Creating a successful retail marketing plan requires both a strategic and managerial planning process. These two parts are meant to coordinate the tactical decisions you will make to maximize the opportunities available to you. It also requires you to know your market and understand how to reach your target customers.
Price
Whether selling a single item or several, one of the most critical aspects of retail marketing is figuring out how to price your products. The goal is to maximize profits while minimizing risk. Pricing strategies should constantly be changing to account for market trends.
While many factors go into the decision-making process, there are some simple strategies retailers can use to make their products more appealing to customers. It is essential to balance these efforts to create a favorable image of your products.
The sale sign is an easy way to make your prices stand out. In general, the sale sign is placed near the item being discounted. This can increase demand by up to 50%.
Another helpful strategy is product bundling. This is commonly seen in the grocery and apparel industries. In this model, a retailer sells more than one product at a lower price than the individual items would cost if sold individually.
Visibility
Whether you’re a retailer or a brand, product visibility is an essential factor in driving sales. Research shows that 60% of purchase decision is made because of the presentation of a product. This is one reason retailers should implement a strategy for improving in-store visibility.
Planograms, visual merchandising tools, and shelf placement techniques can help retailers improve in-store visibility. These strategies are designed to increase product visibility by maximizing shelf space and optimizing the placement of products.
In addition, retailers should also implement an accurate pricing strategy to attract consumers. If they offer inconsistent pricing, customers might buy from a competitor instead. Likewise, shoppers increasingly rely on their smartphones to research products before purchasing them.
Increasing product visibility is also essential because it enhances a brand’s credibility. Moreover, it enables new consumers to identify a product from many competitors.
Convenience
Historically, convenience stores have been a haven for young male shoppers. But now, this demographic has changed. The younger generation is driving a trend for more frequent trips to convenience stores. This means that retailers need to offer more than just convenience.
For instance, many retailers are moving into smaller store formats and offering more prepared packaged foods. The industry is also shifting to digital in-store screens, which can communicate key messages to local shoppers. These types of improvements can increase convenience and help drive sales.
For example, Walgreens has introduced Walmart Neighborhood Markets, which include many food options. It has also launched a variety of other innovative convenience offerings, including a nail bar and healthcare clinics.
Unlike other channels, the convenience industry has lacked technological innovation. But in recent years, restrictions have been loosened. As a result, the retail industry is rapidly changing. As a result, consumers are demanding more convenience at every stage of their shopping experience.
Product Value
Obtaining customer insights is the key to understanding what consumers want and need. By gathering this information, marketers can make smarter decisions about developing and marketing products and services. In addition, companies can understand what their customers care about by measuring product value.
The value of a product is a function of how well it delivers on its promises. It can be measured using quantitative and qualitative research methods. There are several tools for product value analysis, including surveys, NPS metrics, and product analytics.
The value of a product is also determined by how much the customer perceives it is worth. Unfortunately, it cannot be easy to pinpoint exactly what a product is worth to a customer. To answer this question, a company must conduct surveys, focus groups, and customer interviews.
Customer service
Getting the best customer service in retail marketing means meeting customers’ needs. So whether a simple greeting or full-fledged customer support, your sales personnel need to be well-trained to provide a positive experience.
Customer service is more important than ever. Unfortunately, with so much competition in the retail industry, dissatisfied shoppers can quickly abandon retailers.
Exemplary customer service can lead to repeat business and extra sales. 93% of customers are more likely to buy from companies that offer excellent customer service. And 86% of consumers would pay more for better customer service.
A company can use technology to improve customer service. The best retail systems have reporting, customer management, and other features that help you understand your customers and what drives sales.