Retail marketing mix is about choosing the optimum combination of marketing mix elements and integrating and formulating the methods strategically to satisfy target audience establishing brand positioning and creating value in the market. The marketing mix serves the purpose of coordinating the elements of mix and creating distinct images in the consumer’s mind about each store. The way our customers perceive and value proposition of our retail store is affected by the way we design our marketing mix. It completely depends on the market we operate and the type of customers they serve. The optimum combination helps the retailer to better stand out from the competitors in the retail market.
If the stock is presentable, it is bound to appeal to the shoppers. If the shoppers appreciate the store layout and product, they are likely to spend more time in the store, and in return reward the store with sales. Along with the products for sales, the staff, the décor, the store interiors, the trial rooms arrangement, the lightings and music also form an inclusive elements boosting store sales. (fibre2fashion, 2008) 5.1 The elements of visual merchandising The elements of visual merchandising should comprise the artistic bend that should completely define the orderliness of the store. Every optical dispensary of the store should benefit from these elements from good visual merchandising.
For eg; Major retailers ‘Lush’, individuals of the market even though they may not usually purchase from the store, feel more persuaded to go into the store and browse, which may lead to purchasing, more so than they would with aroma free stores. Marketers use this tactic of stimulating the smell sense of consumers in order to persuade them to purchase their products. The smell of a product may influence consumers decision on whether or not to purchase a product. For example a beauty product which looks appealing but may not smell appealing to the customer will effect their decision on buying
It is through retailing that products and services are made organized and available on a large scale and customers are able to benefit from the supply of such products and services on a relatively small scale (Kotni, 2011). The retail service does not only seek to produce products and services but it is also designed to enhance the level of customer satisfaction (Kotni, 2011). Retailers use various strategic plans in order to make sure that their customers are satisfied with what they produce. However, the concept of competition frequently makes strategic and operating differences among retailers unclear and challenging (Sharma, 2008). In retail management, there is a need to understand the complexities and interrelationships of the retailers and the customers in order for the former to acquire more opportunities of gain and profit offered in the market.
For example, what time they come in and how long they stay in the store. Retailers should position themselves as shopping destination not a place for customers to just roam around the store. Merchandising decision play a key role in making stores a shopping target for customers. Buyers must recognize trends that are currently developing in retail industry. Technology has a huge impact in in-store shopping experience, very convenient for the customers.
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.
As well as Duhigg implements his ideas and the psychology of “ The Power of Habit” that trigger the process of cues and rewards that creates a habit that maybe hard to break. Vons uses Duhigg’s and Glagwell’s marketing techniques well to attract more customers into their store by using the tracking of recent purchase made by the customer to provide coupons for the customers next purchase. One of the methods that Gladwell discusses about on his article “ The Science of Shopping” is the Butt-Brush Theory. The Butt-Brush theory is a technique used at stores and businesses in order to get the customers attention. The way Vons uses this technique is in fact a very smart move.
Customer often focus on quality of the product but now customer expectations are raised because of the competition in this retail industry where retailer focus on offering premium services by personally attending the customers. If the customer is satisfied by the services and product as well, gradually profit would be increased. As the customer is more satisfied, he may make a repurchase decision or through a word of mouth of satisfied customer, new customer are generated by their recommendations. Area- wise retail can also affect customer to repurchase the product as the retailer who satisfies the need of the customer is preferred more by the customer. Easiness to find the product, visibility, appearance also leads to customer loyalty and store loyalty.
In addition, we focus on providing a new competitive advantage in the retail business apart from the usual marketing mix strategy (4Ps). In order to do so, Smart Shopping Sdn Bhd holds the primary objectives listed below: Client Loyalty Smart Shopping Sdn Bhd strives to earn client’s respect and loyalty through high quality services, business and economic value. Profit Smart Shopping Sdn Bhd aims to achieve sufficient profit to finance growth to create value internally and externally, and achieve our long term financial objectives.
The data have shown customers’ interest; the retailers can serve their customers more effective when they know what their customer want. The product will catch customers’ attention because they know where exactly to put it. That lead to more product being sales and more money being generated. According to the video “How store track your shopping behavior”, from the study of men’s habit of shopping, they know how to get men pay attention to their products. They change it up a little bit and get a really interesting result:”85% increase in product touch, 44% increase in sales, and 38% increase in dollar sales”; that is huge increase numbers.