RETAIL MARKETING:

INTRODUCTOIN:

The word retail is derived from the French word retailer that is to cut a piece a break down. .
Retail is the person or institution who delivers goods service are created for consumption and use
by people. It is retails who assumes role taking the goods to its final destiny consumption A
retailer buys in large quantity from the middleman or manufacturer and breaks the bulk in small
quantity, sells or markets them in small quantity to meet the needs of customer delivers the
product or service in a form, size, that is acceptable to final consumer.

Retailer is described as merchandising arm of manufacturers or a neck in the bottle of

distribution. Retail as trade has developed over the period of time, from unorganized street
vendor or seller like ‘SUBJIWALA’, PAANAWALA to organized shops like super bazaars,
Departmental stores.

Today we see revolution in the field of retail business with entry of firms like ‘Big Bazar’
‘More’ McDonald, Walmart that are not just delivering goods, but also satisfying needs and
wants of people there by ensuring customer -delight. Retailing has developed as a more
organized activity adopting functions of marketing in distribution of goods or service. Retail
marketing is application of marketing functions in distribution of goods to the customers.
Organized retail is not just selling of goods, it grabs activities of marketing like grading packing,
promotion and advertisements and show casing variety of goods, at reasonable price with offers
like discount, credit. Retail Marketing provides comfort, comfort in shopping in place or medium
that is suitable to the consumer

Retail and marketing are two different concepts, whereas retail is selling in small desired
quantity to the people, marketing includes set of functions like transportation banking, insurance,
warehousing and promotion. The main purpose is to deliver the goods to the people that can
result in customer satisfaction. Goods are created for consumption and satisfaction and it is made
possible through the system of marketing. The present retail business of delivering goods or
service to the people is not a mere sale activity, it is a marketing activity, where in there is value
addition. More, Reliance fresh in the case of commodities or visiting a new generation bank such
as ICICI, HDFC. People are given the choice of choosing the products they want or dream of. It's
served in comfort and style. Through visiting traditional shopping malls such as Target, Big-
Bazar, you can get the look and experience of retail marketing.

The presentation of product, the environment and decoration inside the shop, display of price,
facilities inside are an indicator as to how goods are marketed in organized retail. There are two
primary types of merchandise. Hard or durable goods like appliances, electronics, and sporting
equipment. And soft goods like clothing, household items, cosmetics, and paper products. Some
retailers carry a range of hard and soft items like a supermarket or a major retail chain while
many smaller retailers only carry one category of goods, like a boutique clothing store.

Pricing is a key element to any retail strategy. The retail price needs to cover the cost of goods as
well as additional overhead costs. There are four primary pricing strategies used by retailer
Everyday low pricing. The retailer operates in thin margins and attracts customers interested in
the lowest possible price.

This strategy is used by big box retailers like Wal-Mart and Target. High/low pricing. The
retailer starts with a high price and later reduces the price when the item’s popularity fades. This
strategy is mainly used by small to mid-sized retailers.

Competitive pricing. The retailer bases the price on what their competition is charging. This
strategy is often used after the retailer has exhausted the higher pricing strategy (high/low
pricing)

Psychological pricing the retailer sets the price of items with odd numbers that consumers
perceive as being lower than they actually are. For example, a list price of Rs1.95 is associated
with spending Rs1 rather than Rs2 in the customers mind. This strategy is also called pricing
ending or charm pricing.

The place is where the retailer conducts business with its customers. The place can be a physical
retail location or a non-physical space like a catalog company or an e-store. While most retailers
are small, independently owned operations (over 90%), over 50% of retail sales are generated by
major retailers often called “big box retailers” (see the list of the top 20 big box retailers below)
Promotion is the final marketing mix elements.

Promotions include personal selling, advertising, sales promotion, direct marketing, and
publicity. A promotional mix specifies how much attention to pay to each tactic, and how much
money to budget for each. A promotion can have a wide range of objectives, including
increasing sales, new product acceptance, creations of brand equity, positioning, competitive
retaliations, or the creation of a corporate image.