Marketing has always been one of the most important facets of a business. It allows you to reach more customers, thereby increasing your profits. However, marketing is in no way a walk in the park.
For one, you’d have to consider which strategy to use that’s most suitable at present, but due to the ever-changing nature of the business industry, sticking to one marketing strategy is often not a good idea. That’s why newer strategies, such as paid advertising and social media marketing, are introduced every year. Nevertheless, a few marketing strategies have stayed relevant all these years, one of which is retail sales marketing.
What Is Retail Sales Marketing?
Perhaps because of its name, retail sales marketing is often seen as a marketing strategy exclusive to retail stores, but that’s not true. To begin with, ‘retail’ generally refers to the process of selling goods and services to the public, which most businesses are doing right now, whether it be online or offline. Examples of popular retailers include Walmart, Costco, and Amazon. Taking that into account, retail sales marketing pertains to any tactic used by retailers to attract customers and spread awareness of a business’ goods and services.
Most retailers create their own marketing framework, while others simply consult with agencies like Red Brick Retail. Nevertheless, while retail sales marketing is similar to other strategies, it carries a distinct characteristic. Specifically, retail sales marketing focuses on four key components, or what they call the 4Ps:
Now you might have a few questions in mind. What makes these four factors special? How can they increase a business’ profits? But most importantly, what should you do to enjoy the same benefits? To answer those, here are some of the most common retail sales marketing tactics used by large retailers:
1. Product Development
The first key component of retail sales marketing is product. If you want to market your business offerings, you must first ensure that your product is of value to customers. One way retailers fulfill that condition is through product development.
Product development pertains to the process of creating new products or improving existing ones so they conform to the public’s current needs. You must ensure that your products aren’t inferior to that of competitors and aren’t out of date. You should also come up with better branding and packaging that would attract customers. In other words, if you can heighten the appeal of your products, you can increase the number of your customers and, consequently, your sales.
2. Pricing Strategies
Once you’ve chosen the product you’ll offer to the public, the next step is to decide on the price for which you’ll offer those items. Generally, you need the price to cover the cost of the goods as well as other expenses or the overhead costs. As for how much you’ll add to the price for profit, there are three pricing strategies you can use:
- Everyday Low: This tactic involves always selling your products at the lowest possible price, which may push buyers to constantly purchase from your business.
- High/Low: High/low pricing is when you sell a product at a high price initially and sell it at a lower price once the item becomes less relevant.
- Competitive: Competitive pricing involves making your product’s price lower than that of your competitors, thereby attracting the competitor’s customers.
With the right pricing strategy, you can push consumers to purchase from your business and choose your products instead of your competitors’, both of which will increase your profits.
3. Distribution Channels
The next element of retail sales marketing is place. For this component, a retailer considers how they want the product to reach the customer. One effective tactic for this component is to ‘be where your customers are.’ Since your customers are most likely active on the Internet, your best bet would be to focus on using the Internet as your primary distribution channel.
Doing so will allow your customers to purchase your products conveniently, and you should know by now that convenience always drives sales.
4. Prospect Communication
The last key component of retail sales marketing is promotion. Your main goal for this part is to make sure the public is aware of your business offerings, and you can only accomplish that by communicating with your prospects or potential customers.
This can be in any form—text messages, emails, or calls via their smartphones. Once you’ve established clear communications with your prospects, turning them into customers shouldn’t be a problem, assuming your products are legitimately of value to them, your prices are reasonable, and people can purchase your products with ease.
At first glance, you’d think that retail sales marketing isn’t suitable for your business, but in reality, it’s a marketing strategy that you’ve probably been inadvertently using for the past few years. If you want to fully commit to this marketing strategy, this guide should be enough to get you started.