On the other hand, reducing the number of product lines can generate cost savings through increased stock turnover by eliminating slow-moving lines, fewer stockouts, increased bargaining power with suppliers, reduced costs associated with wastage and carrying inventory, and higher sales per square foot which means more efficient space utilisation. When determining the number of product lines to carry, the retailer must consider the store type, store's physical storage capacity, the perishability of items, expected turnover rates for each line and the customer's needs and expectations.
Customer service is the "sum of acts and elements that allow consumers to receive what they need or desire from [the] retail establishment.
In addition, the retailer needs to make decisions about sales support such as customer delivery and after sales customer care. Retail stores often seek to differentiate along customer service lines. For example, some department stores offer the services of a stylist ; a fashion advisor, to assist customers selecting a fashionable wardrobe for the forthcoming season, while smaller boutiques may allow regular customers to take goods home on approval , enabling the customer to try out goods before making the final purchase.
The variety of supporting services offered is known as the service type. At one end of the spectrum, self-service operators offer few basic support services. At the other end of the spectrum, full-service operators offer a broad range of highly personalised customer services to augment the retail experience. When making decisions about customer service, the retailer must balance the customer's desire for full-service against the customer's willingness to pay for the cost of delivering supporting services.
Self-service is a very cost efficient way of delivering services since the retailer harnesses the customers labour power to carry out many of the retail tasks. However, many customers appreciate full service and are willing to pay a premium for the benefits of full-service. A sales assistant's role typically includes greeting customers, providing product and service-related information, providing advice about products available from current stock, answering customer questions, finalising customer transactions and if necessary, providing follow-up service necessary to ensure customer satisfaction.
Such skills may include product knowledge, inventory management, handling cash and credit transactions, handling product exchange and returns, dealing with difficult customers and of course, a detailed knowledge of store policies. The provision of excellent customer service creates more opportunities to build enduring customer relationships with the potential to turn customers into sources of referral or retail advocates.
In the long term, excellent customer service provides businesses with an ongoing reputation and may lead to a competitive advantage. Customer service is essential for several reasons. Secondly, evidence suggests that a retail organization which trains its employees in appropriate customer service benefits more than those who do not. Customer service training entails instructing personnel in the methods of servicing the customer that will benefit corporations and businesses.
It is important to establish a bond amongst customers-employees known as Customer relationship management. Place decisions are primarily concerned with consumer access and may involve location, space utilisation and operating hours. Perspective of large retail enterprises of supply chain relationship marketing is based on the theory of supply chain management in large retail enterprises of supply chain in the application of relationship marketing, it emphasizes that the suppliers, large-scale retail enterprises, customers form a chain of large retail enterprises and suppliers to form cooperative marketing, establish mutually beneficial long term good relationship with customers.
Relationship marketing of huge retail enterprises from the perspective of supply chain mainly includes two relationship markets, supplier relationship and customer relationship market. Because the two stakeholders that have the greatest influence on the profits of retail enterprises are suppliers and customers.
First, as the supplier of commodities to retail enterprises, it directly determines the procurement cost of commodities to retail enterprises, which is mainly reflected in the purchase price of commodities themselves, the cost incurred in the procurement process, and the loss cost caused by unstable supply of commodities. In addition, the good relationship with supplier interaction, large retail enterprises can also promote the suppliers timely grasp the market information, improved or innovative products according to customer demand, which contributed to the retail enterprises improve the market competitiveness of the goods are sold, so the retail enterprise's relationship with supplier directly affects the retail enterprises in the commodity market competitive.
Second, due to the transfer of advantages between buyers and sellers, the retail industry has turned to the buyer's market, and consumers have become the key resources for major retailers to compete with each other. The relationship marketing of customer relationship market regards the transaction with clients as a long term activity. Retail enterprises should pursue long-term mutual benefit maximization rather than a single transaction sales profit maximization.
This requires large retail enterprises to establish a customer-oriented trading relationship with the customer relationship market. Selecting the right site can be a major success factor. When evaluating potential sites, retailers often carry out a trade area analysis ; a detailed analysis designed to approximate the potential patronage area. Techniques used in trade area analysis include: Radial ring studies ; Gravity models and Drive time analyses.
In addition, retailers may consider a range of both qualitative and quantitative factors to evaluate to potential sites under consideration:. A major retail trend has been the shift to multi-channel retailing. To counter the disruption caused by online retail, many bricks and mortar retailers have entered the online retail space, by setting up online catalogue sales and e-commerce websites. However, many retailers have noticed that consumers behave differently when shopping online.
Retail Marketing Mix: The Four Ps of Retail Marketing
For instance, in terms of choice of online platform, shoppers tend to choose the online site of their preferred retailer initially, but as they gain more experience in online shopping, they become less loyal and more likely to switch to other retail sites. See also Pricing Strategies. The broad pricing strategy is normally established in the company's overall strategic plan. In the case of chain stores, the pricing strategy would be set by head office.
Broadly, there are six approaches to pricing strategy mentioned in the marketing literature:. When decision-makers have determined the broad approach to pricing i. Tactical pricing decisions are shorter term prices, designed to accomplish specific short-term goals. The tactical approach to pricing may vary from time to time, depending on a range of internal considerations e. Accordingly, a number of different pricing tactics may be employed in the course of a single planning period or across a single year.
Typically store managers have the necessary latitude to vary prices on individual lines provided that they operate within the parameters of the overall strategic approach. All payment options require some type of handling and attract costs. If credit is to be offered, then credit terms will need to be determined. If lay-by is offered, then the retailer will need to take into account the storage and handling requirements.
If cash is the dominant mode of payment, the retailer will need to consider small change requirements, the number of cash floats required, wages costs associated with handling large volumes of cash and the provision of secure storage for change floats. Large retailers, handling significant volumes of cash, may need to hire security service firms to carry the day's takings and deliver supplies of small change. A small, but increasing number of retailers are beginning to accept newer modes of payment including PayPal and Bitcoin.
Contrary to common misconception , price is not the most important factor for consumers, when deciding to buy a product. Discount pricing is where the marketer or retailer offers a reduced price. This method is extensively used by supermarkets. High-low pricing refers to the practice of offering goods at a high price for a period of time, followed by offering the same goods at a low price for a predetermined time.
This practice is widely used by chain stores selling homewares. The main disadvantage of the high-low tactic is that consumers tend to become aware of the price cycles and time their purchases to coincide with a low-price cycle. A loss leader is a product that has a price set below the operating margin. Loss leadering is widely used in supermarkets and budget-priced retail outlets where it is intended to generate store traffic. The low price is widely promoted and the store is prepared to take a small loss on an individual item, with an expectation that it will recoup that loss when customers purchase other higher priced-higher margin items.
In service industries, loss leadering may refer to the practice of charging a reduced price on the first order as an inducement and with anticipation of charging higher prices on subsequent orders. Price bundling also known as product bundling occurs where two or more products or services are priced as a package with a single price. There are several types of bundles: pure bundles where the goods can only be purchased as package or mixed bundles where the goods can be purchased individually or as a package.
The prices of the bundle is typically less than when the two items are purchased separately. Price lining is the use of a limited number of prices for all product offered by a business. Price lining is a tradition started in the old five and dime stores in which everything cost either 5 or 10 cents. In price lining, the price remains constant but quality or extent of product or service adjusted to reflect changes in cost. The underlying rationale of this tactic is that these amounts are seen as suitable price points for a whole range of products by prospective customers.
It has the advantage of ease of administering, but the disadvantage of inflexibility, particularly in times of inflation or unstable prices. Price lining continues to be widely used in department stores where customers often note racks of garments or accessories priced at predetermined price points e.
Promotional pricing is a temporary measure that involves setting prices at levels lower than normally charged for a good or service. Promotional pricing is sometimes a reaction to unforeseen circumstances, as when a downturn in demand leaves a company with excess stocks; or when competitive activity is making inroads into market share or profits. Psychological pricing is a range of tactics designed to have a positive psychological impact.
Psychological pricing is widely used in a variety of retail settings. Because patronage at a retail outlet varies, flexibility in scheduling is desirable. Employee scheduling software is sold, which, using known patterns of customer patronage, more or less reliably predicts the need for staffing for various functions at times of the year, day of the month or week, and time of day.
Usually needs vary widely. This may result in financial problems for the workers, who while they are required to be available at all times if their work hours are to be maximized, may not have sufficient income to meet their family and other obligations. Retailers can employ different techniques to enhance sales volume and to improve the customer experience:. In the s, the customary sales concept in the retail industry began to show many disadvantages. Many transactions cost too much, and the industry was unable to retain customers as it only paid attention to the process of a single transaction rather than to marketing for customer development and maintenance.
The traditional marketing theory holds that transactions are one-time value exchange processes and the means of exchanging goods needed by both parties. Accordingly, when the transaction is completed, the relationship between the two parties will also end, so the theory is called "transactional marketing". Transactional marketing aims to find target consumers, then negotiate, trade, and finally end relationships to complete the transaction. In this one-time transaction process, both parties aim to maximize their own interests. As a result, transactional marketing raises follow-up problems such as poor after-sales service quality and a lack of feedback channels for both parties.
In addition, because retail enterprises needed to redevelop client relationships for each transaction, marketing costs were high and customer retention was low. All these downsides to transactional marketing gradually pushed the retail industry towards establishing long-term cooperative relationships with customers. Through this lens, enterprises began to focus on the process from transaction to relationship. Under this concept, retail enterprises value and attempt to improve relationships with customers, as customer relationships are conducive to maintaining stability in the current competitive retail market, and are also the future of retail enterprises.
One of the unique aspects of retail promotions is that two brands are often involved; the store brand and the brands that make up the retailer's product range. Retail promotions that focus on the product range, are designed to cultivate a positive attitude to the brands stocked by the store, in order to indirectly encourage favourable attitudes towards the store itself.
Definition of Retail Marketing
Retailers make extensive use of advertising via newspapers, television and radio to encourage store preference. In order to up-sell or cross-sell, retailers also use a variety of in-store sales promotional techniques such as product demonstrations, samples, point-of-purchase displays, free trial, events, promotional packaging and promotional pricing. In grocery retail, shelf wobblers, trolley advertisements, taste tests and recipe cards are also used. Many retailers also use loyalty programs to encourage repeat patronage.
See Merchandising ; Servicescapes ; Retail design. Presentation refers to the physical evidence that signals the retail image. The environment in which the retail service encounter occurs is sometimes known as the retail servicescape.
10 Retail Experts Share Their #1 Tip for Marketing and Growing Your Store
Collectively, these elements contribute to the perceived retail servicescape or the overall atmosphere and can influence both the customer's cognitions, emotions and their behaviour within the retail space. Relationship between market Large retail enterprises of relationship marketing refers to a large retail enterprise with suppliers, customers, internal organization, channel distributors, market impact, and other competitors such as the interests of the enterprise marketing process related everything to establish and maintain good relations, thus maximizing the interests of the large retail enterprise in the long-term marketing activities, it was based on the relationship marketing concept as the core of innovation.
Different from traditional marketing concepts, relationship marketing focuses on maintaining long-term good relations with relevant parties on marketing activities. The ultimate goal of relationship marketing is tantamount to maximize the long term interests of enterprises. The marketing activities of large retail enterprises mainly have six relationship markets, which are supplier relationship market, customer relationship market, enterprise internal relationship market, intermediary relationship market at all levels, enterprise marketing activities influence relationship market and industry competitor relationship market.
Among these six relational markets, supply relational market and customer relational market are the two markets that have the greatest influence on the relationship marketing of large retail enterprises. Substantial retail enterprises usually have two sources of profit.
The principal source of profit is to reduce the purchase price from suppliers.
The other is to develop new customers and keep old clients, so as to expand the market sales of goods. In addition, the extra four related markets have an indirect impact on the marketing activities of large retail enterprises. The purpose of carrying out relationship marketing is to promote the cohesion and innovation ability of enterprises and maximize the long term interests of enterprises. Another relationship of relationship marketing middlemen is the relationship between market and intermediary in the process of corporate marketing is playing the intermediary role between suppliers and customers, in the current increasingly fierce market competition, more important distribution channels for enterprises, but for retail enterprises, too much sales levels will increase the cost of sales of the enterprise.
Therefore, large retail enterprises should realize the simplification of sales channel level by reasonably selecting suppliers. Large-scale retail enterprises purchasing goods to suppliers with procurement scale advantage, can directly contact with the product manufacturing, with strong bargaining power, therefore, direct contact with the manufacturer is a large retail enterprise to take the main purchasing mode, it is a terminal to the starting point of zero level channel purchasing mode, therefore, the elimination of middlemen, so as to make the large retail enterprise in the marketing activity, the dealer relationship market is not so important.
Then there is the enterprise influence relationship market, which is a relational marketing influence in the enterprise supply chain. It mainly guides and standardizes the advance direction of enterprises through formulating systems at the macro level. The relationship market mainly includes the relationship between the relevant government departments at all levels where the enterprise is located, the relationship with the industry association to which the enterprise belongs, and the relationship with all kinds of public organizations, etc. The final relational market is the industry's competitors, potential competitors, alternative competitors and so on.
How to correctly deal with the relationship between competitors and the market has become a problem that large retail enterprises need to solve. Retail designers pay close attention to the front of the store, which is known as the decompression zone. This is usually an open space in the entrance of the store to allow customers to adjust to their new environment.
An open-plan floor design is effective in retail as it allows customers to see everything. In terms of the store's exterior, the side of the road cars normally travel, determines the way stores direct customers. New Zealand retail stores, for instance, would direct customers to the left. In order to maximise the number of selling opportunities, retailers generally want customers to spend more time in a retail store. However, this must be balanced against customer expectations surrounding convenience, access and realistic waiting times. The retail service environment plays an important role in affecting the customer's perceptions of the retail experience.
The retail environment not only affects quality perceptions, but can also impact on the way that customers navigate their way through the retail space during the retail service encounter. Layout, directional signage, the placement of furniture, shelves and display space along with the store's ambient conditions all affect patron's passage through the retail service system.
Layout refers to how equipment, shelves and other furnishings are placed and the relationship between them. In a retail setting, accessibility is an important aspect of layout. For example, the grid layout used by supermarkets with long aisles and gondolas at the end displaying premium merchandise or promotional items, minimises the time customers spend in the environment and makes productive use of available space.
For example, the meat cabinet at the supermarket might use a merchandise outpost to suggest a range of marinades or spice rubs to complement particular cuts of meat. As a generalisation, merchandise outposts are updated regularly so that they maintain a sense of novelty. According to Ziethaml et al. Signs and symbols provide cues for directional navigation and also inform about appropriate behaviour within a store. Functionality refers to extent to which the equipment and layout meet the goals of the customer. The way that brands are displayed is also part of the overall retail design.
Where a product is placed on the shelves has implications for purchase likelihood as a result of visibility and access. Products placed too high or too low on the shelves may not turn over as quickly as those placed at eye level. Through sensory stimulation retailers can engage maximum emotional impact between a brand and its consumers by relating to both profiles; the goal and experience. Purchasing behaviour can be influenced through the physical evidence detected by the senses of touch, smell, sight, taste and sound.
Coffee shops allow the aroma of coffee to waft into streets so that passers-by can appreciate the smell and perhaps be lured inside. Clothing garments are placed at arms' reach, allowing customers to feel the different textures of clothing. Within the retail environment, different spaces may be designed for different purposes. Hard floors, such as wooden floors, used in public areas, contrast with carpeted fitting rooms, which are designed to create a sense of homeliness when trying on garments. Peter Alexander , retailer of sleep ware, is renowned for using scented candles in retail stores.
Ambient conditions, such as lighting, temperature and music, are also part of the overall retail environment. Studies have found that "positively valenced music will stimulate more thoughts and feeling than negatively valenced music", hence, positively valenced music will make the waiting time feel longer to the customer than negatively valenced music. The design of a retail store is critical when appealing to the intended market, as this is where first impressions are made.
The overall servicescape can influence a consumer's perception of the quality of the store, communicating value in visual and symbolic ways. Certain techniques are used to create a consumer brand experience, which in the long run drives store loyalty. Two different strands of research have investigated shopper behaviour.
One strand is primarily concerned with shopper motivations. Another stream of research seeks to segment shoppers according to common, shared characteristics. To some extent, these streams of research are inter-related, but each stream offers different types of insights into shopper behaviour. Babin et al. Utilitarian motivations are task-related and rational. For the shopper with utilitarian motives, purchasing is a work-related task that is to be accomplished in the most efficient and expedient manner. On the other hand, hedonic motives refer to pleasure. The shopper with hedonic motivations views shopping as a form of escapism where they are free to indulge fantasy and freedom.
Hedonic shoppers are more involved in the shopping experience. Many different shopper profiles can be identified. Retailers develop customised segmentation analyses for each unique outlet. However, it is possible to identify a number of broad shopper profiles. One of the most well-known and widely cited shopper typologies is that developed by Sproles and Kendal in the mids. Some researchers have adapted Sproles and Kendall's methodology for use in specific countries or cultural groups.
The retail format also known as the retail formula influences the consumer's store choice and addresses the consumer's expectations. At its most basic level, a retail format is a simple marketplace , that is; a location where goods and services are exchanged. In some parts of the world, the retail sector is still dominated by small family-run stores, but large retail chains are increasingly dominating the sector, because they can exert considerable buying power and pass on the savings in the form of lower prices. Many of these large retail chains also produce their own private labels which compete alongside manufacturer brands.
Considerable consolidation of retail stores has changed the retail landscape, transferring power away from wholesalers and into the hands of the large retail chains. In Britain and Europe, the retail sale of goods is designated as a service activity. The European Service Directive applies to all retail trade including periodic markets, street traders and peddlers.
Retailers carrying highly perishable foodstuffs such as meat, dairy and fresh produce typically require cold storage facilities. Softline retailers sell goods that are consumed after a single use, or have a limited life typically under three years in they are normally consumed. Soft goods include clothing , other fabrics , footwear , toiletries , cosmetics , medicines and stationery.
Grocery stores, including supermarkets and hypermarkets, along with convenience stores carry a mix of food products and consumable household items such as detergents, cleansers, personal hygiene products. Consumer consumables are collectively known as fast-moving-consumer goods FMCG and represent the lines most often carried by supermarkets, grocers and convenience stores. For consumers, these are regular purchases and for the retailer, these products represent high turnover product lines. Grocery stores and convenience stores carry similar lines, but a convenience store is often open at times that suit its clientele and may be located for ease of access.
Retailers selling consumer durables are sometimes known as hardline retailers  — automobiles , appliances , electronics , furniture , sporting goods , lumber , etc. Goods that do not quickly wear out and provide utility over time. For the consumer, these items often represent major purchase decisions. Consumers purchase durables over longer purchase decision cycles.
For instance, the typical consumer might replace their family car every 5 years, and their home computer every 4 years. Specialist retailers operate in many industries such as the arts e. Furniture and homewares retailers are said to be hardline retailers. Pictured Furniture retailer in Hong Kong.
Definition of Retail Marketing | magoxuluti.tk
Stores that sell a mix of perishable and consumable goods to cater for household needs are known as grocery stores. Types of retail outlets retail shops , retail stores by marketing strategy include:. A shopping arcade refers to a group of retail outlets operating under a covered walkway.
Arcades are similar to shopping malls, although they typically comprise a smaller number of outlets. Shopping arcades were the evolutionary precursor to the shopping mall, and were very fashionable in the late 19th century. Stylish men and women would promenade around the arcade, stopping to window shop, making purchases and also taking light refreshments in one of the arcade's tea-rooms. Arcades offered fashionable men and women opportunities to 'be seen' and to socialise in a relatively safe environment.
Arcades continue to exist as a distinct type of retail outlet. Pricing is a major aspect of any retail marketing strategy. The price of merchandise helps to define the methods of retail marketing employed, as well as the target market, store location and retail format used to sell it. Pricing in the retail environment is based on fulfilling objectives such as covering the cost of sales and overhead, and in accordance with the four basic retail pricing strategies. In a small retail business such as selling handcrafts, pricing may be based purely on the cost of sales, because overhead costs, if they exist, are minimal.
Retail marketing relies heavily on the promotional aspect of the marketing mix, as can be seen by the number of print advertisements for consumer goods such as clothing, food and furniture. Promotions take place in both traditional media such as television, print, outdoor billboards and radio, as well as new media such as the Internet.
The choice of promotional channels is influenced by factors such as the competitive retail environment, the profit margin on sales and the budget available for promotion purposes. The success of retail marketing is defined by the success of the business in selling its merchandise. Promotion may be more difficult for small businesses, because of their lower advertising budgets, but social media provides a low-cost method of promotion. Tracey Sandilands has written professionally since , covering business, home ownership and pets. She holds a professional business management qualification, a bachelor's degree in communications and a diploma in public relations and journalism.
Sandilands is the former editor of an international property news portal and an experienced dog breeder and trainer. These steps will lead to happier employees and higher levels of performance, which in turn lead to better retail experiences and more satisfied customers. When it comes to retail and social media, there are three platforms you should seriously consider: Facebook, Instagram, and Pinterest. These are the most consumer-centric networks, making them ideal for merchants.
Pinterest has the added edge of being a platform people specifically go to conduct research before they purchase something. Mark Zuckerberg himself said that they will be rolling out changes to the News Feed to prioritize content from friends, family, and groups, so business pages will have to fight even harder to get exposure. Start a Facebook Group — Facebook lets you create Groups for your business or brand.
Think of Facebook Groups as clubs or communities where your most engaged customers and fans can congregate. While you can talk about your products and business, the primary purpose of having a Facebook Group is to allow your customers to connect with each other. The Group is very active, and people use it to share their workouts, ask questions, dish out tips, and more. See if you can do something similar for your Facebook presence.
The good news is, Facebook has a variety of ad products with robust targeting capabilities that let you zero in on your specific audience. The best thing to do is test different advertising solutions, then keep track of your metrics e. Take note of the numbers, then use those insights to determine your ROI. This will help you figure which ad types are right for you and how much to budget for Facebook advertising. Here are some best practices to consider:. Curate your visual content exquisitely — Your Instagram posts should be anything but random.
You need to create a clear brand aesthetic so when people visit your profile, they get a quick idea of who your brand is. You can see instantly from their collection of photos that their brand produces casual clothing items and likes a clean neutral palette with pops of color. Ask yourself, what kind of first impression do you want people to have about your brand? Find the answer then figure out how to make it come to life on your Instagram page. Make liberal use of Instagram Stories — Instagram Stories allow you to be more informal with your aesthetic, as people expect Stories to be more spontaneous and less curated.
You can use them to give people behind-the-scenes glimpses at your store or showcase new products. A secondary feature of Instagram Stories is that you can create a few permanent ones to display on your profile, highlighting things you really want your potential customers to see. Check out what Peridot Decorative Homeware is doing. The retailer uses these permanent Story spots to make it easy for people to view interior designs, shop for items, and more.
They even created custom Story cover images to make them look more attractive! Pro tip: rather than putting the hashtags right into the caption, post your picture without hashtags and immediately comment them. It looks cleaner than putting hashtags in the caption. Looking for inspiration for what to post on Instagram? Remember that curation is key — Like your Instagram profile, make sure that your Pinterest boards are carefully curated.
Crew , as you can see, has boards that make it easy for you to look at their jeans, their prints, or their stripes. But make sure it fits your aesthetic. This means that, while you should be pinning your products, pages that will do best for you organically are likely to be links to your blog posts. You can write blog posts specifically for Pinterest, such as gifting guides that help get your brand lift and will then direct your customers on to your correct pages all year round.
There are a few ways to do this:. Partner with stores in the general area whose clientele are your clientele — If you have stores in the nearby area that service the same clientele as you, you can also ask them to offer your coupons. Alternately, if you worry that no one will be motivated to drive to you based on coupons, you can always take your business to your partner and set up a pop-up shop for a day. Partner with a local charity to put on an event — Customers these days are much more socially conscious and like to shop with brands who care.