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What is a Retail Marketing Strategy?
A retail marketing strategy refers to how a store and its products sell goods to its target customers. Each type of retail business has to make decisions about all the details of its marketing mix. A marketing mix consists of the product, price, place, promotion and packaging. Internet marketing strategies and those for stores that people shop at in person must be developed to meet the needs of potential customers. A retail marketing strategy is first outlined in a business plan.
A business plan contains information about the intention and goals of the company. It's created before a business opens. Business plans include research about who the company's potential customers are as well as what their needs and wants are. A retail marketing strategy should be a part of the business plan. It should include decisions about the marketing mix approach, such as how customers will get the products.
For instance, a furniture company may choose a large warehouse, while a jewelry manufacturer may decide to sell only over the Internet. Other businesses may select a combination of a brick and mortar store for in person customer purchases plus a website for customer online shopping. All retail marketing decisions should consider the target customer as well as the company's profit. For example, having an etail website rather than a retail store may save on overhead costs, but it won't be a profitable choice if the target customer isn't likely to shop online.
Common retail marketing strategies involve how products and stores are positioned and differentiated. A differentiation strategy focuses on products that can stand out from the others competing for the attention and dollars of the target market. For example, a furniture store may offer hand-made products or other items very different from what competing stores are offering. Of course, the product shouldn't only be different, it has to be something that targeted customers want and need. Retail market differentiation must set stores and products apart in order to create strong branding.
Branding is the identity of a product or service. Retail products and services in the same industry can differ widely from each other. For example, low-cost hair cutting services are branded and differentiated from upscale salons by their "no frills" store design. Expensive hair salons, on the other hand, are usually very detailed and fashionable in their store's look. As part of it's retail marketing strategy, an upscale salon may be positioned to potential customers as trendy, while the low-cost basic hair cutting establishment's market positioning could be promoted as budget-friendly.
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![Retailers strive to reach customers.]()
By: Franco DeriuRetailers strive to reach customers. -
![A marketing strategy might include posting advertisements around a shopping mall.]()
By: Photocreo BednarekA marketing strategy might include posting advertisements around a shopping mall. -
![Store layout and number of locations are among factors to consider in a retail marketing strategy.]()
By: bertys30Store layout and number of locations are among factors to consider in a retail marketing strategy. -
![Modern retail marketing strategies frequently engage with customers through websites to encourage online shopping.]()
By: karelnoppeModern retail marketing strategies frequently engage with customers through websites to encourage online shopping. -
![The goal of retail marketing strategies is often to increase sales.]()
By: andreaxtThe goal of retail marketing strategies is often to increase sales. -
![All retail marketing decisions should consider the target customer as well as the company's profit.]()
By: pressmasterAll retail marketing decisions should consider the target customer as well as the company's profit. -
![Using young and attractive models is a common retail marketing strategy.]()
By: ForewerUsing young and attractive models is a common retail marketing strategy.
Discussion Comments
This is a great article and absolutely correct in a number of ways. My team works with a lot of retailers and brands in helping them maximize their ROI - Return On Investment -- in this area and part of this is by using shopper insights.
When you work closely with shopper marketeers, you can cover all areas of the retail marketing experience, including retail design all the way to implementation. The more retailers and brands that wake up to this type of shopper marketing and the value it brings in, the more savings at the point of sale they are likely to achieve.
Retail marketing is crucial nowadays for any store owner, whether it be a small store or a large multi-store retailer. But it has to cover all parts of marketing, including online and offline. We now work with our clients to make sure all the parts are covered from the best design of a POS through online campaigns and make sure all this is joined up. It pays really big didvdends if this done.
SurfNturf-I know that when I worked for Clinique, one of the other counters had a purchase with purchase promotion, so we prospected throughout the store in order to get customers to the counter.
We offered three minute eye make up tips and provided free samples in order to get people to our counter.
I think when marketing your business you really have to know who your target market is and what the general retail trends are for your product or service. Marketing branding is really important so that your customer base can identify with your product and understand it.
Product marketing strategy involves creating retail advertising in order to promote your products.
Advertising strategies might include offering a gift with a minimum purchase. Many cosmetic companies offer promotions like these as well as purchase with purchase which requires the customer to buy a product at a lower price as long as the minimum purchase has been made.
Sometimes retail advertising promotes make up artists or celebrities that will be visiting the store in order to entice future customers to the store.
Sometimes stores will provide free giveaways to the first one hundred customers in order to encourage them to go to the store early. This is usually done during high traffic sales like Black Friday.
Sometimes retail advertising will offer buy one get one free or offer a few products at cost in order to entice customers in the store to purchase more merchandise.
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