28-02-2011, 10:46 AM
presented by:
Charles Blankson
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Retail Marketing Mix and Planning
The nature of retail marketing
The key aspects of retail marketing is an attitude of mind.
In making retail marketing decisions, retailers must consider the needs of the customers.
Retail marketing decisions are driven by what the shoppers need and want.
Retail marketing is therefore a philosophy and is all about satisfying the customers
What the customers regard as value and what they buy is decisive.
What the customers buy determines the nature of the retailer’s business.
The essence of retail marketing is developing merchandise and services that satisfy specific needs of customers, and supplying them at prices that will yield profits.
Retailers must take the customers’ needs into consideration in retail operation.
Retail marketing is stimulating, quick-paced, and influential.
It encompasses a wide range of activities including:
Environmental analysis
Market research
Consumer analysis
Product planning etc.
The concept of retail marketing
The retail marketing concept is the acceptance by the retailer that it is the “customer” and not “demand” that lie at the core of the retail organisation.
The retail marketing concept is a philosophy, not a system of retailing or retail structure.
It is founded on the belief that profitable retailing and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires.
It is an attitude of mind that places the customer at the very centre of retailing activities.
Importance of marketing in retailing
Marketing is a vital tool for every retailer, as it identifies current, unfulfilled needs and wants, which it defines and quantifies.
Marketing determines which target groups the retailer should serve.
Marketing could be seen as delivering an acceptable standard of living.
Marketing can ensure complete satisfaction and sustained customer loyalty.
Marketing depends on the efficient co-ordination of consumer prediction, product development, packaging design and influencing demand through appropriate communication medium.
From these, a suitable mix is achieved.
Retail marketing objectives
The retail marketing objective is a performance parameter which has been explicitly stated.
It can be stated in quantifiable terms and time terms so that results can be measured against it.
Three types of retail objectives include:
1. Basic objective – those which defines retailer’s long-term purposes.
2. Goals – those which the retailer must achieve to be successful
3. Targets – short-term goals that require immediate achievement.
Retail marketing mix
Retail marketing mix is the term used to describe the various elements and methods required to formulate and execute retail marketing strategy.
Retail managers must determine the optimum mix of retailing activities and co-ordinate the elements of the mix.
The aim of such coordination is for each store to have a distinct retail image in consumers’ mind.
The mix may vary greatly according to the type of market the retailer is in, and the type of product/services.
While many elements may make up a firm’s retail marketing mix, the essential elements may include:
Store location,
merchandise assortments
Store ambience,
customer service,
price,
Communication with customers