Retail marketing may be a term that you’ve heard used before, but perhaps you’ve wondered, “what is retail marketing? And how is it different from other kinds of marketing?”
As the name suggests, retail marketing has to do with the management of customer relationships and communications in the retail sector. It considers concepts such as brand positioning and how shoppers interact with the items on their shelves and, generally, covers the development of communication strategies that will drive purchases from shoppers.
Traditional retail marketing focused on the four P’s: the product itself, the price of the item, the promotion strategy and the place or location of sale. This strategy however, has slowly turned in to the four C’s – a new kind of retail marketing approach that seeks to work with new customer behaviours as changes in the market occur; consumer, cost, convenience and communication
These are the four key concepts behind modern, customer experience focused, retail marketing.
Firstly there is the “consumer” or shopper. It is no longer enough to just sell quality products or services, customers can buy a product anywhere and online reviews make product information widely available. To be competitive, retailers now seek to understand what people want and provide them with that – instead of selling a product and telling the target market that they want it through advertising.
Then there is “cost”. Cost is different from price as it goes beyond the pricing of an item set by the retailer. The cost is the value of money required to produce a result for the consumer. This can include real costs – such as the cost of fuel used to drive to and from a store or place of sale – as well as immeasurable costs – such as the cost of one’s conscience, to eat meat at a restaurant.
Instead of the place of sale – such as where on the shelf an item can be found, it is more relevant to consider the “convenience” of a purchase. With improved technology comes an ever growing number of available channels of sale and so the assessment of purchasing behaviour needs to reach beyond the walls of brick-and-mortar stores. Businesses now need to consider whether consumers are more likely to want to order online or by phone. If they’re shopping online, do they often make such purchases on a smartphone or a laptop? Understanding the shopper behaviour of potential customers allows for new sales opportunities for brands and retailers alike by removing barriers to purchase for their products.
Finally is “communication” instead of promotion. Instead of a single direction advertising campaign, the marketing strategy of the modern retail industry is more give and take, using a format that seeks to benefit both businesses and consumers. Outlets such as social media sites are a great way of communicating with customers on a personal level and are proven to improve customer loyalty.
But how do you take advantage of retail marketing concepts? Companies like SBXL offer insight into every layer of the retail shopper experience. As a shopper experts we excel in creating bespoke strategies through data analysis, customer studies and real insights. Our team provides retailing solutions and boosted business for our global clients – providing plans and strategies that make a real difference.
Do you want to know about how best to engage and entice your potential customers? Then get in touch with SBXL and talk to our experts on 01543 255 259 or email firstname.lastname@example.org.