MODULE IV

RETAIL MARKETING

Retail marketing involves all of the ways a business acquires customers and
gets those customers to buy their goods and services.

The basics of retail marketing campaigns revolve around four main factors,
which are often called the four Ps: product, price, place, and promotion.

 Product: Even though retailers don’t usually create their own products, their

selection of items is still a key selling point. Customers want to know that you
have what they’re looking for.
 Price: Such a competitive retail market puts significant downward pressure on

prices. You might want to raise your prices to earn a greater profit on each
item, but that will also push some of your customers to competing retailers
that offer the same product at a lower price.
 Place: Place can refer to the actual location of a physical store, but it can also

refer to online visibility. Getting the top results on Google for a given keyword
can be just as valuable for online retail stores as having a prime location on
Fifth Avenue in New York.
 Promotion: Retail promotion is all about connecting with customers and

making them more aware of your brand. If consumers don’t know you exist,
they won’t think of you when they want a product. Even after reaching
the initial stage of awareness, they may need to engage with your brand
several more times before becoming comfortable enough to move forward
with their first purchase.
Retail advertising is the process by which retailers use store advertising
(online and offline) to drive awareness and interest towards their products to
generate sales from their target audience. Through advertising, a retailer
attempts to influence their audience to take a specific action.

Advertising is a medium through which an individual or organization highlights

the USPs and benefits of a product or service to influence the buying behaviour
of the individuals.

It helps to create a positive image of a particular brand in the minds of the

customers and prompts them to buy the same.

Role of Advertising in Retail

 The retailer through various ways of advertising strives hard to promote his
brand amongst the masses for them to visit the store more often.
 Advertisements attract the customers into the store. They act as a catalyst
in bringing the customers to the stores.

The advertisement must effectively communicate the right message and click on
the customers. It should be a visual treat and appeal the end-users.

Advertisements have taglines to create awareness of a product or service

in the most effective way.

 The tagline has to be crisp and impressive to create the desired impact.
 The tagline should not be lengthy else the effect gets nullified.
 It has to be catchy.
 It should be simple to memorize.

The moment an individual hears “Just Do it”, he knows he has to visit a “Nike
Store”. That’s the importance of a tagline.

Modes of Advertising

1. Nothing works better than promoting a brand through signboards,

billboards, hoardings and banners intelligently placed at strategic
locations like railway stations, crowded areas, heavy traffic crossings, bus
stands, near cinema halls, residential areas and so on. Such advertising is
also called as out of home advertising.

Out of home advertising is a way to influence the individuals when they are
out of their homes. The hoarding must be installed at a height visible to all
even from a distance.
 Make sure it catches the attention of the passing individuals and influences
them to visit the store.

Keep it simple and make sure it doesn’t confuse the customers; instead it
should convey the information in its desired form.

2. Print media is also one of the most effective ways to promote a brand.
Newspapers, magazines, catalogues, journals make the brand popular
amongst the individuals. Retailers can buy a small space in any of the
leading newspapers or magazines; give their ads for the individuals to read
and get influenced.
3. Television also helps the brand reach a wider audience. Now a days
retailers also use celebrities to endorse their products for that extra zing.
Celebrities are shown using the particular brand and thus making it a hit
amongst the masses.

Sachin Tendulkar - the famous Indian cricketer endorses Castrol India,

MRF tyres, Adidas, Boost etc.A child gets influenced to drink Boost
because his favourite cricketer drinks the same.

4. Radio Advertisements also help in creating brand awareness.

5. Social networking sites have also emerged as one of the easiest and
economical ways to promote a product or brand.

Sales Promotion

A sales promotion is a marketing tactic used by retailers to drive sales. It involves

offering shoppers a deal that would enable them to either purchase a product for
a lower price OR get more value of the sale (e.g., Buy One Get One Free).

1. Discount Promotions

The most classic type of promotion: a discount. Save either a dollar or

percentage amount when you make your purchase, or run a buy one get one
(BOGO) deal. This type of promotion is good in any context — that’s why it’s a
classic.

2. Tiered Promotions (Buy More, Save More)

Tiered discounts refers to offering customers a larger percentage off the more
they actually spend. For example, if a customer spends $100, they may get 10%
off; but if they spend $200, they get 20% off. This strategy is a great way to
motivate customers to spend more across the board and feel like they are getting
more value as they increase their purchase amount.

3. Private Sales

A private sale refers to a sale that’s only available to a certain segment of your
customers. That segment can be based on factors like previous lifetime spend,
geography, or even affinity group. A private sale promotion is also a great
marketing tactic to extend to a local organization or club in order to encourage
new customers to shop from you for the first time.

4. Flash Sales

You may remember Flash Sales from their heyday in the early 2000’s. A flash
sale is when you provide limited-time offers and discounts for certain items, even
if just for a few hours. Flash sales are the ultimate urgency driver, but if you’re
looking to extend their impact while still motivating customers to shop quickly,
then consider running multiple flash sales in a row but limiting which products are
available during each promotion.

5. Free Gift with Purchase

Everyone likes gifts - they’re free! The free gift with purchase is a great way to
reward customers for purchasing either a specific item or for spending above a
certain threshold. You can either let the customer choose the gift or use gifting as
an opportunity to introduce your customers to a new product. The gift you provide
is also a great way to move lingering inventory.

6. Giveaways

Giveaways are typically very high-value gifts or bundles offered as a reward to

only one or a select few customers; they are essentially contests but the way
customers enter is either by spending a certain amount of money or completing a
specific task such as following your brand on social media or providing their
email for an email list. Giveaways are a great incentive for smaller requests like
this one because the method of opting in for a chance to win is not too
demanding on the customer..

Store Positioning
Store Positioning is creating an image or identity for the Store. It is the 'place' a
store occupies in a given market as perceived by the target market. Positioning is
something that is done in the minds of the target market. A stores position is,
how potential buyers see the store.

MARKETING MIX

The marketing mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market. The 4Ps make up a typical marketing mix -
Price, Product, Promotion and Place.

7 Ps

First four explained in the beginning

People: People, in the marketing mix, refers to anyone directly or indirectly involved in
the business side of the enterprise. That means anyone involved in selling a product or
service, designing it, marketing, managing teams, representing customers, recruiting
and training.

Process: : Process refers to the processes involved in delivering your products and
services to the customer. It is also about being 'easy to do business with'. Having good
process in place ensures that you: repeatedly deliver the same standard of service to
your customers.

Physical Evidence: Physical evidence refers to everything your customers see when
interacting with your business. This includes:

 the physical environment where you provide the product or service

 the layout or interior design
 your packaging
 your branding.

CRM

Customer relationship management (CRM) is the combination of practices,

strategies and technologies that companies use to manage and analyze
customer interactions and data throughout the customer lifecycle. The goal is to
improve customer service relationships and assist in customer retention and
drive sales growth. CRM systems compile customer data across different
channels, or points of contact, between the customer and the company, which
could include the company's website, telephone, live chat, direct mail, marketing
materials and social networks. CRM systems can also give customer-facing staff
members detailed information on customers' personal information, purchase
history, buying preferences and concerns.

Benefits of CRM in the Retail Sector

Once you understand the importance of CRM in the retail sector..

You can use it to gain a marvelous combination of business-boosting benefits:

 Make your customers happier

 Strengthen customer loyalty
 Improve company performance
 Spend less money on ineffective marketing
 Create successful marketing campaigns with a higher ROI
 Increase customer retention rate
 Encourage repeat sales and return customers

Advertising in Retailing

Notes Given in the beginning