A retail marketing strategy involves decisions about the marketing mix, including product, price, location, promotion, and packaging. It should be part of a business plan and consider the target customer and company’s bottom line. Differentiation and branding are important for creating a strong brand identity.
A retail marketing strategy refers to how a store and its products sell goods to their target customers. Every type of retail business has to make decisions about all the details of its marketing mix. A marketing mix consists of product, price, location, promotion, and packaging. Internet marketing strategies and those for shops where people shop in person must be developed to meet the needs of potential customers. A retail marketing strategy is initially outlined in a business plan.
A business plan contains information about the intention and goals of the company. It is created before opening a company. Business plans include researching who the company’s potential customers are and what their needs and wants are. A retail marketing strategy should be part of the business plan. It should include decisions about the marketing mix approach, such as how customers will get products.
For example, a furniture company may choose a department store, while a jewelry manufacturer may choose to sell only on the Internet. Other businesses may select a combination of a brick and mortar store for in-person customer purchases plus a website for online customer shopping. All retail marketing decisions should consider the target customer as well as the company’s bottom line. For example, having an email website instead of a retail store can save overhead, but it won’t be a profitable choice if your target customer isn’t likely to shop online.
Common retail marketing strategies involve how products and stores are positioned and differentiated. A differentiation strategy focuses on products that can stand out from others competing for the attention and dollars of the target market. For example, a furniture store may offer handmade products or other items that are very different from those offered by competing stores. Of course, the product shouldn’t just be different, it has to be something your target customers want and need. Retail market differentiation must distinguish stores and products to create a strong brand.
Brand is the identity of a product or service. Retail products and services in the same industry can differ widely from one another. For example, low-cost haircut services are branded and differentiated from upscale salons by “no-frills” store design. Expensive hair salons, on the other hand, are usually very detailed and trendy in the look of their shop. As part of its retail marketing strategy, a luxury salon can be positioned as trendy potential to prospective clients, while the low-cost market positioning of the hair cutting establishment could be promoted as affordable.
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