One of the most important components of the retail industry is marketing. Companies that market will typically do well in the industry while those that do not end up failing. Some of the basics of retail marketing include pricing, promotion and brand awareness.
Function
The purpose of marketing is to try to create value in the mind of the customer. When you are in retail, you have to be able to separate yourself from the others in your market. While many think of marketing as trying to get customers to buy a product, it is not always that simple. Marketing deals with building relationships and building the perception of a particular brand of products over the long-term.
Pricing
One of the most important components of marketing in the retail sector is pricing. Regardless of how well your products are made or how much better they are than the competitors, you have to have the right price to be successful. Many different pricing models could be used including competitive pricing, penetration pricing, premium pricing and product line pricing. How you price your products says a lot about what you want to accomplish with your brand.
Promotions
Many retail businesses use promotions as a way to drive traffic and increase sales. The frequency of your promotions can also have a lot to do with the effectiveness of them. For example, some retail establishments run sales promotions every week while others may only run them once a year. You may need to test out your promotional strategies before deciding on a particular mix. If you have promotions too often, customers may become desensitized to them.
Consistency
In your marketing efforts, you also have to focus on consistency. Some companies get in trouble by running multiple ad campaigns in different mediums. You may also make promises that you cannot keep in order to get customers in the door. While this may work in the short term, it will ultimately lead to problems for you and your business. By focusing on consistency in your advertising, you can develop more fruitful relationships with your customers.
Training
Another part of a successful retail business is having competent employees. In the retail market, you have to have sales representatives that understand what is going on and can help your customers. When marketing, it is important to convey the sales promotion terms to your sales staff. This way, customers feel like they are getting a legitimate discount or promotion when they come to make a purchase. If the sales staff does not know what is going on, customers could feel taken advantage of.
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