Swot Analysis Of Nordstrom
INTRODUCTION TO MARKETING
MKT 100
ASSIGNMENT #2
“NORDSTROM: HOW TO SUCCEED BY SELLING JUST ONE SHOE”
BY
ALLEN WHITE
May 18, 2011
Professor Ingrid Romer
Owings Mills, MD
Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type.
Nordstrom would be classified as an upscale department store chain. Nordstrom is known as a fashionable, expensive retailer department store chain which houses several departments under one roof. Nordstrom shares the same characteristics as Macy’s, JC Penny’s, and Dillard’s. However, Nordstrom is noted as one of the largest department stores of its type. Nordstrom carries a wide variety of merchandise and specialty …show more content…
Give an example of a store that would be on the opposite end of the continuum and explain their differences.
Nordstrom ‘s level of service is basically a full service continuum that spends less money on advertisement, and prefers word of mouth publicity. Nordstrom has perfected the art of how to focus on the right customer, by giving them undivided attention. Nordstrom has a reputation of putting the customer first, and providing superior customer service. Nordstrom believes in building a long term relationship with their customers, they may even exchange business cards, or set up future shopping dates. Nordstrom is a department store that sells exclusive clothes from various designers, accepts credit and call customers when new merchandise comes in. Nordstrom has a generous exchange policy, they will exchange items even though the store didn’t sell it to that consumer. Target is a good example of a store that would be on the opposite end of Nordstrom’s continuum. Target sells designer apparel at a discounted price, but may only carry one designer’s line of merchandise at a time. Target stores are known for poor quality customer service, one might even have a hard time receiving service at all. Target’s exchange policy must be handled within three days with a receipt, and a store credit will be issued of even …show more content…
First, product, where retailers decide what to sell on the basis of what their target market wants to buy. Eric Nordstrom says, “Every day, you’ve got to open your doors and sell something. Even if it’s just one shoe”. Next, is place, geography remains the most important factor in choosing a location. Eric Nordstrom, the company’s president, visits each potential location himself before signing off on it. Place is an important commitment of resources that can reduce a business future flexibility (Lamb 2010). Then, there is promotion, where the goal is to help position the store in consumer’s minds; satisfied customers are much more persuasive. Furthermore, price is the key element in a retail store’s positioning strategy. The higher the price, often indicate a higher level of quality, which shows a significant level of reliability. Price also reinforces the prominent image of retailers. The next P in the retailing mix is presentation, the goal is to use all of the store’s space effectively. Finally, personnel, where a salesperson’s job is to persuade shoppers to buy. In my opinion personnel has been most important to Nordstrom’s success. Robert Spector, coauthor of the Nordstrom Way, says his favorite story is of a woman with one leg who jokingly bet a Nordstrom salesperson that he wouldn’t sell her just one shoe. The employee was more than happy to split up the
MKT 100
ASSIGNMENT #2
“NORDSTROM: HOW TO SUCCEED BY SELLING JUST ONE SHOE”
BY
ALLEN WHITE
May 18, 2011
Professor Ingrid Romer
Owings Mills, MD
Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type.
Nordstrom would be classified as an upscale department store chain. Nordstrom is known as a fashionable, expensive retailer department store chain which houses several departments under one roof. Nordstrom shares the same characteristics as Macy’s, JC Penny’s, and Dillard’s. However, Nordstrom is noted as one of the largest department stores of its type. Nordstrom carries a wide variety of merchandise and specialty …show more content…
Give an example of a store that would be on the opposite end of the continuum and explain their differences.
Nordstrom ‘s level of service is basically a full service continuum that spends less money on advertisement, and prefers word of mouth publicity. Nordstrom has perfected the art of how to focus on the right customer, by giving them undivided attention. Nordstrom has a reputation of putting the customer first, and providing superior customer service. Nordstrom believes in building a long term relationship with their customers, they may even exchange business cards, or set up future shopping dates. Nordstrom is a department store that sells exclusive clothes from various designers, accepts credit and call customers when new merchandise comes in. Nordstrom has a generous exchange policy, they will exchange items even though the store didn’t sell it to that consumer. Target is a good example of a store that would be on the opposite end of Nordstrom’s continuum. Target sells designer apparel at a discounted price, but may only carry one designer’s line of merchandise at a time. Target stores are known for poor quality customer service, one might even have a hard time receiving service at all. Target’s exchange policy must be handled within three days with a receipt, and a store credit will be issued of even …show more content…
First, product, where retailers decide what to sell on the basis of what their target market wants to buy. Eric Nordstrom says, “Every day, you’ve got to open your doors and sell something. Even if it’s just one shoe”. Next, is place, geography remains the most important factor in choosing a location. Eric Nordstrom, the company’s president, visits each potential location himself before signing off on it. Place is an important commitment of resources that can reduce a business future flexibility (Lamb 2010). Then, there is promotion, where the goal is to help position the store in consumer’s minds; satisfied customers are much more persuasive. Furthermore, price is the key element in a retail store’s positioning strategy. The higher the price, often indicate a higher level of quality, which shows a significant level of reliability. Price also reinforces the prominent image of retailers. The next P in the retailing mix is presentation, the goal is to use all of the store’s space effectively. Finally, personnel, where a salesperson’s job is to persuade shoppers to buy. In my opinion personnel has been most important to Nordstrom’s success. Robert Spector, coauthor of the Nordstrom Way, says his favorite story is of a woman with one leg who jokingly bet a Nordstrom salesperson that he wouldn’t sell her just one shoe. The employee was more than happy to split up the