Retail Marketing

Introduction
• Retail marketing is application of marketing functions in distribution
of goods to the customers.
• Organized retail is not just selling of goods, it embraces 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 convenience, comfort in shopping in
place or medium that is convenient 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.
Characteristics or Features of Retail
Marketing:
1. Sale to Ultimate Customer
2. Convenient Form (Quantity)
3. Direct contact with the customer
4. Relationship with the customers
5. Stock small quantities of goods
6. Stock goods of different brands
Retail Marketing Mix

The Four Ps of Retail Marketing:

•Product
•Price
•Place
•Promotion
Product
• Hard or durable goods like appliances, electronics, and
sporting equipment.
• soft goods like clothing, household items, cosmetics, and
paper products
Price
Only element that generates revenue
•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 $1.95 is associated with
spending $1 rather than $2 in the customers mind. This strategy
is also called pricing ending or charm pricing.
• Skimming pricing : Price skimming is a product pricing
strategy by which a firm charges the highest initial price that
customers will pay and then lowers it over time. Example:
Sony
• Penetration pricing: Penetration pricing is a marketing
strategy used by businesses to attract customers to a new
product or service by offering a lower price during its initial
offering. Example: Jio
Place
• 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”
Promotion
• 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, creation of brand equity, positioning,
competitive retaliations, or the creation of a corporate image.