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What are the Elements of Retail Marketing?

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Elements of Retail Marketing

Merchandise range and assortment:

All types of retailers (large or small) have to take decision about merchandise range and assortment. They have to decide what types of product and services they want to offer to the customers. They have to select appropriate product line, wide of product line, depth of product line (Welham, 2003). For example Tesco has different types of retail store. Among them only discount store offers more then 1, 20,000 items, Tesco supercenters offer 142000 different items Tesco neighborhood markets offer about 29000 items (Tesco, 2015).

Retail communication:

 It is compulsory for a retailer to make a strong communication with its customers or consumers because retailing is the last stoppage where a businessman deals with the ultimate customers. Retailers can collect raw data about customers directly. They can supply these data to the wholesalers, distributors, even manufactures. Based on these data manufactures can modify their product so that they can serve the consumers more effectively. On the other hand, customers can send their opinion, objection and any kind of information to producer through retailer more easily (Ensaff and Rooney, 2010).

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Store layout, design and visual merchandising:

Store layout, design-decoration and visual merchandising play a vital role in retail marketing mix. A perfect store layout, effective traffic and product flow design, attractive decoration and visual merchandising easily attract target customer (Welham, 2003).

Customer service and facilitating service:

Now-a-days a retailer who sells physical goods not only gives emphasis on the amount and quality of products but also gives equal emphasis on customer service. Modern retailers always want to provide maximum service to its customers. In this sophisticated business era, it is proved that better customer service not only attract new customers but also convert them into loyal customer more rapidly.

Pricing strategy and tactics

Pricing is the only element in the retail mix that bring profit to the firm, so every retail firm needs a sound pricing strategy. The pricing strategy must be consistent with the retailers overall image, sales, profit, and return on investment goals. There are three basic pricing options for a retailer namely discount orientation, at the market orientation and upscale orientation.

The extent to which the retail mix provides a basis for sustainable competitive advantage

Sustainable competitive advantage refers to a long lasting competitive advantage that cannot be easily imitated by the competitors (Kotler and Armstrong, 2012-13). Without a clear sustainable competitive advantage no retailer can’t dominate or profitably survive in this competitive retail market.  Tesco has some strong competitive advantages that make them market leader. Their retail mix provides a strong base for this competitive advantage. We can analyze this statement by looking deeply at the every single retail mix of Tesco. At first consider the huge amount of the merchandise offered by the Tesco. We can strongly say that no other retailers can offer this amount of merchandise and it gives Tesco tremendous sustainable competitive advantages. Let’s look at the  departments of the Tesco that offers various products , the departments are namely- auto and tire, baby, beauty, books, cell phone, clothing, electronics, funeral, food, furniture, gift, health, home improvement, household, jewelry, movie, music, office, party and occasion, pet, pharmacy, photo center, sports, toy and video games(Tesco, 2014).

Now we can analyze Tesco’s retail communication strategy in terms of sustainable competitive advantage. Tesco Is one of the largest corporations of the world and its superb communication strategy has made it possible. Tesco is connected its suppliers with a well-established intranet. It relays much on the digital technology to communicate with its customers (Gilbert, 2010). They are utilizing satellite channels and social Medias to communicate with their customers. They are delivering customizing messages to their highly targeted customers as well as their creating online community.

Challenges to continued international growth that may be faced by the retailer.

We know that PEST is an acronym that stands for political, economic, social and technological factor (Sullivan and Adcock, 2010). While perusing international growth Tesco can confront new challenges in terms of these political, economic, social and technological factors. The firm may see political barrier while entering into a new region. Government can charge extra tax or government can decide pricing limit or any other restrictive condition to protect their domestic firms. Economic barriers are many. Different countries have different economic system so the firm must consider its impact before entering into a new market.  Now a days the world’s economy is not very much stable, so entering into a new market by committing huge resources Is not free from risk. The host country’s economy may deteriorate or shortage of foreign exchange may impede the development. Challenge may come from the social factors also, the retails firms has its own culture and may be in conflict with the home country’s culture so a careful analysis of the other countries culture is necessary. Not every country is equally developed in terms of technological development. So Tesco cannot maintain the same standard in the technological field. It may be necessary to adapt their operational process.

References

  1. Ensaff, N. and Rooney, A. (2010). Retail. London: Evans.
  2. Gilbert, D. (2010). Retail marketing management. New Delhi, Harlow: Financial Times/ Prentice Hall
  3. Kotler, Armstrong and Agnihotri (2012-13). Principles of Marketing. 13th edition. Pearson Prentice Hall.
  4. Sullivan, M. and Adcock, D. (2010). Retail marketing. London: Thomson.
  5. Tesco, (2014). Tesco. [Online] Available at: http://Tesco.com [Accessed 17 Oct. 2014
  6. Welham, J. (2003). Retail. London: LexisNexis UK.

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