, and decreases promotional cost

Signage - Meaning and its Role in Retail Industry

What is a Signage?

Any visual representation which gives information to the customers about a store, any office, building, street, park and so on is called a signage.

Signage helps the customers to easily reach their desired destination or locate a building by simply following the instructions displayed on it.

Role of Signage in Retail Industry:

• A customer can easily locate the store with the help of a signage.
• Signboard gives all necessary information about the store. The customer can easily come to know about the products kept at the store without actually bothering anyone. Visual Displays put inside the retail store can actually help the customers to easily locate the merchandise.
• It is the signboard which actually attracts the customers into the store. The signage should be interesting enough to pull the customers into the store as a retailer can’t afford to lose even a single customer.
• The signboard should not be too small. End-users might miss a small signage and hence the whole idea of attracting the customers into the store gets nullified.
• The signboards are an effective medium of communication between the retailer and the customer.
• The signboard gives the store its unique identity and helps in furthering its brand image.
• A signage goes a long way in influencing the customer’s buying decision. A single glance at the signboard helps the customer to decide whether he has to step into the store or not?

Important points to keep in mind while installing Signage

• The signage should never block the entrance of the store. It should not hide the interiors of the store.
• Install the signage at a place which can be easily viewed by all even from a distance.
• The signboard must display all the necessary information like the name of the store, its logo or any other required information.
• Don’t put too much information on the signboard. Let the customers walk into the store and find out on their own what the store is offering.
• A single word “Discount” written on the signboard outside the store can do the trick. The customer would be inquisitive enough to find out what the store offers. He would definitely step into the store to check out the various options. There is actually no need to mention how much discount, what percentage and so on.
• The material and the fabric used for the signboard should be of premium quality so that it lasts for a longer duration. The retailer must make sure the signboard does not lose its lustre.
• Choose the right paint for the signage. Make sure the information is clearly visible to all. The customers should be able to easily read the signboard even from a distance. Choose a light background colour and a dark text colour for clear visibility. One can also highlight the important information. Don’t pick any colour which might make your signboard look dull.
• The name of the store should be written in bold or in a different font to create the desired impact.
• Design your signboard in the most unique and innovative way for the customers to get attracted into the store.
• The signboard should not mislead or confuse the customers.
• 
  Keep the signboard simple but informative.

Summary

Some objectives for a store design are implement the retailer’s strategy, influence customer buying behavior, provide flexibility, control design and maintenance costs, and meet legal requirements. Typically, a store design cannot achieve all of these objectives, so managers make trade-offs among objectives, such as providing convenience versus encouraging exploration. Store Image serves a critical role in the store selection process important criteria include cleanliness, labelled prices, accurate and pleasant checkout clerks, and well-stocked shelves, the store itself makes the most significant and last impression.

Creating a buying Environment means designing an environment through visual communications, lighting, colour, sound. Scent to stimulate customers’ perceptual and emotional responses and ultimately influence their purchase behaviour. A store interior is usually divided into two sections: the selling area and the sales support area. The selling area is where the merchandise is presented to the customer. Selling area includes shelves, racks holding merchandise, displays, cash registers, etc. Store interior includes the, fixtures, flooring & ceilings, lighting, graphics & signages, and atmospherics.

Store design is the architectural character or decorative style of a store that conveys to the customer “what the store is all about”. The first step of store design is the development of a comprehensive plan for the overall requirements of the store.

Based on market potential (the sales estimate and dollars received per square foot of selling area), plans can be made to meet the need for storage and selling space. The plan must specify the ways to achieve the best traffic circulation possible throughout the store and the types and sizes of fixtures necessary to display the merchandise in an appealing manner. A careful study of these factors helps make stores attractive, conducive to shopping, and as operationally efficient as possible. The basic elements in a design that guide customers through the store are the layout, signage, and feature areas.