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Marketing problem.
the offering of your Web site? 2. If you have developed a service, to what other Web sites might youdistribute your Internet-based service? How will working with these other Web sites help you reach your target audience? Are there other Web sites from which you might accept distribution deals in order to make your product or service offering stronger? Explain how strategic distribution with other Web sites or services can give you a competitive advantage. CASE STUDY Nordstrom HOW TO SUCCEED BY SELLING JUST ONE SHOE Upscale retailer Nordstrom has been famous for superior customer service for over 100 years. 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 wouldnt sell her just one shoe. He was more than happy to split up the pair, though, to her surprise, and Nordstrom gained a life-long customer in the process.Who knows how many times shes told that story?Spector asks.Do you think that thats worth the price of a shoe? I do.This kind of word-of-mouth publicity means that Nordstrom spends much less on traditional advertising than its competitors do. And the sto ries told by satisfied customers are much more persuasive than an ad in the Sunday paper Patrick McCarthy, who was the first salesperson to generate $1 million, cites an example of a customer who was traveling and accidentally left his plane tickets in the store. An em- ployee who found them paid for a cab to the airport with her own money so that the cus- tomer wouldnt miss his plane. This, McCarthy says, is an example of heroic service,and at Nordstrom they expect nothing less. Industry observer Lior Arussy calls Nordstroms business strategygreed through love. They have perfected the art of focusing on the right customers and giving them undivided attention. A salesperson will often continue the relationship with a customer for years. They may exchange business cards, set future shopping dates, and call customers when new mer chandise comes in. Its a heart experience,says McCarthy, who kept handwritten notes on all 12,000 of his personal customers over the years. Most companies are head experiences- bean counters are running them. When the heart is running them, it becomes exciting? Nordstrom is also known for its generous exchange policy. In a familiar story that has been forwarded around the Internet for years, a man claims he was allowed to return snow tires, even though the store never sold auto parts. It may be an urban myth, but it reinforces the companys reputation for putting customers first. Even though the company loses some money on returns, the staff believes its worth it to keep customers coming back.
Nordstrom has 204 stores in 28 states, with plans to open 24 more by 2012. Erik Nordstrom, the companys president, visits each potential location himself before signing off on it. He says his gut instinct about a location is almost as important as the demographics and statistics they analyze. Plenty of places look good on paper and we say no. Even though Nordstrom values the traditions that come with its long history, Nordstrom stores president Erik Nordstrom says that theyre not afraid to evolve with the times.We see the way people shop changing very dramaticallyhe says. The company analyzed barriers between its sales channels and realized that it was limiting sales opportunities. Customers who purchased Nordstrom merchandise online couldnt return it in the retail stores,for example, and customers who shopped in the stores couldnt always find the same products online. The company now aims for a seamless shopping experience across all sales channels, whether mail order, online, or in-stor The company has also benefit buyers and salespeople the necessary data to make smarter decisions about what is needed in the stores-and what isnt. Choosing the right handbags to stock, for example, in the right styles, quantities, and colors, enabled them to sell more items at full price, which in tur improved the bottom line. ed from a new computerized inventory system that gives Erik Nordstrom says that they want a customers experience to beaspirational and up- scale, so people feel they are treating themselves. Therefore, he says, the company refuses to hop on the price-promoting bandwagon. We dont rely on promotions, be it one-day sales, coupons, or friends of friendssales. We think our regular pricing has to have integrity In 2006, when many retailers were struggling, Nordstrom thrived, posting $8.6 billion in sales, a 10.8 percent increase from the year before. Nordstrom has also beaten expectations as it has recovered from the recent downturn with the rest of the retail sector, posting an 11 percent sales increase over the year prior in the third quarter of 2010. Erik Nordstrom says ling is not for everybody, Its a competitive, high-energy business Every day,youve got to open your doors and sell something:Even if its just one shoe. Questions What type of retailer is Nordstrom? Describe the characteristics it shares with other retail- ers of this type. How would you describe Nordstroms level of service on the continuum from full service to self-service? Why? Give an example of a store that would be on the opposite end of the continuum and explain their differences Which of the six components of Nordstroms retailing mix do you think have been the nost important to the companys success? Why? . hat are the primary challenges Nordstrom faces in the current retail climate? How has the competition changed in recent years, along with consumer expectations?
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Answer:.

Nordstroms is a department store. They have a direct relationship with the customer, each individual store is a buying centr

2) Nordstroms level of service is considered to be good customer service and he was used potential marketing strategy to gai

3) Nordstrom which is an upscale fashion retailer that excels through selling clothing, shoes, handbags, etc. Out of the seve

4)

The current challenges the store is encountering in the present retail situation is incorporating more online interfaces for its customers, as other retailers are making changes in this area. The retailer is seeing the importance of aligning sales online with sales within stores to reach more customers and create uniformity in sales opportunities More people are buying online . The fierce price competition of the major department stores .Having more than one store in a given geographic area Ws evolution in the marketing wheel Foreign competition Declining effects of shopping malls When it will do its stock spilt next? The competition has modified in recent times through the increased use of promotional and sales strategies to drawn in customers. Also, consumers expect retailers to offer high quality with relatively affordable prices. Though the retailer has performed well even during periods of economic recession, i may have to consider new strategies to explore wider markets as other retailers are seeking to do

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