Nordstrom: How to Succeed by Selling Just One Shoe - Term Paper Example

Nordstrom: How to Succeed By Selling Just One Shoe Type of Retailer that Nordstrom is ified as, and Common Characteristics with Other Retailers Nordstrom is classified as an upscale departmental store chain. This is because it is a large departmental store and has numerous chains in various states. Each department is treated and operated as an individual store. Nordstrom shares this characteristic with other retailers of this type like Dillard and Macy’s. These stores are large and have independent chains and offer a variety of goods to their customers who range from men, women and children. These stores offer goods such as shoes, cosmetics, clothing, fragrances and jewelry. These retailers also share a desire for quality customer service, excellent store ambience, as well as quality merchandise. They have knowledgeable sales clerks and sales people who pay more attention to customers (Lamb, et. al, 2011). Nordstrom’s level of service on the continuum Nordstrom’s level of service is known to be high full service. Sales people are taught to always try to understand their customers. They should try to make their customers have the best shopping experience at any time they visit the store. Nordstrom is therefore at the full service continuum level since its employees would do whatever is possible to make their customers happy. Nordstrom aims at giving the best experience to its customers, whether they are shopping on- line, in their stores or through a mail order catalogue. A good example of a business that is on the other end of the continuum is Target. Although they have good customer service, it cannot be compared to that at Nordstrom. Customers will just be greeted at the door when going into the store and not much assistance will be given to them. Their sales people with focus on making sales rather than assisting customers fully. Target does not depend on high quality customer service. The store will just ensure that products are well displayed on the shelves and that the store processes are running smoothly. The self-service model is more important at target store since customers will just walk around the store and look for whatever they wish to buy by themselves. Six Components of Nordstrom’s Retailing Mix According to Lamb, et al. (2011), Six components of Nordstrom’s retailing mix that have had great contribution towards the company’s success are: Customer satisfaction Nordstrom has knowledgeable sales people who provide quality services to their customers because they know that each customer would love to get a unique shopping experience. The highly trained employees will create personal interactions with each customer and this will ensure that their needs and wants are satisfied. Selective distribution Nordstrom also uses selective distribution as a method of retailing. The departments now manage inventories at its stores and website as one big entity. When a customer is shopping online and the product is in-store in the warehouse, Nordstrom can now make the product available by pulling it from the store stock and the customer will now be able to buy it. This also applies in the case where a customer is shopping in the store. If whatever item the customer is seeking is out of stock in the store where he is shopping, Nordstrom can get the item from another of its own stores or even from its web supplies. The customer will therefore go home satisfied since he has been able to get want he wanted. This method of retailing has given Nordstrom store employees inventory information so they are able to make any product available to their customers. Location Nordstrom has various stores situated in different states. These stores are accessible. Each store is independent and carries out its own promotions, services, buying, and control. Each store is headed by a buyer that is responsible for the types as well as quality of goods that are sold in the store. Personnel Personnel serve as a great retail mix. The retail sales people will convince customers to buy merchandise. Nordstrom sales people are able to persuade the customers that what they have on offer is precisely what they need. The sale people are trained in suggesting a sale and trading up, that is persuading a customer to buy an expensive commodity that he did not intend to purchase. Presentation The main component of a store’s presentation is the overall impression that will be created by a store’s physical layout. Nordstrom carries a wide and different range of merchandise that is displayed in the store in different sections depending on the type of the product, quality as well as its brand name. The stores have used space effectively that is isles and merchandise displays. Discuss a primary challenge Nordstrom faces in the current retail market. Nordstrom is facing a new challenge in customers who use advanced technology, for instance, smart phones and tablets (Lamb, et al, 2011). These customers are now second guessing customer service. This is forcing the upscale departmental store, which has over the years been known for its high quality customer service, to come up with new ideas in the digital area. Consumers are now opting to use these operators rather than relying on the traditional service providers, that is, the sales people. Nordstrom therefore has to redefine customer service differently in a manner that is value oriented by putting its focus on the speed of checkout, in stock execution as well as ease of store navigation. Competition and Consumer Expectations Customers nowadays care about convenience and perceived value rather than the methods with which they are served. Customers purchasing behaviors are changing as the goods that they transact are also changing. Competition has designed new shopping experiences that create opportunities that will enable impulse buying, up- sell and cross- sell. Retail stores continue to expand into new fields, such as gasoline, machinery and other businesses. Consumers have now become value-oriented shoppers and this is regardless of their level of income. Customer expectations have changed. In the 1990s, shoppers preferred to get one on one attention from the sales people but nowadays, customers prefer to shop on their own so long as locating any commodity in a store is easy (Lamb, et al, 2011). To respond to these, some retail stores have added retail sales technologies that will ensure effectiveness and minimize intrusion. Customer expectations regarding services also vary greatly. Customers’ expectations from a discount store will be very different from their expectations in a departmental store. Upscale retailers that value quality customer service have now been forced to add another level of service personnel in their high profile locations. Reference Lamb, C. W, Hair, J. F, and McDaniel, C. (2011). Essentials of Marketing. 7th edition. Cengage Learning: USA. Read More