Introduction

 Retail – Any business that directs its efforts towards satisfying the final consumer based
upon the organisation of selling goods and services as a means of distribution

 Retailer- A dealer or trader who sells goods in small quantities or one who repeats or relates

 Retailing – All activities involved in the marketing of goods and services directly to the
consumers for their personal, family or household use or Retailing includes all the activities
involved inselling goods/services directly to final consumers for personal, non- business use.

 Retailing derived from French word “retailer” means “a piece of” or “ to cut up”.
 Retail Marketing

 Retail marketing involves all of the ways a retail business acquires customers and
gets those customers to buy their goods and services. The main goal of retail
marketing is to drive sales by promoting products to customers in an effective
manner.

 Retail marketing includes a set of activities where a retailer buys products from a
wholesaler or manufacturer to sell them to ends users (consumers). In simple
words, a retailer is an intermediary which makes products available to consumers
using different channels, for example, brick-and-mortar retail stores, shopping
malls, shopping websites, automatic vending machines, kiosks etc.
Store Retailing Vs Non Store Retailing

 A retail store means a place  Non-store retailing involves

where the business is selling merchandise outside
operated, usually by the the boundaries of a retail
owner; however, sometimes facility. This generic term
operated and owned by the tends to describe retailing that
manufacturer or by anyone
takes place outside of stores
other than a retailer within
which the merchandise is and shops. Retailing takes
primarily sold to end-users. place through television,
internet, video, automatic
vending machines direct
marketing and direct selling.
Why is Retailing so Important?

 Retailer links products to customers  Retailers perform specific activities-

 Retailer is a person, agent, agency, company  Anticipate customer wants
or organisation reaching the goods or Services  Stock product assortments
to ultimate consumers
 Acquire market information
 Retailer is in close contact with the customers
 Finance Retail business
 Sell small quantities of items on a frequent
basis
 Convenience in terms of location, payment
and credit facilities, range of merchandise,
after sales services, etc/
 Offer selection- merchandise assortment
Organised and Unorganised Retail Sector

 Organised retailing: It refers to trading  Unorganised retailing: It refers to the

activities undertaken by licensed traditional formats of low-cost retailing,
retailers, that is, those who are registered for example, the local kirana shops,
for sales tax, income tax, etc. These owner-manned general stores, paan
include the corporate-backed shops, convenience stores, hand cart and
hypermarkets and retail chains, and also pavement vendors, etc.
the privately-owned large retail
businesses.
 Organised and Unorganised Retail Sector
ORGANIZED RETAILING UNORGANIZED RETAIL
The Organized retail sector is regulated by the government and the The Unorganized retail sector is not regulated by the government and
employment terms and working hours per day in this sector are fixed. employment terms and working hours per day are not fixed in this
sector.
The Organized retail sector is governed by various acts like Bonus act, There is no government act to govern the unorganized retail sector.
factories act, minimum wages act, and PF act, etc.
Government rules are strictly followed in the Organized retail sector. No government rules are followed in the unorganized retail sector.

Regular monthly salary is given to employees on the monthly basis. Daily wages are given to employees.
There is job security for employees in the Organized retail sector. The working hours are not fixed in the unorganized retail sector.
Workers in the organized retail sector are paid additionally for the extra Workers in the unorganized retail sector do not get paid additionally for
number of working hours. the extra number of working hours.
Employers make a contribution to the provident fund of an employee. Employers do not make any contribution to the provident fund of an
employee.
Salary given to employees is equal to the salary prescribed by the Less salary is paid to employees than the salary prescribed by the
government. government.
The increment is given to employees n regular basis (mostly annually). Very rarely increment is given to employees.

Employees working in the organized retail sector get add on benefits No benefits or perquisites are provided to employees working in the
such as a pension, medical facilities, leave compensation, travel unorganized retail sector.
compensation, etc.
DMart, founded by Mr. Radhakishan Damani in 2002, has emerged as one of
India's most successful and influential retail chains. What sets DMart apart is
its unwavering commitment to customer satisfaction and its ability to deliver
high-quality products at the most competitive prices. With a strategic focus on
tier 2 and tier 3 cities, DMart expanded its footprint, bringing organized retail
to underserved markets. Their efficient supply chain, inventory management,
and logistics systems have allowed them to keep operational costs low.
DMart's introduction of private label brands and a pricing strategy with razor-
thin profit margins propelled them to become price leaders in the market. They
invest significantly in employee training and uphold strong corporate
governance principles. The result is a retail giant with a vast presence, a
dedicated workforce, and a loyal customer base, showcasing the power of
customer-centricity and efficient operations in achieving retail success.
Walmart, founded by Sam Walton in 1962, started as a small
discount store in Arkansas. Its success story is built on a
commitment to everyday low prices (EDLP), efficient supply chain
management, advanced technology, and a customer-centric
approach. Walmart's strategic store expansion, including the
"supercenter" concept, and its diversification into various product
categories, such as groceries and e-commerce, have propelled it to
become one of the world's largest and most influential retail chains.
Today, Walmart's global presence and ongoing dedication to
innovation, efficiency, and customer satisfaction exemplify the key
principles of successful retailing.
 Role of Marketing in Retail

 Brand Awareness and Identity  Multi-Channel marketing

 Advertising and Promotion  Digital Marketing
 Customer Engagement and  Customer Insights and
Relationship Building Feedback
 Market Research and Analysis  Competitive Advantage
 Product Positioning and  Innovation Adaptation
Merchandising
(76) Online Marketing vs Traditional Marketing - YouTube
 News Article on IKEA
Ikea eyes omnichannel expansion and local sourcing in India (indiatimes.com)

Retail SWOT Analysis:

 Conduct a SWOT analysis (Strengths, Weaknesses,
Opportunities, Threats) of a retail business of their
choice. This exercise helps students understand how
to assess a retail business's internal and external
factors.
 Case let-1
XYZ Emporium, a long-standing traditional retail store in a suburban town, is
facing significant challenges in today's highly competitive retail landscape.
Established in the 1980s, the store once thrived as a one-stop shop for a variety of
products, from clothing and electronics to household goods. However, in recent
years, XYZ Emporium has seen declining foot traffic, stagnant sales, and increased
competition from e-commerce giants and modern retail chains. The management
team is seeking to revitalize the store's marketing strategies to regain its former
glory.
Challenges:
1.Changing Customer Preferences: Over the years, customer preferences have evolved, and
XYZ Emporium has struggled to keep up. Younger generations prefer online shopping and
more modern retail experiences.
2.Increased Competition: Large retail chains and e-commerce platforms have entered the
suburban market, offering competitive prices, convenience, and a wide range of products.
3.Outdated Brand Image: XYZ Emporium's brand image is perceived as outdated and lacking
the appeal of modern retailers.
 Possible Solution for XYZ Emporium
1.Omnichannel Retailing: Launch an e-commerce platform that complements the
physical store. Offer online ordering with options for home delivery and in-store
pickup.
2.Targeted Digital Marketing: Develop a comprehensive digital marketing
strategy, including search engine optimization (SEO), pay-per-click advertising
(PPC), and social media marketing. Create engaging content to connect with the
target audience.
3.Rebranding Campaign: Redesign the store's logo and signage to modernize its
visual identity. Invest in interior renovations to create a more appealing shopping
environment.
4.Customer Loyalty Program: Introduce a loyalty program that rewards frequent
shoppers with discounts, special promotions, and personalized offers.
5.Community Engagement: Organize events and activities that involve the local
community. This can include workshops, charity drives, or partnerships with local
schools.
 Marketing Impact on Consumer
Marketing has a profound impact on consumers, shaping their perceptions, behaviors, and decision-making
processes
 Awareness and Information- Marketing exposes consumers  Brand Loyalty: Consistent and effective marketing can
to products, services, and brands they might not have been foster brand loyalty. Consumers are more likely to stick
aware of otherwise. Through advertising, content, and various with brands they are familiar with and have positive
promotional activities, consumers learn about new options associations toward, even when faced with similar
available in the market. alternatives.

 Purchase Decisions: Marketing directly affects consumers'  Decision-Making Process: Marketing provides
purchase decisions. Well-crafted marketing campaigns, consumers with information and reasons to consider a
promotions, discounts, and incentives can encourage product or service, helping them move through the
consumers to make buying choices they might not have decision-making process. It can provide the necessary
otherwise considered. information and convince consumers that a particular
 Information Search: Marketing can streamline consumers' product or service fulfills their needs or desires.
information search process by providing relevant details about  Post-Purchase Satisfaction: Marketing doesn't end with
products and services. This helps consumers make informed the sale. Post-purchase marketing, such as follow-up
decisions without spending excessive time and effort on emails, customer service interactions, and loyalty
research.
programs, can impact how satisfied consumers feel after
their purchase, influencing whether they become repeat
customers and advocates for the brand.
 Retail Marketing Challenges
 E-commerce Competition:  Online Reviews and Reputation Management:
The rise of e-commerce giants has intensified competition for Online reviews have a significant impact on consumer decisions. Negative
traditional brick-and-mortar retailers. Online platforms offer reviews can harm a retailer's reputation, necessitating effective reputation
convenience, a wide range of products, and often competitive pricing, management strategies.
making it challenging for physical stores to attract and retain customers.
 Employee Training and Retention:
 Omnichannel Integration:
Retail staff need to be knowledgeable, customer-centric, and adaptable. High
Consumers expect a seamless shopping experience across multiple turnover rates and the need for continuous training pose challenges to
channels - in-store, online, and mobile. Retailers struggle to integrate providing consistent customer experiences.
these channels effectively, leading to inconsistencies in pricing,
 Sustainability Demands:
inventory, and customer service.
 Changing Consumer Behavior: Consumers are increasingly conscious of environmentally friendly practices.
Retailers must adopt sustainable practices throughout their operations to align
Consumer preferences and behaviors are evolving rapidly, driven by with these demands.
factors such as sustainability concerns, ethical considerations, and a
 Technological Advancements:
desire for personalized experiences. Retailers must keep up with these
shifts to tailor their offerings accordingly. Staying updated with technological trends, such as AI, AR, and VR, can be
 Pricing Pressure: costly and require a significant learning curve for retailers to implement
effectively.
Price transparency online makes it challenging for retailers to maintain
competitive pricing while also ensuring profitability.
 Implications of Retail marketing on Consumers
 Purchase Decisions: Retail marketing influences  Buyer's Journey: Marketing guides consumers
consumers' choices by presenting products, through the buyer's journey, providing information
promotions, and incentives. Effective marketing can and solutions at each stage. From awareness to
create a sense of urgency or scarcity, prompting purchase, well-timed marketing interactions
consumers to make quicker decisions. facilitate smoother decision-making.
 Brand Perception: Marketing shapes how  Trust and Credibility: Consistent and transparent
consumers perceive brands. Well-executed marketing builds trust with consumers. Brands
marketing campaigns can establish trust, reliability, that deliver on their promises and engage in
and a strong emotional connection, leading to ethical practices are more likely to retain loyal
positive brand associations. customers.
 Emotional Appeal: Retail marketing often taps into  FOMO (Fear of Missing Out): Marketing
emotions to create memorable experiences. campaigns that highlight limited-time offers or
Emotional advertising can evoke happiness, exclusive deals trigger FOMO, encouraging
nostalgia, or empathy, deepening consumer consumers to make purchases to avoid missing
engagement. out on a perceived opportunity.
 Bases for Segmentation of Consumer Markets
 Market segmentation involves dividing a market into smaller segments of buyers with distinct needs,
characteristics, or behaviors that might require separate marketing strategies or mixes.
 Geographic- World region or country, Urban, suburban, exurban, rural, Climate, Northern, southern

 Demographic- Age Under 6, 6–11, 12–19, 20–34, 35–49, 50–64, 65 and over Gender Male, female Family
size 1–2, 3–4, 5 or moreFamily life cycle Young, single; married, no children; married with children;
single parents; unmarried couples; older, married, no children under 18; older, single; other Income Under
$20,000; $20,000–$30,000; $30,000–$50,000; $50,000–$100,000; $100,000– $250,000; over
$250,000Occupation

 Psychographic- Social class Lower lowers, upper lowers, working class, middle class, upper middles,
lower uppers, upper uppersLifestyle Achievers, strivers, survivorsPersonality Compulsive, outgoing,
authoritarian, ambitious

 Behavioral- Occasions Regular occasion; special occasion; holiday; seasonal Benefits Quality,
 Target Market
Concept –
A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.
Market targeting can be carried out at several different levels.
Positioning

Positioning is a strategic process that marketers use to determine the place or “niche” an offering
should occupy in a given market, relative to other customer alternatives. When the company
positions a product or service, it considers following questions:

Place: What place does the offering occupy in its market?

Rank: How does the product or service fare against its competitors in the areas evaluated
by customers deciding what to buy?
Attitude: How do we want customers to think about this offering and the benefits it
offers them?
Outcomes: What must we do to ensure the product or service delivers on the positioning
we select?
 SWOT ANALYSIS

Strengths:
• What you're good at or have an advantage in.
(76) The Evolution of Retail (ANIMATION) - YouTube Example: Skilled team, popular product.

Weaknesses:
(76) Explained | India's growing e-retail market and online shop • What you lack or need to improve.
ping user base | WION - YouTube Example: Limited budget, outdated technology.

(76) Retailers, Wholesalers and Distributors - YouTube Opportunities:

• External chances for growth or improvement.
Example: Expanding into new markets, following a new trend.

Threats:
• External challenges or risks.
Example: Strong competitors, economic downturn.

By analyzing these four aspects, you can make smarter decisions for
your business or organization. Leverage your strengths, work on
weaknesses, seize opportunities, and prepare for threats.
Example of SWOT Analysis for a small ice cream shop:

Strengths:
•The ice cream shop has a prime location in a popular tourist area.
•They offer unique and delicious ice cream flavors that are locally famous.
•The staff is friendly and provides excellent customer service.
Weaknesses:
•The shop has limited indoor seating space, which can be a problem during rainy or hot weather.
•They don't have an online ordering system or delivery service.
•Their operating costs are relatively high due to using premium ingredients.
Opportunities:
•There's a growing trend for organic and locally sourced ingredients, which the shop can tap into.
•They can expand their menu to include ice cream cakes for special occasions.
•Collaborating with nearby businesses for cross-promotions could boost sales.
Threats:
•A new ice cream shop from a well-known chain is opening nearby.
•Changing weather patterns may affect the number of tourists visiting the area.
•Rising ingredient costs due to supply chain disruptions could impact profitability.

In this example, the ice cream shop's strengths are its location, unique flavors, and good service. Weaknesses
include limited seating and the absence of online ordering. Opportunities involve adapting to trends and
expanding the menu, while threats include new competition and external factors like the weather and ingredient
costs. By understanding these factors, the ice cream shop can make informed decisions to improve and grow
their business.
SWOT Analysis (Strength and Weakness are
internal Opportunity and threat are external)

Retailing Functions

Marketing Activities (like-

Advertisement, Campaign,
Online/Offline, etc.)