Retail Management

Unit-4

Advertising and Sales Promotion

Advertising and sales promotion are crucial components of retail management,

playing key roles in attracting customers, increasing sales, and building brand
awareness. Here's an overview of each:

 Advertising:

1. Purpose: Advertising aims to create awareness, generate interest, and

persuade potential customers to buy products or services. It communicates the
features, benefits, and value propositions of products or services to the target
audience.

2. Channels: Advertising can be conducted through various channels such as

television, radio, print media (newspapers, magazines), outdoor advertising
(billboards, posters), digital media (websites, social media platforms), and more
recently, influencer marketing.

3. Types:

Brand Advertising: Focuses on building and maintaining a brand's image and

reputation.

Product Advertising: Highlights specific products or services and their attributes.

Retail Advertising: Promotes retail stores, sales events, or promotions.

Online Advertising: Utilizes digital platforms like social media, search engines, and
websites for targeted advertising.

Print Advertising: Includes ads in newspapers, magazines, brochures, etc.

4. Message: The advertising message should be clear, concise, and tailored to the
target audience. It should emphasize the unique selling points of the product or
service and create a memorable impression.

5.Evaluation: The effectiveness of advertising campaigns can be assessed through

various metrics such as reach, impressions, click-through rates (for online ads),
brand awareness surveys, and sales data.

 Sales Promotion:

1. Purpose: Sales promotion aims to stimulate immediate sales by offering

incentives or discounts to customers. It complements advertising efforts by
encouraging customers to make purchases promptly.

2. Techniques:

Discounts: Price reductions offered for a limited time.

Coupons: Vouchers that entitle customers to discounts or special offers.

Sales Events: Special promotions like "buy one, get one free" or seasonal sales.

Contests and Sweepstakes: Promotions that engage customers through

competitions or prize draws.
Sampling: Distributing free product samples to encourage trial and purchase.

3. Point of Purchase (POP) Displays: Creative displays or signage within retail

stores to attract attention and promote specific products or promotions.

4. Cross-Promotion: Collaborating with other businesses to offer joint promotions

or discounts, expanding reach and customer base.

5. Evaluation: The effectiveness of sales promotions can be measured through

metrics such as sales lift, redemption rates for coupons or discounts, customer
engagement levels, and ROI analysis.

 Integration:

Effective retail management often involves integrating advertising and sales

promotion efforts seamlessly to maximize their impact.

Coordinating advertising campaigns with sales promotions can create a sense of

urgency and encourage immediate purchases.

Leveraging customer data and insights can help tailor advertising and promotion
strategies to specific customer segments, increasing relevance and effectiveness.

In retail management, finding the right balance between advertising and sales
promotion is essential for driving sales, enhancing brand loyalty, and staying
competitive in the market.
Store positioning

Store positioning refers to the strategic placement of a retail store within the
market in order to differentiate it from competitors and attract target customers.
It involves creating a distinct image and identity for the store that resonates with
the desired customer base. Store positioning takes into account factors such as
the products or services offered, pricing, atmosphere, location, and overall brand
image.

Here are some key elements and considerations in store positioning:

1. Target Market: Understanding the demographics, psychographics, and buying

behaviors of the target customers is crucial for effective positioning. The store
should cater to the needs, preferences, and aspirations of its intended audience.

2. Product or Service Offering: Define the unique selling proposition (USP) of the
store's products or services. This could involve offering exclusive merchandise,
superior quality, innovative features, or exceptional customer service.

3. Price Point: Determine the pricing strategy based on factors such as the target
market's willingness to pay, perceived value of the products or services, and
competitive pricing landscape.

4. Location: Choose a location that aligns with the target market and enhances
the store's visibility and accessibility. Factors such as foot traffic, proximity to
competitors, parking availability, and local demographics should be considered.
5. Store Atmosphere and Desig: The store's ambiance, layout, decor, and overall
aesthetic should reflect the brand positioning and create a memorable shopping
experience for customers.

6. Brand Image and Messaging: Develop a cohesive brand identity and

communicate it consistently across various touchpoints, including signage,
advertising, packaging, and online presence. The brand message should resonate
with the target audience and convey the store's unique value proposition.

7. Competitive Analysis: Assess the strengths, weaknesses, and positioning

strategies of competitors to identify opportunities for differentiation and market
positioning.

8. Customer Experience: Focus on delivering exceptional customer experiences

that exceed expectations and foster loyalty. This could involve personalized
service, hassle-free shopping, convenient payment options, and post-purchase
support.

9. Promotional Strategies: Determine the most effective channels and tactics for
promoting the store and reaching the target audience. This could include
advertising, social media marketing, promotions, events, and partnerships.

10. Feedback and Adaptation: Continuously monitor customer feedback, market

trends, and competitive dynamics to adapt the store's positioning strategy as
needed and stay relevant in the marketplace.
By carefully considering these factors and developing a comprehensive
positioning strategy, a retail store can differentiate itself from competitors, attract
its target customers, and build a strong brand presence in the market.

Retailing Marketing Mix

The retail marketing mix is a marketing planning model comprising various

elements and methods designed to encompass all marketing efforts undertaken
by retailers. These efforts encompass sales, promotions, store layout, pricing
strategies, customer service, and more, all intended to generate sales of goods
and services.

1 – Product Or Merchandise

Many companies build their foundation on their products, while others focus on
providing services. Some businesses even combine both products and services.
Before developing a product or service, a company should research its customers’
needs and preferences. Identifying market opportunities is a critical aspect of this
research. This may involve analyzing products and services offered by
competitors, studying industry trends, and innovating to create offerings that
resonate with customers. Key factors in this element include product
development, management, features, benefits, branding, packaging, and after-
sales services.

2 – Price

The pricing of a product significantly influences its success in the market.

Businesses must balance maintaining a healthy profit margin and offering
customers value for their money. Profitability and providing value are crucial
considerations. Pricing should align with customers’ perceived worth and be
competitive. Determining an optimal price involves market research and
understanding consumer perceptions. Key factors in pricing strategy include
profitability, value for money, competitiveness, incentives, and quality.
3 – Place Or Store Location

Product distribution plays a pivotal role in a business’s success. Traditionally,

consumer goods were sold in physical retail stores, but the rise of e-commerce
has expanded distribution possibilities. Even online platforms where customers
make purchases are considered “places.” Strategic placement within physical
stores and easy online accessibility is vital for attracting customers.
Considerations include the target market, channel structure, retailer image,
logistics, and distribution strategy.

4 – Promotion

Promotion is crucial for capturing consumer interest and driving purchases.

Effective communication of a product’s or service’s benefits is essential.
Identifying the target audience is a key step in marketing and promotion.
Customizing promotion methods based on the potential customer base enhances
sales. Developing promotional mixes, managing advertising, utilizing sales
promotions, and maintaining public relations are key aspects of this element.

5 – People Element

Interactions with individuals outside the company, such as customers and

partners, are integral to a business’s success. Marketing efforts aim to attract
external clients and boost sales. The internal workforce, including managers,
salespeople, customer service representatives, and support staff, is critical in
shaping the organizational culture. This culture either attracts or deters clients.
Every individual involved in the product or service, from customer-facing roles to
those in production, distribution, and delivery, impacts sales and customer
satisfaction. Key considerations include staff capabilities, efficiency, availability,
effectiveness, customer interaction, and internal marketing.
6 – Process Element

Efficiency is a crucial element in the manufacturing or service delivery process. It

helps control costs and minimize waste, ultimately impacting revenue. Efficient
processes reduce the wastage of time and resources, leading to faster delivery
and improved customer satisfaction. Key focus areas include order processing,
database management, service delivery, queuing systems, and standardization.

7 – Presentation

Effective presentation is pivotal in selling a product or service, particularly in

making a favorable first impression. This extends to the product’s appearance and
how well it aligns with the company’s brand identity. Designers and professionals
work on product presentations, tailoring them to the intended target audience.
The packaging, customization, communication, and branding all contribute to the
presentation’s impact.

CRM or customer relationship management

CRM, or customer relationship management, is a software system that organizes

all your business’s customers and leads so that you can easily stay in touch with
them in a trackable way. A good CRM tool is critical to any business, but most
CRM software is geared toward a business-to-business (B2B) model. This often
revolves around a long sales cycle that typically requires a deal pipeline.

Retail CRM

Retail CRM, on the other hand, is optimized to help support the high frequency,
repeat purchasing of a business-to-consumer (B2C) model. Good retail CRM
software will provide insights on when it’s best to reach out to a specific customer
again and what the customer is likely looking for.
 As you’re deciding on what CRM you want to use for your business, it’s important
to first think about what sort of data and workflows your sales team needs in
order to do their jobs easily and efficiently.

Unique Features of Retail CRM:

o Customer Insights: A good retail CRM provides insights on when
it’s best to reach out to specific customers again and what they are likely
looking for.
o Omnichannel Order History: Retail CRM solutions offer a
thorough order history across various channels, helping sales associates tailor
their outreach effectively.

o Client telling Foundation: Retail CRM serves as the foundation

for client telling strategies, which involve using customer data to create
intimate relationships and enhance customer retention.

Benefits of Retail CRM:

o Improved Customer Experience: Equipping your sales team with
a retail CRM results in a better customer experience compared to competitors.
o Efficient Data Management: Instead of using spreadsheets or
point-of-sale systems, a CRM streamlines customer data management.

o Personalized Marketing: Retail CRM enables targeted and

personalized marketing efforts based on customer behavior and preferences.

Retail advertising

Retail advertising is a marketing strategy focused on promoting products or

services directly to consumers within a retail environment. It encompasses
various advertising channels such as in-store displays, window displays, point-of-
sale materials, flyers, and digital platforms. Retail advertising aims to attract
potential customers, increase foot traffic to physical stores or online platforms,
and ultimately drive sales.
It often highlights special offers, discounts, new arrivals, or unique selling points
of products to entice consumers and create a sense of urgency. Effective retail
advertising aims to enhance brand visibility, engage shoppers, and boost overall
revenue for the retailer.