Firms give discounts, because this attracts new consumers, since they are looking for low prices (Parguel, Pechpeyrou, Sabri-Zaaraoui, & Desmet, 2007). Attracting new customers means higher revenues and higher profits. The following task for a firm is to keep customers. By giving loyalty rewards, people will come back to your store. This also creates a disincentive for consumers to shop elsewhere, because they forgo discounts or extra benefits by doing this.
“Walmart 's mission statement is “We save people money so they can live better” (Walmart, 2014) which indicates that Walmart 's pricing structure is the way it serves its customers. After deciding on a message too deliver to its customers, a retailer must then decide on the best way to actually get the message out. These can include television, radio, newspapers, direct mailers, and many other methods. It is important for retailers to keep the cost associated with promotion in mind so it does not unintentionally over-inflate the cost of goods. However, if that retailer does not promote enough, then it will fail to bring in the customers it
Stores can not always offer huge discounts or free merchandise, but they have to find some way to increase customer loyalty. Customers love to see low prices at retail stores, but there are other things they look for that will make them want to go back. One thing that may attract customers is maintaining quality customer service. If someone goes shopping and has a positive experience because the employees were helpful and friendly, it may make them want to return more frequently. When a customer has a negative experience with a rude employee for example, it will reflect on the company and they can easily find somewhere else to do get their shopping done.
Following is an analysis of Wal-Mart's competitive strategy. Pricing Wal-Mart's marketing strategy was to guarantee "everyday low prices" as a way to attract customers. The traditional discount retailer, which relies on "sales," not only has to do more advertising and promotions but also has to rely more on catalog mailing, buildup of inventory before a sale, markdowns on the unsold inventory, etc. Wal-Mart stores operate according to their "Everyday Low Price" philosophy. Wal-Mart has emerged as the industry leader because it has been better at containing its costs, which has allowed it to pass on the savings to its customers.
It is actually quite the opposite, Wal-Mart’s supply chain is very customer focused, which is what gives them an advantage over their competitors. Wal-Mart focus’s on the customer and employs a pull strategy, where the demand from customers is the basis for production for Wal-Mart suppliers. This gives them a unique production method, in that they do not produce based on traditional methods rather it is based on short-term forecasts of demand generated by their customers. This allows them to not only keep stock costs low, it also allows them to track demand of individual products. This results in lowered costs of advertising and promoting products because they are able to accurately track demand and can adjust their advertising based on what is selling and what is not resulting in more accurate marketing efforts.
Convenience is the most important criteria for a satisfying shopping experience and hunting for parking spots has a potential to discourage otherwise happy consumers to come to store. Risks: Risks are integral part of a business strategy and can’t be totally avoided. Analysts caution that Trader Joe’s might lose its “quirky cool” feeling as it expands and opens more stores. The company should very carefully balance to keep its offbeat and friendly neighboring store image when expanding nationwide at the same time. In today’s date, no company can ignore the importance of effective analysis and insight to consumer’s preference; but Trader Joe’s need to be very careful while rolling out a loyalty or similar program to collect consumer information.
Most of the retailers have problems with how make consumers are interested with their merchandise, so they must improve their strategy to match the criteria of customer. According the article “ Retail vs. Services Marketing” author detailed “Retail marketing is the process of creating consumer awareness about the business activities, sales offers, and product distribution approaches of retail business organizations with the objective of increasing sales volumes. Retail marketing involves calling consumers to action through powerful persuasion tactics such as product positioning or pricing” that help people know retail pricing is a strategy that is used to attract customers through the offer of low-priced items and sales discounts, and this is also an important factor in business. For example: in the same article, they showed “The sustained dominance of Wal-Mart as the most preferred brand among American consumers is indeed attributable to its favorable pricing. The low pricing and discounting approaches are susceptible to stiff competition and persistent challenges from other industry players as evidenced by the wheel of retailing theory,” that mean the pricing strategy could help success in retailers, and if businessman get less profit, they could have more purchasing.
The challenges that retailers may face are customer service, low inventory, store appearance, and brand selection. For JC Penney it’s important to put the customer first and make the customers shopping experience a memorable one. Customer service is always mentioned through coaching to employees because the customer’s worth means a lot to JC Penney. JC Penney strives to greet and help the customer find exactly what they are looking for, or something similar. Adding value to a customer’s shopping experience is more likely to keep the customer coming back then giving poor service.
Any more than a couple of clicks and the customer is likely to abandon the shopping cart. One interesting aspect of B2C marketing, however, is that many companies have realized the importance of loyalty. Amazon, Best Buy, and Staples combine merchandising and education to keep customers coming back. Add great customer service, and you get a winning combination. Businesses that Sell to Businesses Although the goal of B2B marketing is to convert prospects into customers, the process is longer and more involved.
If an experience a customer has with a company is bad then they will take their business elsewhere. In conclusion, learning the patterns of shoppers will help you to market your items successfully. However, there is much to be said about customer service. Walking into a store and feeling welcome and wanted is important to customers as well. On- line they can give you suggestions of what you might like or what people like you have purchased in the past but what is that saying about you?