Becoming aware of the fundamentals of retail marketing the four Ps and the four Cs is critical to becoming a best-in-class retailer. These various promotional vehicles may by compared on the basis of following issues: i Cost of the method ii Its reach iii Degree of flexibility iv Credibility v Control over media. This strategy covers everything from what retail channels a product or service will be available in to what should be the price or sales incentive to be given and how to display the product in the shelf. The course has also aimed to introduce the importance of marketing and communication from a retail perspective. Retailers need to decide who they are selling to and the needs of their market segment.
It involves developing the advertising objectives, determining the advertising budget, developing the message, selecting the media, scheduling the advertisements and measuring the effectiveness of the advertisements. Pricing helps an organization to achieve its objective. The fundamental approach used my modern retailers in marketing their products is the Four Ps of Retail Marketing. The retail promotion mix varies from retailer to retailer and nation to nation depending upon technological advancement, nature of competition and availability of finance etc. Marketing determines which target groups the retailer should serve. Pricing needs certain considerations before actually determining it.
Many cosmetic companies offer promotions like these as well as purchase with purchase which requires the customer to buy a product at a lower price as long as the minimum purchase has been made. Retailers usually employ a combination of various elements of promotion mix to achieve promotional and business objectives. Advertising strategies might include offering a gift with a minimum purchase. For instance, a furniture company may choose a large , while a jewelry manufacturer may decide to sell only over the Internet. © 2019 12manage - The Executive Fast Track.
If they stock a small merchandise mix few items they run the risk of losing business, especially to local brick-and-mortar stores and online competitors. This strategy is used by big box retailers like Wal-Mart and Target. Sometimes stores will provide free giveaways to the first one hundred customers in order to encourage them to go to the store early. Bottom up approach Various units prepare own goals and plans sent up for approval. According to The Open University, four basic concepts are at the core of retail marketing. The degree and the nature of usage of each of the promotion methods depend on the objectives of the retail firm, product, market profile, and availability of resources. The retail price needs to cover the cost of goods as well as additional overhead costs.
Marketing depends on the efficient co-ordination of consumer prediction, product development, packaging design and influencing demand through appropriate communication medium. Channel decisions affect considerably the elements of marketing mix and involve a long term commitment of resources. Lowest price does not necessarily neet be the best price, but the lowest responsible price is the best right price. Long range — three to five years relating to strategic retail management. Hence, this concludes the definition of Retail Strategy along with its overview. A retail business and its outlets should be placed in locations that attract the intended target customer, such as malls, a brick-and-mortar free-standing building or in a grouped downtown shopping atmosphere. Retailers generally spend their promotional budget on developing advertisement campaigns and on other sales promotion activities.
It guides people in the retail organization so that they can work independently and yet collectively towards overall organizational goals. It should include decisions about the marketing mix approach, such as how customers will get the products. This is different from other types of marketing because of the components of the retail trade, such as selling finished goods in small quantities to the consumer or end user, usually from a fixed location. Retailers should use the marginal analysis method for determining the promotional budget, as it is the most appropriate method for determining this budget, which can accomplish the objectives of the retailer. Promotion may be more difficult for small businesses, because of their lower advertising budgets, but social media provides a low-cost method of promotion.
The Retail Marketing Mix is a marketing term that refers to the variables that a retailer can combine in alternative ways to arrive at a marketing strategy for attracting its consumers. A definition of retail marketing includes the places where it occurs, such as in-store, online and points of sale. This also applies to non-store operations such as retail sales taking place from the business owner's home. From these, a suitable mix is achieved. Convenience addresses the ease of completing a transaction including the ease of finding information about a product, finding the right product, and purchasing a product. Whatever situations occur in the buyer- seller relationship, trust is the important aspect of any interaction Trust is the perceived credibility of the company and its staff This is because trust affects the credibility in the communication between seller and customer, all of which leads to commitment and greater loyalty intention and loyalty behaviour Personal Selling. About the Author Tracey Sandilands has written professionally since 1990, covering business, home ownership and pets.
Business plans include research about who the company's potential customers are as well as what their needs and wants are. The most common modes used for promotion are advertising, sales promotion, personal selling, public relations and publicity. Can anyone share ideas as to what important criteria should be considered when assessing the pros and cons of point of sale technology?. This classification has to be d. One store in Rapid City that stands out to me for service is Medicap Pharmacy- they offer personal consultations for any perscription filled there, you can drive through and pick up your perscription and they always have time to answer any questions I have. The difference between price and cost is the profit, which can be very high when the salesperson wants to exploit an urgent situation. But pricing cannot be determined in isolation.
Any comments available on mystery shopping and its impact?. Generally, sales promotion activities are intended to meet short term objectives, like increasing the customer traffic in the store during weekends. Could somebody assist me project on retail marketing, management and consumer behaviour, strategic management and marketing in retail management such. Marketing branding is really important so that your customer base can identify with your product and understand it. And soft goods like clothing, household items, cosmetics, and paper products. All these components of the promotion mix must be combined properly to develop an integrated marketing communication system, for customers to have a clear and distinct image of the retailer. Conclusion In this course we have explored the meaning of the terms retailing, marketing and marketing communications.