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Identify Process of New Developments in Retailing Marketing Strategy
Everyone wants to be the best at what they do. To be the best at what you do, you need to stay on top of what is trending and hot in the market. To have an effective marketing strategy of your product or business you need to instill the retailing mix into your daily business life. ‘The retailing mix consists of six Ps: the four Ps of the marketing mix (product, place, promotion, and price) plus presentation and personnel.” (Charles, Joseph & Carl, 2009, p. 377)
“The combination of the six P's projects a store’s image, which influences consumers’ perceptions. Using these impressions of stores, shoppers position one store against another. A retail marketing manager must make sure that the store’s positioning is compatible with the target customers’ expectations… retail stores can be positioned on three broad dimensions: service provided by store personnel, product assortment, and price. Management should use everything else—place, presentation, and promotion—to fine-tune the basic positioning of the store.” (Charles, Joseph & Carl, 2009, p. 377)
To be successful in business you have to know how to use the six P's successfully. Throughout the remainder of this article I will describe how someone can be successful by using these six P's. To begin any business venture you would need a product to sell to the public. This is also called the product offering or merchandise mix. The best approach to find out what the public needs is to base their decision on market research, past sales, fashion trends, customer requests, and other sources. In order to get the best product possible you would really need to do some research to see what the public needs, even though a specific liquor store may be hot in Wyoming it may not do that well in Utah. You need to bring in what the public wants not what you think they need. Once you found a product to sell the next step is to find a location or place.
The retailing axiom “location, location, location” has long emphasized the importance of place to the retail mix. The location decision is important first because the retailer is making a large, semi-permanent commitment of resources that can reduce its future flexibility. Second, the location will affect the store’s future growth and profitability.” (Charles, Joseph & Carl, 2009, p. 379) Some types of stores may generate better sales if they are located next to other business; like cell phone stores. But with stores like Rite-Aid and Walgreens they are better to have by themselves. That way they have no competing business to go against. Now having a product and a location it’s time for you to promote your product.
Promotion strategies can be used in many different ways. A few of the different strategies you can use to promote your business are to design intriguing ads, stage special events, and develop promotions aimed at the target market. The purposes of doing promotions such as this to it instill in the minds of the customers that you are there and you have something to offer to them.
By this point you have a product to sell, a place to sell them and customers coming in the door. What follows next is to set a retail price for the merchandise you plan on selling to them. That price that you sell the merchandise at should be profitable for you but also affordable for the customer as well. To find out this price you need to do tests with your customers on what will sell and make you money and also save them money from having to go to a different store to get them. Usually you can decipher the right price for your merchandise relatively fast, by what price point sells and what does not sell.
With these four points of the retailing mix you have established a working business with products and customers. The final two P’s of the retailing mix are presentation and personnel. These two P’s go hand in hand in my opinion. In order to have the right presentation of the product in your store you have to hire the right personnel and train how you want the presentation to be. You would have to know what would sell well by the other. For example; for a supercenter it wouldn’t be a good presentation if you would put the printer paper next to the shampoo. But it would be a good presentation if you put the printer paper next to the printers. These two P’s are something that you can perfect over time. In this ever changing economy something that worked five years ago may not work today. So with this continual training you can always be on top of what your customer wants and most of all what they need.