Let us first understand the meaning of Retail Marketing.
Retail marketing is the range of activities performed by a retailer to develop knowledge, awareness and sales of the company’s products. This is quite different from other types of marketing because of the factors and elements of the retail trade like selling finished goods in small number or amount to the consumer or end user, generally from a fixed location. Retail marketing uses the common principles of the marketing blend i.e. product, price, place and promotion. A study of retail marketing at university level includes effective vending and selling strategies, shopping and consumer behavior, branding i.e. categorizing and advertising. Retail marketing is especially essential to small retailers trying to compete against large chain stores.
Now, let us go through some of the advantages of Retail Marketing.
The Benefits of Retail Marketing
Retail marketing occurs inside the store on the retail floor. It may include a variety of methods comprising of sales, sales associate suggestions and persuading a customer to buy something additional or more expensive, interaction with specialized customer service professionals and discounts for members or store cards. All these means and procedures have one common thing and that is that they provide the customers with service and discounts that keep them returning back. The aim of all retail marketing is to create faithfulness and dependability among the customer base which has many different built-in advantages.
What are the principles of retail? It’s very important to know the basic principles to be followed while handling retail market. Let’s get to know them.
The five principles of retail
If operating and controlling a retail business, there are five basic principles that need to be observed. They are:
1. The customer is the most important person in the business
The customer is believed to be the key to every successful Retail business concern. The customer is the main retail principle to master. He should be the centre of the business and everything done must orbit and spin around him. Knowing and focusing on him in everything done, will help to expand and flourish the business and the respective team — the customer is the king.
2. Retail is detail
One of the most renowned principles in retailing is, undoubtedly, “retail is detail” — now this is where the challenge arises: how to become more detailed and what detail should be focused on? There is a need to address and improve one’s understanding of the customer. To do this aptly, every retailer must concentrate on the detail and get the right details, the maximum number of times. Mistakes are fine, but one should learn from them and should not repeat the same mistakes again. Customers can allow some mistakes, but a lot many will disappoint them and turn them away. A major skill to master in retail is, understanding the detail.
3. Understand the four Ps
It’s an age old principle but is still valid. The 4 Ps namely, Product, Price, Place and Promotion would help in understanding the complete base of a retail business. These 4Ps lay the basis of a successful retail business.
Let’s elaborate and illustrate the 4Ps:
• Product: Here comes the need of products that the customers want to buy and a product range that would satisfy the customers’ needs and desires. The products must also deliver a profit for the organization to have a successful business.
• Price: Price must be constant across the marketing blend and meet all the needs for the business. For the customers to be able to buy the products, and for them to gain value from the products, there is a need to price the product range at the correct level. This means that the pricing high or low, very much depends upon the customer offering.
• Place: There must be a provision for some space and place for the customers to purchase the product, it could be a physical store, a catalogue i.e. the prospectus or an e-commerce website.
• Promotion: Now after having a product, at the correct price, in an accessible place for the customer, there is a need to tell them about this and promote your business and your products. It’s important to make sure that the customers know that you and your products do exist and are available and easily accessible for them to enjoy.
4. Go the extra mile for the customer
Providing great customer service begins with understanding and knowing the customer. Nevertheless, having knowledge about them is the beginning of the journey and there will be a need to give more than just customer service. To be successful, world-class customer service needs to be delivered. One should “go the extra mile for the customer” i.e. make an extra effort to achieve success. You and your team must continually do and deliver something extra for the customer, each time giving just a little bit more than they expect. Doing this each time, there’s an interaction with the customers and they can be won over and remain loyal for a longer period of time.
5. Location! Location! Location!
The final and last retail principle is: Location, location, location. History has dictated that this is one of the most essential factors in the success of a physical store, and till date it will have the biggest impact on one’s success. The perfect location of one’s store will be governed by the brand and product strategies. For instance, a supermarket business needs an efficient car park and a high fashion store should be in a high fashion area that fascinates and allures the right customers for the store.
Retail marketing is the range of activities performed by a retailer to develop knowledge, awareness and sales of the company’s products. This is quite different from other types of marketing because of the factors and elements of the retail trade like selling finished goods in small number or amount to the consumer or end user, generally from a fixed location. Retail marketing uses the common principles of the marketing blend i.e. product, price, place and promotion. A study of retail marketing at university level includes effective vending and selling strategies, shopping and consumer behavior, branding i.e. categorizing and advertising. Retail marketing is especially essential to small retailers trying to compete against large chain stores.
Now, let us go through some of the advantages of Retail Marketing.
Retail marketing occurs inside the store on the retail floor. It may include a variety of methods comprising of sales, sales associate suggestions and persuading a customer to buy something additional or more expensive, interaction with specialized customer service professionals and discounts for members or store cards. All these means and procedures have one common thing and that is that they provide the customers with service and discounts that keep them returning back. The aim of all retail marketing is to create faithfulness and dependability among the customer base which has many different built-in advantages.
What are the principles of retail? It’s very important to know the basic principles to be followed while handling retail market. Let’s get to know them.
The five principles of retail
If operating and controlling a retail business, there are five basic principles that need to be observed. They are:
1. The customer is the most important person in the business
The customer is believed to be the key to every successful Retail business concern. The customer is the main retail principle to master. He should be the centre of the business and everything done must orbit and spin around him. Knowing and focusing on him in everything done, will help to expand and flourish the business and the respective team — the customer is the king.
2. Retail is detail
One of the most renowned principles in retailing is, undoubtedly, “retail is detail” — now this is where the challenge arises: how to become more detailed and what detail should be focused on? There is a need to address and improve one’s understanding of the customer. To do this aptly, every retailer must concentrate on the detail and get the right details, the maximum number of times. Mistakes are fine, but one should learn from them and should not repeat the same mistakes again. Customers can allow some mistakes, but a lot many will disappoint them and turn them away. A major skill to master in retail is, understanding the detail.
3. Understand the four Ps
It’s an age old principle but is still valid. The 4 Ps namely, Product, Price, Place and Promotion would help in understanding the complete base of a retail business. These 4Ps lay the basis of a successful retail business.
Let’s elaborate and illustrate the 4Ps:
• Product: Here comes the need of products that the customers want to buy and a product range that would satisfy the customers’ needs and desires. The products must also deliver a profit for the organization to have a successful business.
• Price: Price must be constant across the marketing blend and meet all the needs for the business. For the customers to be able to buy the products, and for them to gain value from the products, there is a need to price the product range at the correct level. This means that the pricing high or low, very much depends upon the customer offering.
• Place: There must be a provision for some space and place for the customers to purchase the product, it could be a physical store, a catalogue i.e. the prospectus or an e-commerce website.
• Promotion: Now after having a product, at the correct price, in an accessible place for the customer, there is a need to tell them about this and promote your business and your products. It’s important to make sure that the customers know that you and your products do exist and are available and easily accessible for them to enjoy.
4. Go the extra mile for the customer
Providing great customer service begins with understanding and knowing the customer. Nevertheless, having knowledge about them is the beginning of the journey and there will be a need to give more than just customer service. To be successful, world-class customer service needs to be delivered. One should “go the extra mile for the customer” i.e. make an extra effort to achieve success. You and your team must continually do and deliver something extra for the customer, each time giving just a little bit more than they expect. Doing this each time, there’s an interaction with the customers and they can be won over and remain loyal for a longer period of time.
5. Location! Location! Location!
The final and last retail principle is: Location, location, location. History has dictated that this is one of the most essential factors in the success of a physical store, and till date it will have the biggest impact on one’s success. The perfect location of one’s store will be governed by the brand and product strategies. For instance, a supermarket business needs an efficient car park and a high fashion store should be in a high fashion area that fascinates and allures the right customers for the store.
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