Nordstrom: How to Succeed by Selling Just One Shoe

1840 WordsJun 27, 20118 Pages
1. Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type. Nordstrom’s is classified as a department store. They are one of the largest U.S. department store chains, along with Macy’s, JC Penny’s, and Sears. As with the other department stores, each of Nordstrom’s departments are treated as separate buying centers. Each group operates independent from each other, being headed by a buyer who is responsible for the types and quality of merchandise sold, as well as any promotions that may be used. “The company has also benefited from a new computerized inventory system that gives buyers and salespeople the necessary data to make smarter decisions about…show more content…
Second is place, the locations of the stores, and the hours in which the stores are open. This is where selective distribution comes into play. “Nordstrom has 157 stores in 27 states, but they plan to open 19 more by 2010, expanding into Boston, Ohio, and other untapped U.S. markets.” By limiting where Nordstrom’s are located, this allows them to maintain a superior product image, and charge a premium price for the products. The third component is promotion – the advertising, publicity and public relations. Nordstrom’s doesn’t rely on promotions as much as they do “word-of-mouth.” “This kind of word-of-mouth publicity means that Nordstrom spends much less on traditional advertising than its competitors do. And the stories told by satisfied customers are much more persuasive than an ad in the Sunday Paper.” One of the stories that are told in the article is of the customer service rep who sold the woman with one leg one shoe. Not only did the store gain a life-long customer from that experience, but that story may have driven in countless patrons to shop at Nordstrom’s after hearing this woman’s experience. A satisfied customer will on average tell 2 to 3 people about their experience. Those 2 to 3 people could generate 2 to 3 sales for the sales person, and those 2 people could each tell 2 people. Word-of-mouth can become very lucrative for the original sales person. The fourth component is price. With Nordstrom’s, this

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