Characteristics of Retail Marketing

Retail Business Review | Monday, February 28, 2022

The sale of goods & services from businesses to an end user is called Retail.

Fremont, CA: Retail marketing is the procedure by which retailers promote awareness and interest in their goods and services to generate sales from their consumers. Retailers can use different approaches and strategies to market their goods and services.

The difference between Retail Marketing and Marketing

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Marketing is the key to drawing a customer into the retail sales process. While the retail sales process handles customers ready to buy, marketing is everything you do to entice your customer base and keep them engaged until they reach that stage.

Marketing tactics refer to how a business communicates its value—from your business's messaging with email marketing or on social media to its packaging and pricing tactic, and even where and how products are sold (e.g., the design of a retail store or website).

Retail marketing is maybe even more challenging than other types of marketing because it requires building a solid relationship with your customers that motivates them to pick your particular product over another—not just because the product itself is "better," but because of all the other parts of the shopping experience that reinforce their choice.

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Characteristics or Features of Retail Marketing:

Retail marketing or organized business of retailing has the following feature or

Characteristics:

1. Sale to Ultimate Customer:

Goods or services in a retail transaction are sold to a final customer for consumption. There is no more re-sale of the product or Service. Goods and Services sold for consumption may be for domestic, household, or industrial use and are classified as retail transactions.

Even selling spare parts, equipment, machinery, etc., to industrial houses or businesses is organized and classified under retail marketing. Once the goods are sold, there shouldn't be additional sales of the product or Service. It is used up by the customer or the person for whose benefit he has purchased.

2. Convenient Form (Quantity):

The word retail means cut to size, 'small piece' or break the bulk. Retailers buy in large quantities from intermediaries or manufacturers. He breaks the majority and sells in small amounts to match the need of customers. Goods may be repacked or supplied in small packs in a convenient form, which a person can carry to his home.

3. Convenient Place and Location:

Retailers provide goods from a location that is suitable for the customers. In the case of physical location. It can be a small store, a shop, or a theatre. It may also be via mobile or mail order business over the internet. Goods/or services are offered for the convenience and comfort of the consumer.

Online shopping through the internet and mobile is becoming popular with the growth of I-T and courier service. (Ex-the advertisement of pizza on the TV is shown delivery within half hour of its order)

4. Last Link in Chain of Distribution:

A retailer is a final link in the chain of distribution. He sells goods to the final customer. He connects intermediaries and consumers, acting as the link between them. He is expressed as merchandising arm or neck in the bottle of distribution.

He serves as a communicator between manufacturer and consumer. It benefits both of them by sharing necessary information that gives profit to the manufacturer by manufacturing goods that the people like.

5. Organized Sale:

Retail marketing is the organized business of selling to the customer by application of principles and functions of marketing. Un-organized Retail, like street vendors, may not be generally classified under retail marketing.

6. Marketing, not Just Sale:

Organized retailing or retailing is not an activity of just a sale. It is a marketing activity. The consumer is offered comfort, convenience, and concession in buying goods of his choice. Marketing functions like transportation, banking insurance, and warehousing are undertaken to create and deliver goods to people's satisfaction. Goods are designed and produced to match people's tastes and satisfy their desires, ensuring customer delight. Every marketing effort is undertaken in the sale or delivery of goods.

7. Goods and also Service:

Retail marketing is not only connected with the delivery of physical goods or merchandise like Grocery Vegetables, Electronic goods, etc., it is also engaged in providing services. The Globalization process, entry of MNCs, and development in the field of the IT sector have made the marketing of services more popular and developing. Nowadays, services marketing is becoming an important area like Insurance, Tourism, Hotel, Investment, etc.

8. Creation of Utility:

Retail marketing creates Form, Place, and Time utility. It breaks the large bulk size into small size and changes the form of the product. Place utility is produced by bringing goods from the manufacturer's place to the consumer's area. Goods are kept in advance and delivered when required by the customer. A retailer creates these utilities by increasing the value and utility of goods.

9. Customer Delight:

Retail marketing not only satisfies customers' wants but also ensures their delight. It gives more satisfaction than what is expected through its retail network. Retail marketing gathers information regarding the type of product decided by them, Communicates such data to the manufacturer.

The product is designed to match the changing taste of customers. Retail stores present such products to the people in size, style, price, and other services through their stores to increase people's satisfaction levels.

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