Retail Marketing Mix And Planning
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The document discusses the key aspects of retail marketing including satisfying customer needs, developing merchandise and services to meet those needs, and coordinating the elements of the retail marketing mix. It also covers the importance of retail marketing planning, which involves setting objectives, identifying options, and coordinating activities in a logical sequence to maximize profits in a complex retail environment. Finally, the document outlines different types of retail marketing plans from annual tactical plans to long-term strategic plans focused on adapting to market opportunities.
Retail Marketing Mix And Planning
- 1. Retail Marketing Mix and Planning Charles Blankson, Ph.D.
- 2. The nature of retail marketing The key aspects of retail marketing is an attitude of mind. In making retail marketing decisions, retailers must consider the needs of the customers. Retail marketing decisions are driven by what the shoppers need and want. 2
- 3. The nature of retail marketing … Retail marketing is therefore a philosophy and is all about satisfying the customers What the customers regard as value and what they buy is decisive. What the customers buy determines the nature of the retailer’s business. 3
- 4. The nature of retail marketing The essence of retail marketing is developing merchandise and services that satisfy specific needs of customers, and supplying them at prices that will yield profits. Retailers must take the customers’ needs into consideration in retail operation. 4
- 5. The nature of retail marketing Retail marketing is stimulating, quick-paced, and influential. It encompasses a wide range of activities including: Environmental analysis Market research Consumer analysis Product planning etc. 5
- 6. The concept of retail marketing The retail marketing concept is the acceptance by the retailer that it is the “customer” and not “demand” that lie at the core of the retail organisation. The retail marketing concept is a philosophy, not a system of retailing or retail structure. It is founded on the belief that profitable retailing and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires. It is an attitude of mind that places the customer at the very centre of retailing activities.
- 7. Importance of marketing in retailing Marketing is a vital tool for every retailer, as it identifies current, unfulfilled needs and wants, which it defines and quantifies. Marketing determines which target groups the retailer should serve. Marketing could be seen as delivering an acceptable standard of living. Marketing can ensure complete satisfaction and sustained customer loyalty. Marketing depends on the efficient co-ordination of consumer prediction, product development, packaging design and influencing demand through appropriate communication medium. From these, a suitable mix is achieved.
- 8. Retail marketing objectives The retail marketing objective is a performance parameter which has been explicitly stated. It can be stated in quantifiable terms and time terms so that results can be measured against it. Three types of retail objectives include: Basic objective – those which defines retailer’s long-term purposes. Goals – those which the retailer must achieve to be successful Targets – short-term goals that require immediate achievement.
- 9. Retail marketing mix Retail marketing mix is the term used to describe the various elements and methods required to formulate and execute retail marketing strategy. Retail managers must determine the optimum mix of retailing activities and co-ordinate the elements of the mix. The aim of such coordination is for each store to have a distinct retail image in consumers’ mind. The mix may vary greatly according to the type of market the retailer is in, and the type of product/services. .
- 10. Retail Marketing Mix While many elements may make up a firm’s retail marketing mix, the essential elements may include: Store location, merchandise assortments Store ambience, customer service, price, Communication with customers 10
- 11. Mix … Personal selling Store image Store design Sales incentives People Process Physical evidence 11
- 12. The mix planning The retail marketing mix is the vehicle through which a retailer’s marketing strategy is implemented and, in planning the mix, retailers should be guided by three basic principles: The mix must be consistent with the expectation of target customers; Elements must be consistent with each other to create synergy; and The mix must be responsive to competitive strategy. .
- 13. Composition of key elements Place Product Price Promotion People Process Physical Environment 13
- 14. Key Element Place (store location) Target market Channel structure Channel management Retailer image Retail logistics Retail distribution 14
- 15. Key element Product (merchandise) Product development Product management Product features and benefits Branding Packaging After-sales services 15
- 16. Key element Price Costs Profitability Value for money Competitiveness Incentives Quality Status 16
- 17. Key element Promotion Developing promotional mixes Advertising management Sales promotion Sales management Public relations Direct marketing 17
- 18. Key element People element Staff capability Efficiency Availability Effectiveness Customer interaction Internal marketing 18
- 19. Key element Process element Order processing Database management Service delivery Queuing system Standardisation 19
- 20. Retail Marketing Planning Retail marketing plan consists of: Setting objectives Systematic way of identifying a range of options. Formulation of plans for achieving goals Logical sequence of retailing activities.
- 21. Importance of retail marketing planning Hostile and complex retail marketing environment External and internal retail organisation factors interact Maximising revenue Maximising profit Maximising return on investment Minimising costs Each element has conflicting needs All these variables interact All these variables result in optimum compromise. .
- 22. Managerial use To help identify sources of competitive advantage. To force an organised retail approach To develop specific areas of retail activities. To ensure consistent relationships between retail organisation and its proximate environment. To inform customers, suppliers and competitors. .
- 23. Approaches to planning Top down approach Retail management sets goals and plans for all levels of management. Bottom up approach Various units prepare own goals and plans sent up for approval. .
- 24. Types of planning Annual plan – short term and tactical. Long range – three to five years relating to strategic retail management. Strategic plans – five to ten years long term plans relating to the adaptation of the retailing approach.
- 25. Short-term Retail Planning Short-term Tactical planning relating to: Current retail marketing position Strategy for the year Objectives for the year Action , budgets and controls. Coordinating retail activities within departments. 25
- 26. Long-term plan Long-term Medium range planning relating to: Major factors and forces affecting the retailer. Long-term objectives. Resources required. Reviewed and updated regularly. Deals with current business 26
- 27. Strategic retail planning This is the process of developing and maintaining a strategic fit between the retail organisation’s capabilities and its changing marketing opportunities. It relies on developing a clear corporate mission, supporting objectives, creating a sound business portfolio, and coordinating functional strategies. .
- 28. Corporate level planning Retail management should plan which business the retailer should stay in and which new areas to pursue. Design the retail organisation to withstand shocks. Adapt the organisation to take advantage of market opportunities. Define the corporate mission. .
- 29. Mission statement A strategic plan should begin with a mission statement. A mission statement is a statement of the retail organization’s purpose, what it wants to achieve in the large environment. It guides people in the retail organization so that they can work independently and yet collectively towards overall organizational goals. .
- 30. Exam type question It is the effective blending of all the elements of retail marketing mix activities within the retail organization that determines the success of retail marketing management. Discuss this statement and explain with retail examples how the elements of retail marketing mix could be blended to ensure the success of retail operation. Mastering the process of trying to optimise the retail marketing mix still defies and frustrates most retail managers. Explain why personal guesswork and intuitions are used by retail managers most of the time. 30