Factors Contributing to Retail Marketing - Essay Example

and number: submitted Factors Contributing to Retail Marketing Retail marketing is the selling of goods and services from people or business to the last user. Retailers buy goods in large quantities from manufactures through a wholesale or directly, then sell them to consumers in small numbers for a profit. Retail marketing can be done in either one location like stores or by delivery. Retailing strategy involves how a business sells its products to its targeted customers. All retail business has to come up with decisions about all the details of their marketing mix (Berman, and Evans, 30-90). A good marketing mix entails place, packaging, product, promotion and price. Strategy of retailing is always first drawn in a business plan. A business plan entails information about the objective and goals of the business. The plan always embraces research over who the business’s potential customers are as well as what their necessities. The plan should consist decisions on marketing mix style, such as how the customers will acquire the products. An efficacious retail company recognizes their market, the essential of considered location, and their customers. Competition in the retail business is sometime fierce, thus, such companies need the superlative micro marketing implements or factors accessible to analyze where to locate new stores inaugurate client profiles, and regulate preeminent marketing practices in order to treasure new customers (Berman, and Evans, 30-90). Some of the factors are explained in the following paragraphs. First factor is the retail pricing. In the industry of commerce retail pricing is denoted as psychological prices. In retail marketing, the prices are always fixed and exhibited on signs. This is because when prices are not displayed clearly, there can be price discernment. This is where the price for sale relies on the customers (Berman, and Evans, 30-90). For instance, a client may have to spend more if the seller concludes he/she is promising to do so. Another good example is the practice of discounting for students or youths (“Retail Marketing”). Second factor in retail marketing is the staffing. Flexible scheduling is tremendously vital because of the variation in benefaction at a retail outlet. Using of clients patronage, more or less constantly predicts the necessity for staffing for different function. Typically necessity varies extensively. Compliant staff exploitation to staffing necessities obliges a flexible workforce that can be available when required (Kappa, 90-9). Third factor is the transfer mechanism in retail marketing. It is tremendously vital for retailers to consider the means of delivering their products to their customers. There are various means of delivering goods to consumers: Counter services, it is mostly applied where products are not accessible to clients and must be acquired from the seller. This delivery service is mostly for small costly goods such as jewelry and controlled substances such as liquor and medicine (“Turning the Retail 'Showrooming Effect' into a Value-add”). Another means of getting goods to customers is through delivery. With this service products are shipped directly to clients home or at their work (“Retail Marketing”). Telephone ordering is common nowadays either from television advertisement, newspaper, catalog or a local restaurant menu, for instant services such pizza delivery. Lastly is the door to door marketing, where the retailer travels with products for sale (Kappa, 90-9). Fourth factor of retailing is the customer services. This is the sum of deeds and components that permit the consumers to obtain what they desire from the retailer establishment. It is advisable for sales associates to welcome customers and make themselves available to aid the customers reach what they need (“Advance marketing strategies with ROI at every step”). When customers enter into the store, it is essential that the sales associate to make sure customers feel at home, satisfied, and important. Offering the customers full, unbiased attention and assisting them reach what they are looking for contributes a lot to the expansion of the business (“Retail Marketing”). Sales technique is another tremendous factor in retail marketing. Organization and private store owners always try to reach the edge of their competitors (“Turning the Retail 'Showrooming Effect' into a Value-add”). The best way reaching of reaching their competitors edge is by hiring a merchandising solution firm to construct company exhibition that will entice more clients in certain geographical surrounding. As the goods change, so are the retail landscapes. Retailers can use facing practices to postulate the look of well stocked stores (“Advance marketing strategies with ROI at every step”). Lastly is the competition and challenges faced by the retailers. To accomplish and retain a foothold in an already establish market, a potential retail must overcome regulatory burdens, which involves, (1) Restraints on purchases on real estate, particularly as levied by local administration and against big-box retailers (“Turning the Retail 'Showrooming Effect' into a Value-add”). (2) Limitations on foreign investment, in terms of the absolute amount of financing offered and fraction shares of voting stock procured (Kappa, 90-9). (3) Unfavorable structures of taxation, particularly those enacted to penalize big box retailers (“Advance marketing strategies with ROI at every step”).(4) Shortage of advanced supply chain and IT management. (5) Tough competition among existing retailers and leading low margin of profit. (6) Continuous improvement in designing of the product, which result in continuous threat of product uselessness and price deteriorations for prevailing inventory. (7) Shortage of well-educated workforce, always involving poor management. (9) Lastly, shortage of educational infrastructure that enables potential market competitors (Kappa, 90-9). In conclusion, retailers are driven by a comprehensive motivation. For them to be successful they have to analyze client desires by category, shopping segment and markets to direct expansion strategies, products, and resources more proficiently. Retailers ascertain the most treasured shopping location to apprehend and impact their marketing goal and shopping objectives (“Turning the Retail 'Showrooming Effect' into a Value-add”). They assess the consumer’s tours and missions to get the perfect customers and advance customer involvement. Retailers have to evaluate staff to enhance retail networks, prioritize markets and provide a captivating marketing experience (“Turning the Retail 'Showrooming Effect' into a Value-add”). They have to manage goods to attract and convert the right customers to maximize the number of their consumers. Also, retailers have the obligation of developing price and stimulating strategies to accomplish brand value awareness and adapt more customers while exploiting sales margin. In addition, retailers postulate customer loyalty and retaining programs by nursing and treating customer’s habits, and satisfaction (“Retail Marketing”). Works Cited “Advance marketing strategies with ROI at every step”. Web. 9 Feb 2013 Berman, B. and Evans, J.R. Retail Management, Pearson Education. (2013), 30-90. Kappa J. Marketing Retail Management. Journal of business and economics (2008), 5(7), 90-9. “Retail Marketing”. Web. 9 Feb 2013 “Turning the Retail 'Showrooming Effect' into a Value-add”. Web. 9 Feb 2013 Read More