In 2020, the global retail industry underwent changes as customers chose to stay at home due to the coronavirus pandemic and turn to online shopping. Brands around the world had to adapt and work on bringing a unique experience to their consumers. Their attention was mostly directed toward the online experience, but they also focused on brick-and-mortar stores and how they could make in-person shopping possible for their customers during the global pandemic.
Although we mainly talked about online shopping, the truth is e-commerce accounts for 14% of global retail sales. This figure is expected to reach 22% by 2023. But it’s obvious that a huge portion of retail sales comes from people visiting shops and making a purchase there, which means physical stores aren’t going anywhere just yet.
Whether selling their products or services online or in person, brands invest a lot of money in advertising.
Indeed, in this consumer-driven world, we encounter messages everywhere which try to convince us to buy one product or another. As competition for consumers’ attention mounts, retail marketing is becoming more challenging. Retailers pull out all the stops to get prospects to click the “buy” button or visit their shops. Some of their efforts prove successful, while others don’t.
So, what can your business do to encourage customers to purchase from you?
Well, it all starts with an effective retail marketing strategy that can increase brand awareness and build trust in your products or services.
In this article, we’ll give you some tips that can improve your strategy and go over other important things!
What Is Retail Marketing?
First things first, what is retail marketing? Let’s have a look.
Retail marketing refers to the process by which businesses promote their goods and services to their target audience in order to increase awareness, build trust, and generate sales. Basically, retail stores make it possible for end users to find goods they’re looking for and buy them in one place. But with so many shops available, it’s difficult to cut through the noise and attract customers.
For this specific reason, businesses develop their own retail marketing strategy that can help them stand out in the market. In most cases, they focus on launching advertisements that catch the eye of their potential customers.
Today, there are numerous ways a retailer can market its products or services. Some of these efforts are free, while others are paid. For instance, they can focus on traditional marketing (e.g. TV ads, billboards, cold-calling) or digital marketing (e.g. Instagram Stories, Facebook Ads, video ads). All of this can get customers to notice your business and purchase from you.
Therefore, as a retailer, your goal is to motivate consumers to come to your store (be it online or physical) and buy a product or service to increase sales. While doing that, you should focus on the four important components of retail marketing strategy.
What are those components? Let’s see!
The Four Ps of Retail Marketing
The retail industry has grown so much over the years. In fact, it is the largest private-sector employer in the USA. Additionally, this industry generates trillions in revenue. In 2018, the overall revenue from retail sales in the USA was $6 trillion. This figure increases every year, proving how important the industry is today.
But to find some success in this industry, your business needs to devise an effective retail marketing strategy. Before you start planning how you can improve your retail business, you should be aware of the four essential factors here. Specifically, we’re talking about the four Ps of retail marketing:
We’ll see what they entail below.
Product
The most important retail component is, of course, a product. You first need to have an actual product to sell before working out your marketing tactics. Whether you manufacture these goods on your own or purchase someone else’s, your business should have merchandise to offer if you want to attract customers.
What’s more, your retail stores may sell two types of merchandise. The first one is hard (also known as durable) goods like appliances or electronics. Then, the second one is soft goods such as clothing or cosmetics. Of course, you can offer a combination of these types or just opt for one.
Additionally, you must find a way for customers to hear about the products you sell. Perhaps they’ll get informed through word-of-mouth communication or paid advertising — it’s just crucial that they do hear about your business and goods.
Let’s take a look at the second component before we discuss tips for your retail marketing strategy.
Price
You can’t launch any marketing campaign or think that customers will notice you if you don’t advertise the price of your products. After all, 78% of consumers spend more time researching a brand or product online than in a store. This means that they’re probably comparing the prices between different businesses before deciding where they’ll make their purchase. Ensure that you’re as straightforward as possible!
Wondering how to set the price for a product? Well, the price of a particular product must reflect its real value. But you should also take into consideration supply costs, discounts, and competitors’ prices. Marketers should decide when and if discounting is appropriate for the product they’re selling. Naturally, goods at reduced prices may draw in more customers, driving traffic to your website and generating sales. Consider discounts while developing your retail marketing strategy!
Place
The third component is place which refers to the location, platform, or marketing channel used to sell your products or services. You can have the best goods in the whole world, but if they’re inaccessible to your customers, you’re out of luck. Place your products where consumers are the most likely to buy them!
Furthermore, you should place a product in your stores where it’s easily visible to your visitors. Of course, you should also include it in a store’s display where it can lure consumers to come into your store and see what you have to offer. Additionally, you can add the product to your e-commerce website and inform your customers about it on social media.
Promotion
Promotion is the last component of retail marketing. This is where the retailer invests time and effort into getting the word out about their products or services. It’s all about communicating with your target audience and sparking their interest in what you have to offer.
Moreover, promotion can include anything from traditional advertising to influencer marketing. It means working both online and offline to ensure your business stands out and gets the attention it needs to increase sales and customer base. In all forms, successful promotion requires an understanding of your target audience and what the best ways to reach them are.
Now that we know what these four principles mean, it’s time to move on to tips on improving your retail marketing strategy.
Let’s see what we’ve prepared for you.
Tips for Improving Your Retail Marketing Strategy
If you want to successfully execute your retail strategy, you need to pay attention to all four Ps. Monitoring these components and ensuring they work well together is paramount if you want to get noticed in the market. Apart from focusing on the 4 Ps of retail marketing, you should follow the below tips as well.
Analyze Your Target Audience
Want to have an effective retail marketing strategy? Then you should analyze your target audience to better understand what they like and how you can engage them. Developing a buyer persona can help you see who your ideal customer is. When you have this information, it will be easier to plan your campaigns and create content that your consumers will notice on the streets, social media, or elsewhere.
Leverage the Store Assets You Have
Before trying out any fancy retail marketing tactics, you should leverage the assets you already have. If your store is open, there’s a chance you have resources that you can use in your marketing efforts. Which assets should you leverage with your retail marketing strategy?
For instance, you can start with your merchandise. After all, the best way to attract and convert customers is with the help of amazing products. Always stock the right goods your consumers like to purchase. When you have the products, you can come up with creative displays and arrangements to make them pop.
Join Social Media
Social media is popular now more than ever before. With more than 3 billion users around the world, these platforms help brands connect with their target audience and showcase content that may move customers down the sales funnel. Therefore, you shouldn’t neglect these networks if you want to catch attention with your retail marketing strategy.
Focus on Email Marketing
Email marketing has been one of the most effective marketing channels for years now. In fact, it can deliver an average ROI of 4400% if done right. How can you use it in your favor?
The best way to use email marketing if you want to attract new customers is to segment subscribers who haven’t purchased from you yet. In this case, you can send them targeted campaigns with offers or giveaways.
Want to showcase your story and values? You can do that through emails as well! Send emails that detail your brand story. This will get people engaged with your brand and encourage them to relate to your values.
Consider Social Media Influencer Marketing
Social media influencers can make or break your brand. Today, having an endorsement from an influencer has a bigger impact than traditional advertising. Why? Because people are more likely to make a purchase after hearing a recommendation from someone they know and trust.
For this reason, investing in influencer marketing is a good move. Getting popular individuals to recommend your brand can drive traffic, increase awareness, and generate sales.
