RN June07Money Matters ●
The Power of Marketing The benefits of good marketing can be enjoyed by small retailers as well as multinationals, writes Carmel Linnane. “Retailers can reap the rewards of a marketing strategy with a lot more control and direction than most businesses. They are in a position to react rapidly to the needs of their customers and monitor relatively quickly what works and what does not.”
Marketing
is a ploy used lavishly by the giants of the retail world. The big names use it to promote their products on the radio, television, cinema advertising, billboards, the side of buses, basically anywhere there is an audience. The large chains make sure they have a very strong market presence. They achieve this by spending large amounts of money to ensure they use every means possible to put their image out there. However, not everyone has a large marketing budget and smaller enterprises need to cut their cloth to suit their measure. Marketing strategy can be tailored to suit smaller budgets quite effectively. Retailers in particular can reap the rewards of a marketing strategy with a lot more control and direction than most businesses. They are in a position to react rapidly to the needs of their customers and monitor relatively quickly what works and what does not. Knowing your market is vital and increasingly so in the ever more competitive retail industry. One of the advantages of a retail business is that you interface directly with your customer. You are not selling widgets to Cambodia. You are selling products to people in your neighbourhood
or passing trade. It is not going to break the bank to set up a customer survey to help identify your audience in more detail.
Survey Even if you only establish an age profile of your customer base, you are still moving in the right direction. Now and again, a business will set up and impose such a ‘must have’ image that people will travel distances to get what it has to offer. This is the exception, however, not the norm. For most retailers, market research of their particular area is vital if they are to effectively service their target audience. You need to get some insight into the socio-economic profile of your customers, their motivations for making a purchase from the shop and the levels of customer service and satisfaction. This information can then be used to measure and improve your retail operation and to ensure that your range is being effectively targeted to suit your customers. For example, if your research shows that customers are primarily from a low income socio-economic grouping, then to maximise sales, your merchandise range should reflect this in lower prices and valuefor-money products. However, if your
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