Retail Marketing: What Is Retail Marketing, Types, and more
Retail Marketing A long time ago, retail marketing was simple, like stealing candy from a baby. So everything changed when digital marketing came along!
Do not worry! This is not the story of how retail marketing fell, but how you can combine it with digital marketing to take your retail store to the next level.
If you tried to build a successful retail strategy but failed, let me tell you in Uncle Iroh’s words that ” failure is the chance to start over!”
After reading our playbook, you’ll have a better idea of retail marketing and how to achieve it.
So, without further ado, let’s get down to the retail business!
What Is Retail Marketing?
When we talk about retail marketing, we mean the organized actions a retailer takes to increase brand awareness and sales for their retail store.
What distinguishes retail from other forms of commerce is that retail focuses on distributing a specific number of products to an end-user.
Typically, this distribution occurs from a fixed location, also known as your retail store, through a different channel
To do retail marketing successfully, you need to consider the four golden principles of retail: product, price, place, and promotion.
Types Of Retail Point Of Sale
With new retail outlets popping up everywhere, retail is like the many-faced god.
But, you know, less lethal and more profitable.
Below, I’ve compiled some of the most popular retail outlets that consumers visit throughout their daily lives:
Each of these outlets offers consumers a different customer experience.
For example, department stores offer end users a wide variety of products in one place.
Supermarkets cover basic daily needs like groceries, household items, etc.
Depending on the type of retail outlet, you need the right retail marketing tactics to target new customers.
You can plan an effective retail strategy to increase brand awareness and promote customer loyalty.
Of course, before we go any further, we can’t forget to mention online retailing or e-tailing.
The Rise Of Online Retail
Online retailing has skyrocketed, especially after the rise of Amazon, eBay, and Etsy. With e-tailing, shoppers can easily find items without visiting multiple stores.
However, what does this mean for the future of the physical store?
- Mortar companies have long faced what I like to call a ” Retailocalypse.”
- According to statistics, the decline of the mortar store had to do with the purchasing preferences of younger shoppers.
- More precisely, 67% of millennials like to browse and shop on e-commerce sites rather than brick-and-mortar stores.
- With giants like Amazon making life easier for consumers, retailers had difficulty adjusting to the new reality.
- However, more and more mortar retailers have embraced online shopping, giving their customers the best of both worlds.
- You can see this beautiful combination at both smaller local businesses and retail giants like Walmart:
What Are The Components Of A Retail Marketing Mix?
Think of the retail marketing mix as a recipe for a simple cake.
Some people like to modify it by adding cocoa powder. As a result, they end up with a delicious chocolate cake.
Others will even add a little liquor (don’t look at me) for a nice touch for their older guests.
Your retail marketing plan will address key location, product, and price elements.
However, like your cake recipe, the retail mix needs to be tailored to your target audience.
And while the retail foundation model is often labelled “simplified,” companies tend to extend it to include all the aspects necessary for a retail store to thrive.
The 4 Principles Of Retail Marketing
With your store in mind, you need to consider the four crucial types of retail marketing mix:
1. Product Mix
First is the product mix (also known as product assortment ).
A product mix indicates the number of product lines in a company.
When we talk about product mix, we usually assign four dimensions to the line:
- Length – The number of products found in each product line
- Width – the total number of product lines
- Depth – The variety of products in each line based on specific characteristics.
- Consistency – the connections between your product lines
The product mix includes similar or different product lines sold by a company.
When it comes to consistency, IKEA is a prime example of a retailer that sells hard and soft goods that complement each other.
Thus, customers will not have to visit multiple stores to set up their new home, whether they need furniture or bedding.
2. The Price Mix
Second, we have the price mix, one of the essential components of a successful retail business. A successful pricing strategy helps companies achieve their goals and achieve profitability. However, while it may sound easy, the pricing mix takes careful planning.
There is a fine line between price and cost. Profits will determine the survival or not of your retail store.
And to make one, you need to ensure steady cash flow and be competitively priced. Keep in mind that low prices can be attractive to your discount-hungry audience. However, that doesn’t mean a standard pricing model will help you make a profit. First impressions are important to new customers.
So targeting them with the right pricing strategy will convert them into repeat customers and establish your retail brand.
3. The Place Mix
- Aside from the price mix, you should pay special attention to where you trade.
- Imagine opening a convenience store in the middle of the desert.
- How many clients do you think you will have in a week?
- So is!
- A convenience store in the middle of nowhere will cover anyone’s needs. And your target audience will look for a similar place to shop near their homes.
- For example, when you search for convenience stores in Las Vegas, you can see that most of them are located in the city center:
- No matter how cheap your product is, you won’t make a profit without the right place, and your target customers will find other stores to cover their daily needs.
- To avoid these otherworldly scenarios, always keep accessibility in mind.
- Can your customers easily find your store? Then you are on the right track!
- Search engines are also getting smarter every day.
So instead of showing you irrelevant results, they will show you the ones that will meet your search intent and give you quick fixes.
4. The Combination Of Promotions
Finally, the promotion mix includes your marketing efforts and campaigns to reach your target market and convert them into loyal customers.
Whether in billboards, brochures, or TV commercials, a successful marketing campaign is crucial to increasing your sales.
Sometimes, getting inspired by some of the best guerrilla marketing ideas will boost your efforts and get your audience excited!
Here’s An Example From Craftsman:
However, keep in mind is that your promotional mix should always keep your product and your audience in mind.
- Different products will require specific promotion techniques.
- For example, an extravagant marketing campaign will appeal to a younger audience.
- However, an older audience may find it too much for them.
- With this in mind, you are now one step closer to nailing retail marketing.
- Let’s look at your budget and the people you need to make your retail store and retail tactics work.
The Right Mix Of People For Your Retail Store
Retail management is no easy task.
If you want to be successful, you need to ensure you have the right people to help you.
To help you out, let’s look at the everyday heroes of every successful retail store.
Retail Sales Associate
(Or your friendly neighborhood, Spiderman!)
You need people trained to give customers a great in-store experience to scale your business.
A sales associate will help you with everything your store needs and more.
Whether keeping the store clean and organized or helping a customer choose the right size, your sales associate is essential to your retail marketing success.
Retail Customer Service Representative
Your customer service representative will work behind the scenes to ensure your customers receive the best support.
Through email, phone, or a live chat service, your representatives will make sure to answer customer inquiries and resolve product-related issues.
Plus, with a trained customer service representative, you’ll be able to strengthen relationships with your customers.