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Edit Comment Close Premium member Presentation Transcript Retail Marketing Mix: Retail Marketing Mix Mirdula Madhu MGT0905423What is Retailing……….??: What is Retailing……….?? “any business that directs its marketing efforts towards satisfying the final consumer based upon the organisation of selling goods and services as means of distribution… ” Retailers_ referred to as ‘middle men’ or ‘intermediaries’ Receiving and passing on goods from: producers Wholesalers Retailers ConsumersWhat is Marketing Mix…??: What is Marketing Mix…?? Classical mix of 4Ps_ product, price, promotion and place. Product: - totality of the offer_ services, store layout, merchandise, company, product, and brand name. Price: - what the customer has to be willing to pay in exchange of benefits of the goods and services Promotion: - retail offer is the product & service channel communicated to target groups in order to inform & persuade different segments the benefits of utilizing a specific retailer’s outlet or to make a purchase Place:- based on the retailer’s activities in supplying a channel service , also includes logistics of inventory management systemService Marketing Mix: Service Marketing Mix The 4P’s of marketing mix + 3P’s The additional 3P’s of service marketing are_ people, physical evidence and process People (Personnel): training, discretion, Commitment, incentives, appearance, interpersonal behavior, attitudes, of inside customers and outside customers Physical evidence(Environment): Furnishing, layout, colour, ambiance & décor, noise level etc. Process: Policies, procedures, mechanization, customer involvement, customer Direction, flow of activitiesSlide 5: Choosing the Retailing Mix Choose the Retailing Mix Product Price Promotion Place or Location Personnel PresentationRetail Marketing Mix: Retail Marketing Mix Target Market Product Price Place Personnel Presentation Promotion Advertising Personal Selling Publicity Sales Promotion Location, Location, Location ! Merchandise Assortment Store Atmospherics Customer Service Retail List Price Discounts CreditThe Retail Mix: The Retail Mix The set of variables that the retailer can use to satisfy the customer’s needs to influence their buying behavior and compete effectively in the market 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.Elements of Retail Marketing Mix: Elements of Retail Marketing Mix The best combination of different elements of the mix are Merchandise Assortments Location Price Visual merchandising Store atmosphere Customer service Advertisement Promotions and Personal SellingProduct/ Merchandise Assortments: Product/ Merchandise Assortments Sorting process or assembling range of goods and services from a variety of suppliers Breadth or Width of merchandise - The number of merchandise categories (E.g.: food stuff, textiles, electronics, jewellery and other accessories available in a retail outlet- Department stores) Depth of merchandise -the number of items in a category - Stock Keeping Units (SKUs) (E.g.: Wide rage of mobile available in a mobile sales and service unit in a retail outlet- Specialty stores)Location: Location The issues that affect Location analysis & Location decisions are: Consumer choice- customer’s decision of where to shop. The need for competitive advantage- best locations can give scope for further growth Consideration of trends- recent social and structural changes High investments- high investment and long lead times, involves long term financial implications Property asset- final property of company can be valued high as their annual turnover Declining number of sites- restricted number of new sites, government policy guidelines and less opportunity to obtain planning permissionPrice: Price The ability of a product to customer satisfaction is determined by its value_ ‘price tag’ A retailer needs to consider the role of a product in terms of its contribution to the overall profitability to the retail business Thus prices are visible & highly sensitive part of Retail Marketing Mix Prices are subject to individual interpretation in terms of value representation, and so deeply affected by consumer behaviourVisual Merchandising: Visual Merchandising In short, it’s the Retailer’s Display. The use of Visual Merchandising includes visual materials and window displays used in retail outlets to stimulate sales Visual merchandising is a non-personal in-store presentation and exhibition of merchandise , along with printed form of communication. This: Ensures maximum exposure Enhances product appearance and creates interest Provides sales and product information Allows storage and security of stock Generates additional sales through impulse purchaseStore atmosphere: The environment and physical aspects of the place _ includes atmospherics of the store and the store’s location The social surroundings_ possibility of interaction among customers for judgment, avoiding crowding behaviour The temporal aspects of the occasion in terms of the time of the day, week or even, may be based on seasonal aspects(eg: Onam, Christmas, etc) The objective of the shopping trip may be either small or significant and this decides the mood of the shoppers. (customers coming to purchase home appliances will have a serious aspect) The predisposition of the individual (specific mooSds will lead to distinct purchasing behaviour) Store atmosphereCustomer service: Customer service An agreement to service provision is concerned with creating levels of service to be offered Such as self- service requires no attention to customer, while personalised service means specialised services to customers 5 dimensions to measure service quality: Tangibles – uniforms, toilet supplies, mirrors, fitting rooms Reliability – based on the ability to perform the service dependably and accurately Responsiveness – by reaching in a timely manner with the right knowledge & courtesy Empathy – demonstrated by providing caring , individualised services Assurance – to provide credibility that the service standard will be upheldAdvertisement : Any paid form of non- personal communication through the media about a product that has an identified sponsor Advertising is normally associated with mass communication, where abroad target market is to be contacted Models of Advertising_ DAGMAR (Defining advertising Goals for Measured advertising results) The sequence of stages in DAGMAR: Unawareness Awareness Comprehension to offer Conviction Action or inaction AdvertisementPromotions: Retail promotion is descriptive term for the mix of communication activities which retail companies carry out in order to influence those publics on whom their sales depend on. Retailing promotion has the main objective of influencing customer perceptions, attitudes, behaviours, in order to increase store loyalty, store visits and store purchase And there is also need to influence trade contactors such as agents and suppliers and opinion formers such as journalists and writers. Each local, national and international politicians and important professionals may also needed to be influenced PromotionsPersonal Selling: Personal selling is an attempt to gain benefit through face-to-face or telephonic contact between the seller and the prospective buyer. Whatever situations occur in the buyer- seller relationship, trust is the important aspect of any interaction Trust is the perceived credibility of the company and its staff This is because trust affects the credibility in the communication between seller and customer, all of which leads to commitment and greater loyalty intention and loyalty behaviour Personal SellingThank You. . .: Thank You. . . 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