What is Retail Marketing? MBA Marketing study Material.

The concept of retail shops transformed over the period of time from small booths and roadside sellers to the big modish shopping malls of the modern age. This post gives you a complete detail about what is retail marketing? Before going to the retail marketing, first, let’s have a look at the meaning “Retail”.

What is Retail?

Retailing embraces business activities of selling a product or service to the consumers for their personal, family and household use.  Purpose of retail is the sale of the product to final consumers. Retailers are always performed as an intermediate between manufacturer and consumers. Retailers accumulate the variety of products from different sources and sell it in small quantity to the consumers. In many industries, manufacturers have modified their products with the help of retailer’s reviews and feedbacks. Further, Retail environments factors can be alienated into:

• The macro environment includes following state and local laws that confirm business activities are fair and do not take advantage of the consumers through unrealistic pricing, wrong advertising, and disingenuous promotions.
• The micro environment involves considering customers and competitors as a whole.

What is Retail Marketing?

Retail marketing comprises the range of marketing activities undertaking by retailers to influence the consumers or the end users to buy the product or service for their personal use. Retail marketing aims to increase the awareness and interest of product or service which can influence the people to buy it for their use. It simply the promotion of products or services in the market to in an effort of generating sale from end users. There are many different strategies to approach the consumers like advertising, PR etc.

Retail Marketing Mix: 4 P’s of Retail Marketing.

Approaching a right marketing mix can lead to the profitable growth and higher returns on investment. Below, you will find 4 P’s of retail marketing:

1.      Product:

In retail marketing, product decision includes deciding what goods or services should be offered for sale to a particular set of consumers. Selection of product category is very important in product mix. The categories involve durable goods such as appliances, furniture, electronic goods and sports equipment and food, soft goods or consumables such as clothing, furnishings, cosmetics, paper goods and other items with a typical lifespan of a year or less. Product mix involves each decision which varies from product choice.

2.      Price:

Price mix in retail marketing involves a set of decisions taking by retailers for their product aims to reach up to the profit margin. Pricing decisions can be taken by considering policies such as everyday low pricing, high-low pricing, competitive pricing, psychological pricing etc. In retail marketing, a price can be decided by considering the cost of the product plus transportation, apart from these costs all other costs are negligible.

3.      Place:

The place is a key element of retail marketing mix. Where to sell a product or service? An answer to this question decides the location of the business. In retailer’s point of view, location or place is very important element because these decisions concerning the distribution channels to be used and their management, the locations of outlets, methods of transportation and inventory levels to be held. The aim is to certify that products and services are available in the proper quantities, at the right time and place.

4.      Promotion:

Increase the sales volume of a product through influencing customers to buy it is the main objective of promotion mix in retail marketing. To promote the product, retailers have to obtain various strategies such as print advertisements, television advertisement, internet marketing, outdoor billboards, radio, Magazine advertisements, PR campaigns etc.  Promotion mix can be influenced by factors such as the competitive retail environment, the profit margin on sales and the budget available for promotion purposes.

These are the fundamental retail marketing mix in every retailing business.