MARKETING STRATEGIES

Companies are frequently tweaking their marketing strategies.

Reliance Retail – earlier smaller format stores Now, Reliance Retail is building hypermarkets

that are built on about 60,000-80,000 sq ft Stock everything from food to apparel to

furniture.

12 marks

Explain the importance of focus on customer relationship in retailing industry ?

Retail sector highly competitive Impact of FDI in Retail Customer tastes, preferences dynamic Motivation of service staff vital Important to go one step above customer

satisfaction Need to make every experience memorable for the customer Lack of focus will lead customers to defect to

competition.

Retail sector is one where people involvement is high. Do you agree ?

The physical evidence (tangibles) play a role too (example – the way items are arranged in a shelf, ease of tracing items).

Customers expect “offers” from retail marketers – discount schemes, loyalty bonuses.

Retail sector needs processes too. These processes need to lead to customer

satisfaction. Quality of products, services & Service encounters Reliability of service Responsibility of front line staff Process to address customer complaints Process for billing and managing the queue Process for security surveillance Payment options – cash / credit card

Does this need a process ?

Strategic tie-ups with toy makers, Apple, Mobile phone companies.

Intense competition Merge loss making entities Consolidate Bargain for cheaper rentals of retail malls Recruit frontline employees based on

psychological factors

Buy real estate at cheaper prices one to one marketing communication with

the customer – customer expectations are dynamic.

Need for aggressive marketing – rifle and gun approach (target customer)

Plan marketing budget in a way that it generates highest rate of return

marketing plans designed to fill market needs and reach marketing.

Plans and objectives are generally tested for measurable results.

Customer is King – in Retail

It is all about experience, experience, experience

Develop merchandise and services that satisfy specific needs of customers, and supply them at prices that will yield profits.

Understand the connections between the lifestyle and expenditure characteristics of customers

Why do customers purchase one product or

brand over another

Leverage this understanding for competitive advantage.

Improve direct marketing response Targeting the right households at the right

time Use the right media with the right message. Leverage current consumer data to make

better strategic decisions about products, marketing and locations.

Using a scientific, data driven approach to CRM.

Implement projects to understand customer, market and store locations better;

Estimate the revenue potential of your customers to determine their current, potential and life-time value

Estimate your market potential for more effective acquisition initiatives

Quantity and qualify your market opportunities.

A Better understanding of who your customers are , use it to identify your

market potential. Understand customer groups Understand market segments Customize your products / services

Acceptance by the retailer that it is the "customer“ and not "demand" that lie at the core of the retail organization.

Focus on demographics, geographic convenience, time convenience

Rapid changes in information technology. A convergence of electronic methods and

traditional methods of Retailing.

Heoxard Berry describes five important actions for Retailers.

Solve customer's problems. Treat customers with respect. Connect with customer emotions. Set the fairest (not the lowest) price. Save customer's time.

The old marketing concept will need to be modified from "satisfying" customers to "wowing" customers.

Use of advanced computer systems to enhance their ability to understand, communicate with and evaluate their market place and to anticipate and respond to their customer's needs

Using bar code scanners at check out points to gauge the types of product their customers are buying.

Internet used to buy products

Retail innovators appear as low – price operators with low-profit margin requirements.

Over time, these innovators upgrade the products and charge a high price.

Train the sales force Improving locations, upgrading fixtures, accept

credit cards These improvements lead to higher cost which lead

to higher prices.

Customers are looking for convenience in shopping.

Research important : example : Mega Mart – Slim Fit, flat discount rate

Consumer spending will increase Time available for shopping will go down So, shopping has to be an experience Successful retailers will be those that will provide

faster service.

To succeed in retailing. Retailers must anticipate and adapt to

change. Thus retail marketing strategy would not only

yield benefits for consumers, but also manufacturers and wholesalers.

It also creates economic utility.