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Retail Business Review | Wednesday, June 14, 2023
Everything from the interior and exterior of the retail store to in-store advertisements, product placements, offers and promotions, and the manner of store representatives comes under retail marketing.
Retail marketing refers to the range of activities undertaken in the retail store by the retailers and the brand to promote the products to the customers to generate awareness, interest, and sales.
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In brief, everything from the interior and exterior of the retail store to in-store advertisements, product placements, offers and promotions, and the manner of store representatives come along with retail marketing.
Retail Marketing Strategies
Various retail marketing strategies can be planned and employed for diverse retail outlets. The elements which should be reviewed while crafting a retail marketing strategy are:
Target Market: The market segment to which the retail outlet caters.
Retail Format: Store type and retailer's retail mix (ownership-based, franchise-based, discount-store, etc.)
Sustainable Competitive Advantage: A benefit over the competitors.
The main target of the retail marketing strategy is to differentiate the retail store from the competition by setting up and encouraging a sustainable competitive advantage which leads to increased sales.
The contours of the retail marketing strategy include:
Retail Branding
Establishing a good brand name, logo, and positioning of the retail store is among the topmost priorities of a retail marketer. Customers are more driven to buy a product from a branded retail store than a generic one.
Price Drops
A great way to attract customers is to provide the same quality (and quantity) of goods at a lesser price than the competition.
Limited Period Discounts & Offers
Limited-period discounts and offers increase sales temporarily and can help in word-of-mouth marketing and getting more customers (and returning customers).
Strategic Placements
Strategically placing items where the customers are most likely to buy them is a great strategy to increase sales. A perfect example is placing small, inexpensive products (parasites) at the billing counter.
Strategic Store Design
The store design is the first contact point for the customers. The store is designed for the people it serves to perform better than those that aren't. For example, a colourful and kids-friendly product placement suits a toyshop, while a classy look and colours suit a store selling men's suits.
Visual Merchandising
The better it looks, the more chance the customer will buy it. Therefore, smart visual merchandising tactics help increase sales substantially.
Loyalty Programs
Loyalty programs are developed for better company-customer relationships. These programs entail exclusive discounts and offer for regular customers.
Strategic In-Store Advertisements
People usually prefer the advertised brand over the non-advertised brand in the store. Therefore, strategic placements of such advertisements can substantially increase the sale of a specific brand or product.
Training Employees To Be Smarter
Retail store employees play a major role in customers' decision-making process. They can make or break a product judgment of the customer with the support of their relationship and selling skills.
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