What Is Retail Marketing? – Functions, Importance, Strategies

What Is Retail Marketing? – Functions, Importance, Strategies

Retail Marketing agency in mumbai is the sale of goods and services from businesses to an end user (called a customer). Retail marketing is the process by which retailers promote awareness and interest of their goods and services in an effort to generate sales from their consumers. There are many different approaches and strategies retailers can use to market their goods and services Retail Marketing Mix: The Four Ps of Retail Marketing Retailers use various advertising and communication tools to grow awareness and considerations with future customers. Finding the right marketing mix can lead to a profitable growth and a higher return on investment. By considering the right advertising strategy retailers can persuade consumers to choose to do business with their retail brand. Product Launches agency in Mumbai Promote products like Four Ps of Retail Marketing.

Product: There are two primary types of merchandise. Hard or durable goods like appliances, electronics, and sporting equipment. And soft goods like clothing, household items, cosmetics, and paper products. Some retailers carry a range of

hard and soft items like a supermarket or a major retail chain while many smaller retailers only carry one category of goods, like a boutique clothing store.

Price: Pricing is a key element to any retail strategy. The retail price needs to cover the cost of goods as well as additional overhead costs. There are four primary pricing strategies used by retailers:

Everyday low pricing: The retailer operates in thin margins and attracts customers interested in the lowest possible price. This strategy is used by big box retailers like Wal-Mart and Target.

High/low pricing: The retailer starts with a high price and later reduces the price when the item’s popularity fades. This strategy is mainly used by small to midsized retailers.

Competitive pricing: The retailer bases the price on what their competition is charging. This strategy is often used after the retailer has exhausted the higher pricing strategy (high/low pricing).

Psychological pricing: The retailer sets the price of items with odd numbers that consumers perceive as being lower than they actually are. For example, a list price of $1.95 is associated with spending $1 rather than $2 in the customers mind. This strategy is also called pricing ending or charm pricing.

Place: The place is where the retailer conducts business with its customers. The place can be a physical retail location or a non-physical space like a catalog

company or an e-store. While most retailers are small, independently owned operations (over 90%), over 50% of retail sales are generated by major retailers often called “big box retailers� (see the list of the top 20 big box retailers below).

Promotion: Promotion is the final marketing mix elements. Promotions include personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each tactic, and how much money to budget for each. A promotion can have a wide range of objectives, including increasing sales, new product acceptance, creation of brand equity, positioning, competitive retaliations, or the creation of a corporate image.

Retail Marketing Strategies Different retail marketing strategies can be planned and employed for different types of retail outlets. The elements which should be considered while crafting a retail marketing strategy are: The main objective of the retail marketing strategy is to differentiate the retail store from the competition by setting up and promoting a sustainable competitive advantage which leads to increased sales.

The contours of the retail marketing strategy include:

Retail Branding Setting up a good brand name, logo, and positioning of the retail store is among the topmost priorities of a retail marketer. Customers are more motivated to buy a product from a branded retail store than an unbranded one.

Price Drops A great way to attract customers is to provide the same quality (and quantity) of goods at a lesser price than the competition.

Limited Period Discounts & Offers Limited period discounts and offers increase the sales temporarily and can help in word of mouth marketing and getting more customers (and returning customers).

Strategic Placements Strategically placing items to where the customers are most likely to buy them is a great strategy to increase the sales. A perfect example is the placement of small inexpensive products (also called parasites) at the billing counter.

Strategic Store Design

The store design is the first touch point for the customers. The store designed for the people it serves to perform better than the one which isn’t. A colorful and kids-friendly products placement suits a toyshop while classy look and colors suit a store selling men’s suits.

Visual Merchandising The better it looks in the store, the more chances are that the customer will buy it. Smart visual merchandising strategies help increase sales substantially.

Loyalty Programs Loyalty programs are designed for better company-customer relationships. These programs involve exclusive discounts and offers for regular customers.

Strategic In-Store Advertisements People often prefer the advertised brand over the non-advertised brand in the store. Strategic placements of such advertisements can substantially increase the sale of a specific brand or a product.

Training Employees to Be Smarter Retail store employees play a very important role in the decision-making process of customers. They can make or break a product decision of the customer with the help of their relationship and selling skills.

Retail Marketing Importance

The traditional dependency of retailers on manufacturers has been reversed.

Today’s retailers have their own brand, their own loyal customers, and even have the power to sell, to upsell, to cross-sell, or to downsell any product using smart retail marketing strategies.

Marketing company in Mumbai strategies help the retailers enhance the customer’s journey in a retail store and make him perceive that his money is spent on the right products.

 A good retail shopping experience motivates the customers to buy a product even when they have no intention to do so.  Shopping from a branded retail store generates a feeling of satisfaction and confidence among the customers.  Strategic placements and strategic store design improves the customer’s experience and help the retailers sell the products which provide them with the most profits.  Purchasing during limited period offers make the customers feel they have achieved a great feat by saving money.